Measures taken in Belarus and Russia to develop the pension systems are concordant

The measures taken in Belarus and Russia to develop the pension systems are concordant. The opinion was voiced by Natalya Murashkevich, Head of the Central Office for Pension Coverage of the Belarusian Labor and Social Protection Ministry, during the panel session held as part of the third Forum of Regions of Belarus and Russia on 7 June to discuss Belarusian-Russian cooperation in labor relations and social security, BelTA has learned.

Over 27% of Belarusians draw pensions. Pensions are comparatively high, with the ratio of retirement pensions against the average salary exceeding 40%. However, it is more and more difficult to support these accomplishments, admitted Natalya Murashkevich. In 2015 the share of people above the retirement age was nearly 25%. By 2030 the figure is supposed to reach 30%. Meanwhile, the share of working-age Belarusians will drop. The situation will make it harder for working Belarusians and the economy to take care of the social security of elderly people. “Taking into account these trends we started working out and implementing measures to streamline the pension system, optimize pension payouts, and balance the social security budget in advance,” noted the official.

As from 1 January 2017 the retirement age in Belarus will be raised by six months every year until it reaches 63 years for men and 58 years for women. The retirement age for appropriating preferential pensions, pensions for civil servants and the military will be raised as well.

On the one hand, the retirement age increase is correlated with positive forecasts regarding life expectancy. On the other hand, it is correlated with the emerging need for more money for retirees. Third, the capacity of the labor market is a factor as well. Social aspects have been taken into account, too. The existing difference in the retirement ages of men and women has been preserved. Plans have been made to keep the ratio of pensions against salaries at 40% at least. The retirement age for those without a minimal record of pensionable service was raised on 1 January 2015 by five years to 60 years for women and 65 years for men. “We would like employers and employees to step up their participation in voluntary pension insurance programs. A lot depends on the economy, the financial market and efforts of trade unions in this regard,” added Natalya Murashkevich.

In her words, all the abovementioned measures are concordant with the steps taken to develop the pension system in the Russian Federation, in particular, changes implemented in Russia as of 2015.

As far as bilateral relations are concerned, the Belarusian-Russian agreement on social security (signed on 26 January 2006 to enter into force on 29 March 2007) has been in effect for nearly ten years. Each state pays part of the pension for the service record earned in that state. Pensions for the service record earned in the USSR are financed by the pensioner's country of residence. “The fairness of the approach, the urgency of the agreement and many years of fruitful cooperation to implement it unite our countries in the joint work to preserve such approaches in the draft multilateral agreement on pension security in the Eurasian Economic Union,” said Natalya Murashkevich.