Monday, August 26, 2019

Eurasian Union pension reforms undercut by shadow economy

When the Moscow-led Eurasian Economic Union was born in 2015, it promised to benefit millions of laborers who migrate between member states annually. The idea is to roll together the pension systems of the five Eurasian Economic Union (EAEU) members – Russia, Belarus, Kazakhstan, Armenia and Kyrgyzstan. Currently, pensions are regulated by a 1992 agreement – the Guarantees of the Rights of Citizens of CIS Member States in the Field of Pension Security. This document insists that pensions are paid by the state where someone lives, regardless of one’s citizenship.

Under the new EAEU agreement migrant’s contributions would be registered in a central EAEU database. The migrant will still contribute in Russia, if he is working in Russia. At retirement, Russia and Armenia will... Read More