Russia Extends Hold on Pension Savings for Budget Through 2015
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Russia’s government extended a plan to keep hold of pension savings through 2015, diverting the cash to the budget and sparking concern that the move will choke investment.
A moratorium on privately managed pension savings will stay in place next year, with contributions transferred to the pay-as-you-go pool, according to Labor Minister Maxim Topilin. The ministry is concerned the poor performance of the savings part harms Russians’ rights to pensions, he said in a statement.