Contemporary Problems of Social Work Современные проблемы социальной работы academic journal

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VOLUME 2, No. 1, 2016
Besides, it is suggested that a multiplying coefficient (2) should be introduced for 
contributions under early retirement agreements when appropriating those contributions to 
payroll expenses in order to determine the tax base for paying the organization profit tax. This 
step will serve as an additional incentive for the employer to create ENSPP schemes.
The bill should also contemplate total exemption of early occupational pension from 
individual income tax (at present, in accordance with the RF Tax Code, only part of occupational 
pension, formed through the pension recipient’s contributions for his own benefit, is exempted 
from individual income tax).
According to V.D. Roick, slow transformation process is to a large extent connected with the 
fact that the key objective – creation of insurance pension institutions based on the principles 
of complete financial self-responsibility of employers and employees – is not grounded in the 
public consciousness. Surveys show that most of the population considers the state as the party 
liable for the situation with pension provision [19].
Development of non-state pension provision both for specific categories of employees (e.g. 
ENSPP scheme) and for all citizens in the framework of corporate pension schemes will make 
it possible to form additional sources of “long” and “cheap” money for financing long-term 
investment projects and as well solve the following problems:
–  implementation of strategic objective on developing corporate pension schemes of NSPP 
as the second level of pension provision in line with global best practices of OECD countries;
–  popularization and development the employers’ culture of corporate pension programs, 
employees’ responsibility for their pension, motivation of personal savings;
–  development of the social partnership institution;
–  improvement of the NSPF financial stability and powerful drivers of overcoming stagnation 
and developing non-state pension provision activities;
–  a more targeted and transparent formation of rights to early retirement pension provision;
–  consecutive reformation of the early retirement pensions institution.
In view of developing new forms of social guarantees to the employees, the following 
measures are offered: stage-by-stage transformation of the early retirement pensions institution 
and arrangement of conditions for providing employees with guarantees and compensations 
according to their interests in the frames of labor and (or) collective employment agreements.
It should be pointed out that in most OECD countries people occupied in special working 
conditions are granted the right of early retirement: on the average 3–5 years before reaching 
the standard retirement age.
Only in 9 OECD countries state pensions are not granted before the standard retirement 
age: Denmark, Hungary, Ireland, Israel, the Netherlands, New Zealand, Poland, Turkey, and Great 
Britain.
While in Germany the second structure consists of pensions formed in compulsory pension 
insurance of certain occupational categories based on special legislative acts, in the Netherlands 
this structure consists of occupational pensions granted in the framework of occupational 
additional voluntary pension schemes are initiated by employers or created on the basis of 
collective employment agreements in certain companies or on a branch level. In Great Britain 
the second structure consists of a system of compulsory occupational additional pension 
insurance, which can function inside the state system or pension provision systems of certain 
companies [20].
Speaking about global best practices, the stress should be put not on the early retirement 
pension provision as a separate aspect but on the organization of corporate pension schemes 
as a whole. Moreover, most of the programs have the co-financing model.
For example, in the existing model of relationship the employee is considered the core of 
such relationship, the approach completely based on the employee’s will and not dependent 
on the corporation. Thus, CPI is a sort of compulsory personal insurance. The core of the ENSPP 

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CONTEMPORARY PROBLEMS OF SOCIAL WORK
scheme is a corporate program and a pension agreement with a legal entity choosing a certain 
NSPF, which will render services to all interested employees of the company. Thus, ENSPP is a 
sort of corporate voluntary insurance.
However, accumulation of funded pension and early occupational pension is carried out 
through different sources. Pension savings are formed at the expense of the individual part of 
the insurance contribution rate paid to the RF Pension Fund irrespective of working conditions. 
The sources of early retirement pension are insurance contributions to the RF Pension Fund 
according to additional PAYG rates set for employers having workplaces with special working 
conditions.
In addition, NSPF forms pension savings in the framework of CPI activities that are a part of 
the state pension system of the Russian Federation. But ENSPP activities are a subtype of NSPP 
activities that is a voluntary type of pension provision.
Conclusions:
1) The ENSPP programs will involve medium-sized and big employers in such types of 
economic activity as transport, chemical production, mining, metallurgy, etc.
2) ENSPP introduction will bring customers under new programs to the market, with a 
potential amount of 3.02 mil customers. By 2025 the expected number of participants at the 
stage of saving will increase by 35–40%.
3) The introduction of ENSPP will give a multiplier effect of raising the amount of 
participants of classical NSPP and become a powerful impulse for stimulating the pension 
market to development and supply of corporate products.
4)  ENSPP will increase the inflow of pension reserves into the pension system through 
market financial institutions; create additional sources of investment funds formation in the 
economy.
5)  ENSPP programs will become a solid foundation for introducing corporate programs using 
the OECD countries experience with the participation formula “Employer + Employee” [12].
The described activities will make it possible to implement the guidelines of the Strategy of 
long-term development of the Russian Federation pension system on reforming the institution 
of early retirement pensions and developing corporate pension provision (paragraph 3) [10].
References
1.  Bataev, V.V. & Pochinok, N.B. Creation of a System of Early Non-Governmental Pension 
Insurance in Russia, Contemporary Problems of Social Work, Vol. 1. 2015. No. 1. P. 5–11.
2.  Determination of the Constitutional Court of the Russian Federation of 3 October, 2006. Nо. 
471-О // Rossijskaya Gazeta. 31 January, 2007.
3.  Ermakov, D.N. Tendencies of the Russian Pension system Development: extended abstract of 
doct. of Econ. Dissertation. Moscow, 2013. P. 62.
4.  Federal Law of the Russian Federation Nо. 167-FL of 15 December 2001 “On Compulsory 
Pension Insurance in the Russian Federation” // Collected Legislation of the Russian 
Federation. 17 December, 2001. Nо. 51.
5.  Federal Law of the Russian Federation Nо. 173-FL of 17 December 2001 “On Retirement 
Pensions in the Russian Federation” // Collected Legislation of the Russian Federation. 
24 December, 2001. Nо. 52.
6.  Federal Law of the Russian Federation Nо. 212-FL of 24 July 2009 “On Insurance Contributions 
to the RF Pension Fund, RF Social Insurance Fund and RF Federal Compulsory Medical 
Insurance Fund” // Collected Legislation of the Russian Federation. 27 July, 2009. Nо. 30.
7.  Federal Law of the Russian Federation Nо. 410-FL of 28 December 2013 “On amendments to 
the Federal Law “On Non-State Pension Funds” and Certain Legislative Acts of the Russian 
Federation” // Collected Legislation of the Russian Federation. 13 December, 2013. Nо. 
52 (Part I).
8.  Federal Law of the Russian Federation Nо. 421-FL of 28 December 2013 “On Amendments to 
Certain Legislative Acts of the Russian Federation in Connection With Adoption of the Federal 
Law “On a Special Assessment of Working Conditions” // Collected Legislation of the Russian 
Federation. 30 December, 2013. Nо. 52 (Part I).

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