This article analyzes the pension system reforms in post-transition Russia and compares them to pension reforms in other countries. The purpose is to show that the pension reforms debate cannot be simply reduced to a choice between different funding mechanisms, namely PAYG and/or capital funded pension benefits. It must take into account past commitments, the aims of the pension system and the budgetary framework in which the pension system operates. . JEL codes: H55, I38, J32, P36