Russians skeptical about pension reform.

NALCHIK, December 18 (Itar-Tass) -- Most Russians are skeptical about
the pension reform and refuse to co-fund their pensions jointly with the
government, Pension Fund chief Anton Drozdov admitted on Thursday.
The reform gives the Russians a chance to increase their future
pensions by annual voluntary contributions. The government will double the
amount if it is between 2000 and 12000 rubles (70 - 400 dollars). However,
according to acting legislation, pensioners can get the co-funded money by
installments in 19 years after retirement and no right to bequeath is
envisaged.
"It is a new business. We have to explain it to citizens," Drozdov
told a meeting of his fund in Nalchik, North Caucasus.
He said close to two million Russians applied to participate in
co-funded pension program, but their average per capita contributions were
low at only 3,100 rubles (100 dollars). Total contributions comprised
close to 1.9 billion rubles.
Drozdov admitted 71 percent of the applicants did not pay
contributions at all. In Moscow and the surrounding region, as well as in
Dagestan, Udmurtia, Vologda and Novosibirsk regions only ten percent of
applicants remained in the program. Some people contributed less than 2000
rubles, which is below the government co-funding limit.
"Even after applying the citizens are not always ready to pay,"
Drozdov admitted.
Russian media reported this week a lawbill had been submitted to the
State Duma allowing pension co-funders to use the money in five years at
their own discretion and instituting the right to bequeath personal
contributions.
"It is a very profitable program, which allows to double the
accumulative part of the pension. It aims to make Russians plan their
incomes before retirement," Drozdov said.
Pension age in Russia is 60 for men and 55 for women.
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