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3Information for citation:
Anbrekht, T. A. (2022) Development of Pension Rights for Migrant Workers on the Territory of the Eurasian Economic Union. European and Asian Law Review. 5 (2), 5-13. DOI: 10.34076/2782 1668 2022 5 2 5.
UDC 349.3
BISAC LAW115000
DOI: 10.34076/27821668_2022_5_2_5
Research Article
DEVELOPMENT OF PENSION RIGHTS FOR MIGRANT WORKERS ON THE TERRITORY OF THE EURASIAN ECONOMIC UNION
TATYANA A. ANBREKHT
Tyumen State University ORCID ID: 0000-0002-2050-0323
The Treaty on the Eurasian Economic Union defined the establishment of a shared labor force market as one of the main goals of the integration association. Ensuring the freedom of movement for workers from EAEU member states is inextricably linked with exercising their right to pension benefits. The Agreement on Pension Benefits for the Working Population of EAEU Member States is based on the recognition of equal rights for workers, territorial equality, and export of pensions. As of the effective date of the Agreement, pension rights of the working population of EAEU member states shall be developed in full parity with the citizens of the state of employment. The Agreement establishes the types of pension contributions based on which the pension rights of the working population of EAEU member states are developed and the types of pension benefits these legal norms apply to. The paper includes a comparative analysis of legislations of EAEU member states the provisions of which define the development of pension rights of the working population of EAEU member states. In the course of work, the conditions for pension rights development have been analyzed, similarities and differences have been identified. The conducted research has shown that the pension systems of EAEU member states are in the process of being restructured. The stability of the pension systems is impacted by demographic, economic and migration issues. Under their influence, EAEU member states introduce structural changes to the pension systems, improve the rate policy, raise the retirement age and raise requirements for the length of employment.
Key words: pension rights, pensions, pension contributions, migrant workers, Eurasian Economic Union
Introduction
Development of Eurasian integration is one of the goals secured in the Treaty on the Eurasian Economic Union (hereinafter the EAEU)1, and this goal is aimed at ensuring the freedom of workforce movement and establishing a unified labor force market. It is important to stress that the implementation of the principle of free movement underlying the EAEU gives the citizens an opportunity to work in another country without the need to obtain a work permit (Topilin, 2016).
N. G. Shchegoleva, when studying the intensity of labor migration in the EAEU notes that 'integration is manifested to the greatest extent in Kazakhstan, Kyrgyzstan, and Armenia, the citizens of which migrate for various reasons - primarily labor ones - to the Russian territory' (Shchegoleva, 2019: 142).
Thus, the largest number of migrants to the territory of the Russian Federation in 2021 arrived from the Kyrgyz Republic, and 884,133 persons during migration registration cited work as the main purpose
1 Treaty on the Eurasian Economic Union (signed in Astana on May 29, 2014). Available at: http://www.eurasiancommission. org/ [Accessed: 2 January 2022].
Copyright© 2022. The Authors. Published by Ural State Law University named after V. F. Yakovlev. This is an open access article distributed under the CC BY-NC 4.0. license http:llcreativecommons.orglllicenselby-ncl4.0I
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for entry. Meanwhile, only 363,880 notifications of entry into employment or independent contractor agreements were received. As for other EAEU member states, 389,809 persons arrived from the Republic of Armenia with the purpose of working with 138,946 notifications of entry into employment or independent contractor agreements received respectively; 163,938 persons - from the Republic of Kazakhstan with 59,746 notifications received; and 174,500 persons - from the Republic of Belarus with 34,015 notifications received2.
Free movement of migrant workers is closely linked with the need to preserve the right to social and, first and foremost, pension benefits. A special place is given to the issues of pension benefits in the integration processes of EAEU member states. Per Article 98 of the Treaty on EAEU, migrant workers exercise the right to social benefits (insurance) in accordance with national statutes of the state of employment. That said, pension benefits are regulated by the legislation of the state of permanent residence as well as by provisions of a separate international agreement.
The importance of agreement development is the long-felt need to provide migrant workers with an opportunity to exercise their pension rights established on the territory of EAEU to the full extent regardless of the state of their further residence. Among other reasons, the need to reduce the level of illegal migration and informal employment is indicated by researchers (Shubenkova & Shichkin, 2021). Besides, as I. V. Shesteryakova notes, 'it was necessary to make a decision regarding pension benefits for citizens working on the territory of contracting states for the purposes of further integration within the EAEU' (Shesteryakova, 2020: 241).
Working out the Agreement, the parties had to consider the existing structural differences in pension systems of EAEU member states, different ways of financing pensions, the amount of pension contributions, and the source of their generation, as well as the fact that pensions could differ by their types, structures and terms of entitlement (Karabchuk et al., 2014; Dyatlov et al., 2017: 1156; Akatnova, 2019: 152-153).
In 2019, the Supreme Eurasian Economic Council signed the Agreement on Pension Benefits for the Working Population of EAEU Member States (hereinafter the Agreement)3. The Agreement is aimed at ensuring equal rights for migrant workers, protecting and preserving pension rights they have acquired on the EAEU territory, as well as at developing cooperation in the field of pension benefits.
Materials and Methods
The paper is dedicated to the issues of developing migrant workers' pension rights on the territory of the EAEU. To accomplish the objectives set by the author in the process of research, both general scientific methods (analysis, synthesis, and the Aristotelian method) and special ones (comparative legal method, scientific generalization method, and the Delphi method) were used.
Results
The results of the research are presented in the Conclusion.
Discussion
One of the issues influencing the choice of a pension provision scheme in the framework of integration associations, the EAEU in particular, is significant differences in pension systems. E. E. Machulskaya rightfully notes that 'there is no umbrella pension system in the world to suit any country, since the structure of the pension system in every state is determined by specificities of its historical development, economy, demography, and culture' (Machulskaya, 2017: 35). However, nowadays suggestions about the unification of the pension legislation of EAEU member states, the establishment of a supranational pension fund, and a single pension space require bringing the relations in the field of Eurasian integration to a new level and, therefore, are unlikely to be implemented in the near future. Therefore, the Agreement keeps 'intrastate requirements for pension entitlement provided for on the territory of each EAEU member state without
2 Specific Indicators of the Migration Situation in the Russian Federation as of January-December 2021 with Allocation by Countries and Regions. Available at: https://MBfl.pô/dejatelnost/statistics/migracionnaya/item/28104344/ [Accessed: 2 January 2022].
3 Collection of Legislation of the Russian Federation. 2021. No. 11. Art. 1716.
the need to establish a supranational pension system or establish uniform requirements for granting a pension to the citizens of the integration association' (Mishalchenko et al., 2020: 75).
It is the legal regulation that has formalized the rights of the working population of EAEU member states as equal with those of citizens in the state of employment that should be considered one of the critical provisions in the Agreement since it is a 'difficult, but inevitable step for effective integration' (Agashev, 2018), (Agashev, Trifonov & Trifonova, 2021: 119). Thus, the Agreement provides for the development of pension rights of migrant workers throughout the EAEU space since January 1, 2021, as of the effective date of the Agreement. That said, it is important to stress that these rights are developed at the expense of pension contributions on the same terms and in the same manner as the development of pension rights of citizens from the state of employment.
The Agreement is based on the principle of pro rata funding of expenditures related to payments per the pension rights developed on the territories of contracting parties (Karabchuk et al., 2014). Simultaneous use of the pro rata principle when each state holds responsibility for the pension rights developed on its territory and multilateral participation of states in an international agreement entered into to solve the issues of pension benefits is innovative for the Russian Federation (Mishalchenko et al., 2020: 73).
It should be noted that in the Republic of Armenia the scope of the Agreement includes labor pensions (age pensions, preferential pensions, long service pensions, disability pensions, pensions for loss of breadwinner, partial pensions) provided as part of public pension benefits, as well as compulsory accumulative pensions (annuity, scheduled payments, one-time payments, one-time payments to successors).
The age of retirement is 63 years established equally for men and women4.
In 2011, the introduction of the accumulative part of a pension started in Armenia. At the first stage, a voluntary accumulative pension was generated, and since 2014, the transition to the generation of a compulsory accumulative pension has been made (Aliev, 2016; Tamazyan & Dzhangiryan, 2018).
Participants in the accumulative level of the pension system are the individuals who have paid social contributions so that an accumulative allocation is provided or voluntary pension contributions are made in their favor, as well as the persons who have acquired shares in the compulsory pension fund.
In addition, the generation of an accumulative pension depends on the DOB of the participants. Thus, mandatory participation in its generation is required for individuals born on January 1, 1974, or later. Individuals born before 1974 are provided with an opportunity to take part in the accumulative system on a voluntary basis. The grounds for generating an accumulative pension is a declaration of the chosen retirement savings fund.
The total amount of accumulative contribution is 10 %. The state co-finances accumulative contributions. However, co-financing only covers participants in the compulsory accumulative level of the pension system and depends on the participant's income5.
It should be noted that in 2019 some changes aimed at implementing the equal participation principle were made to the pension legislation of the Republic of Armenia so that citizens and the state participate equally in generating accumulative contributions. Therefore, the amount of the social contribution for the participants of the compulsory accumulative level is gradually increasing.
For example, in 2021, the social contribution for wage workers with a monthly salary below 500,000 drams was 3.5 % (in 2020 - 2.5 %). With a monthly income above 500,000 drams, the social contribution was calculated as a difference of 10 % and 32,500 drams. However, the difference between government accumulative allocations and social contributions has never exceeded 32,500 drams per month.
In 2022, the social contribution for wage workers with a monthly salary below 500,000 drams was 4.5 %. With a monthly income above 500,000 drams, the social contribution is calculated as a difference of 10 % and 27,500 drams. However, the difference between government accumulative assignments and social contributions has never exceeded 27,500 drams per month.
Subsequently, the social contribution for wage workers with a monthly salary below 500,000 drams will be 5 %. In case the monthly salary is above 500,000 drams, the social contribution will be calculated as the difference between 10 % and 25,000 drams.
4 Art. 9 of the Law of the Republic of Armenia No. ZR-243 'On State Pensions' dated December 30, 2010. Available at: http://www.parliament.am/legislation.php?sel=show&ID=4008&lang=rus [Accessed: 2 January 2022].
5 Law No. ZR-244 of the Republic of Armenia 'On Accumulative Pensions' dated December 30, 2010. Available at: http:// www.parliament.am/legislation.php?sel=show&ID=4992&lang=rus [Accessed: 2 January 2022].
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As for individual entrepreneurs, the social contribution for those with an income below 6,000,000 drams is 5 %. In case the income exceeds 6,000,000 drams, the social contribution is calculated as the difference between 10 % and 300,000 drams. For the self-employed, the social contribution is 5 % regardless of the size of the income.
The pension system of the Republic of Belarus up to now has been considered single-tier, based on the principle of pay-as-you-go (Zabolotskii, 2019: 44). It should be noted though that since October 1, 2022, another level of voluntary insurance of a supplementary accumulative pension has been added to the pension system (additional accumulative pension insurance)6.
In the Republic of Belarus, the Agreement applies to the following types of pensions: age labor pensions, long service pensions (except for pensions of military, equal-status individuals, their family members, and civil officers), disability pensions, pensions for loss of a breadwinner.
It is important to stress that the retirement age has gradually risen in Belarus since 20177. Thus, from 2017 to 2023 the retirement age is rising annually by six months to reach 63 years for men and 58 years for women (Yemelyanov, 2016).
In the Republic of Belarus, pension rights are developed through the payment of insurance premiums for compulsory pension insurance. In addition, pension rights are developed with the involvement of both employers who are responsible for the principal obligations for insurance premiums and their workers. The amount of insurance premiums is distributed as follows: the employer pays 28 %, and the employee - 1 %8.
As for additional accumulative pension insurance, the insured are working citizens for whom the employers pay compulsory insurance premiums for pension insurance. As a separate matter, it should be noted that the same right is granted to foreign citizens along with the citizens of the Republic of Belarus.
The legislator counts the age of the insured as a special requirement for participation in additional accumulative pension insurance. In particular, the insured should have at least 3 years remaining until reaching the generally established retirement age.
It is noteworthy that the insured is given the right to define the insurance premiums rate for the additional pension insurance contract by themselves. At the same time, the contribution may not exceed 13 % of the sum of payments accrued in favor of the insured. It is important to stress that the employer also participates in generating the supplementary accumulative pension of the employee.
The distribution of insurance premiums depends on the rate defined by the insured. Particularly, the employer withholds and transfers to the insurer no more than 10 % of the sums accrued, and no more than 3 % - at their own expense.
Besides, the legislator determines the following possible options for distributing insurance premiums between the employer and the insured.
First, if the insured chooses an insurance rate that does not exceed 6 %, then insurance premiums are distributed equally between them and the employer. Second, in case the insured chooses a rate exceeding 6 %, insurance premiums are distributed between the parties as follows: the employer pays insurance premiums in the amount up to 3 % and the remaining sum is paid at the expense of the insured.
In addition, the amount of the employer's compulsory insurance premiums is reduced by the sum of compulsory insurance premiums for pension insurance.
Kazakhstan became the first EAEU member state where 'an accumulative level was introduced into the pension system and the transition was made from the pay-as-you-go pension system to an accumulative system' (Yelemesov et al., 2021: 11). In 2013, the Unified Accumulative Pension Fund was established based on the prior State Accumulative Pension Fund.
In the Republic of Kazakhstan, the Agreement applies to pension payments from the Unified Accumulative Pension Fund: upon reaching retirement age, upon confirmation of first- and second-degree disability, if the permanent disability is confirmed, and for a one-time payment to successors.
6 Decree No. 367 of President of the Republic of Belarus 'On Voluntary Insurance of a Supplementary accumulative Pension' dated September 27, 2021. Available at: https://president.gov.by/ru/documents/ukaz-no-367-ot-27-sentyabrya-2021-g [Accessed: 2 January 2022].
7 Decree No. 137 of President of the Republic of Belarus 'On Improving Pension Benefits' dated April 11, 2016. Available at: https://president.gov.by/ru/documents/ukaz-137-ot-11-aprelja-2016-g-13449 [Accessed: 2 January 2022].
8 Law No. 138-XII of the Republic of Belarus 'On Compulsory Insurance Premiums to the Social Protection Fund under the Ministry of Labor and Social Protection of the Republic of Belarus' dated February 29, 1996. Available at: https://belzakon. net/3aK0H0flaTe^bCTB0/3aK0H_PB/1996/1787 [Accessed: 2 January 2022].
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The retirement age for men is 63. As for women, a decision was made to increase the retirement age to make it equal to the retirement age established for men. Thus, since 2018, the retirement age has risen annually by six months for women to reach 63 by 20279.
Since 1998, financing of the accumulative pension has been provided through the payments of compulsory pension contributions to the Unified Accumulative Pension Fund in the amount of 10 % of the employee's monthly income adopted for the calculation of the aforementioned contributions10. Additionally, employers, at their own expense, pay compulsory professional pension contributions to the Unified Accumulative Pension Fund in the amount of 5 % of the worker's monthly income in favor of the employees engaged in jobs with hazardous working conditions11.
Thus, while before the adoption of the Agreement, pension legislation of the Republic of Kazakhstan had not provided for the development of pension rights for the working population from EAEU member states, as of its effective date, pension rights of migrant workers from the EAEU have been developed through the payment of compulsory pension contributions.
Additionally, it should be noted that as a result of the reform made in Kazakhstan in 2021, the contributors were allowed to use their pension savings accumulated through compulsory pension contributions for housing improvements and medical care12.
Thus, the use of pension savings is allowed if one of the conditions established by the legislation is met. First, if the sum of pension savings in the account exceeds the sufficiency threshold of pension savings. Second, if the amount of the pension ensures the beneficiary's average monthly income replacement ratio of at least 40 %. Third, if a retirement annuity contract has been entered into with the insurance company13. Thus, as of the beginning of 2022, 1,274,449 requests for the payment of pension savings had been submitted, and 827,234 of them were executed for the sum of 1,274,449 mln tenge; 261,402 applications -for medical care, 180,480 of them were executed for the sum of 161,408 mln tenge14.
In the Kyrgyz Republic, the Agreement applies to the pensions provided within the framework of state-sponsored social insurance (age pensions, disability pensions, pensions for loss of breadwinner) and pensions from the funds of the State Accumulative Pension Fund (the accumulative part of the pension and payments at the expense of pension savings).
The established retirement age is 63 for men and 58 for women (Aliev, 2015).
Insurance premiums for state social insurance are paid by employers (legal entities, peasant (farm) households, individual entrepreneurs). Workers act as payers of insurance premiums along with employers (Kasymbayeva, 2019).
For employers, insurance premiums to the Pension Fund amount to 15 % of all the payments accrued in favor of employees. This sum is distributed to transfer 12 % to the personal insurance account of the insured and 3 % - to the pay-as-you-go part of the Pension Fund.
For workers, insurance premiums are 10 % and can be distributed as follows: 8 % to the Pension Fund and 2 % - to the State Savings Fund15.
In this case, foreign citizens paid insurance premiums only if they have permanent residence on the territory of the Kyrgyz Republic. The requirement regarding payment of insurance premiums did not apply to foreign citizens temporarily residing on the territory of the Kyrgyz Republic. Therefore, regarding
9 Law No. 342-V of the Republic of Kazakhstan 'On Introduction of Amendments and Supplements to Certain Regulatory Acts of the Republic of Kazakhstan on Pension Benefits' dated August 2, 2015. Available at: https://adilet.zan.kz/rus/docs/ Z1500000342 [Accessed: 2 January 2022].
10 Art. 24, 25 of Law No. 105-V of the Republic of Kazakhstan 'On Pension Benefits in the Republic of Kazakhstan' dated June 21, 2013. Available at: https://adilet.zan.kz/rus/docs/Z1300000105 [Accessed: 2 January 2022].
11 Art. 26 of Law No. 105-V of the Republic of Kazakhstan 'On Pension Benefits in the Republic of Kazakhstan' dated June 21, 2013. Available at: https://adilet.zan.kz/rus/docs/Z1300000105 [Accessed: 2 January 2022].
12 Law No. 342-V of the Republic of Kazakhstan 'On Introduction of Amendments and Supplements to Certain Regulatory Acts of the Republic of Kazakhstan on Economic Growth Recovery' dated January 2, 2021. Available at: https://adilet.zan.kz/ rus/docs/Z2100000399 [Accessed: 2 January 2022].
13 Art. 31 of Law No. 105-V of the Republic of Kazakhstan 'On Pension Benefits in the Republic of Kazakhstan' dated June 21, 2013. Available at: https://adilet.zan.kz/rus/docs/Z1300000105 [Accessed: 2 January 2022].
14 One-time Pension Payments. Available at: https://www.enpf.kz/ru/indicators/pa/withdrawal-data.php [Accessed: 10 February 2022].
15 Law No. 8 of the Kyrgyz Republic 'On Insurance Premium Rates for State Social Insurance' dated January 24, 2004. Available at: http://cbd.minjust.gov.kg/act/view/ru-ru/1393 [Accessed: 10 February 2022].
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employees from among the working population of EAEU member states the employer allocated funds to the pay-as-you-go part of the Pension Fund in the amount of 3 %.
The situation changed with the adoption of the Agreement. As of its effective date, the insurance premiums have amounted to 15 % for employers and 10 % for employees.
It should be noted that at the end of 2021, amendments were made to the legislation that provided for increasing the insurance premium rate for all the workers from among foreign citizens and their employers. Hence, since November 19, 2022, employers will accrue and pay insurance premiums for the insured individuals from among foreign citizens regardless of their permanent or temporary residence at the rates of insurance premiums established for the citizens of the Kyrgyz Republic16.
In the Russian Federation, the Agreement applies to insurance pensions: old age pensions, disability pensions, pensions for loss of breadwinner, including flat-rate allowances to the insurance pension, its upgrading and increase, and additional payment to the insurance pension. Additionally, the scope of the Agreement includes the accumulative pension and payments at the expense of pension savings.
Russia is one of the last in the Eurasian space to start raising the retirement age, thereby keeping one of the lowest retirement age indicators: 55 for women, and 60 for men. However, starting from 2019, the retirement age for old age pensions has been rising gradually to reach 60 for women and 65 for men. Along with the higher retirement age, the requirements for the pension insurance duration are being increased to 15 years (Machulskaya, 2018; Zaripova & Khamitova, 2020).
At first, compulsory pension insurance in the Russian Federation only applied to foreign citizens with permanent residence on its territory. In addition, given that Russia is a recipient state for migrant workers, the issue of counting foreign citizens temporarily residing on the territory of the country as insured individuals has become urgent and demands resolution. Since 2012, migrant workers of EAEU member states have been included in the system of compulsory pension insurance17.
Pension rights of migrant workers are developed through the payment of insurance premiums by the insured. It should be noted that the burden of paying insurance premiums is placed on the employer in the Russian system of compulsory pension insurance. It is remarkable that the need for redistributing obligations for paying insurance premiums between the employer and the employee was called an improvement area in the rate policy in the Program of Pension Reform, but the suggestion was never reflected in the legislation18.
As A. K. Solovyov notes, 'the rate in pension systems ensures a balance of pension rights of the insured individuals and the state's obligations to them, which is a necessary and sufficient element for establishing a guaranteed level of pension benefits' (Solovyov et al., 2018: 31-32). As of now, insurance premiums for compulsory pension insurance are 22 % within the framework of the set base for calculating insurance premiums19. However, 'their distribution considered the inclusion of the fixed component of the pension into the insurance pension set as a fixed amount regardless of the length of employment and income of the insured' (Tuchkova, 2017: 19). Therefore, out of 22 %, the pay-as-you-go part constitutes 6 %, and the individual part of the insurance premium rate - 16 % (Safonov, Anyushina & Dubrovskaya, 2021).
It is important to note that the generation of the insurance or accumulative pension depends on the DOB of the insured. Thus, an insurance pension is generated for individuals born in 1966 and earlier. Individuals born in 1967 and later are given the choice: to generate an insurance pension or insurance and accumulative pensions. The aforementioned norm also applies to foreign citizens that reside permanently on the territory of the Russian Federation (Grigoriev, 2020). However, this rule does not apply to foreign citizens that reside temporarily on the territory of the Russian Federation. In respect to them, employers pay insurance premiums regardless of their DOB. And while since January 1, 2021, this requirement may
16 Law No. 132 of the Kyrgyz Republic 'On Introduction of Amendments to the Law of the Kyrgyz Republic 'On Insurance Premium Rates for State Social Insurance' dated November 15, 2021. Available at: http://cbd.minjust.gov.kg/act/view/ru-ru/112316?cl=ru-ru [Accessed: 10 February 2022].
17 Art. 22.1 of Federal Law No. 167-FZ 'On Compulsory Pension Insurance in the Russian Federation' dated December 15, 2001. Collection of Legislation of the Russian Federation. 2001. No. 51. Art. 4832.
18 Government Decree of the Russian Federation No. 463 'On the Program of Pension Reform in the Russian Federation' dated May 20, 1998. Collection of Legislation of the Russian Federation. 1998. No. 21. Art. 2239.
19 Art. 22 of Federal Law No. 167-FZ 'On Compulsory Pension Insurance in the Russian Federation' dated December 15, 2001. Collection of Legislation of the Russian Federation. 2001. No. 51. Art. 4832.
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not be applied to migrant workers from EAEU member states, it should be noted that for the period of 2014-2024, the generation of accumulative pension in the framework of compulsory pension insurance has been suspended. Therefore, the Pension Fund of the Russian Federation forwards the entire individual part of the insurance premium rate to finance the insurance pension20.
It is important to stress that since 2017, the functions of administering insurance premiums paid by employers for their employees in order to develop the pension rights of the latter have been delegated to the Federal Tax Service of Russia. That said, the Pension Fund of the Russian Federation was given the obligation to perform public functions and to provide public services not related to its operations as an insurer, e.g., exercise rights to additional social support measures for certain categories of citizens.
Given the situation, the Government of the Russian Federation made suggestions for optimizing the operations of the RF Pension Fund. In particular, unification of the RF Pension Fund and the Compulsory Social Insurance Fund of the Russian Federation is proposed and the creation of a Pension and Social Insurance Fund of the Russian Federation on their basis (the Social Fund of Russia for short). Based on the Strategy for Long-Term Development of the Pension System of the Russian Federation21 and the Concept for Digital and Functional Transformation of the Social Area22, the Government of the Russian Federation has worked out and presented for discussion the draft of the Federal Law 'On State Non-Budgetary Fund 'Pension and Social Insurance Fund of the Russian Federation'23. The Government of the Russian Federation suggests that January 1, 2023, should be set as the commencement date for the Social Fund of Russia. Therefore, providing compulsory pension insurance will be one of the activities of the Social Fund of Russia.
Additionally, setting a uniform rate for insurance premiums for compulsory pension insurance and compulsory social insurance is suggested by increasing the rate of insurance premiums for compulsory social insurance up to the amount of insurance premiums for compulsory pension insurance. And, therefore, insurance premiums will be paid by the insured as a single payment.
Implementation of functions of the Social Fund of Russia provides for establishing a uniform digital platform in the framework of which information systems of the Ministry of Labor and Social Protection of the Russian Federation, the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation, federal medical and social assessment institutions will be unified.
Conclusion
It has been a year since the Agreement entered into force, allowing assessing the first steps made by EAEU member states for implementing its major provisions.
The conducted analysis of pension systems of EAEU member states has shown their ongoing transformation driven by economic, demographic, and migration factors. The analysis of migration flows is a testimony to the fact that the Russian Federation is a labor force recipient country. Besides, some EAEU member states, such as the Kyrgyz Republic, are encountering significant labor outflows that is considered a negative factor affecting the stability of the pension system.
Currently, EAEU member states are making reforms aimed at a gradual increase in the retirement age. Thus, the system for raising the retirement age is to be completed in the Republic of Belarus in 2022.
20 Federal Law No. 351-FZ of December 4, 2013 'On Introduction of Amendments to Certain Regulatory Acts of the Russian Federation on Compulsory Pension Insurance Regarding the Choice of a Pension Provision Option by Insured Individuals'. Collection of Legislation of the Russian Federation. 2013. No. 49 (Part VII). Art. 6352; Federal Law No. 429-FZ of December 21, 2021 'On Introduction of Amendments to Article 33.3 of the Federal Law 'On Compulsory Pension Insurance' and Article 6.1 of the Federal Law 'On Introduction of Amendments to Certain Regulatory Acts of the Russian Federation on Compulsory Pension Insurance Regarding the Choice of a Pension Provision Option by Insured Individuals'. Collection of Legislation of the Russian Federation. 2021. No. 52 (Part I). Art. 8988.
21 Government Resolution of the Russian Federation No.2524-r 'On the Strategy of Long-Term Development of the RF Pension System' dated December 25, 2012. Collection of Legislation of the Russian Federation. 2012. No. 53 (Part II). Art. 8029.
22 Government Resolution of the Russian Federation No. 431-r ' ;On Establishment of the Concept for Digital and Functional Transformation of the Social Area within the Operations of the Ministry of Labor and Social Protection of the Russian Federation until 2025' dated February 20, 2021. Collection of Legislation of the Russian Federation. 2021. No. 10. Art. 1634.
23 Draft of Federal Law 'On State Non-Budgetary Fund 'Pension and Social Insurance Fund of the Russian Federation'. Available at: https://regulation.gov.ru/projects#npa=124505 [Accessed: 15 February 2022].
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Since 2019, the retirement age has risen gradually in the Russian Federation to reach 60 for women and 65 for men. In the Republic of Kazakhstan, the retirement age for women has risen gradually since 2018 to reach 63 by 2027.
It should be noted that prior to the adoption of the Agreement, the legislation of EAEU member states did not provide for the possible development of pension rights for migrant workers, except for the Russian Federation, where the legislation obliged the employers to pay insurance premiums for compulsory pension insurance for migrant workers temporarily residing on its territory. However, the possibility of exporting pension rights was not available.
The rate policy of EAEU member states along with the approaches used for distributing insurance premiums between employers and employees are instrumental in developing pension rights for the working population. It should be noted that the Russian Federation is the only EAEU member state that does not provide for the participation of workers in paying insurance premiums for compulsory pension insurance. In the Republic of Belarus, compulsory insurance premiums for the pension insurance of workers amount to 1 %, in the Kyrgyz Republic - 10 %, and in the Republic of Kazakhstan - 10 %. In the Republic of Armenia, the amount of the social contribution has increased gradually to 5 % which will allow the distribution of the obligations for the payment of pension contributions equally between the state and participants in the pension system.
The Agreement entered into is based on the principle of pro rata liability of the state in the scope of pension rights developed on its territory and it provides for the mechanism of pension export.
It should be noted that nowadays countries are starting to carry out general processes in the field of pension benefits on the territory of the EAEU in the framework of the integrated information system that will allow exchanging the data required to provide pensions to migrant workers, while no provision exists for the setup of shared information resources of EAEU member states in the field of pension benefits.
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Information about the author
Tatyana A. Anbrekht - Candidate of Juridical Sciences, Associate Professor, Associate Professor of the Civil Law Disciplines Department, Tyumen State University (Tyumen, Russia; e-mail: T_anbrecht@ mail.ru).
© T. A. Anbrekht, 2022
Date of Paper Receipt: February 28, 2022
Date of Paper Approval: April 1, 2022
Date of Paper Acceptance for Publishing: June 24, 2022
