Retirement insurance in Belarus to start working on October 1, 2022

Retirement insurance in Belarus will start working in October next year. At the same time, the solidarity pension system will remain in force. Minister of Labour and Social Protection Irina Kostevich commented on this issue on the Belarus 1 TV channel.

According to Kostevich, now only 5% of employees use the voluntary insurance program. The draft decree stipulates that the system will start operating in the country from October 1, 2022.

Employees who have at least three years left before retirement will be able to participate in it. The draft decree stipulates that a person him-/herself will make a decision: within five or ten years he/she will be paid this accumulated part of the retirement benefits.

– A person will get an option to come to the social insurance organization with an application or electronically submit an application and conclude an agreement, – said Kostevich.

The service will be provided by the Republican Unitary Insurance Enterprise “Stravita”. Kostevich explained her choice by the fact that the state will be able to guarantee the safety of the accumulated funds through a state organization. In addition, “Stravita” has a developed network and it has already been chosen by about 90% of people who have taken out pension insurance.

– The draft decree provides for a capitalization mechanism, taking into account those inflationary moments that may occur during periods of accumulation, – explained Kostevich.

According to her, the calculations showed that with the maximum length of service (40 years for women and 45 for men) and the payment of social insurance contributions from the average salary, the retirement benefit will amount to BYN 570.00. Taking into account additional savings over 18 years, the pension retirement benefit will amount to BYN 900.00.

– These are the current conditions for us to understand. This is a really serious bonus which will make the citizens of our country to think about the standard of living after retirement, – the minister said.