Issues of introducing a basic income into the Russian national pension system

This study aims to develop the provisions of the basic income concept for its application within the pension system of the Russian Federation. The research is grounded in a theoretical and methodological framework for applying basic income instruments, necessitated by the system's loss of financial equilibrium. This imbalance stems from demographic challenges, shifts in employment patterns, and the proliferation of benefits not underpinned by insurance-based entitlements, which collectively underpin the relevance of this inquiry. The study identifies and analyses regular and other allowances within the current pension system that exhibit characteristics of basic income. It advances a rationale for segmenting the domestic pension system into three distinct tiers: a solidarity-based (distributive) tier (basic pension income), an occupational insurance tier (insurance pension), and a supplementary tier (allowances for specific categories of beneficiaries). A key proposal is the separate administration of the basic pension income within the pension system. This consolidated component would encompass: within compulsory pension insurance – the fixed payment to the insurance pension; and within state pension provision – the social pension for disabled citizens alongside a range of social allowances. Furthermore, it is proposed to integrate into this basic pension income the social supplement that raises a pensioner's total material security to the level of the pensioner's subsistence minimum established for the Russian Federation as a whole. The universal nature of the basic pension income would ensure its provision to all pensioners, including those previously engaged in precarious forms of employment who have not fulfilled the minimum criteria for qualifying for an insurance pension. The study also puts forward potential funding sources for the basic pension income and explores the feasibility of reallocating the freed-up portion of the insurance tariff within the occupational insurance tier of the pension system. Cumulatively, the payment of the basic pension income, alongside these structural changes, would enhance the purchasing power of recipients of an average insurance pension. This would bring it into alignment with both the national strategic objectives of the Russian Federation in pension provision and internationally recognized social security standards.