Recent Reforms of the Russian Pension System: pro et contra

Abstract

Recent reforms of the general pension regime have gone a long way to ensuring a fair, equitable and transparent pension scheme, available to all workers younger than 45 years old. An adjustable formula relates pensions to the duration and level of contributions, and life-expectancy. It introduces some welcome flexibility to the system, as benefits are automatically adjusted for the effects of population ageing. Today the workers must choose a state or a private pension fund's management company. However, it is not clear whether recent reforms will be sufficient to ensure the long-term actuarial and financil balance of the general system.