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The insurance part of pension increase since August

July 23 2009

On August 1, the insurance portion of pensions in Russia increased by 7,5 percent. Such an order signed by Prime Minister Vladimir Putin. He stated this at a meeting of the presidium of the government.

Pension in this country consists of three parts: base, insurance and accumulative. Basic - guaranteed by the state. Source of funding - the federal budget. This part is installed in a fixed amount for citizens whose seniority of at least five years, depending on age and other factors. Its size is indexed annually.

Insurance part is financed from insurance contributions by the employer. Indexed based on inflation and average wage growth in the country. In this case, the insurance part of personalized, all pensioners, it is different and depends on seniority and earnings.

Cumulative now formed part of people born in 1967 and younger. Financed by employers pay part of the premiums, which account for 6 percent of wages, as well as through its own voluntary contributions.

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