Jul 14, 2017
Marina Rudneva, the CEO of FUTURE Financial Group at the International Financial Congress

On July 12–14, the XXVI International Financial Congress, which is the largest annual financial forum for the leading experts and representatives from the Russian and international professional and business communities was held in St. Petersburg.

The development of the Russian pension system was a separate matter discussed at many of the panel sessions. Marina Rudneva, the CEO of FUTURE Financial Group, spoke on July 13th at the round-table discussion called "The problems and opportunities of Russia’s pensions market".

During the presentation of "IPC: How will it work?", Marina spoke about the key parameters of the IPC system that are necessary for the successful launching of IPC, in particular on the international experience of implementing a voluntary pension program:

  • automatic subscription as a necessary condition for the launch of an of IPC system
  • tax benefits as incentives for attracting customers to the new system
  • the pros and cons of the employer's participation in the program's construction
  • the role of the central administrator in the system

Other speakers at the panel session included Sergey Shvetsov, First Deputy Chairman of the Bank of Russia, Galina Morozova, CEO of NPF Sberbank and experts from the Ministry of Labor and Social Protection of the Russian Federation and from the World Bank. Yury Voronin, Head of Staff of the Accounts Chamber of the Russian Federation, was the moderator.

The participants of the round-table gave their opinions on the IPC concept – their vision of a regulator, PFR, and the largest non-state pension funds. International experts shared their experience of launching such programs in other countries.

Marina Rudneva has stated:

"The system shall be launched not as a pilot version but as an already functioning project. It's much more effective to have automatic subscription and give people an opportunity to refuse it afterwards if they want to, but this will be their conscious choice and a well-considered decision."

"Automatic subscription is one of the key factors of a successful IPC launch. This has been confirmed by international practices. The system was successful in those countries where participation in individual retirement savings programs was quasi-voluntary. For example, over 60% of people in the United Kingdom, New Zealand and Chile are enrolled in individual retirement savings programs because of automatic subscription. But in Hungary, where no automatic subscription was used, only 3% of people are enrolled the program."

"The central administrator shall be a technical body, either state-based or belonging to all market participants with state participation, which, above all, shall provide for the reliability and security of the system, yet not decide on the applications of subscribers".