The term “funded pension” appeared in the pension legislation in 2001, while the law “On labor pensions in the Russian Federation”was adopted. It came into force on January 1 of the following year, and the result of its action was the division of the pension into several parts.
The pension was divided into several parts (basic, insurance and funded), each of which had to be financed from separate sources. And, if the first two concepts are more or less familiar and logically understandable, then few people managed to understand the funded part of the pension. Continue reading