Recalculation of pensions for working and non-working pensioners: changes for 2020

Indexation of pensions for working pensioners after dismissal

The departure of a citizen from the workplace leads to a recalculation of payments by the Pension Fund. The increase occurs most often. All indexations that began in 2020 are taken into account. Receiving a job again does not imply recalculation in reverse order. Because of this, social benefits are not reduced. But subsequent increases will be stopped until the citizen has a job again.

This is one of the anti-crisis measures. It often leads to people of retirement age agreeing to informal part-time jobs. Repeated dismissals and rehiring are permissible if employers do not object.

But only insurance pensions are subject to the indexation ban. If state support remains the main one, the recalculation is carried out in any case, regardless of the work. The Personal Account on the official website of the Pension Fund of the Russian Federation helps to obtain information regarding benefits intended for a particular person.

FAQ

Question to the expert

Can I apply for a recalculation even after my pension has been assigned?

Hello. Certainly. A pensioner has an opportunity even after a pension has been assigned. This is the essence of recalculation. Appeals occur in connection with changes in legislation; we have received supporting documents, restored them, which were not previously presented to the Pension Fund and taken into account in the initial calculation.

Are non-insurance periods included?

Non-insurance periods are either included in the insurance period or exchanged for pension points. How it is more profitable is considered personally to each person. These are periods of experience such as caring for children or a disabled person, military service, in law enforcement, living in a military unit with a spouse. Supporting documents are needed.

Who are dependents?

Disabled dependents - under 23 years of age, full-time students + disabled parents. An additional payment for maintenance is provided for them.

How much northern experience is needed for a raise?

In the Far North from 15 years, in equivalent areas from 20 years - for a 30% increase.

Does the application procedure for recalculation require a personal visit to the Pension Fund?

Not only. You can apply through your personal account of the Pension Fund or through the State Services portal.

The procedure for indexing pensions after dismissal from 2018

90 days after termination of the employment contract - no earlier than this time a full recalculation will take place if the employer has no problems with timely sending data to the Pension Fund. Managers must submit reports monthly, in the first half of the current reporting period. Employees make the decision to pay an increased pension in the month following the period of last receipt of information.

The standard recalculation algorithm looks like this:

1. An example is taken when a person quit in April.
2. According to the text of the reporting for May, the citizen is still counted as working.
3. Current data will be in documents issued for June.
4. July is the month of pension indexation according to the decision of the Pension Fund.
5. Payments are transferred for the first time in August.

How pension payments are recalculated

Pension benefits are indexed twice during a calendar year.

The first is provided for the recalculation of insurance payments and was previously carried out in February. But back in 2020, the President of the Russian Federation decided to postpone the indexation of old-age insurance accruals to January.

for the second time, that is, payments for the loss of a breadwinner, for disability, and others. The second recalculation takes place in April of the current financial period.

The regulatory conditions apply exclusively to unemployed pensioners, that is, for those citizens who have reached retirement age, received insurance payments and at the same time completed their working career.

If a citizen receiving old-age payments continues to work, then he is not entitled to indexation. Such instructions are enshrined in Law No. 358-FZ of December 29, 2015. Therefore, pension recalculation for working pensioners in 2020 is not allowed.

Interesting on the topic: Is a pensioner required to work 2 weeks upon dismissal?

For what types of pensions is indexation prohibited?

The new rules do not apply to the following types of payments:

• Insurance pension.
• Fixed part.

When continuing to work, indexation is not applied to pensioners. They are not affected by the increase in security that occurs annually. The indexation coefficient itself was no exception. All payments of fixed types are subject to increase. Any citizen has the right to compensation with a larger amount as soon as his work activity ceases.

What taxes do individual entrepreneurs need to pay?

The fiscal burden on businessmen who have reached retirement age does not differ from that inherent in other categories of entrepreneurs. The list of taxes paid is compiled in relation to the applicable taxation system, but does not depend on the age of the entrepreneur himself. If an individual entrepreneur is opened by a pensioner, he must pay:

• basic tax, the amount of which depends on the tax regime used;
• additional taxes that are subject to accrual if there are grounds (i.e. the object of taxation).

There are several taxation systems available to entrepreneurs:

• general - it assumes the absence of restrictions on the types of activities and volumes of revenue, the number of personnel, but is the most complex in maintaining accounting and tax records, and requires the submission of an expanded set of reports;
• A pensioner individual entrepreneur can make the transition to a simplified special regime - the object of taxation can be chosen as “income”, then the tax rate will be lower, or “income minus expenses” (the tax base decreases, but the tax rate increases);
• UTII - tax is calculated on the estimated, “imputed” income;
• the patent system is the simplest, and there is no need to file a tax return;
• Unified agricultural tax - a special regime if the pensioner plans to work in agriculture;
• from 2020, in some regions it will be possible to take advantage of the new taxation regime provided for self-employed persons - tax deductions are minimal, insurance premiums are paid voluntarily, no reports, all transactions will be carried out through a mobile application.

In 2020, an individual entrepreneur who is a pensioner will have to pay personal income tax and VAT when applying OSNO. When a pensioner uses his own real estate for commercial activities, he will have to pay property tax. The right to an exemption from paying this tax for pensioners cannot be applied, since the property is not used for personal needs, but for the extraction of additional material benefits.

Regardless of the tax regime, when hiring employees, individual entrepreneurs must transfer insurance premiums and personal income tax for them.

Is it necessary to apply to the Pension Fund after dismissal?

The second quarter of 2020 was the time when the law was adopted, which made it possible to submit simplified reports for each employee. The tax service is responsible for informing the fund when it comes to terminating the work of self-employed citizens.

After dismissal, they also fall under pension indexation if the conditions are met. Citizens have the right to provide the necessary information independently. But it is not necessary to visit one of the Pension Fund branches in person; many types of reports support remote service.

Who is responsible for late recalculation of payments?

The changed amounts are applied to pensions in practice no earlier than three months after dismissal. But sometimes it happens that the specified period has passed, and the amount of payments has remained virtually unchanged. The problem has several causes and nuances.

Several types of errors lead to this state of affairs:

1. The employer continues to send lists to the Pension Fund without updates, although the dismissal has occurred and is recorded.
2. The Pension Fund itself did not carry out indexation within the specified three-month period.

The time for termination of employment agreements is at the beginning of the month. Then you just need to wait - with a high probability the citizen’s name will appear on the lists, but a little later.

Any employee has the right to check whether the employer is sending the correct information to the Pension Fund of the Russian Federation. Copies of the lists are sent to citizens upon presentation of the first request. The appearance of the slightest inaccuracies leads to fines being imposed on managers.

It is recommended to personally monitor the processes related to pension indexation. If, after three months, payments arrive without updates, you need to contact the Pension Fund employees to get clarification.

What determines the size of indexing?

Let us define a list of indicators on which the size of the increase in insurance premiums depends:

• the amount of calculated and transferred insurance premiums on the citizen’s individual personal account;
• the sum of all periods of labor activity for which contributions were made (work experience);
• number of accrued (earned) pension points;
• personal (individual) pension coefficient;
• the total indexation coefficient established by current legislation.

There is no need to visit the branch of the territorial fund to write an application for indexation. But employees of the Pension Fund of the Russian Federation may require additional certificates and information, then the person will have to provide the missing documents.

How are pensions recalculated for working pensioners after retirement if the employer has not provided the relevant information to the Pension Fund of the Russian Federation?

The employer is obliged to provide monthly information about the insured persons in the SZV-M form. If the employer provides incorrect information about the retired elderly employee in the report, the indexation will not be paid. Pension Fund representatives will recalculate only after providing correct information. The state will not pay compensation for the employer’s mistake. It will be possible to claim the lost amount from the employer through the court.

Let us remind you that if you find a job after the indexation of insurance payments, the pension will not decrease.

Receiving compensation for missed indexations

There is only one solution - stopping any work activity. Pensioners can quit without working off if they are employed. And if before going on vacation they had never used this right. The main thing is that the application says about retirement in connection with reaching the appropriate age.

Dismissal with work for three days is the right of pensioners who re-employed after dismissal. The application is drawn up in such a way that leaving work is the reason for the citizen’s own desires. A total processing time of 2 weeks applies to situations where detailed information is not available on applications.

If the pensioner gets a job again

Let's say our pensioner gets a job in April 2020. How will this affect his pension? On the new recalculated pension - no way. In the amount that was established after dismissal, he will receive it every month while he works at his new place of work. Indeed, in such a situation, the amount of the pension is determined on the date preceding the date of resumption of work (Part 8, Article 26.1 of Law No. 400-FZ). But he will not have to count on the next pension indexation due to all non-working pensioners (if, of course, he is still working by that time). Typically, indexation taking into account rising consumer prices is carried out at the beginning of the year - from January 1 or February 1.

True, in August 2020 he will still have to recalculate his pension upward. But this will not be an indexation of pensions associated with rising prices, but a recalculation taking into account the amounts of insurance contributions for compulsory pension insurance paid from the pensioner’s payments by his current and previous employer (clause 3, part 2, article 18 of Law No. 400-FZ). After all, if he works officially, then contributions from his salary and other labor payments should be calculated in the same way as from payments of any other employees (clause 1, clause 1, article 420 of the Tax Code of the Russian Federation). Despite the fact that this employee is already a pensioner.

This is important to know: Is it possible to fire for failure to fulfill the plan?

In any case, due to new employment, the pensioner will not have his pension reduced back to the amount he received before dismissal. So if he first quits and then returns to work, this will have a positive effect on his pension.

However, the question arises: is the game worth the candle? If you agree with your employer on “temporary dismissal” for the sake of pension indexation, then certain risks will arise. Firstly, the employer may simply change his mind and refuse to rehire you after dismissal. Secondly, it is unclear how profitable this step will be. Indexation often does not lead to a significant increase in pensions. It is possible that during the period of “temporary layoff”, without receiving a salary, you will lose more than you will receive from indexation. And it’s not a fact that this layoff period will quickly pay off.

After dismissal: what can you do?

The recalculation may be canceled if the job registration takes place before the indexation itself is completed. Then the citizen is again given the status of a worker. It doesn’t matter whether we are talking about an old or new place of work. The Pension Fund of the Russian Federation receives the necessary information in any case.

It's best to rest for the first 90 days. And in the fourth month you can get settled again. It is enough to make sure that the recount is completed.

Dismissal gives pensioners the right to annual August indexation. The maximum amount for accruals is three pension points. Their prices are adjusted annually.

Is it true that working pensioners will have their pensions cancelled?

According to the provisions of the International Labor Organization Convention, a pension is compensation for earnings lost by a citizen in the event of incapacity for work due to age or other reasons. The Convention also applies to the Russian Federation.

This is important to know: Does a working pensioner need to work 2 weeks upon dismissal?

Thus, in order for a citizen to receive this type of social benefit, two basic conditions must be met:

• The person applying for a pension must be disabled.
• The citizen must not be working at the time of application.

In the Russian Federation, employed pensioners retain the right to receive pensions , despite a number of restrictive measures in legislation introduced in 2016.

Rumors that working pensioners would no longer be paid pensions appeared back in 2020, when a corresponding bill was introduced for consideration. However, it was not adopted, and the Government of the Russian Federation made a statement that working older people retained the right to receive this type of benefits.

On July 11, 2020, Deputy Minister of Labor and Social Protection A. Pudov made a statement that the planned changes to the country’s pension system do not include plans to remove payment of pensions from employed pensioners.

It should also be remembered that the right to receive a pension benefit is guaranteed to every citizen of the Russian Federation by Article 39 of the Constitution. Conditions for receiving are:

• Reaching the age of disability.
• Obtaining the status of a disabled person.
• Loss of a breadwinner.

That is why rumors about the abolition of payments for working pensioners have no basis - they will not be completely taken away or deprived. It is only possible to change the conditions for assigning a pension.

Do I need to resign to index my pension?

There are several tips to make finding the right solutions easier:

• You should make your own decisions about the possibility of dismissal and the correctness of this approach.
• The main thing is to make at least approximate mathematical calculations.
• It must be remembered that there are benefits for working pensioners.

The increase will be more noticeable if the pension itself is significant and indexation has been missed many times. Experts recommend writing applications if you are confident in your ability to live on one allowance without increases. If your health and strength allow it, then you can think about staying.

List of documents for the Pension Fund of the Russian Federation

In most cases, a passport and SNILS are enough to carry out recalculations in accordance with all the rules. You must submit an application to initiate the process. The document is handed over to one of the employees - during personal visits, or through representatives. It is acceptable to contact MFC employees to send documents. The same can be done using mail or the official website of the Pension Fund.

The following information is included in the text of the statements:

• List of papers that were used as evidence.
• Reasons why the procedure had to be started.
• Passport details.

The authorities give the inspector 5 days to study all the information provided. Then a decision is made, positive or negative.

On changes to the law by 2019

Starting from January 1, 2020, accruals to pensioners are planned to be made immediately, from the 1st day of the month following the time of dismissal.

As before, the procedure for approving an application in such a situation will take at least three months. But for this entire period, money will be compensated without fail.

Refusal to pay pensions to working pensioners is a proposal discussed by the State Duma on an ongoing basis. At least this will affect those who annually receive income only from work in the amount of 1 million rubles or more.

Basic Concepts

Pension recalculation is a change/clarification of the initial amount of the monthly payment due to a citizen who has reached a certain age.
This happens due to a change in circumstances or the personal initiative of the recipient, who provides the authorized body with documents confirming his rights. The institution responsible for calculating and issuing pensions to the population is the Pension Fund. All information about citizens is stored in an electronic system where the latest changes are reflected. About the age, status of the recipient, his occupation (employed or not).

Pension payments are made every month in cash or non-cash (a person receives the money in his hands, a transfer is made to his card).

From August 1, 2020, the pensions of working pensioners will be slightly increased and recalculated. The Pension Fund of the Russian Federation will make adjustments in accordance with the requirements of the Federal Law dated December 28, 2013 No. 400-FZ “On Insurance Pensions”. Will affect all citizens who worked in 2019 and for whom the employer paid insurance premiums. You shouldn’t expect big increases, 200-300 rubles, converted from points to rubles.

How can I find out about the amount of future payments after dismissal?

One of the acceptable options is to issue a certificate or extract in your Personal Account, on the official website of the Pension Fund. To do this, you will need to register on the State Services website and log in there.

Obtaining certificates involves completing the following steps:

1. Visit your Personal Account on the Pension Fund website.
2. Go to the Pensions section. Next, select the item “Order a certificate of pension amount.”
3. A window will open where all you have to do is click on the “Request” button.
4. In the “request history” section, citizens are shown the result of the request.

The result is information regarding the standard amount of pension payments and compensation for the period while the job is maintained. From the same certificates they will learn what compensation will be after dismissal. Contacting the Pension Fund client service also opens access to the document and the information contained in it.

Transition from social pension to insurance

Those with at least 5 years of work experience are paid an insurance or labor pension. The main thing is to take into account the time when the contributions were transferred. The social pension is assigned a minimum amount for those who have no work experience. Therefore, this collateral option is less profitable.

If you have work experience, at least in a minimal amount, it is always recommended to switch from a social pension to a labor pension. You can complete the required time even after reaching the appropriate age limits.