Experience of European pension systems reforming and the possibility of its use in the Russian Federation

Abstract

In recent years, after the World Bank publication in 1994, there has been much discussion about pension systems reforming. A key issue considered by World Bank was increasing life expectancy and projected pension resources shortfall. Since 2000 the European Commission actively participates in the process of reforming pension systems in European Union (EU) member States. The aim of the study was to develop concept for further reforms of the Russian pension system based on the experience of EU. The need for Russian pension system change is due to increasing maintenance costs, dependence on budget revenue and participant contributions, low level of total pension system assets and anticipated growth deficit of the Pension Fund of the Russian Federation. Increasing and equalization of the retirement age between men and women, increasing contributions of employees for funded pension, lifting of the moratorium on the transfers to non-state pension funds and further development of individual supplemental pension (non-governmental) were identified as major proposals for priority directions in improving Russian pension system, based on EU experience. Refs 26. Figs 4. Tables 7.