IDEAS home Printed from https://ideas.repec.org/a/ura/ecregj/v1y2018i4p1356-1369.html
   My bibliography  Save this article

Funding Pension System of Russia in the Categories of National Accounts

Author

Listed:
  • Aleksey Pasynkov

    (Institute of economics, the Ural branch of Russian Academy of Sciences)

Abstract

The ongoing changes in the pension system of Russia gave rise to a discussion about the degree of financial security of the pension rights, the ratio of «own» revenues and transfers of the federal budget to ensure payment of pensions. It can be assumed that the ideas about the schemes and directions of financial support for the pension system of the Russian Federation that have been developed in modern literature and society are rather limited. Therefore, the main purpose of this study is a comprehensive assessment of the types and directions of expenditure for pensions in the Russian Federation, conducted from the perspective of their display in the System of National Accounts (SNA). The article generalizes the cost-determination principles for pension support for households within SNA as well as allocates basic differences in the forms of the pension system and their description in accounts of SNA. I have classified the types and sources of financial flows of the pension system in the Russian Federation as well as highlighted the channels and dynamics of the financing of pension liabilities. I have compiled the flows of the Russian Federation’s pension system depending on various sources: the Pension Fund of RF, law enforcement agencies, justice system, etc. On this basis, I have undertaken a comparative analysis of the key parameters for various sources of funding: the average pension, the burden of pension deductions for wages, the ratio of employed and retired people in various forms of the pension system. The research shows that in Russia, there are several forms of pensions, different in scale and sources of funding. Using uniquely the data of the Pension Fund of the Russian Federation for the analysis of properties of the pension system is incorrect from the point of view of both the basic principles of accounting of SNA flows and the real replacement of pensioner’s incomes. I prove that a significant part of the expenditure obligations for pension security is due the adoption by the government of increased social obligations, rather than a lack of income from the working population. The results of the research can be a basis for the calculation of pension liability in the Russian Federation.

Suggested Citation

  • Aleksey Pasynkov, 2018. "Funding Pension System of Russia in the Categories of National Accounts," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 1356-1369.
    • Handle: RePEc:ura:ecregj:v:1:y:2018:i:4:p:1356-1369
    as

    Download full text from publisher

    File URL: http://economyofregion.ru/Data/Issues/ER2018/December_2018/ERDecember2018_1356_1369.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul van den Noord & Richard Herd, 1993. "Pension Liabilities in the Seven Major Economies," OECD Economics Department Working Papers 142, OECD Publishing.
    2. Evgeny Gontmakher, 2009. "The Pension System of Russia after the Reform of 2002: Challenges and Prospects," Journal of the New Economic Association, New Economic Association, issue 1-2, pages 190-206.
    3. Martin Feldstein, 1980. "International Differences in Social Security and Saving," NBER Chapters, in: Econometric Studies in Public Finance, pages 225-244, National Bureau of Economic Research, Inc.
    4. Gurvich, E., 2012. "Pension Policy in the Long Run: General Approach," Journal of the New Economic Association, New Economic Association, vol. 15(3), pages 178-180.
    5. Klaus Kaier & Christoph Müller, 2015. "New figures on unfunded public pension entitlements across Europe: concept, results and applications," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 865-895, November.
    6. V. Nazarov., 2012. "The Future of the Pension System: Parametric Reforms or the Change of a Paradigm?," VOPROSY ECONOMIKI, N.P. Redaktsiya zhurnala "Voprosy Economiki", vol. 9.
    7. Aleksandr Kuklin & Svetlana Shipitsyna, 2017. "Actuarial Evaluation of Pension Risks of Russia: from Theory to Practice," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(3), pages 716-731.
    8. Nazarov, Vladimir & Sinelnikov-Murylev, Sergei, 2009. "On the Strategy of improvement of the Russian pension system," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 3, pages 150-177, June.
    9. Gorlin, Yuriy M. (Горлин, Юрий М.) & Lyashok, Victor Yu. (Ляшок, Виктор Ю.) & Maleva, Tatiana M. (Малева, Татьяна М.), 2018. "Pension Age Increase: Positive Effects and the Possible Risks [Повышение Пенсионного Возраста: Позитивные Эффекты И Вероятные Риски]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 1, pages 148-179, February.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Klaus Kaier & Christoph Müller, 2015. "New figures on unfunded public pension entitlements across Europe: concept, results and applications," Empirica, Springer;Austrian Institute for Economic Research;Austrian Economic Association, vol. 42(4), pages 865-895, November.
    2. Gorlin, Yu. & Lyashok, V., 2019. "Pension Gambit," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 138-148.
    3. Dirk Niepelt, 2020. "Reserves for All? Central Bank Digital Currency, Deposits, and Their (Non)-Equivalence," International Journal of Central Banking, International Journal of Central Banking, vol. 16(3), pages 211-238, June.
    4. Vishnevsky, A. & Shcherbakova, E., 2019. "Demography: Pros and Cons of Raising the Retirement Age," Journal of the New Economic Association, New Economic Association, vol. 42(2), pages 148-167.
    5. Bravo, Jorge H., 2001. "The Chilean Pension System: A Review of Some Remaining Difficulties After 20 Years of Reform," Discussion Paper 7, Center for Intergenerational Studies, Institute of Economic Research, Hitotsubashi University.
    6. K. Mc Morrow & W. Röger, 2002. "EU pension reform - An overview of the debate and an empirical assessment of the main policy reform options," European Economy - Economic Papers 2008 - 2015 162, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    7. Lex Meijdam & Harrie Verbon, 1996. "Aging and political decision making on public pensions," Journal of Population Economics, Springer;European Society for Population Economics, vol. 9(2), pages 141-158, June.
    8. Charles Yuji Horioka & Akiko Terada-Hagiwara, 2016. "The Impact of Pre-marital Sex Ratios on Household Saving in Two Asian Countries: The Competitive Saving Motive Revisited," ISER Discussion Paper 0975, Institute of Social and Economic Research, Osaka University.
    9. Metzger, Christoph, 2016. "The German statutory pension scheme: Balance sheet, cross-sectional internal rates of return and implicit tax rates," FZG Discussion Papers 63, University of Freiburg, Research Center for Generational Contracts (FZG).
    10. Meijdam, Lex & Verbon, Harrie A A, 1997. "Aging and Public Pensions in an Overlapping-Generations Model," Oxford Economic Papers, Oxford University Press, vol. 49(1), pages 29-42, January.
    11. Faruqee, Hamid & Muhleisen, Martin, 2003. "Population aging in Japan: demographic shock and fiscal sustainability," Japan and the World Economy, Elsevier, vol. 15(2), pages 185-210, April.
    12. Siebert, Horst, 1997. "Pay-as-you-go versus capital funded pension systems: the issues," Kiel Working Papers 816, Kiel Institute for the World Economy (IfW Kiel).
    13. Horioka, Charles Yuji & Terada-Hagiwara, Akiko, 2012. "The determinants and long-term projections of saving rates in Developing Asia," Japan and the World Economy, Elsevier, vol. 24(2), pages 128-137.
    14. Luboš Smrčka & Markéta Arltová, 2012. "Ekonomické aspekty stárnutí populace ve vyspělých zemích [Economic Aspects of Population Ageing in Developed Countries]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(1), pages 113-132.
    15. Agranovich, Mark (Агранович, Марк), 2019. "Chances to be Employed for Employees at Pre-Retirement and Retirement Age [Оценка Шансов На Занятость Работников Предпенсионного И Пенсионного Возрастов]," Ekonomicheskaya Politika / Economic Policy, Russian Presidential Academy of National Economy and Public Administration, vol. 2, pages 90-109, April.
    16. Koskela, Erkki & Virén, Matti, 1989. "Taxes, credit market 'imperfections' and inter-country differences in the household saving ratio," Research Discussion Papers 21/1989, Bank of Finland.
    17. Гильтман М. А. & Антосик Л. В. & Токарева О. Е. & Обухович Н. В., 2021. "Повышение Пенсионного Возраста В России: Итоги 2019 Г. Пример Тюменской Области," Вопросы государственного и муниципального управления // Public administration issues, НИУ ВШЭ, issue 2, pages 154-182.
    18. Ismail, Aisha & Rashid, Kashif, 2013. "Determinants of household saving: Cointegrated evidence from Pakistan (1975–2011)," Economic Modelling, Elsevier, vol. 32(C), pages 524-531.
    19. Gorlin, Yury (Горлин, Юрий) & Galieva, Nadezhda (Галиева, Надежда) & Grishina, Elena (Гришина, Елена) & Eliseeva, Marina (Елисеева, Марина) & Kartavtsev, Vladimir (Картавцев, Владимир) & Cheremnykh, A, 2017. "Problems of Reforming the Institute of Early Pensions for Work in Harmful and Hazardous Conditions [Проблемы Реформирования Института Досрочных Пенсий За Работу Во Вредных И Опасных Условиях Труда]," Working Papers 021713, Russian Presidential Academy of National Economy and Public Administration.
    20. M. Keith Chen, 2013. "The Effect of Language on Economic Behavior: Evidence from Savings Rates, Health Behaviors, and Retirement Assets," American Economic Review, American Economic Association, vol. 103(2), pages 690-731, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ura:ecregj:v:1:y:2018:i:4:p:1356-1369. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alexey Naydenov (email available below). General contact details of provider: http://www.economyofregion.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.