The future of Russia's pension system is now the subject of vigorous public discussion. The crisis condition of the Russian Federation (RF) Pension Fund at the end of the 1990s demonstrated the impossibility of preserving the country's traditional pension system against the background of increasing demographic strains and the progressive aging of the population. These trends make reform the Russian pension system inevitable. In May 1998, the government of Russia adopted the Pension Reform Program, which calls for implementation of a mixed version of pension accrual. At present (according to federal law no. 111-FZ of July 24, 2002, "On Investment of Funds for Financing the Cumulative Part of the Retirement Pension in the Russian Federation," and federal law no. 27-FZ in the revision of December 31, 2002, "On Individual [Personalized] Accounting in the Mandatory Pension Insurance System"), working citizens of the Russian Federation are to receive letters from the Pension Fund (from now on, detailed notifications will be sent out yearly), informing them of the status of their personal pension accounts and suggesting that they select a company to manage their funds within the next few months.
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