The bills on funded pensions should be finalized – what is happening now?

The bills on funded pensions should be finalized – what is happening now?

A pension is a state payment can be paid once or repeatedly within a certain time when the payment condition is reached: the age, work experience, disability or other conditions stipulated by law.
On April 29, 2021, 311 deputies voted in favor of introducing a bill on the accumulation and payment of pensions for revision. The aim is to create a structure meets the requirements of:

? Easy

? Economically correct

? Stable and reliable

The bill # 2683 is not very clear to an ordinary citizen. An incomprehensible system and interesting formulations cause negative emotions in ordinary people. Let’s try to figure it out.

The bill on pension savings and benefits proposes and rather prescribes participation not only for workers of all categories, but also for their employers. It means the employer must pay 2% of the employee’s earnings, and the person pays 1% of his salary. In addition, the employee can increase these payments independently. For example, he can pay 2, 3 or more percent of his salary. But it also obliges the employer to increase payments by 3, 4 or more percent.

The law states the “pension” funds are owned by the employee. It will be kept in a separate savings “account”. The money will go to his relatives (heirs) in case of premature death. Such a bill should reduce the cost of maintaining the pension fund, prevent embezzlement of funds from the budget and improve the system of payment of pensions to ordinary citizens. The management of the funds will be entrusted to companies entitled to operate at the second tier of the pension system.

The bill proposes to create a unified state register with such firms. A new system will include the user’s personal account and give the worker the right to choose the type of pension payment. The new bill contains many new terms and new payment systems. The revision of the bill promises to provide for punishment for violations of legislation and to combine existing laws in the new system. The deputies assured the amendment of the law requires about ten working days.