The investment income lost during the transition to the NPF can be returned

Citizens will be able to recover investment income from their pension, lost during the illegal transfer of their savings from one fund to another. As Izvestia found out, the Ministry of Labor has developed a document on amendments obliging pension funds to restore financial losses to citizens if the court finds the transfer of funds and the conclusion of a new agreement illegal.

According to the explanatory note to the draft law, we are talking about the transfer of pension funds from the Pension Fund of the Russian Federation or a non-state pension fund (NPF) to another NPF. If it is ahead of schedule (earlier than five years later), then according to the current legislation, the citizen loses the money that he could receive as a result of investing his pension. They will be included in the fund’s mandatory pension insurance reserve.

However, if the new contract for any reason is declared invalid by the court, the Ministry of Labor proposes to oblige the new insurer to return the illegally transferred pension savings to the previous one. At the same time, the first pension fund that has retained investment income in its reserve will have to restore it to the account of the insured person.

Now the court can recognize the contract on compulsory pension insurance as invalid, but this does not guarantee the return of investment income. So, due to the amendments, the Ministry of Labor expects to eliminate this gap in the legislation.

The initiative is approved by the relevant State Duma committee on labor, noting that the Russians have lost billions of rubles when changing the fund. The document is also supported by the Central Bank, the Ministry of Finance and the Pension Fund of Russia.

More details in the exclusive material of Izvestia:

At the suggestion of the court: the income lost during the transition to the NPF can be returned



source https://pledgetimes.com/the-investment-income-lost-during-the-transition-to-the-npf-can-be-returned/