OREANDA-NEWS. November 12, 2012. TITAN-2 holding started a new corporate program of supplementary pension fund scheme which will allow its retired employees to get incomes comparable to the European ones.

On September 29, 2012 a Strategy for Pension System Development in the Russian Federation until Year 2030 was published. In accordance with the document, the new pension system must be based on the three-level model: The first level is the state pension, the second one is the corporate pension, and the third one is the private (voluntary) pension. In the same document a forecast is made that in the long-run the three-level system is supposed to provide the employee with up to 70% of the average earnings lost.

In the TITAN-2 holding the supplementary pension fund scheme has been working since 2007. In January of 2012, a new HR program jointly implemented with the Non-governmental pension fund of the military-industrial complex was put into effect. The program having no payment amount analogues in the Russian practice is primarily based on the provisions of the International Labour Organization's Convention, in accordance with which the recommended level of pension coverage is payment to an employee in the amount of 45% of the earnings lost. Due to this program, the holding's employees will be able to receive the pension of the European level and even higher.

The pension fund scheme of the TITAN-2 holding consists of four main components: The length of employment by the holding, the average earnings for the last 5 years before retiring, personal participation of the employee and the time he/she entered the program. An additional component making the pension scheme of TATAN-2 holding unique and allowing its employees to get the maximal pension is coaching.

By this approach to the pension scheme the holding solves its HR objectives, taking into consideration the interests of the employees as well. The corporate pension scheme is aimed at retention of the young and middle-age personnel in the holding structures, stimulating the senior age employees to share their accumulated experience and timely retirement.

The standard corporate pension can grow up to 66% of the wages. After achievement of the corporate pension age which is 60 years for women and 65 years for men the employee selects: whether to get retired and exercise the right to the corporate pension or to continue working. The third option is also possible, when a 3-year contract for coaching is made with the employee. During this period, the key duties of the employee become teaching of the next generation of the employees and sharing their experience with them. Thus, the employee who has worked more than 35 years in the holding and contributed in training of the young specialists can receive the coach pension in the amount of from 75 to 90% of the earnings.

Besides, the holding employees form the private (voluntary) pensions in non-governmental pension fund of the military industrial complex, the amount of which fully depends on their own decision.

It can be said that the 3-level model of the pension scheme and the planned amount of pensions determined by the Strategy for Pension System Development in the Russian Federation has already been implemented for the holding employees.