The Federal laws 'On Labour Pensions in the Russian Federation' (in force from December 17, 2001), 'On Compulsory Pension Insurance in the Russian Federation' (in force from December 15, 2001) and 'On State Pensions in the Russian Federation' established a four-tier pension system.

The first tier is the base pension which is established at a fixed amount and depends on age, disabilities and a number of dependants. The financial source of the base pension is deemed to be the unified social tax paid by businesses. The second and the third tiers depend on the amount of the united social tax paid by employers for this particular person.

A man is entitled to a labour pension if he is 60 years old and a woman if she is 55 years old and if he or she has at least five years' working record.

In addition to the compulsory state pensions a system of voluntary non-state pensions is being developed. It operates independently of the state pension system.

When a person is not entitled for the labour pension the social pension can be granted. The amount of the social pension is determined as a certain proportion of the base labour pension. For example, men of 65 years old and women of 60 years old obtain the social pension equal to the base labour pension.