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Russian Federation

Updated by Artiom Sici on 05.08.2016

The contemporary social security system in the Russian Federation was formed during the transition period after the collapse of the Soviet Union (USSR) in 1991. It includes 3 main forms of social protection: social insurance, social support and social service. Social insurance includes: pension insurance, medical insurance and employment injury (occupational safety and health) insurance. As for a social support it is oriented mainly for socially vulnerable groups of population (including through social services).

The Russian social protection system has been reformed several times since the country's transition to market economy (1990s). For example, the pension system was reformed four times. The latest, fifth reform started in 2013. The most significant pension reform was launched in 2001, when the pay-as-you-go old-age pension insurance was substituted by a two-tier system of publicly managed "notional defined contribution" pensions and partly private pension system based on defined contribution.

Pension insurance - New method of the citizens' pension rights formation and the calculation of pensions in mandatory pension insurance system, so-called "the new pension formula", was activated on January 1, 2015. Also the labour pension was transformed into two types: insurance pension and funded pension. The labour pension doesn't exist anymore. Citizens born in 1967 and younger have the opportunity to choose the pension rights formation type in 2015: either to form insurance and funded pension, or only insurance pension.

Requirements for a minimal qualifying period to be eligible for an old-age pension are increased. It will rise from the existing 5 up to 15 years. In 2015 required minimal qualifying period accounts to 6 years and it will gradually increase annually by 1 year during 10 years. The retirement age (60 years for men and 55 for women) has not changed since soviet time.

According to the International association of pension and social funds (IAPSF), in 2013 basic amount of social payments were:

  • average social pension - 6 446,58 rub.;
  • old-age pension - 10 698,14 rub;
  • disability pension - 6 680,46 rub.;
  • survivor pension - 6 596,30 rub.

Family grant (Maternity capital) is paid to women after birth or adoption of the second, third or subsequent child. The grant is indexed and equals to 453 026 rubles from January 1, 2015 which is more, than in 2014 by 23.6 thousand rubles. 344.5 billion rubles from the budget of Pension Fund of the Russian Federation 2015 were provided for this purpose, which is 43.5 billion rubles more, than in 2014. Purposes of the maternity capital remain the same: improvement of living conditions of the family, education for children, mom's private pension increase.

Social insurance system is a part of social protection system of the Russian Federation. The social insurance system is managed by Social insurance fund of the Russian Federation (SIF) and covers only formal workers. The fund pays out benefits in case of temporary disability caused by sickness or injury.

Medical insurance is a part of social protection system, which guarantees the equal entitlements for health care and medications for all citizens of the Russian Federation and is being funded through mandatory health insurance resources. Number of persons covered by mandatory medical insurance on 1 April 2014 was 143,8 mln., including 60 mln. of workers and 83,8 mln. unemployed persons. Now, the implementation of state mandatory medical insurance policy is managed by the Federal Fund of Mandatory medical insurance and 86 local departments of the Fund.

Social assistance covers low-income families, as well as low-income citizens living alone, who have average income below the subsistence minimum.