Russia to Save $11Bln by Canceling Most Funded Pensions | Business | RIA Novosti:
"A senior government official said Tuesday that Russia would implement a reform of retirement pension funding that would free up 350 billion rubles ($10.8 billion) for the state budget over the next three years.
Payments for state retirement pensions in Russia include two components dependent on salary and crucial for future pension size – the insurance component and the funded component.
Money from the former component goes to fund current pensions, but the government takes an obligation to pay this money back to the citizen once he or she hits retirement age. Money from the latter component actually goes into a citizen’s account in a retirement fund, which can invest the money on the citizen’s behalf."
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