First NPF joins Long-term Savings Programme
SberNPF has become the first operator to join the Long-term Savings Programme (LSP). The Bank of Russia has registered its rules for the formation of long-term savings. The regulator is reviewing 12 more rules submitted by non-governmental pension funds (NPFs) ready to offer the new product.
The LSP has been launched since the beginning of this year. It will enable people to receive additional income in the future or create safety cushions to be protected in challenging life situations. The programme is unique as it provides for government co‑financing: up to 36,000 rubles annually for the three years after the first payment. People can also transfer their funds accumulated in the mandatory pension insurance system to the LSP, and they make their own decisions regarding such transfers. All funds contributed to the programme, including income from investment, will be insured by the government for 2.8 million rubles, and a tax deduction for contributions is also planned to be introduced.
Funds accumulated in the LSP can be received after the agreement has been in force for 15 years or when reaching the age of 55 for women and the age of 60 for men. These are monthly payments, which will be made for life or for at least ten years at the choice of an individual. NPFs have also the right to offer other types of payments, including one-time payments.
The savings can be fully used earlier if a person has to pay for expensive medical treatment or in case of loss of a breadwinner.