2014 Annual report

Non-state Pension Schemes

The Non-State Pension Provision Program 2014 for the employees of JSC IDGC of the North-West (hereinafter, the Program) was approved by the Company’s Board of Directors on December 28, 2013 (Minutes No. 144/15). The main purpose of the Program is to provide worthy living standard of the Company’s employees at pension age, and creating the conditions for effective solving of personnel issued, such as decrease of staff turnover and keeping the employees in the power supply system. In 2014, the Company continued cooperation with Non-State Pension Fund of the Power Industry (hereinafter, the Power Industry NSPF) within the framework of implementation of non-state pension provision Program for employees in four areas:

Within the framework of the approved Program, the Company implemented the Co-Financing Program in 2014 pursuant to Federal Law No. 56-FZ dated April 30, 2008 on Additional Insurance Payments to Funded Part of Labor Pension and State Support of Pension Assets’ Formation, with 459 employees participating.

Non-state pension expenditure totaled RUB 71 million in 2014, including RUB 14 million for the Parity Plan Program, RUB 52 million for Corporate Plan Program, and RUB 5 million for the Co-Financing Program.

In 2014, non-state pension was received by 3,363 retired employees; and the size of the non-state pension in the first place depends on the employee’s salary, length of work in the power industry, as well as government, industry and corporate awards. Understanding the social importance of material support of employees after retirement, the Company’s management annually seeks opportunities to finance non-state pensions under the conditions of exclusion of these costs from tariffs by regional tariff regulatory bodies.

Non-state pension expenses
Branch/IDGC Non-state pension expenses, RUB mln
2012 2013 2014
Executive body 6 6 6
Arkhenergo 7 7 7
Vologdaenergo 13 13 13
Karelenergo 6 6 6
Kolenergo 7 7 7
Komienergo 22 22 22
Novgorodenergo 5 5 5
Pskovenergo 11 11 5
IDGC of the North-West 77 77 71