Voluntary participation

• Persons with taxable income, residing in the Russian Federation.

General finances

• Fully funded schemes financed by contribution payments and capital revenues.

Contribution payments

• Persons provide contribution payments; the amounts are determined in accordance with the pension contract based on an individual retirement plan.
• Contribution payments can be paid by employer (in whole or in part) as an employee benefit.¹

State support & incentivising strategies

• Persons are entitled to a social tax deduction in the amount of the pension contributions to a non-state pension fund paid by the taxpayer during the tax period.

• Pension plan providers manage private pension funds and pay benefits directly to person.
• The authorised federal bodies (Ministry of Labour and Social Protection, Ministry of Finance of the Russian Federation) and Central Bank of the Russian Federation regulate, control and oversee the activities of private pension funds.

• Persons who have reached the age of 55 (women) or 60 (men).
• Other qualifying conditions (including other retirement ages) may be provided in the pension plan with the following restrictions: (1) the retirement age cannot be higher than the standard retirement age of the statutory old age insurance pension;  (2) a person can receive pension benefits at an earlier age if he/she has the right to early retirement from the statutory old age insurance pension, the right to a disability insurance pension, survivors' insurance pension or another pension in accordance with the Federal Law ‘On State Pension Provision’.

Pension payments

• Monthly life-long payments or monthly payments for a certain number of years; often pension plans provide the right for lump sum withdrawal of the accumulated capital after 5 years.

Taxation and social security contributions

• Pension payments are not subject to income tax (if a person has paid contributions himself) or social security contributions.

Voluntary insurance

• Employers can voluntarily insure employees who work under harmful and/or dangerous conditions (i.e. groups of workers are determined according to the results of a special assessment on working conditions) with the consent of the employee (as stipulated in the employment contract and in the agreement with the employer concerning the early private pension provision). 

General finances

• Fully funded schemes financed by contribution payments.

Contribution payments

• Contributions are paid by employer and depend on pension contract, minimum amounts: 2% or 4% (depending on degree of hazard) of monthly gross earnings of employee working under hazardous conditions.
• Additional contributions of employees are voluntary if the pension programme of the employer provides such a possibility.

State support & incentivising strategies

• Persons are entitled to a social tax deduction in the amount of the pension contributions in a non-state pension fund paid by the taxpayer during the tax period.

• Private pension funds which are entitled to carry out such activity (concerning early private pension provision) and which registered its rules with the Central Bank of the Russian Federation.
• The authorised federal bodies (Ministry of Labour and Social Protection, Ministry of Finance of the Russian Federation) and the Central Bank of the RF regulate, control and oversee the activity of private pension funds.

• Based on entitlement to the early retirement for hazardous working conditions of the statutory old age insurance pension.
• Conditions are regulated in pension regulations provided in a pension contract

Pension payments

• Primarily based on the amount of contributory earnings, length of contribution period and conditions of the pension contract.

Taxation and social security contributions on pension payments

• Pension payments are subject to income tax; they are not subject to social security contributions.