Photo: Anton Belitsky/TASS
Pension funds found a way how to make money in terms of the expected reduction of income. They ask for permission to provide them with social services, to pay for which is planned at the expense of the collected premiums
Pension funds have figured out how to compensate for the lack of influx of new arrivals to the market and the future of mass payments of pensions. They ask the Central Bank and the Finance Ministry to allow them to offer their customers additional services such as insurance, nursing and funeral services.
Proposals to allow non-state pension funds (NPF) to provide clients with VAS contained in a letter from the head of the National Association of pension funds (NAPF) Konstantin Ugryumova in the Bank of Russia and Ministry of Finance. As stated in the text of the letter NAPF (RBC), funds are requested to amend the law “On private pension funds”, to provide customers of additional services: to insure them against accidents, pay for the drugs that provide accommodation in boarding houses, patronage, funeral services.
Under current law, the NPF have the right to attract funds of citizens for their future retirement, invest it in allowed control of assets accounting, pension income and to pay its customers who have reached retirement age, the funds they have accumulated. According to the Central Bank, market participants non-state pension provision on July 1, 2016, was more than 90 funds, which were served almost 7 million people. The amount of pension assets formed at the expense of voluntary contributions of 1.53 million people and contributions for them of employers – 1.04 trillion rubles.
According to calculations Sberbank private pension Fund, the social services may be 30 — 50% of customers NPF. “According to various studies, the level of future pensions is interesting to people to 70-72 years. At an older age is not all can take care of themselves, for example, find and buy the right medicine or to clean the apartment”, — says CEO of Sberbank NPF Galina Morozova.
The funds specify that they are not going to open their nursing home or to hire social workers and doctors. As explained Morozov, NPF prepared at the request of customers to pay for needed social services due to established pension. For example, the Fund may enter into a contract with several nursing homes or private clinics that will provide services to customers of the funds. As a result, pensioners will not have to “look and, in addition, the Fund will monitor its quality of performance”. NPF will also be able to advise clients what kind of pharmacy or a nursing home to choose.
According to calculations Sberbank private pension Fund in the future this will allow to obtain funds through social services to 40% of revenues.
In addition, according to the NAPF, for working in the market of nonstate pension funds need to expand the list of exemptions. Talking about the funds involved with the system of voluntary pension insurance, that is, when contributions for their future retirement pay or the citizen himself or his employer. Now, according to the Deputy Executive Director of NPF “Blagosostoyanie”, the Chairman of the Committee of the NAPF private pension provision Ivan Volkov, the only benefit is the right of the employer to consider the costs of superannuation in the cost of goods and services and do not pay taxes on contributions for pension to its employees. Market participants propose to amend the list of exemptions, increasing the tax deduction for future retirees who are already saving for retirement under a voluntary pension insurance. “Now the legislation provides a tax deduction of up to 120 thousand RUB from wages, if you voluntarily save for retirement. We propose to increase the deduction up to 400 thousand rubles”, — said Volkov. He also added that the market participants intend to achieve from the regulator for granting exemptions for personal income tax for those retirees, the premiums for which are paid by the employer or his family.
“Now we have formed a paradoxical situation where pensioners, for whom deductions were made, the employer must pay a pension tax of 13%,” says Volkov. Market participants do not propose to tax the monthly pension payments, the amount of which does not exceed 2 times the minimum subsistence level of a pensioner (16 thousand rubles).
In 2018 it is planned to start in Russia the new pension system. According to the Central Bank and Ministry of Finance concepts, the current system of mandatory contributions to the funded part of the pension will be transformed into a voluntary. Citizens will be able to send part of their earnings to selected pension funds and to save for their retirement independently, and the state promises to provide for that future retirees tax breaks. As previously wrote RBC, for voluntary contributions to operate the insurance system, as part of their contributions retired citizens will be able to withdraw ahead of time for their own needs.
Representatives of the second pension Association — ANPP (Association of pension funds) — to support the initiatives of the NAPF. According to Executive Director of NPF “Safmar” (one of the founders ANPP) Evgeny Yakushev, the theme will be relevant in 5-10 years, when mass will begin to retire people who independently formed their retirement savings.” They’re used to the quality of services. This is potentially a very large market,” he says.
According to Yakushev, development of additional services is the right business logic to NPF, since it allows to expand the product line. Moreover, according to him, some funds themselves to develop the social infrastructure. For example, pension funds can invest in the construction of nursing homes. “It was logical for the clients of the Fund had the opportunity to receive such services,” he said.
“The Bank of Russia will study the proposal after receiving it,” said RBC in the press service of the Central Bank.
The funds intend to develop additional services as the opportunity to earn money attracting new customers is becoming increasingly difficult, says the General Director of consulting company “Pension partner” Sergey Kolesnov. “SPC after incorporation actually become commercial organizations. Income pension accumulations due to freezing is not expected, and the market of voluntary pension insurance is growing slowly. With 2022 customers who formed their savings in pension funds, will massively retire and the cost of funds will increase dramatically,” he recalls.
“It is not excluded that in the future the NPF think through the possibility of participation in social insurance system by analogy with the national Institute of social insurance, — says Director of corporate ratings RAEX Pavel Mitrofanov. In this case, according to him, the logic can be justified, since this sector is financed from employers ‘ contributions to extra-budgetary funds. After the freeze of pension savings NPF’s not so much of the proceeds of the new money, like an expert.