Starting in 2019, Russia begins a gradual increase in the retirement age. The reform is being carried out on the basis of a bill adopted in October of this year, which caused a wave of discontent among Russians. Let's try to figure out what innovations await us in the near future, and what will happen to pensions in general.
Download for viewing and printing:
What awaits working pensioners
Justifying the raise retirement age, the Russian government announced that the amount of pensions paid will be increased. At the same time, the increase should exceed the rate of inflation, and in the foreseeable future the size of the average citizen’s pension will be 40% of wages, equal to European indicators.
Of course, this is interesting news, because according to the assurances of the reformers, the average pension in the country will be about 20,000 rubles. However, there is one caveat here. Many pensioners continue to work, and the pensions of these categories of citizens are not indexed on a general basis.
There are no plans to change this procedure in 2019. In particular, if a citizen, having retired, continues to work or engage in commercial activities, the monetary allowance assigned to him will not be indexed. The pension will be recalculated when a person stops working and completely switches to state support. Please note that in this case, all events that have passed during the period will be taken into account. labor activity indexation, so these citizens will not lose money.
Important! The government is considering the possibility of unfreezing the indexation of pension benefits for working pensioners, but only on condition that there is an increase in the state budget. However, according to Anton Siluanov, changing the current order pension payments It is not economically feasible for employed pensioners.
Increasing pension benefits
This is one of the key stages of the pension reform being implemented. It is quite natural that raising the retirement age did not find approval among the majority of Russians, especially among citizens of pre-retirement age, who will now have to postpone their planned vacation. An increase in the size of pensions paid is a kind of spoon of honey intended to sweeten the pill of raising the retirement age.
Let us note that the budget for 2019 has already been approved, and the announced figures are noticeably higher than in the current year. Cash flows will be distributed as follows:
- revenues will increase by 358.2 billion rubles;
- expenses will increase by 115.9 billion rubles.
Please note that mandatory contributions to the Pension Fund will be made regularly, taking into account the current base rates and tariffs. In addition, next year transfers are expected to arrive in a total amount of 3.3 trillion rubles, of which 1.9 trillion will be used to pay insurance pensions.
Insurance pensions: planned increase in 2019-2021.
An interesting point related to the reforms is the increase in the size of insurance pensions. Indexation will be carried out on January 1, 2019, from the moment the project to increase the retirement age comes into force. One of the key measures to mitigate the ongoing reform is to increase the amount of the insurance pension.
It looks like this:
- 2019 - expected increase of 7.05%;
- 2020 - increase by 6.6%;
- 2021 - increase by 6.3%.
Based on the results of a gradual increase in payments, the average size of the insurance pension in the country should be 20,000 rubles. Many analysts assume that the government will make every effort to achieve these indicators. This will help restore the shaky rating of the president and the Cabinet of Ministers. Moreover, an increase in the insurance pension will serve as proof of the feasibility of the reform being carried out.
The average pension in the country was taken into account, which currently amounts to 14,400 rubles. It was on this amount that the calculations were based, and the figure of 20,000 rubles was announced, which the pension will reach by 2021. Here it is necessary to clarify that many Russians receive a smaller pension, therefore, the increase in state support will be lower.
What you need to know about indexing
This term is familiar to all pensioners without exception. In particular, the concept of indexation refers to periodic increases in pensions taking into account rising prices for certain categories of consumer goods. Please note that together with pensions, minimum wages, scholarships and other social benefits are subject to recalculation.
Pensions are indexed annually, but in 2016 there was no increase: the Ministry of Labor could not find funds to fulfill this government order. Therefore, in January 2017, everyone Russian pensioners a one-time payment of 5,000 rubles was made. This event was of a one-time nature, after which the indexation of pension benefits continued to be carried out at the same level. Let's see if this trend continues in 2019.
Indexation of pensions for employed citizens
A moratorium on indexation of pensions for working pensioners was introduced in 2016, and so far no one is going to cancel it. In particular, the amount of pensions for citizens who, after retirement, continue to work or engage in other activities, is frozen at the level of January 1, 2016. It follows that the indexation carried out does not affect this category citizens. Note that when indexation was replaced by a lump sum payment, working pensioners also received 5,000 rubles.
According to Anton Siluanov, indexing the pension content of working pensioners is not economically feasible, and according to the minister, there are 2 good reasons for this:
- Pensioners continue to work and receive additional income. Taking into account the constant growth of wages, the well-being of this category of citizens is steadily improving;
- Employed citizens of retirement age will not suffer financially when they decide to leave work and retire. When a person stops working, his pension will be recalculated taking into account all indexations carried out earlier.
Indexation and social pensions
“Social benefits” are received by citizens who do not have the necessary length of service to qualify for an insurance pension. The salary is paid directly from the state budget, and is correlated with taking into account the amount living wage established in a single subject of the Federation.
It is no secret that the size of the social pension is noticeably lower than that of the insurance one, however, this type of pension content is also mandatory indexed. Considering that inflation will inevitably lead to an increase in the cost of living in the regions, therefore, social pensions will also increase. According to forecasts, social pensions in 2019 will be indexed by 2.4%, their amount will be 9,215 rubles.
We would like to add that the given figures are the average for the country, and in individual regions, actual payments may differ up or down.
In 2019, indexation social pensions will be held on January 1, and not in February, as was done previously.
Who will receive 1,000 rubles?
As part of the ongoing reform, it was announced that the increase in pension would be 1,000 rubles or 12,000 per year. It is immediately necessary to clarify that there will be no fixed increase in the amount of pension benefits in the specified amount. The announced figures were obtained based on the average pension of 14,400 rubles and indexation of 7.05%.
It follows that the increase is conditional in nature, and if a pensioner receives a salary of less than 14,400 rubles, then the monthly additional payment will be less than the announced 1,000. For example, if a person receives a pension of 10,000, then 700 rubles per month will be added to him or 8,400 per year. Remarkable, but this scheme It also works in the opposite direction: if the pension received is 20,000, the annual bonus will be 1,400 rubles.
Important! This increase will affect all non-working pensioners.
In the new project “On amendments to some orders of the Ministry of Labor and social protection Russian Federation on issues of assignment and payment of pensions” it is intended to deprive working pensioners of a social pension.
In the original document, additional subparagraphs appeared with the following content:
63.1. Payment of social old-age pension to citizens specified in subparagraphs 4 and 5 of paragraph 1 of Article 11 of the Federal Law “On State pension provision in the Russian Federation"*, is suspended in the case provided for in paragraph 5 of this article (in the case of performing work and (or) other activities during which the relevant citizens are subject to mandatory pension insurance in accordance with the Federal Law “On Compulsory Pension Insurance in the Russian Federation”);
63.2. An order to suspend the payment of a pension is accepted within one working day following the day on which the period for its payment expires, or the period specified in the title document expires, or documents (information) have been received about the circumstances leading to the suspension of the payment of the pension;
69.1. The suspension of the payment of social old-age pension in accordance with paragraph 5 of Article 11 of the Federal Law “On State Pension Provision in the Russian Federation” is carried out upon receipt at the disposal of the territorial body Pension Fund of the Russian Federation documents (information) confirming the fact that citizens specified in subparagraphs 4 and 5 of paragraph 1 of this article carry out work and (or) other activities, during which the relevant citizens are subject to compulsory pension insurance in accordance with the Federal Law “On Compulsory Pension Insurance” in the Russian Federation” - from the first day of the month following the month in which the citizen began work and (or) other activities;
76.1. Payment of social old-age pension by citizens specified in subparagraphs 4 and 5 of paragraph 1 of Article 11 of the Federal Law “On State Pension Provision in the Russian Federation” is resumed from the first day of the month following the month in which this citizen submitted the corresponding application and documents confirming the fact of termination of work and (or) other activities. At the same time, he is paid the amount of the social old-age pension for the past time from the date following the date of his dismissal from paid work, but not more than for three years preceding the month following the month of filing the relevant application and documents;
Recently, all the reforms of the current cabinet of ministers are aimed exclusively at taking money from the population. What do you think?
* These categories, according to the law, include citizens from among the indigenous peoples of the North who have reached the age of 55 and 50 years (men and women, respectively), permanently residing in the areas inhabited by the indigenous peoples of the North on the day of their pension;citizens of the Russian Federation who have reached the age of 65 and 60 years (men and women, respectively), foreign citizens and stateless persons who have permanently resided in the territory of the Russian Federation for at least 15 years and have reached the specified age.
Be careful, this magazine material is current as of November 14, 2018
A number of media outlets have published “sensational” information that the Russian Ministry of Labor intends to abolish the old-age social pension for working pensioners. The draft of the corresponding order was indeed posted on the Federal Portal of Regulatory Legal Acts, but some journalists were apparently too lazy to read it not only to the end, but even to the middle, and some even limited themselves to the title, says PFR representative Kristina Samoilova.
To begin with, I will simply remind you of the mechanism for paying pensions to working pensioners and you will immediately understand whether there are reasons for panic. So, the social old-age pension is assigned to Russian citizens who have reached retirement age, as well as to foreign citizens and stateless persons who have been permanently residing in the Russian Federation for at least 15 years, if they have stopped working. If citizens continue to work and are subject to compulsory pension insurance, they are not assigned a social pension. At the same time, working pensioners can receive insurance pension.
Currently in Russia, social pensions are awarded to people who do not have enough insurance period or points for assigning an insurance pension. It begins to be paid five years after retirement age, but only if the person is no longer working. If, after the appointment of a social pension, a citizen finds a job, then the payment of the social pension to him is suspended.
Current
For many years, the social old-age pension has been paid only to unemployed Russians. So there is no trace of any sensation in the draft order of the Ministry of Labor - it only clarifies some “bureaucratic nuances”, formal procedures, norms that have been in force for many years, enshrined in paragraph 5 of Article 11 of the Law of December 15, 2001 No. 166-FZ “On State Pension Security” .
Storm in a teacup
The order has been prepared to implement the amendments made to pension legislation in October of this year and in pursuance of the ruling of the Constitutional Court of the Russian Federation. It clarifies that the payment of social pensions upon employment should be suspended from the first day of the month following the one in which the pensioner went to work. After a person is fired this payment also resumes from the first day of the month following the one in which the resignation letter and documents confirming the fact of dismissal were submitted. The order notes that people declared bankrupt are not deprived of their right to a pension.
At the same time, working pensioners also continue to receive old-age insurance pensions. And no one suggested that they stop these payments.
Now the average social pension is just over 9,000 rubles. In Russia, about 3.2 million people receive it. At the same time, the size of the insurance pension that most Russians receive is on average 14,075 rubles for non-working Russians. Those who continue to work receive 1,100 rubles less - 13,300 rubles. After dismissal, their payments are indexed.
According to the pension reform of the Russian Federation, which provides for a gradual increase in the retirement age for men to 65 years and women to 60, the size of the insurance pension will be indexed by an average of one thousand rubles per year. This will only affect non-working pensioners. Earlier, if you remember, First Deputy Prime Minister and Minister of Finance Anton Siluanov noted that it is not yet advisable to change the approach to working pensioners, since they “have higher rates of wage growth compared to the forecasts of the Ministry of Finance.”
Let me also remind you that until 2016, pensions of working Russians were indexed on an equal basis with other payments, but later the increase in allowances for this category of citizens was canceled due to the difficult economic situation. When you stop working, the value of the pension coefficient increases by all missed indexations. Projects to resume indexation are regularly submitted to the State Duma, but all of them are shelved.
So, as for working pensioners, every year from August 1, they recalculate the size of their pension, that is, a change in the size of the insurance pension due to the pensioner having additional earnings, from which insurance premiums are calculated (paid). In 2017, such pension recalculation affected 11.8 million pensioners. For them, payments increased on average by 168.8 rubles. A year earlier increased pensions 12.9 million pensioners received. The increase in pensions amounted to 149.8 rubles after recalculation.
In conclusion, I would like to draw your attention to a few more points from the draft order of the Ministry of Labor. In particular, it states that a person must be paid any due pensions, even if he was declared bankrupt. And also that if young people study at a foreign university and have lost their breadwinner, they still have the right to a social pension until they reach the age of 23, regardless of whether they entered there on their own or went in a direction in accordance with international treaties of Russia . But this is not a “revolution” either.
The Ministry of Labor explained to Russians under what conditions working pensioners can have their pensions canceled in 2019. The department said: citizens who have retired cannot receive social pensions if they decide to get a job.
Social pensions will not be accrued from the 1st day of the month following the one in which the citizen found employment, as indicated in the draft order published by the Ministry of Labor on the website of draft regulatory legal acts. However, working pensioners will be paid insurance pensions.
Pensioners will resume payment of social pensions after dismissal
Pensioners can only get their social pensions back if they quit their jobs. Payments are resumed on the 1st day of the month following the one in which the citizen quit.
False information has appeared in some media sources, allegedly working pensioners will not receive pensions at all. But their complete abolition contradicts the Constitution of the Russian Federation, so it will not happen.
Recipients of social pensions are citizens who do not have enough length of service or pension points to receive an insurance pension. It is paid after 5 years from the moment the person reaches retirement age and does not work. Today in Russia social pensions are paid to approximately 3.1 million citizens.
