Non-State Pension Funds in the Retirement Insurance System of the Russian Federation: Trends and Prospects

Abstract

Abstract Early 1990s, the Russian finance system started to integrate with the global finance system. The previous finance institutions, primarily the governmental institutions, underwent rearrangement plus the system became new ones such as commercial banks, investment companies, macrofinancial organisations, non-state pension funds and others. One of the key financial institutions of the governmental finance system is the pension funds. Historically, the Russian pension system was controlled by the government. In December 1990, the Pension Fund of Russia was established, which is obligated to insure pensions of individuals. In 1992, the Edict of the President of the Russian Federation “On Non-State Pension Funds” initiated the process of their buildup, which started in 1993. Near 20 years have elapsed, the non-state pension funds did not take any relevant place within the Russian financial system regardless numerous reforms in the retirement insurance system.