NPF pension funds hit 4 trillion rubles

Total holdings in non-governmental pension funds (NPFs) in 2019 Q1 increased by 3%, to roughly 4 trillion rubles. Pension reserves grew by 2.4%, to a total of 1.3 trillion rubles, and pension savings were up 3.3% to 2.7 trillions rubles, according to the financial statements of NPFs.

In addition to received investment income, an inflow of funds totalling 35.5 billion rubles based on the results of the 2018 transition campaign (42% of the total increase in pension savings) was another significant driver of growth in the first quarter.  As part of the transition campaign, 587 thousand individuals transferred their pension savings from the Pension Fund of the Russian Federation (PF RF) to NPFs, and 74 thousand individuals moved from NPFs to the PF RF.

The increase in pension reserves was primarily influenced by pension contributions (52% of the total increase in pension reserves), as well as investment income on pension reserves.

The number of insured persons in the system of mandatory pension insurance was 37.4 million (up by 1.2%) at the end of the first quarter, and the number of those insured in the system of non-governmental pension security was 6.1 million persons (up by 0.8%).

By the end of the first quarter, the number of insured persons receiving pensions had grown by 26 thousand individuals (+28%) compared to the same period in the previous year, whereas the amount paid out in pensions increased by 1.1 billion rubles (growth of over 50%).

The non-governmental pension system also showed positive movement: the number of pension recipients grew by 64 thousand persons (+4.2%), and the amount paid out increased by 2.2 billion rubles (+14.4%).

At the end of the first quarter of 2019, the return on pension savings and pension reserves was 9% and 6.5% p.a. respectively before the deduction of remuneration for management companies, the specialised depository and the fund.