Increase in pensions in 2020 from January 1 for old-age pensioners, latest news: how much indexation will be


What's happened?

On October 3, 2020, Russian President Vladimir Putin signed Federal Law No. 350-FZ dated October 3, 2018 “On Amendments to Certain Legislative Acts of the Russian Federation on the Appointment and Payment of Pensions,” which not only increased the retirement age of citizens by 5 years, but also but also introduced a number of social guarantees for people of pre-retirement age and current pensioners, including an increase in pensions by 7% from January 1, 2020.

At the same time, the head of state guaranteed a 25% increase in pensions for all former agricultural workers:

  • grain growers;
  • machine operators;
  • agronomists;
  • livestock breeders;
  • milkmaids;
  • gardeners;
  • and other village workers.

Thanks to Vladimir Putin’s amendments to the pension reform, they will simply be “unfrozen” the long-approved pension supplement of 25%. The draft document can be viewed on the website for posting draft regulations. Today, October 16, the public discussion of the document is coming to an end.

Indexation of social pensions and payments.

Social pensions will increase by 0.4% from April 2020. Social payments, such as monthly cash payment (MCB), set of social services (NSS), funeral payments, will increase by 3.1%. Indexation will take place from February 2020.

If a pensioner received a social supplement to the pension that is below the subsistence level, the pension is indexed without payment.

Example: a pensioner received a pension of 12,150 rubles. The cost of living in this region is 12,680 rubles. That is, the pensioner received a social supplement of 530 rubles. Due to indexation, the pensioner will receive 13,007 rubles (we multiply 12,150 by 0.0705). Thus, the pensioner’s pension increased by 327 rubles.

If, after indexation, a person’s pension is less than the minimum subsistence level established in a given region, he is required to receive a social supplement up to the minimum subsistence level.

However, following Vladimir Putin’s address to the Federal Assembly in 2020, clarifications were announced in the indexing mechanism that will compensate for possible injustice. A detailed analysis of the appeal is given here.

Rural pensioners have long been entitled to an increase in their pensions

The fact is that back in 2013, a Federal Law was adopted on a 25 percent premium to the fixed payment to the insurance pension for those pensioners who worked in agriculture and remained to live in rural areas after retirement. It was supposed to come into force on January 1, 2014, but its entry into force was then “frozen” for 2 years due to a lack of funds for these purposes in the Pension Fund budget. Further, the start of the law from January 1, 2016 was again postponed due to the economic crisis and budget deficit not only of the Pension Fund, but of the entire country. The moratorium was introduced for 4 years: until 01/01/2020. Most likely, it would have been extended further if not for the pension reform and raising the retirement age. So, rural pensioners have been waiting for the long-approved increase to the fixed part of the pension in the amount of 25% for 5 whole years. As they say: “There would be no happiness, but misfortune would help”

After all, saving after such a global increase in the retirement age:

  • up to 65 years for men;
  • up to 60 years for women,

It’s somehow wrong to save on rural pensioners, of whom there are already very few. Therefore, the president, in his televised address to the people, promised to return this frozen indexation. Vladimir Putin then said this:

It has already been repeatedly discussed and even decided on the need for a 25 percent supplement to the fixed payment of insurance pensions for non-working pensioners living in rural areas. Who have at least 30 years of experience in agriculture. The entry into force of this decision was constantly postponed. I propose to start these payments on January 1, 2020.

In addition, to do this, it is enough to simply lift the moratorium and allow the existing law to come into force. Which is what was eventually done. Even in the draft budget for 2020, officials managed to provide funds for these expenses. Moreover, as the head of state promised, such an increase “will begin to work permanently from January 1 and will be indexed.”

List of professions and procedure for recording experience

The list of professions named by law is established by the Government of the Russian Federation. This is the main document according to which one or another employee employed in agriculture can count on significant privileges.

Regulatory legal acts provide for the breakdown of all pensioners into three main categories of agricultural workers: crop farming, livestock farming and fish farming.

Calculation of output is made based on the calendar year for periods including:

  1. Labor activity carried out on the territory of Russia in accordance with the provided list of professions and subject to contributions made by the employer to the Pension Fund.
  2. Employment within the borders of the Soviet Union before 1992. In this case, it is also necessary to refer to the list of positions.
  3. Work on collective farms, state farms, intercollective farm organizations, peasant farms, machine and tractor enterprises, carried out until the age of 92, without requirements for the position held and the nature of the work.

Question:

What is included in the length of service besides the time spent directly performing duties?

Answer:

Periods of receiving subsidies for temporary disability, vacations (paid by the employer and used according to the schedule), as well as parental leave for up to one and a half years (no more than six years in total) are also taken into account as length of service in agriculture. This employment also entitles you to receive increased contributions.

Who will get a 25% pension increase?

Unfortunately, these positive changes will not affect all rural workers without exception - but those who

  • worked in rural areas for at least 30 years;
  • continues to live in rural areas;
  • worked in professions included in the government’s special list (the list still exists in the form of a Draft regulatory document, and you can download it below).

In particular, the draft says:

All workers, regardless of professions, positions and specialties, who worked on collective farms, machine and tractor stations, state farms, agro-industrial enterprises, peasant (farm) farms before December 1, 1991.

The requirements listed above are the same for men and women.

Comments (28)

Showing 28 of 28

  • Tatyana 01/03/2019 at 11:45
    My husband and I have worked in agriculture all our lives - he is a machine operator, an engineer, and I am an accountant. But after retirement they went to live with their children in the city. Are we not entitled to an increase in pension? What kind of nonsense is this again? Why should we live through old age without comforts, we no longer have the strength to heat the stove with wood, and that village no longer exists - only two or three houses remain.

    answer

      Elena 02/02/2019 at 17:05

      What side should an accountant be? It is not included in the list!

      answer

  • Valentina 01/05/2019 at 15:40

    I got acquainted with the lists of positions and professions that fall under the pension supplement, and came to the conclusion that many are not on them - collective farm builders, cooks, accountants, weighers, accountants, personnel department workers. This is only at first glance. As if these people worked somewhere else, and not in agriculture.

    The distribution by profession in agriculture did not free a person from being involved in mass work, especially there were many of them before the collapse of the Union. Sorting grain, poisoning mice, weeding beets, harvesting watermelons, etc. Often at the main job there were fewer working days than at these, as it were, auxiliary ones. And no one removed the responsibilities of the main position. And in the end, somehow it turns out not comme il faut.

    answer

    Iraida 01/18/2019 at 00:00

    Yes, you are right, it was as if they worked for another king. This is wrong, I myself have worked all my life in accounting and there is nothing. So where do we fall? The chairmen all entered, but the accounting department did not. Yes, indeed, who did the cleaners, accountants, and HR departments work for?

    answer

  • Anna 01/23/2019 at 20:50

    Government Decree No. 1440 of 2020 approved a complete list of positions, professions and specialties. At the end there is clause 4 “Work (activity) on collective farms, at machine and tractor stations, at inter-collective farm enterprises (organizations), on state farms, peasant (farm) farms, artels (agricultural), which was carried out on the territory of the Russian Federation (formerly Russian Soviet Federative Socialist Republic) until January 1, 1992 - regardless of the name of the profession, specialty and position held.”

    answer

  • Valery 02/03/2019 at 18:11

    Our Government must be kicked out for such humiliating decrees and laws! They themselves live in contentment at the expense of the people. The tractor driver is a villager, and the accountant seems to live in Moscow. Move the entire Duma from Rublyovka to a remote village for a year - let them try to live!

    answer

  • VICTOR 01/07/2019 at 19:26

    There are no shortage of fools and idiots in Russia who issue laws like this. Was it possible to manage in any agricultural enterprise without the profession of a builder? It's like a front without logistics support!

    Yes, truly: we are worth who we choose.

    answer

  • Tatyana 01/10/2019 at 11:11

    Hello. Please tell me, my father worked as a driver on a state farm for 43 years, but at one time he was transferred to the operators of a machine that dried grain and made granules. All my life on the same state farm, but there is no supplement to my pension.

    answer

      Nadezhda 03/15/2019 at 23:40

      Tatyana, the law states that the bonus is intended according to the list in three cases and paragraph 3 reads:

      3. Periods of work on collective farms, state farms, machine and tractor stations, inter-collective farm enterprises, peasant farms, which were carried out before January 1, 1992, without mandatory requirements for the position held.

      I worked as an economist at a state farm and received a bonus.

      answer

  • Elena 01/10/2019 at 16:06

    My mother was denied an increase for rural experience, since 14 years of work were confirmed only by witness testimony, and 19 years of work were noted in the work book. Is this legal?

    answer

      Natalya 01/10/2019 at 23:39

      My mother was also denied this bonus. She worked in Kyrgyzstan (I don’t remember the name of the village) from 1981 to 1991. They were not counted, although they were noted in the work book. They said that these years are not counted, but the article says that periods of labor activity on the territory of the USSR before January 1, 1992 are counted according to the provided list of positions. And how is that? With these 10 years of experience comes out to 31 years.

      answer

  • Alexander 01/11/2019 at 21:00

    He has a full 32 years of experience on a state farm, 3 of which were chief of security guards on the same farm. Not on the list, I wonder why? And who guarded socialist property?

    answer

  • Natalia 01/15/2019 at 15:00

    My mother worked as an accountant for 41 years, but she was not entitled to a bonus. What kind of nonsense is this? She could have fallen under the “collective farm member”, but the collective farms collapsed in the early 90s. I hope that appropriate changes will be made to the law, and everyone will receive the raises they deserve.

    answer

  • Lidia Gavrilovna 01/16/2019 at 04:13

    Agronomist, postgraduate study in agrochemistry, work as a research assistant in the agriculture department, crop rotation laboratory, in the fields of the Agricultural Research Institute. Conducted research and introduced the best results of crop production and agrochemistry on state farms. Work experience in rural areas for 50 years. But for some reason, scientific workers were not included in the list of professions eligible to receive a 25% pension supplement. Perhaps the former agricultural research institutes, now renamed (FANO), belong to other organizations whose main activity is agriculture (RF Government Decree No. 1440 of November 29, 2020).

    answer

  • Vladimir 01/21/2019 at 17:31

    The list of professions is more than strange. It is immediately obvious that it was prepared by people who had never been to the village and had no idea about village labor. Where are the milkmaids, pig farmers, calf sheds, poultry houses, feed distributors, grooms, shepherds, shepherds, etc.?

    answer

  • Elena 01/21/2019 at 18:12

    The law is unfair and needs to be amended. Our mother had a stroke and had to be taken to the city. She worked for more than 30 years. If it weren’t for illness, I would live in the village. They didn't add anything to her. We need to approach such people individually.

    answer

      Roma 02/27/2019 at 18:15

      Over the course of 30 years of work in agriculture, a person will work in different jobs. This is true everywhere! I went to the President’s website, they send it to the Pension Fund. Vicious circle! But in the published lists there is an item - workers of all specialties. It turns out that the President’s words are ordinary chatter. Or is it our officials who are carrying out the President’s instructions? In short, it turned out to be window dressing!

      answer

  • Alexander 04/05/2019 at 10:03

    Swap any word and you won’t be included in the list of professions. This is being done specifically to frame the President, and Medvedev is again on the sidelines, so clean.

    answer

  • Nikolay 01/23/2019 at 13:42

    The same "song". The electricians serving the collective farm were transferred to Selkhozenergo. The same job, the same collective farm, but we were not included in the list - as if we were serving a foreign collective farm. But an entomologist was included on the list - I think not every collective farmer knows this specialty.

    answer

  • Zina 01/28/2019 at 00:35

    We worked on the collective farm for 40 years. Only 24 years old tractor driver (counted), and 16 years old forager still on the collective farm (not counted - there is no such profession on the list). Is it possible to somehow achieve justice?

    answer

      Nikolay 02/08/2019 at 15:05

      Zina, I have my own concerns about working at Selkhozenergo. Have you read the list yourself? At the end of the list you can enter so many positions, I cannot send you a screenshot of this list to this discussion site, but search on the Internet. I think he will help you.

      answer

  • Nina 01/30/2019 at 17:19

    She worked at a fruit state farm (LLP CJSC) from August 1981 until September 2012. Because The position of an accountant is not in the list of the Government of the Russian Federation No. 1440, but this list has been taken into account since 01/01/1992. Why is it not partially accrued until 01/01/1992 - and this is 10 years and 4 months (since the periods of work before 01/01/1992) 1992, regardless of the name of the profession, specialty and position). Maybe for employees of the Pension Fund of the Russian Federation it is pennies, but for me, as a pensioner, it is 460 rubles. - This is money. I ask you to answer me.

    answer

  • Ekaterina 02/03/2019 at 13:52

    Good afternoon My father has more than 30 years of experience in rural areas and now lives in the village. Are an application and a copy of the work record sufficient to apply for an increased pension? They demand orders from him, which contain his positions - supposedly his labor is not enough. Is this true?

    answer

      admin 02/04/2019 at 10:31

      Good afternoon. The procedure for confirming rural experience is regulated by the “Rules for calculating and confirming insurance experience for establishing insurance pensions”, approved by Government Decree No. 1015 of October 2, 2014. Part 11 of these Rules reads:

      The document confirming the periods of work under an employment contract is a work book of the established form (hereinafter referred to as the work book). In the absence of a work book, as well as if the work book contains incorrect and inaccurate information or there are no records about individual periods of work, written employment contracts, drawn up in accordance with the labor legislation in force on the day the relevant legal relationship arose, are accepted to confirm the periods of work. books of collective farmers, certificates issued by employers or relevant state (municipal) bodies, extracts from orders, personal accounts and wage statements.

      answer

  • Valentina 02/13/2019 at 15:50

    I worked in the countryside for 50 years, first as an accountant, and then as the chief economist on a farm for 42 years. Who counted everything and ran through the fields, carried out all the standards and prices so that production would work. And in the new times of developed capitalism, the economy remained, they did not have time to plunder it. And it turns out that I didn’t work at all, and what I did is unknown. They sorted grain and potatoes and weeded them. Everyone showed an example of how to work. But the state laughed at us and decided that the pension would be too high.

    answer

  • Evgeniy 02/14/2019 at 16:13

    Hello. Is the supplement monthly or not? Thank you.

    answer

      Irina 02/14/2019 at 16:18

      Hello, Evgeniy. Yes, the supplement is monthly and is paid throughout the entire period of residence of the pensioner in rural areas.

      answer

  • ZOYA 04/15/2019 at 21:33

    I have 37 years of rural experience. 11 l. did not count, because worked in a collective farm bakery, baking bread for collective farmers. The collective farm included 4 farms. We got up at 2 o'clock in the morning and went to work, and even the lights on the street were not on, even if we poked out an eye. I know that a baker belongs to the category of workers, and the list of professions says “workers of all types.” This item does not work at all in the Pension Fund.

    There is no one to expect help from, everyone is not in the know. Thank you to our state for being so concerned about pensioners.

    answer

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    Increasing pensions for working pensioners in 2019

    According to current legislation, working pensioners are not entitled to indexation. However, from 01/01/2019, the cost of one pension coefficient (point) will traditionally change. The indexation size, according to preliminary data, will be 1.024. Now a pension point costs 81.49 rubles. Therefore, when the Pension Fund of the Russian Federation adjusts the amount of monetary allowance paid by the state, there will be an increase in the insurance part of the pension, which is calculated according to the so-called point system. All working pensioners have the right to recalculation.

    It is expected that in 2020, all working pensioners (about 14,000,000 people) will receive a maximum of 3 pension points (the specific increase depends on the size of the salary and contributions to the Pension Fund made by the employer), so the maximum increase could be 244.47 rubles. It will be available from 09/01/2019.

    Please note that starting from 2020, a person has the right to indexation of his insurance pension only after he quits his job. But this only means that payments from the Pension Fund are not indexed to a working pensioner, and after he stops working, all the indices that have passed during this time will be summed up and added.

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