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PENSION REFORM |

Diary |  |

January 27 2004

It is no longer sufficient to mechanically increase financial investment in the social sphere – it is important to noticeably increase the quality of services that the social sphere provides to citizens, President Vladimir Putin announced at a meeting of the State Council on problems of social welfare for pensioners. To do this, a fully-fledged market of social services needs to be formed, and innovative forms of social aid need to be brought in more actively.

The mechanism of financing the social sphere needs to be modernized. Money should go to social institutions not simply because they exist or receive money from the budget, but because they provide specific people with specific services of the proper contents and quality.

At the same time, the task lies ahead to develop a network and improve the material and technical base of social service institutions. Special attention needs to be given to developing the social infrastructure in rural areas.

New legal and organizational forms of provide social housing for pensioners also need to be worked on, including for single pensioners, and a system of subsidies for needy pensioners to pay municipal services needs to be developed.

The State Council meeting should become the starting point for systematic work in the sphere of social support of pensioners.

December 18 2003

Pension reform will continue according to the principle "who works more and earns more will also receive a bigger pension in the future," President Vladimir Putin announced, replying to questions in a live television and radio broadcast.

| Excerpts from the President’s live television and radio dialogue with the population

| Previous events

"The new pension model should correspond to the following requirements. Firstly, part of the pension should be guaranteed, i.e. independent of salary or length of service. And the other part should depend on the results of the work activity of the individual person.
Secondly, the right to a certain size of pension needs to be earned throughout the work activity, and not in the last two years.
Thirdly, the size of the pension should take into consideration the entire income, and not just a part of it.
Fourthly, the new pension model should preserve all the rights which today's pensioners have earned according to the law."
From a speech at a meeting on issues of pension reform,
February 7, 2001

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