President signs decree on additional funded pensions

From October 1, 2022 a new mechanism for voluntary accumulative pension insurance will be launched. The decree was signed by the President. The document stipulates that employees are given the right to pay an additional insurance contribution for a funded pension in the amount of up to 10% of earnings (in addition to a mandatory insurance contribution to the budget of the Social Protection Fund in the amount of 1% of wages). At the same time, employers will be required to make additional payments commensurate with the contributions of employees (but not more than 3%) for funded pensions from the funds provided for the payment of the obligatory 28% contribution to the budget of the Social Security Fund. Working citizens who have at least 3 years before reaching the generally established retirement age will be granted access to the new insurance system. They will receive the accumulated funds in equal monthly installments over 5 or 10 years.