The Simple Decisions Office of the National Reform Council proposes the introduction of a contributory pension system, with a 2% reduction in the unified social contribution and income tax. It is planned that employers will pay 2% of employees' wages to the special off-budget accounts of the Treasury, and participants of the system (employees) will pay 1% of wages (earnings). At the employee’s request, the amount of his or her independent contributions may be increased.
At the same time, the employer is obliged to proportionately supplement the employee’s contributions with his own contributions up to 5 % of the employee’s salary. Until a citizen reaches retirement age, the funds will work for the economy of the country. In case of emergency, one-off assistance will be available from the accumulated amount, and money can also be inherited.
The Bill provides for the participation of private authorized pension funds and asset management companies in the contributory system.
The participant of the system will have to choose the pension portfolio (conservative, balanced or dynamic) of an authorized treasury asset management company or an authorized non-governmental pension fund.
However, contributions from members of the system who have not made a choice are automatically allocated to pension portfolios managed by authorized asset management companies.
