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Pension Fund of Russia PFR

Company

Number of employees
2017 year
114300

Owners

Informatization

Main article: Information technologies in the Pension Fund of the Russian Federation.

Pensions in Russia

The pension system of Russia is considered in the article "Pensions in Russia."

History

2022

The number of Russians who transferred from the Pension Fund of the Russian Federation to the NPF reached a historic minimum over the

Level of transitions from the Social Fund of Russia (EMF; until 2023 - the Pension Fund of Russia) in non-state pension funds (NPFs) in 2022 fell to 9.2 thousand people, according to data from the Bank of Russia. This is the minimum figure for the history of calculations. The previous record low number was recorded following the results of the 2020 transition campaign (then 15.8 thousand citizens returned to the FIU), Frank Media notes. Read more here.

Putin signed a law on the merger of the FIU and the FSS

In mid-July 2022, Russian President Vladimir Putin signed a law merging the Pension Fund (PFR) and the Social Insurance Fund (FSS) into a single Pension and Social Insurance Fund (Social Fund of Russia). Read more here.

FIU will enter the Social Fund

On April 26, 2022, it became known about the order of Prime Minister Mikhail Mishustin to create a single pension and social insurance fund. According to the press service of the Cabinet, combining the functions of the Pension Fund and the Social Insurance Fund will make receiving social payments faster and more convenient for citizens. Read more here.

2021

The founder of the Pension Fund of Russia was the Ministry of Labor and Social Protection of the Russian Federation (Ministry of Labor of Russia).

Decrease in income by 5%, to 9.69 trillion rubles

The total budget revenues of the Pension Fund of Russia (PFR) at the end of 2021 reached 9.69 trillion rubles, which is 5% less than a year earlier. This is evidenced by the data of the Federal Treasury, released in February 2022.

The share of transfers from the federal budget in the total revenues of the FIU in 2021 amounted to 38.5%, which corresponds to 3.77 trillion rubles. The share of transfers intended for the payment of insurance pensions in the PFR's income amounted to 15.9% at the end of 2021, the Accounts Chamber noted. According to RBC, this is 8.9 percentage points less than the same indicator for 2020 and the lowest value since at least 2012. In absolute terms, in 2021, 1 trillion rubles less was allocated for these purposes than in the previous one: the total amount of allocations for payments of insurance pensions amounted to 1.55 trillion rubles.

FIU spent record little federal money on pensions in 2021

Reducing the main transfer was helped by premium fees, which were ahead of the forecast plan by 9.5%. In 2021, taxable incomes of the population increased by 13.6% in annual terms, to 29.6 trillion rubles. At the same time, the number of pensioners decreased against the background of pension reform and an increase in mortality from the coronavirus COVID-19. For the nine months of 2021, pensioners decreased by 874,000 people (in 2020, the reduction was 594,000, in 2019 - 369,000). Deaths compared to 2020 increased by 274,000 cases, or 19.6%.

Professor of the Financial University under the government, Alexander Safonov, linked the reduction in the share of transfers to insurance pensions from the federal budget with the following factors:

  • freezing pension savings;
  • an increase in the collection of insurance premiums;
  • growth of nominal salaries;
  • reducing the number of pension recipients due to pension reform;
  • super-mortality against the background of a pandemic.[1]

Ex-deputy chairman of the PFR Ivanov and ex-manager of Technoserv Kopeikin received 4 years of strict regime for corruption

In September 2021, the Lefortovo Court of Moscow issued sentences in a criminal case on corruption to the former deputy chairman of the board of the Pension Fund of the Russian Federation Alexei Ivanov and ex-director of the department for work with state bodies "Technoserv" Alexei Kopeikin. The Lefortovo court told TAdviser that they were sentenced to imprisonment for a period of 4 years with serving in a maximum security correctional colony. Read more here.

Yaroslav Omelay - the new deputy chairman of the PFR board

On August 10, 2021, it became known about the appointment of Yaroslav Omelay as Deputy Chairman of the Board of the Pension Fund of Russia. The corresponding government order signed by Prime Minister Mikhail Mishustin was published on the official Internet portal of legal information. Read more here.

Pension Fund - Social Treasury Provider

The concept of digital transformation of the social sphere, approved by the government in March 2021, describes the principles of the transition to the provision of regional and municipal social support measures in the Social Treasury format. The social treasury provider in the concept is called the Pension Fund.

Appointment of Andrei Kigim as head of the FIU

On February 12, 2021, the Government of the Russian Federation announced the appointment of Andrei Kigim as the new head of the Russian Pension Fund. In this position, he replaced Maxim Topilin. Read more here.

Deputy Chairman - Curator of Digitalization Vadim Akkuzin quit

On January 18, 2021, Prime Minister Mikhail Mishustin signed an order to release Vadim Akkuzin from the post of Deputy Chairman of the Board of the Pension Fund. In this position, he oversaw the digitalization of the FIU.

2020

Ex-heads of IT divisions of the Pension Fund extended pre-trial detention center until April 2021

The Basmanny Court of Moscow extended the terms of detention for 3 months, until April 9, 2021, to six persons involved in a criminal case on corruption in the FIU:

Read more here.

Adopted budget for 2021-2023 with a deficit of 494 billion rubles

In November 2020, the State Duma adopted a law on the budget of the Pension Fund of Russia for 2021-2023, with a deficit of 494.84 billion rubles.

  • By income in the amount of 9 trillion 101.84 billion rubles (7.9% of GDP);
  • In terms of spending - 9 trillion 596.68 billion rubles (8.3% of GDP).

Zhirinovsky: PFR will disappear due to digitalization

At the end of November 2020, Vladimir Zhirinovsky predicted the liquidation of the Russian Pension Fund. According to the leader of the Liberal Democratic Party, the need for such a structure will disappear due to the large-scale introduction and use of information technologies.

File:Aquote1.png
The pension fund is likely to be abolished. This is a huge number of officials, premises. This is a huge bureaucratic structure, and pensions (will) be paid directly to citizens, such digitalization, the movement of money around the country, RIA Novosti quotes Zhirinovsky.
File:Aquote2.png

This statement of the deputy was commented on in the Federation of Independent Trade Unions of Russia (FNPR). The secretary of the organization, Igor Shanin, said that pensions should replace at least 40% of the salary.

Vladimir Zhirinovsky predicts the abolition of the PFR due to cyrovization
File:Aquote1.png
This means that this is all again trash talk and chatter, which must be stopped and dealt with specific things... Let's bring replacement to at least 40% of real earnings, and then we will think about what permutations to make again, "he said, adding that it is necessary to radically solve the issue of low earnings among the bulk of people, who are payers to the tax and insurance systems.
File:Aquote2.png

In August 2020, the Accounts Chamber conducted an audit of the work of the Pension Fund and found errors in the system of personalized accounting for the rights of citizens, which often lead to their violation. Also, cases of payment of pensions after the death of the recipient were revealed - due to the fact that the data were not received by the Pension Fund on time.

After that, State Duma deputy, leader of "Fair Russia" Sergei Mironov also proposed to liquidate the Pension Fund and pay pensions directly from the budget. Mironov called bankrupt the current pension system, which cannot provide "decent pensions." According to him, in 2022 the average funded pension will not exceed 1.3 thousand rubles.[2]

2019: Medvedev fires PFR deputy head Alexei Ivanov over loss of trust

On August 19, 2019, Prime Minister Dmitry Medvedev signed an order to dismiss due to the loss of confidence of the Deputy Chairman of the Pension Fund Alexei Ivanov, who had previously been arrested in a criminal bribe case. Read more here.

2017: Areas of activity

  • Personalized Rights Accounting
  • Appointment and payment of pensions (42.9 million pensioners at the end of 2017)
  • Maintenance of the maternity capital program (7.6 million holders of a certificate for maternity capital, data from 2017)
  • Appointment and financing of social benefits (21.5 million recipients of social benefits at the end of 2017)
  • Formation, appointment and payment of pension savings
  • Subsidizing social programs of the constituent entities of the Russian Federation

2015: Headcount

PFR budget

2022: Record surplus of 1.1 trillion rubles

The budget of the Pension Fund of Russia (PFR), with a projected deficit of about 122 billion rubles by the end of 2022, was executed with a surplus of 1.1 trillion rubles. Such data in April 2023 led to the Accounts Chamber (JV) of the Russian Federation.

It is noted that in 2022 the fund's budget received 12.5 trillion rubles - 27.4% more than in the previous year. Including by 63.8% increased the volume of interbudgetary transfers. The Accounts Chamber explained that this is due to an increase in the cost of paying pensions and other social payments, as well as with the new powers of the FIU to pay benefits to families with children.

The current surplus turned out to be a record for the FIU, despite the fact that, according to the law on the fund's budget, the authorities expected a budget deficit of 122.4 billion rubles. The surplus has developed due to an increase in the transfer from the federal budget by 70% to the planned level, according to the materials (joint venture).

Receipts of insurance premiums, despite a delay for a significant part of the business, reached 6.2 trillion rubles, which is 3.7% higher than the result of 2021. Their share in the total income of the FIU decreased by 11 percentage points, to 49.7%.

Receipts of fines, sanctions and compensation for damage also increased - 23 times compared to the previous year, to 48.8 billion rubles. As RBC explained in the Accounts Chamber, such an increase was associated with the seizure by the Federal Bailiff Service of funds received as a result of various corruption offenses. In addition, the PFR's revenues from the use of state property increased by 26%, to 40.3 billion rubles.

The increase in expenses, in turn, was associated with the implementation by the FIU of social guarantees for pension provision and other measures of social support for pensioners and families with children, the Accounts Chamber points out. Thus, spending in the direction of "Protection of Family and Childhood" amounted to 1.03 trillion rubles, which is 64% more than the indicator established by the law on the budget of the FIU for last year.[3]

2020

Budget hole of 44% of spending

The coronavirus pandemic and the fall of the economy caused a serious injury to the budget of the Russian Pension Fund. At the end of 2020, the FIU was unable to fulfill the plan to collect social contributions from working citizens and recorded a sharp increase in the "hole," the size of which reached almost half of the fund's expenses.

Mass layoffs, non-working days and the departure of business into the shadows led to the fact that the number of citizens paying contributions to the FIU collapsed by 4.5 million people - from 73.708 million at the beginning of the year to 69.206 million by its end.

As a result, the fund did not receive 210 billion rubles compared to the updated forecast of its income, the Accounts Chamber reports in its conclusion on the report on the execution of the PFR budget.

In total, the FIU received 5.459 trillion rubles of insurance and premiums (+ 50 billion rubles by 2019). The fund received another 45 billion rubles from property management, paid services, as well as sanctions, fines and damages.

The total amount of the PFR's own tax and non-tax revenues amounted to 5 trillion rubles. At the same time, expenses turned out to be 4.223 trillion rubles higher.

This "hole" in the PFR budget increased by almost a third, or 1 trillion rubles, compared to last year and amounted to 44% of the fund's expenses. In other words, almost every second ruble paid by the FIU was not covered by fees for social contributions, income from investing savings or paid services. In total, the fund spent 9.727 trillion rubles in 2020, of which 9.584 trillion went to pensions, benefits and other payments to the population, and the balance was mainly for the maintenance of the FIU itself.

Although the number of recipients of old-age pensions decreased by 458 thousand people, by disability - by 27 thousand, and on the occasion of the loss of the breadwinner - by 2.4 thousand, the fund's expenses for payments increased by 1.1 trillion rubles, of which more than half - 649.6 billion - went to additional measures to support families with children as part of presidential decrees.

As before, the FIU cash gap completely covered the federal budget. He transferred 4.798 trillion rubles to the fund - 44% more than a year earlier.

The transfer not only fully compensated for the "hole," but also left a "surplus" of 575 billion rubles in the accounts of the fund, which allowed him to formally report on the budget surplus.

Pension Fund will receive a record 4 trillion rubles from the budget

On June 25, 2020, it became known that the Pension Fund of Russia (PFR) in 2021 will receive 4.12 trillion rubles from the federal budget. The state has never allocated such a large amount.

According to RBC with reference to the draft budget of the FIU, the share of federal money in the fund in 2021 will be 42.6%. This is a record figure since 2017. In 2022 and 2023, the government will allocate 4.3 trillion rubles to the Pension Fund, the share in total income will exceed 40%. Prior to that, since 2017, the PFR's dependence on federal budget subsidies has consistently decreased from 45% to 36%.

The Pension Fund of Russia in 2021 will receive 4.12 trillion rubles from the federal budget

The federal budget in 2021 will increase subsidies to the Pension Fund of Russia by almost 1 trillion rubles compared to the legally approved indicator of 2020.

In 2021, almost 21% of all federal budget expenditures will be sent to the Pension Fund. The Ministry of Finance proposes to fix budget expenditures in 2021 at the level of 2020 - 19.7 trillion rubles (this proposal was included in the national economic recovery plan presented in early June). For comparison, in 2019, 18% of all federal budget expenditures were transferred to the Pension Fund.

The draft main characteristics of the budget of the Pension Fund of Russia were prepared on the basis of the May macroeconomic forecast of the Ministry of  Economic Development, the final version of which was not approved by June 25, 2020. Amendments to the FIU budget have not yet been made. As the newspaper notes, the revision of plans was required due to the expected decrease in receipts from insurance premiums due to the crisis and its impact on salaries.

Earlier  , the total rate of insurance premiums was indefinitely reduced from 30 to 15% from salaries above the minimum wage for small and medium-sized businesses. The rate of contributions to the FIU also decreased from 22 to 10%.[4] 

2019

The amount of revenues of the PFR budget for 2019 was predicted at 8 trillion 649.9 billion rubles, the total amount of expenses - at 8 trillion 708.7 billion rubles. According to the documents, the budget was executed on revenues in the amount of 8 trillion 781 billion rubles, on expenses - by 8 trillion 627.1 billion rubles. The amount of interbudgetary transfers received from the federal budget amounted to 3 trillion 308.7 billion rubles. Interbudgetary transfers from the budgets of the constituent entities of the Russian Federation came in the amount of 3.3 billion rubles. In 2019, 8 trillion 404.6 billion rubles were allocated from the PFR budget to fulfill public regulatory obligations. The total budget surplus of the fund for the reporting year amounted to 153.9 billion rubles.

Revenues from investment of pension savings funds transferred by management companies amounted to 33 billion 914.4 million rubles. Revenues from investing funds of the FIU reserve for compulsory pension insurance amounted to 12 billion 446.2 million rubles.

The Government of the Russian Federation submitted in May 2020 to the State Duma a report on the execution of the budgets of the Pension Fund (PFR), the Compulsory Social Insurance Fund (FSS) and the Compulsory Health Insurance Fund (MHIF) for 2019. According to the document, the receipt of confiscated funds received as a result of corruption offenses to the PFR budget amounted[5] 338.6[6] rubles[7].

According to the PFR budget execution report (N962479-7), in 2019, the proceeds of confiscated funds received as a result of committing corruption offenses amounted to 338 million 639.7 thousand rubles.

On January 1, 2019, a law came into force, according to which confiscated funds obtained as a result of the disclosure of corruption crimes, as well as funds from the sale of confiscated property obtained as a result of committing corruption offenses, should be sent to the fund. The forecast volume of revenues in 2019-2024 is 1.8 billion rubles.

Notes