Largest player in the pension market pension Fund (NPF) Sberbank faced with increasing churn private pension provision (NGOs). Over the past two quarters, despite the penalties in the form of foregone investment income was taken from the NPF more than 1 billion rubles. lack of loyalty of the customer base indicates a low level compared to the expectations of citizens yields, experts say.The growth of liabilities under voluntary pension programs NPF of Sberbank in the first quarter of 2020 showed the weakest dynamics since the second quarter of 2016, shows the performance of the Fund. They increased by RUB 530 million, or just 1.2%, compared with the beginning of the year. The previous low was recorded in the third quarter 2019, when the increase was 1.3%. From the beginning of 2017, when the NPF of the savings Bank began to actively attract new customers according to individual pension plans (IPP), the growth rate of NGOs never go down below 2.5% for the quarter.NPF of Sberbank is the largest Russian private pension Fund assets in the first quarter of 2020 amounted to 685,7 billion rubles While obligations for the OPS exceeded 600 billion rubles, and the commitment to NGOs around RUB 44 billion And a significant increase of liabilities for the voluntary programs began in 2017, when NPF of Sberbank launched a large customer engagement in the IPP.New contributions from individuals enrolled in voluntary programs, also has been low in recent years. In the first quarter they brought in the NPF of the savings Bank only 911 million rubles, which is the lowest figure for three years. However, the customer base is gradually shrinking. If in the first quarter of 2019, it decreased by 1.5 thousand people, this year is already more than 9 thousand people (or 1.6% per year). The main outflow of customers to provide self-terminated by the parties to contracts of NGOs in the last two trimesters for 18 thousand people. At the same time grow and redemption amount received by citizens at the termination of the contract. In the fourth quarter of last year and the ground that they exceeded 500 million rubles, which is the largest outflow of pension funds from voluntary programs of the Fund and a reduction in contributions is a determining factor in the slowdown in commitments. So, for example, pension payments by NGOs on a quarterly basis does not exceed 200 million rubles”overall net outflows of participants is just over 1% and is not significant”,— said General Director NPF of the savings Bank Alexander Zaretsky. He suggests that the increase in outflows compared to the year 2019 due to the fact that in 2017-2018, there was a burst of attracting new participants in voluntary programs. “We assume that the decrease in the number ��privateers on NGOs is because of the participants had purchased the NGOs with short-term investment strategy for two years”,— said a top Manager. According to him, customers could terminate the contracts after the two-year validity, as the conditions of the contract from that period there is the possibility of receiving the redemption amount. According to the contracts for NGOs, consisting in branches of Sberbank in 2017-2018, the client is entitled after the expiration of two years from the date of conclusion of the contract on full reimbursement of contributions, but only 50% of the NPF during this time of investment income. That is, by the end of 2018, they could earn an income slightly in excess of 2% per annum, and by the end of 2019 — less than 5%.”Individual voluntary programs, which could become a growth driver for the Russia’s pension system, in return, appears to be completely frozen OPS, show trajectory, opposite rapid growth,” says managing Director of “Expert RA” Pavel Mitrofanov. And there were several reasons. First, the NPF has not learned to work with the assembled client base and voluntarily brought them money. Secondly, they are not able to show profitability, which may be of interest to citizens. Finally, the pension product, apparently, are not interesting to the citizens because of his unfriendly, for example, unfavorable conditions for obtaining redemption amounts, says Mr. Mitrofanov.Ilya Popotamo citizens transfer savings from private funds back to Prchitat next
