Russia has proposed to introduce a tax rebate for people who make retirement savings. The idea was organized by the Association of private pension funds “the Alliance of pension funds” (ANPP) and the national Association of pension funds (NAPF), as the newspaper “news” . Deduction in the amount of 13% is proposed to accrue from pension savings of up to 400 thousand rubles. Thus, it will be possible to return to 52 thousand rubles from their voluntary contributions. The proposal is already supported in the non-state pension funds. In particular, the General Director of “VTB Pension Fund” (enters into group VTB) Larisa Gorchakovskaya said that such a measure was long overdue.
a letter with a proposal to stimulate the private pension scheme market participants sent to the Central Bank. The document was drafted following the June meeting the Central Bank under the chairmanship of the Chairman of the Bank of Russia Vladimir Chistochina.
the Key sentence in the letter – the introduction of a new pension tax deduction. The opportunity to return to 52 thousands of rubles annually from retirement savings motivates the Russians to save for old age, say the authors.
Now Russia has a social tax deduction from pension savings of up to 120 thousand rubles. Using it, you can return a maximum of 15.6 thousand rubles a year.
“the Current limit of 120 thousand, has not changed for 10 years and just does not meet the needs of our citizens. He is not motivated to save for retirement, – says Larisa Gorchakovskaya, This deduction consists of four components – medical, educational, life insurance and pensions. While medicine and education choose almost all share. In addition, pension insurance is a long – term and predictable, in terms of costs of insurance and the mix of deduction, for example, unanticipated medical expenses is illogical. The selection of individual less – justified and long overdue step.”
As added Ms. Gorchakovskaya, “we fully support the initiative to introduce separate tax deduction for citizens who decided on their own to save for their future retirement”. According to the CEO of the pension Fund, the proposed measures will not only be an incentive for people to make contributions annually, but will also attract new customers. “It means that citizens become more responsible approach to retirement. This will give people confidence in the future and increase the planning horizon for many years to come,” she said.
the authors of the initiative propose to increase the existing limit of 120 thousand to 400 thousand rubles (or up to 6% of salary) and to allocate it in a separate tax��new deduction. The amount of 400 thousand not chosen by chance: the same is the limit for calculating the tax incentives for investments of citizens in individual investment accounts (IMS). Pension self-regulatory organizations believe that investors in MIS and participants of the accumulative pension system needs to provide equal benefits.
in Addition to the tax deduction ANPP and NAPF has proposed to introduce a fixed “pension subsidies” for opening of individual pension plans for certain categories of citizens — the poor, Housewives and self-employed. Such citizens do not have official income or have a low income and do not pay contributions. This practice exists in other countries: when you open a funded pension programs from the regular voluntary contributions the government supports.
the Central Bank reiterated that the proposals of NPF received. Representatives of the Central Bank said that “the discussion of such proposals, it is first necessary to assess the potential effect of their implementation.” In this case the Bank of Russia is ready to further discuss the initiative.
meanwhile, tax issues are the responsibility of the Ministry of Finance. The Agency stated that it did not participate in discussion of offers on development of system of private pension provision.
