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Russia Seen Extending Pension Freeze Over $52 Billion Grab

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Russia will extend a freeze on pension-fund contributions for another year and put off a decision on an overhaul that may result in the confiscation of 3 trillion rubles ($52 billion) of retirement savings, a survey showed.

The cabinet will opt to divert savings from future retirement plans to meet pension obligations in 2016, similar to the measures used to pay current retirees since last year, according to 17 of 23 economists surveyed by Bloomberg. Four analysts said the government will restore the flow of cash to private and state pension managers that was in place before the freeze in 2014, while two forecast a move to do away with mandatory contributions.