The pension system of the Russian Federation: the history of formation

The pension system of the Russian Federation is constantly being improved regardless of the political system in the country. The first information about pension provision of citizens in Russia dates back to the middle of the 17th century, when wounded warriors received monetary payments of a medical nature. The more severe the injury, the greater the pension benefit.

During the reign of Peter the Great, the care of the injured and wounded was reinforced by the fact that they were tried so to arrange that they receive means for their existence. Acts of the time obliged the state to provide assistance to disabled people from the state budget. The pension system of Russia in those days extended only to military and civil servants. Later, Catherine II allocated money for the retirees of the civil service from the state budget. Only in the second half of the nineteenth century, private entrepreneurs were able to support the provision of pensions to citizens in the country.

The law came into force, which obliged the owners of privately owned railways to form cash registers that issued sickness benefits and as a result of suspension from work on disability. Cash was accumulated at the box office at the expense of deductions from the earnings of employees on their personal accounts. When receiving a professional illness or injury, the employee received the allowance accumulated in his account. This system has received the name of insurance, tk. His deductions from wages were insurance in case of incapacity for work.

After the revolution of 1917 , within 10 years the pension system of the Russian Federation has undergone changes: decrees and decrees on allowances to pension of servicemen, on the payment of pension provision to workers and teachers of workers' clubs, on the appointment of retirement pensions for teachers of the village and the city were issued. The size of payments depended not only on earnings, but also on the severity of labor, on the size of the composition of the family of the retiring employee.

At the same time, in the twenties, the pension system was transformed into a social insurance system. It obeyed the following principle: from the total budget of the country, which was formed at the expense of tax deductions of all enterprises, funds were allocated for all the needs of the state, including pension benefits. Such a pension system existed before the collapse of the Soviet Union, but by 1991, when market methods of managing the economy appeared, it lost its rights and opportunities.

Until 2000, the country was reducing the birth rate, raising prices for necessary life support products. The statistical data showed that by 2010-2015 the number of retirees will exceed the number of young people starting their work. This may cause a shortage of funds in the country for the payment of relevant benefits. Therefore, the pension system of the Russian Federation required revision, rethinking, recalculation. It was decided to implement the pension reform in order to increase pensions. It was important to create such a model that every citizen was confident that his current salary is the guarantor of his future pension, that with an increase in contributions to the pension fund, the pension of the future pensioner is also growing.

Pension reform, which has been implemented since 2002, has a three-level basis: compulsory insurance of citizens, state security for all categories of pensioners and additional non-state provision. Information about this model is distributed among Russian citizens who can start forming their size long before the pension begins, in order to receive monthly cash payments in accordance with their needs.