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. Last Updated: 07/27/2016

Pension Plan Promised

MOSCOW -- The government plans to introduce an accumulative savings pension system, part of the promised structural social reforms, by the start of 2002, Labor Minister Alexander Pochinok said Monday.

"The deadline for a full launch of this system is Jan. 1, 2002. We would very much like to try to start it a year earlier, but it's a lot of work," Pochinok told Ekho Moskvy radio station.

The need to replace the existing budget-funded pension system is urgent as a demographic gap will be faced in the next five to seven years. The number of working people will then decrease sharply and the state will be unable to finance all pensions, he said.

Pochinok said the main technical problem was to give the workforce of 70 million electronic identity cards for tracking individual pension payments.

The government plans to raise pensions gradually this year and next, he said. They averaged about $30 in March.