Overview of CIS Pension Rights and Changes
In 1992, an agreement was reached to protect the pension rights of citizens who are members of the Commonwealth of Independent States (CIS). Besides Russia, nine other countries joined this treaty: Armenia, Belarus, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Turkmenistan, Uzbekistan, and Ukraine.
The agreement states that pensions for residents of these states are calculated using the full record of service and earnings accumulated in the USSR before 1992, as well as in CIS countries since 1992. A person receives a pension from the country where they reside most of the time, even if their nationality differs. Mutual agreements are not made between the states unless there are separate bilateral arrangements in place.
Consequently, if a CIS migrant receives a pension in Russia, the years worked in CIS countries are treated as if they were earned within the Russian Federation. When a pension is issued in Russia, the foreign earnings are converted into rubles using the exchange rate on the date the pension is paid.
Russia’s draft withdrawal from the contract, prepared by the Ministry of Labor and the Ministry of Foreign Affairs, was reported by RBC with a link to the project copy. The proposal is coordinated with the Ministry of Economic Development, the Pension Fund, the Ministry of Finance, and is supported by the head of the State Legal Department and the Accounts Chamber.
The explanatory note for the bill notes that more CIS immigrants are arriving in Russia and that pension costs are rising as a result.
Authorities explained that some citizens who do not have substantial USSR work experience or who have limited experience and do not contribute to the country’s economy may already fall under the old rules of the agreement.
The treaty’s regional framework also means that pension obligations rise for states with higher pension payments or lower retirement ages.
The draft law asserts that the agreement has served to balance the interests of this generation with USSR work experience. It also emphasizes that thirty years have passed since the agreement was signed, and the pension systems of the participating countries have shifted to a model based on insurance premiums. As a result, the provisions of the CIS treaty no longer align with the core principles of pension systems and do not allow citizens in these states to fully enjoy their pension rights upon retirement.
Officials estimate that withdrawing from the agreement could save up to 2.2 billion rubles from the Pension Fund of Russia for 2023–2025.
How Will Pension Calculations Change Under the CIS Termination?
Russia plans to end the agreement on January 1, 2023. Current retirees will not notice a change. Pensions awarded under the old rules will remain unadjusted. Future retirees, however, will see a different payment method.
Russia has already signed multilateral agreements with EAEU member countries—Armenia, Belarus, Kazakhstan, Kyrgyzstan and Tajikistan—under which pension costs are shared. The period of service accumulated in different member states will be summed, and each country will pay only its portion based on the rights earned in its territory. Russia is also negotiating with Moldova and Uzbekistan regarding future pension payments.
At present, Ukraine’s status under the old agreement remains unclear. If a bilateral deal cannot be reached, pensions may be paid according to Ukraine’s national laws by default. When a pension is issued in Russia, Ukraine’s work experience will be counted only if it was earned before January 1, 1991.
Alexander Safonov, a professor at the Finance University under the government, noted that many Ukrainians worked in Russia for long periods and earned higher salaries, with significant insurance premiums deducted. Following the termination of the CIS citizens pension rights agreement, Ukraine will no longer count the length of service accrued in Russia when calculating pensions, since Russia will stop sharing information from the Pension Fund of Russia.
Regarding the LPR and DPR, social security issues for citizens residing in one party’s territory and affecting the other party will be handled through specific agreements within the framework of friendship, cooperation, and mutual assistance.