Russia moves to convert 71 million people's pension savings into a long-term savings program

This piece has two parts: the news with sources, followed by the Sardaana News editorial position.

What happened

On 2 November, Russia’s government commission on legislative activity approved a Finance Ministry bill to automatically convert Russians’ mandatory pension accumulations into the Long-Term Savings Program (PDS) from 1 April 2027 (Kommersant). The bill is due to be submitted to the State Duma in early November; it is not yet law.

According to Finance Ministry figures cited by Kommersant, the change would affect about 71 million people — those who hold pension accumulations — and roughly 6.5 trillion rubles. This covers both the funds of “silent” savers managed by the state via VEB and the accumulations of clients of non-state pension funds (NPFs). The ministry says the insurance pension is not affected: pension points and length of service are counted as before.

What the ministry promises

The ministry pitches the PDS as offering inheritance of funds, state co-financing of up to 36,000 rubles a year, tax deductions and payouts in special situations (loss of a breadwinner, costly medical treatment). “Silent” savers’ money would go to an authorized NPF with mandatory state participation; for two years people could pick another fund without losing investment income (Kommersant).

Background

Since 2014 a moratorium on funded pension contributions has been repeatedly extended: employer contributions went to pay current pensioners (Radio Svoboda).

What experts say

Radio Svoboda economic commentator Maxim Blant says the pension system has “returned to a redistributive system in which workers feed pensioners.” In 2014, he says, the state took the money, spent it and “quite cynically said it would return nothing to anyone”; the resource from the 2018 retirement-age increase will be exhausted by 2028 (Radio Svoboda).

Political scientist Dmitry Oreshkin called Vladimir Putin “the world champion at boiling the frog.” No elections are in sight, he said, pensioners have no means left to pressure the authorities, and any display of discontent is punished as extremism; the accumulations were frozen “amid the noise of patriotic propaganda” (Radio Svoboda).

Sardaana News editorial position

Despite its failures in the war against Ukraine and catastrophic losses at the front, Russia continues a suicidal war. The country’s budget has been destroyed, and to save the budget while continuing the war for three more years, the authorities have reached into people’s pension savings.

This is the greatest crime of Putin’s regime. By 2040, 71 million Russians will be left without a pension — including Russians born from 1985 to the present day. Such are the results of Putin’s rule.