Estonia awaits unpaid Russian pension fund transfers, some 4,000 people affected

Due to outstanding payments from the Russian Federation, Russian pensioners living in Estonia have not received their pensions. Photo: Tairo Lutter

Due to outstanding payments from the Russian Federation, Russian pensioners living in Estonia have not received their pensions, however, the majority of these pension recipients are also entitled to an Estonian pension, which Estonia continues to pay out on time.

A total of 3,965 people residing in Estonia are awaiting their pensions due to the missing payments from the Russian Federation. Estonia has fulfilled its contractual obligations by submitting the list of pension recipients and transferring the necessary funds to Russia. However, the Russian Pension Fund has not yet made the payments to Estonia.

Estonia and Russia have a social security agreement in place, under which the Estonian Social Insurance Board pays pensions to individuals residing in Estonia who receive a Russian pension, while Russia pays pensions to Estonian pensioners living in Russia on a quarterly basis. Payments are made after both sides have transferred the required funds. Typically, these payments are received by the fifth day of each quarter, but this time, the funds have not arrived.

Kristina Pähkel, head of development and finance at the Estonian Social Insurance Board, said that the Russian pension authority said that they attempted to transfer the money twice, but the payments were rejected.

«The Russian Pension Fund claims to be looking for an alternative solution, but we have not received official confirmation of this. There is also no clarity on when the pensions might reach Estonia,» Pähkel added.

Pähkel noted that those most affected by the delayed payments can apply for subsistence benefits from their local government if their or their family's monthly income, after deducting housing costs, falls below the subsistence threshold.

«The application must be submitted to the social department of the local municipality by the last working day of the month,» she said.

Under the agreement, the Estonian Social Insurance Board does not take over the obligation to pay pensions if the Russian Pension Fund fails to transfer the funds. The board will notify all affected individuals via email and through the self-service portal. Once the payments are received, the pensions will be transferred as soon as possible.

A total of 3,965 people in Estonia receive pensions from Russia, most of whom are of retirement age. Only 262 individuals rely solely on a Russian pension, while the rest receive both Estonian and Russian pensions. The size of Russian pensions varies between 14.87 euros and 2,800 euros.