From 2027, Russians will retain investment income on pension savings while returning excess contributions

Brief retelling from RIA II

From January 1, 2027, Russians with pension savings will retain accumulated investment income, even if the employer returns overpaid contributions.

The Social Fund compensates the saved income directly from its reserve for compulsory pension insurance.

The size of the payment will be calculated using a formula depending on the amount of the return, the number of days the money is in circulation and the average interest rate of the fund reserve.

MOSCOW, October 6 - RIA Novosti. Russians with pension savings will retain their accumulated investment income from January 1, 2027, even if the employer returns excessively previously paid contributions from the Social Fund, Ekaterina Medyakova, an expert at the Federal Methodological Center for Improving the Financial Literacy of the Population of the IGSU Presidential Academy, told RIA Novosti.

The new rule concerns contributions to funded pensions. The measure will protect investment income from both voluntary contributions from companies for employees and mandatory payments that went to citizens’ accounts before 2013.

“From January 1, 2027, a mechanism comes into force that protects the investment income of citizens on contributions to a funded pension in a situation where the employer returns overpaid funds from the Social Fund,” Medyakova said.

According to the expert, when overpaid contributions are returned, the accumulated income will remain in the account of the insured person. The Social Fund compensates it directly from its reserve for compulsory pension insurance.

The size of the payment will be calculated using a formula that depends on three factors: the amount of return, the number of days the money is in circulation and the average interest rate of the fund reserve.

“For people who have a funded part of their pension, this is an additional guarantee that the earned investment income will be credited to the account,” the specialist noted.