Who will see pension indexation in October 2020?
Pensions in the Russian Federation are indexed in several stages.
In January, non-working pensioners receive an increase, in April social pensions increase, and in August payments to working people increase. In October, pensions of military personnel, employees of the Ministry of Internal Affairs and other law enforcement agencies are traditionally indexed. The size of their increase is tied to the increase in official salaries of current security officials.
This year, the increase in pay for military personnel and employees of the Ministry of Internal Affairs since October has amounted to 3%. Accordingly, pensions for military and police officers increase by the same amount.
Indexation of pensions for 2.6 million Russians
Unlike salaries, pensions will be increased for only one category of citizens. Military pensioners will receive a 6.3% increase. These include retired employees of the Ministry of Internal Affairs, the Ministry of Emergency Situations, the FSB, the Federal Penitentiary Service and the National Guard. There are about 2.6 million of them.
After indexation, the average pension for retirees will be 26.2 thousand rubles. In particular, the minimum amount of payments for employees of the Ministry of Internal Affairs will increase to 17 thousand rubles, and for employees of the FSB - to 30 thousand. A more accurate calculation of pensions depends on rank and length of service.
3.7 billion rubles will be allocated from the budget to increase military pensions.
Who can expect a pension increase of 5,686 rubles from October?
There are no plans for a massive increase in payments to civilian pensioners in October.
But some will still grow. Starting from October, the pensions of those who crossed the 80-year-old mark last month will increase. Their fixed payment, which is included in the pension, increases. And accordingly, the total amount of the old-age insurance pension increases. Their increase will be 5,686 rubles.
By the way, let us remind you that pensioners over 80 years old can receive another 1,200 rubles per month. To do this, it is necessary for one of the non-working relatives or acquaintances to officially formalize their care. It could even be their grandchildren over 14 years old.
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Increasing pensions for military personnel and security forces of the Russian Federation from October 1, 2020. Latest news
According to the Federal News Agency, indexation of military pensions will begin in Russia from October 1, 2020. This procedure will take place simultaneously with the indexation of salaries of all law enforcement officers by 3%. Accordingly, military pensions will be indexed to this percentage.
Indexation of military pensions will begin in Russia from October 1, 2020
As the Russian government previously announced, the salaries of employees of the Ministry of Internal Affairs, the Ministry of Defense, the National Guard, the Federal Penitentiary Service, the National Guard, the Ministry of Emergency Situations, customs, the courier service and other law enforcement agencies will increase by 3%. Salaries will also be increased for military personnel undergoing compulsory military service or contract service.
Who is entitled to a payment of 28.5 thousand rubles
Another benefit available to military families is a support payment of 28,511 rubles. This is a one-time benefit that the pregnant wife of a conscripted soldier can count on. A woman who is more than 180 days pregnant (third trimester) can receive the payment.
To receive the payment, several conditions must be met. A marriage with a military man must be officially registered; the husband must serve under conscription (the benefit does not apply to the families of contract soldiers); the woman must officially confirm the fact of pregnancy (based on documents from the antenatal clinic). An application for a one-time payment of 28.5 thousand rubles to the wife of a serviceman must be submitted to the social security department at the place of residence. Documents are verified within ten days.
At the same time, a woman who received an allowance of 28.5 thousand rubles retains the rights to all benefits and payments due to pregnant and young mothers.
What benefits do military retirees have?
Let us note that the annual recalculation of military pensions in accordance with the level of inflation is tied to an increase in salaries for active military personnel. Therefore, it takes more time for the relevant departments (structures in which military pensioners served) to increase pensions through indexation. Payments come directly from the budget, and not through the Pension Fund.
The resulting delay in indexation is compensated by a number of benefits for retired security officials. These are additional cash payments, social services, transfer of material assets for temporary use or forever, and so on.
Military pensioners also have tax and transport benefits, including free travel on public transport, assistance when moving to a new place of residence, etc. There are also social benefits: significant discounts on housing and communal services, assistance in improving living conditions, etc.
Benefits are calculated individually, depending on the place of service, length of service, region and a number of other factors.
Military pensioners enjoy medical care provided by subordinate medical institutions, have the right to free dental prosthetics, and free trips to military sanatoriums and rest homes. Benefits are calculated individually, depending on the place of service, length of service, region and a number of other factors.
Earlier, Rossiyskaya Gazeta reported that the State Duma of the Federal Assembly of the Russian Federation adopted in the first reading a bill on increasing survivor's pensions for disabled family members of deceased military personnel. According to the amendments of the Government of the Russian Federation, all disabled members of the families of fallen (deceased) military personnel will receive an increase in this pension. The document also affects the families of deceased law enforcement officers.
About 1.8 billion rubles a year will be required to implement the measures prescribed in the bill on increasing pensions, Deputy Minister of Defense of the Russian Federation Tatyana Shevtsova reported at a plenary meeting in the State Duma.
In the absence of such a law, families have the right only to survivors' pensions and receive additional payments to the pension only through the court. The document was proposed to be adopted in order to relieve social tension among family members of fallen (deceased) military personnel based on judicial practice. In addition, the State Duma adopted in the first reading a bill that will make it possible to provide housing for needy family members of deceased military personnel who were not participants in the savings-mortgage system. The authors of the bill were the first deputy chairman of the State Duma Committee on Defense, Andrei Krasov, and the deputy chairman of the committee, Yuri Shvytkin.
The budget of the Russian Federation for 2020 and for the planning period 2021 and 2022 takes into account an increase in the level of inflation in the pay of military personnel and a number of other categories. This is 3% from October 1, 2020. The consequence will be an increase in pensions for military pensioners by the same amount. This indexation will be the third in the last eight years for military pensioners. And in the next two years, their pensions will be indexed by four percent. In general, according to the plan until 2022, military pensions will increase by 11 percent.
On October 1, military pensions will be accrued in the same amount
Until October 1, military pensions will be accrued in the same amount. The head of the Defense Committee, Vladimir Shamanov, made a proposal to move the indexation date to an earlier date so that inflation does not outpace the growth of payments. However, this proposal was not officially submitted to the State Duma. In 2021, military pensions will increase again. This time the indexation will be 4%. Also this year, civil old-age pensions will increase for them. For those military personnel who have reached the age of retirement, the insurance portion of payments will increase by 6.6%, informs the portal live24.ru
Not so long ago, there was a law that military pensions were subject to revision simultaneously with an increase in the pay of the corresponding categories of military personnel and employees. Growth was planned at 2% annually, starting January 1, 2013. However, in 2020 this rule was suspended. Deputies decided to extend the “freeze” until January 1, 2021. Until this date, the amount of monetary allowance taken into account for calculating the pension remains the same - 73.68%.
When preparing the material, the source(s) were used: www.kremlinrus.ru and pensiya.molodaja-semja.ru
Who else can receive a bonus?
The size of the fixed pension payment is growing not only for those who have turned 80 years old. Those who have dependents - disabled family members - receive an increase. Those who moved for permanent residence to the Northern or equivalent regions can count on increased pensions. The pension grows due to the regional coefficient.
Those pensioners who quit their jobs in June of this year can count on receiving a pension with full indexation in October. According to today’s standards, a pensioner will receive his first pension, taking into account indexation, only in the fourth month after dismissal. But the payment will be with an increase for all these 3 months.
An increase in payments may also take place according to other individual indicators, of which there are quite a few. But, as a rule, you don’t need to go anywhere for this; everything happens automatically.
How much will military pensions increase?
As noted earlier, the increase in military pensions from October 1, 2020 will be 3%. An additional 6 billion rubles have been allocated in the budget for these purposes. The amount of the increase is calculated individually, depending on the position, rank and length of service of the military pensioner.
The government considers an increase of 3% in 2020 to be sufficient, which, for example, was stated by First Deputy Minister of Finance L.V. Gornin on November 25, 2020. During the 469th meeting of the Federation Council, which considered a bill to “freeze” an additional increase of 2 % in 2020 Gornin explained that the state fully fulfills its obligations to index military pensions.
“Since 2012, we have been indexing military pensions annually, and 2020 is no exception. Indexation is 3 percent. If you look in retrospect, the design of the law provided for indexation by 2 percent from 2012. Now the corresponding coefficient should be achieved at 70 percent, but the coefficient is much higher - 73.68 percent. Therefore, the obligations that were laid down in this law in 2012 are being fully fulfilled. The indexation was calculated absolutely correctly.” Gornin Leonid Vladimirovich, First Deputy Minister of Finance of the Russian Federation
Calculation of military pension from October 1, 2020
To calculate how much pensions for military pensioners will increase from October 1, 2020, you need to understand how these payments are generally calculated. The formula for calculating pension payments in the general case looks like this:
VP = (OD OZ NVL) × (50% 3% × DV) × PC
Where:
- OD and OZ - salaries by position and rank;
- NVL - long service bonus, depending on the number of years of service: from 2 to 5 years - 10% of the salary;
- from 5 to 10 - 15%;
- from 10 to 15 - 20%;
- from 15 to 20 - 25%;
- from 20 to 25 - 30%;
- 25 years or more - 40% of the salary;
From October 1, 2020, salary values for military positions (MO), ranks (OZ) and, accordingly, the length of service allowance (NLB) will be increased by 3%. The reduction factor (PC) in October will still be 0.7368.
You can calculate the size of your military pension from October 1st by yourself by substituting your values in the formula. Salaries by position and rank are fixed in Appendix No. 2 and 3 to Order of the Minister of Defense of the Russian Federation No. 2700 dated November 30, 2011.
The salary amounts used in calculating pensions are given in the tables (PDF file). The data in it is indicated taking into account indexation from 10/01/2020.
Calculation example
For example, let’s calculate the old and new pension amounts (provided that the increase from 10/01/2020 is 3%) for a lieutenant, platoon commander, with 25 years of service. In this case, a military pensioner has the right to receive a length of service bonus in the amount of 40% of his salary (as having served 25 years or more).
- The pension payment until September 30, 2020 will be (10848 21695 13018) × 65% × 73.68% = 21820 rubles.
- When calculating pensions from October 1, 2020, the following indexed values will be used:
- salary by rank will be 10848 × 3% = 11174;
- long service bonus (11174 22346) × 40% = 13408.
salary for the position 21695 × 3% = 22346;
Total: (11174 22346 13408) × 65% × 73.68% = 22475 rubles.
It turns out that a military pensioner with the rank of lieutenant and the position of platoon commander will receive 655 rubles. more after the October indexation.
Will such an increase provide a real increase in payments?
According to the State Duma Committee on Defense, such an indexation of 3.0% is insufficient . Parliamentarians point out that military pensions are already under-indexed by a total of 20%. In the current situation, it would be logical to increase them from January 1 and by a much larger percentage (at least make an additional 2 percent increase).
Let us note some facts that indicate that indexation by 3% will not ensure a significant increase in military pensions:
- The indexation of monetary allowances will not be carried out from the beginning of the financial year, but only from October 1. In fact, indexation concerns only 3 months out of 12 (from October to December) and will amount to only 0.75% .
- In addition, the indexation of food allowances is carried out in accordance with the price growth index for the previous year. In fact, this is not even indexation, but compensation for increased prices, moreover, for the past year.
In addition, according to Presidential Decree No. 604 of May 7, 2012, military pensions must be indexed annually at a rate 2% faster than inflation. However, this indexation will not be carried out in 2020.
How the procedure for receiving pensions will change from October 2020
Since October, those who receive payments to a bank card can only receive money on a MIR card. Funds will no longer be transferred to cards of other payment systems. Those who did not have time to apply for a MIR card will have to do so in order to continue receiving money on the card.
!If you receive your pension through Russian Post (in person at a branch or through a postman), or via a bank deposit with the ability to replenish and withdraw money, then you do not need to issue a MIR card. Payments will continue to be received as before.
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What changed in the calculation of military pensions in 2020?
From 2012 to 2020, the state annually increased payments to former military personnel by at least 2%. This increase covered the rise in prices in Russia and was achieved by changing the reduction factor to the pension amount. This year, officials decided to freeze this ratio and increase wages by 3%.
Previously, when calculating military pensions, a reduction factor was used, set in 2012 at 0.54. The last adjustment to this indicator was carried out last year, as a result of which it increased to 0.7368.
The government took on military pensioners
From 2012 to 2020, the Russian authorities did not index military pensions. After relevant requests from the Ministry of Defense, officials finally began to resolve this issue. Over the past 2 years, payments have grown as follows:
- In 2020 by 4%;
- In 2020 by 4.3%.
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Next year, the government also plans to index military pensions in Russia. They should grow by 4%. This is the maximum inflation rate in the country, predicted by the Ministry of Economic Development based on the results of 2020.
Categories of military pensioners whose pensions will be increased
Military pensioners include not only persons discharged from the army, but also pensioners of the Ministry of Internal Affairs, the Ministry of Emergency Situations, the Russian Guard, the Federal Penitentiary Service, the Federal Security Service, and the FSB.
Payments from the budget are assigned to people who:
- have reached the age of 45 years;
- have a total (mixed) work experience of at least 25 years and can document it;
- at least half of the time worked they served in the armed forces or worked in related structures.
In addition to persons who have successfully served until retirement, other categories of Russian citizens also have the right to payments from the federal budget.
There are three additional groups of military retirees:
- Dismissed due to length of service. Age doesn't matter here. The pension is assigned depending on the place, conditions of service, rank and length of service.
- Dismissed due to disability. Pensioners who lost their health during service.
- Families of fallen servicemen. Receive survivor benefits.
Military personnel and citizens equal to them in status have the right to an insurance pension from the Pension Fund of the Russian Federation. It is prescribed according to the general current rules.
Note! The appointment of an insurance pension for military pensioners was delayed in the same way as for civilians. Rumors about the cancellation of one of the pensions in 2020 were not confirmed.
Who will be affected by the October indexation?
Employees of the following government departments can count on an increase in military pensions and official salaries starting next month:
- Federal Customs Service;
- Russian Guard;
- FSIN;
- Ministry of Internal Affairs;
- Federal Fire Service;
- State courier service.
Let us remind you that from October 1, pension recipients must reissue or open a new bank card of the Russian payment system “MIR”. The government warned about this on July 1, 2020. The transition to the RPS was planned for mid-summer, but due to the coronavirus pandemic, the authorities postponed the deadline by 3 months.
Pensioners who receive payments from the state in cash at Russian Post offices or transfer money to a savings book do not need to open a MIR card. For them the rules will remain the same.