A secret pension reform is being prepared in Russia

2021-02-22

In the plan of the Ministry of Finance’s legislative activities for 2021, a bill on a new voluntary funded pension system is included. The draft law being prepared is designated as “secret”. The main idea of ​​the reform is “the possibility of forming additional sources of funding for pension income by citizens at the expense of personal contributions”. Presumably it means that the law is intended to change the current funded component of pension.

In fact, the current system of funded pension was canceled back in 2014, when, due to economic sanctions, a budget crisis occurred in Russia and funds of contributory pensions paid by citizens were used by the Government to plug holes in the state Pension Fund and pay insurance pensions.

Questionable activity around the pension system continues. Obviously, in its current form, it does not suit anyone. Capitalists and the state are not satisfied with the fact that they are forced to spend money on the payment of pensions, although they could have sent them to more useful, from their point of view, things. For example, for the purchase of weapons and the expansion of the military presence of the Russian Armed Forces in other countries. By reducing budget expenditures on the pension system, they can also reduce business taxes. For this, they make continuous attempts to “change” or “reform” the pension system aimed at the gradual abolition of pensions or the replacement of existing insurance pensions with funded ones.

The working people are also not satisfied with the existing pension system. First reason for that – the extremely low, even miserable level of pensions for the majority of retirees. Second – the raising of the retirement age. It is possible to solve these problems by introducing additional taxes on capital, such as a progressive tax, a tax on luxury. This would allow, on the one hand, to increase the size of the pension, and on the other hand, to reduce the retirement age, returning the previous 60 years for men and 55 years for women.

We see that the interests of the working people and the capitalists contradict each other. The advantage of capital is that it is organized, it is under the protection of the state, which has all the means of state coercion and meet with no resistance. Today, capital has the ability to introduce any rules and regulations that are beneficial to it.