The government of the Russian Federation at a meeting on Thursday approved a bill banning non-state pension funds (NPFs) from attracting intermediary agents to conclude compulsory pension insurance (OPS) contracts, the press service of the Cabinet of Ministers said on Saturday.
As reported, the beginning of the development of a draft law “On Amendments to the Federal Law” On Non-State Pension Funds “in terms of protecting the rights and legal interests of insured persons when choosing an insurer for compulsory pension insurance”, which would legally prohibit NPFs from engaging agents in order to conclude contracts registration and submission of applications for early transfers of insured citizens to another pension fund, the Ministry of Labor announced in August 2019. According to the text of the bill, a citizen also has the right to apply for a ban on the transfer of his funds to another pension fund.
According to the current legislation, in the event of an early transition – that is, earlier than once every five years – the citizen loses the investment income accumulated since the last transition.
“Today, any citizen of the Russian Federation can transfer their savings to a non-state pension fund. And almost all applications for a transfer to another insurer are made through an early transfer, despite the loss of money. This situation has developed due to the active actions of agents who work for non-state pension funds . To protect people's savings, the bill provides for a direct ban on the involvement of intermediaries between insured and similar funds. If a person wants to apply for the transition, he must do it personally or issue a notarized power of attorney “, – said Russian Prime Minister Mikhail Mishustin on meeting of the government.
“The bill obliges the Pension Fund to verify the authenticity of such a power of attorney through the Unified Information System of Notaries. The new legislation should protect people from unscrupulous agents. At the same time, it remains possible to choose where and with whom to place their pension funds,” he added.