1. Seminar of the International Labor Organization "International practice to improve national systems and raising the retirement age "
Actuarial justification the retirement age in Russia: preconditions and consequences of its increasing
prof. Solovev A. K. Head of Actuarial Department and Strategic Planning of the Pension Fund of the Russian Federation
13-14 September Geneva

2. Target evaluation criteria of raising the retirement age in Russia
1. Achieving decent standard of pensions for all socio-demographic groups of the population: - Achievement of the replacement rate of the labor old-age pension up to 40% of lost wages (with the regulatory experience and the average salary) - Provision of a medium-sized labor retirement pension at the level of 2,5 - 3 pensioner subsistence minimums 2. The financial security of long-term government pension liabilities 3. Promote the active participation of all categories of able-bodied citizens in shaping their own pension rights

3. Objective preconditions of the retirement age increasing: the growth of demographic burden (pensioners / employed

4. The consequences of raising the retirement age:
Forecast of pension burden reduction by increasing the retirement age, mln. people.

5. Forecast of reduction in the expected repayment period, years

6. Results of raising the retirement age:
Forecast of savings (-) from raising the retirement age
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2040
2050
Reducing the number of pensioners, mln. / Year -
-1,1
-1,5
-2,1
-2,7
-3,3
-4,0
-4,6
-5,2
-5,3
-10,0
-9,5
Transfers from the federal budget,   bn. rub.
-65
-166
-253
-288
-279
-319
-251
-183
-147 9
126 89
230
327
548
1 207
%GDP
-0,07
-0,16
-0,23
-0,24
-0,21
-0,17
-0,11
-0,09
0,01
0,07
0,04
0,11
0,14
0,16
0,28
Expenditure growth (+) , savings(-).
The 1st stage of pension age increasing: months. per year to 61 years for men and to 56 years for women; Stage 2: for six months a year to 65 years for men and to 63 years for women.
Expenditure of the distribution component of the Russian Pension Fund budget, bln
6 536
6 861
7 175
7 457
7 803
8 103
8 383
8 648
8 911
9 190
9 480
9 896
10 366
10 837
16 439
23 141
The savings from raising the retirement age as a% of the expences of distribution component of the Russian Pension Fund budget, %
-1,0
-2,4
-3,5
-3,9
-3,6
-3,0
-2,1
-1,6
0,1
1,3
0,9
2,2
3,0
3,3
5,2

7. Forecast of faster growth value of pension points concerning the reduction the labour pension recipients and the amount of individual pension coefficients

8. Actuarial reasonable set of measures for insurance mechanisms of the pension system
Strengthening the revenue side of the budget:
Actuarial adjustment of the tariff policy (rate and size of insured wage base);
an increase in the requirements for the duration of insurance for the replacement rate;
regulation of funded component;
abolition of all the privileges on pension contributions (in accordance with the activities, self- employed people);
2. The reduction of budget expenditures by reducing payments and non-contributory redistribution:
Financing early period of the pension before reaching the retirement age from the pension contributions at the generally established conditions;
Employment creation to stimulate the continuation of work after the normal retirement age;
Increasing the normal retirement age on the basis of real Russian demographic and economic conditions