PENSION REFORMS OF CIS Theme Pension reforms

PENSION REFORMS OF CIS

Theme: Pension reforms in Commonwealth Independent States

Plan: • 1. Introduction • 2. The main aspects of the pension system in CIS • 3. The consequences of the pension system in CIS and its role in economy of country • 4.

14000 3500 12000 3000 10000 2500 8000 2000 . 1500 6000 1000 4000 500 2000 0 2002 2003 2004 2005 2006 2007 Azerbaijan 2008 Armenia 2009 2010 2011 2012 2003 2004 2013 2005 2006 2007 2008 2009 2010 Kyrgyzstan Tajikistan Uzbekistan Kazakhstan Moldova 45000 40000 35000 30000 25000 20000 15000 10000 5000 0 2002 2003 2004 2005 2006 Russia 2011 2007 Ukraine 2008 Belarus 2009 2010 2011 2012 2013

250 нгпн 200 150 100 50 0 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Kazakhstan Kyrgyzstan Tajikistan Persion size (USD $) 200 180 300 160 250 140 120 200 150 80 100 60 50 40 0 20 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Belarus Russia Ukraine 0 2001 2002 2003 2004 Azerbaijan 2005 2006 Armenia 2007 Moldova 2008 2009 2010 2011

Average pension size in CIS 2000 -2013 (USD $) Ukraine Uzbekistan Tajikistan Russia Moldova Kyrgyzstan Kazakhstan Belarus Armenia Azerbaijan 0 50 100 150 2000 2013 200 250 300

Male Female ra Uk an an ia in e ist be k Uz st ss Ru iki Ta j an an do va ol M st rg yz Ky st kh za Ka s ru la Be n en ia m Ar ja ba i er Az 66 64 62 60 58 56 54 52 50 Pension age in CIS (2014)

Armenia Population: ------3017, 1 thous. GDP: ----------$ 10, 881 bln GDP per capita: -----$ 3351, 63 - Insurance (old-age, on favorable terms, seniority, invalidity, loss of breadwinner and partial); - Social (old-age, disability, survivor).

Azerbaijan • Population: ------9 780 • GDP: ----------$ 68, 727 bln • GDP per capita: -----$ 7 399 • - System has reformed in 2003 The country has basically built a three-tier pension insurance system, which includes three components: the base, insurance and funded part of labor pensions.

Belarus • Population: ------ 9, 481, 000 • GDP: ----------$ 81, 627 bln • GDP per capita: -----$ 8, 711 • Gini: ----------26, 5 • The current pension system provides two types of pensions: • - Labor (by age, invalidity, loss of breadwinner, seniority, for special merits to the Republic); • - Social.

Kazakhstan • Population: ------17, 563, 00 • GDP: ----------$ 225, 619 bln • GDP per capita: -----$ 12, 950 • Gini: ----------28, 8 The most important principles of the funded pension system, enshrined in law, are: - Personal responsibility of able-bodied citizens for their old-age pension, which is provided by the obligatory participation in the formation of their retirement savings; - Ensuring inheritance rights of citizens to accumulation pension funds; - The establishment of state guarantees to ensure the imposition of the minimum pension for citizens in case of no accumulation of insurance required resources.

Kyrgyzstan • Population: ------5, 895, 100 • GDP: ----------$ 5, 920 bln • GDP per capita: -----$ 1, 070 • Gini: ----------30, 3 - System has reformed in 2003 - Preservation of the state pension; - creation of conditions for the gradual introduction of the state pension insurance and voluntary pension insurance based on personified accounting of pension rights; - The introduction of insurance premiums of employers (17. 0%) and employees (8. 0%).

Moldova • Population: ------2, 913, 281 • GDP: ----------$ 7, 254 bln • GDP per capita: -----$ 2038 - System has reformed first in 2011 in 01, 1999 The pension system of the Republic of Moldova- is largely dependent on a significant proportion of agricultural workers in the total number of economically active population. Therefore, when choosing options for its conduct of the economic opportunities are taken into account the main categories of workers.

Russia • Population: ------146, 267, 288 • GDP: ----------$ 1, 857 trillion • GDP per capita: -----$ 8, 184 • Gini: ----------40, 1 • - System has reformed in 2002 The country has established pension system is organized on the basis of three major components: - redistribution of insurance premiums in favor of low-income segments of the population intended to combat poverty; - compulsory social insurance, on the basis of notional accounting methods of pension rights, designed to replace the pension salary comparable to its size; - capitalization of financial resources and individual choice of investment programs designed to replace the pension salary comparable to its size.

Tajikistan • Population: ------8, 610, 000 • GDP: ----------$ 8, 572 bln • GDP per capita: -----$ 1, 041 • Gini: ----------30, 1 • - System has reformed in 01/01/2011

Uzbekistan • Population: ------31, 025, 500 • GDP: ----------$ 62, 619 bln • GDP per capita: -----$ 2, 046 • Gini: ----------36, 8 - System has reformed in 2005

Replacement Ratio CIS