⭐ ⭐ ⭐ ⭐ ⭐ The legal topic is very complex, but in this article we will try to answer the question “Putin Abolished the Reduction Coefficient for the Military From October 1, 2020.” Of course, if you still have questions, you can consult with lawyers online for free directly on the website.
Please note that there will be no increase in long-service pensions for military personnel and persons equivalent to them in January 2020. The increase in the size of this type of pension provision is planned only for October 1 (preliminarily by 3%).
The State Duma Committee on Defense, in its conclusion to the draft Federal Budget Law for 2020, noted that in order to fully increase military pensions, it is necessary to index by 5% , and not by 3%, as included in the budget.
Will the reduction coefficient for military pensioners be increased in 2020?
Decree of the President of the Russian Federation No. 604 of 05/07/2020 establishes that pensions of military pensioners should grow annually at a rate of 2% higher than inflation. Indexation corresponding to price increases in 2020 is scheduled for October 1 (the increase will be 3%). But funds have not yet been provided for an additional increase of 2%.
Many veterans' organizations say that this is certainly unfair. The military pension is already almost equal to the “civilian” one. Let us add that her relatively elite status is preserved only by her earlier average age of retirement compared to ordinary pensioners.
The growth rate is also specified in the law - two percent annually. Moreover, these two percent are the minimum annual increase. The law allows the government to increase the reduction factor at a faster rate. Especially if inflation in the country requires it.
How the coefficient was increased in 2020-2020.
There will be no reason for retired military personnel to be particularly pleased with the increase in pensions next year. The state again froze the increase in this type of pensions beyond the percentage of indexation of pay in the active army. For now - until 2021. But if desired, freezing can be extended indefinitely. Let us remind you what the reduction coefficient will be for military pensioners in 2020, how it has grown in recent years, and what the average pension of a retired military man will be after the next indexation.
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The latest news from the Duma promises an increase in pensions by 4% from 2020 in relation to the amounts current for 2020. The total reduction factor will be 75.15%. Additionally, citizens who served in state military bodies will receive an increase in assistance by 3.8% due to indexation. The increase will occur against the backdrop of rising wages for military personnel. Funds for these activities are included in the draft budget.
Cancellation of the reduction coefficient for military pensioners in 2020
Russian President V. Putin signed a law for military pensioners: from May 1, 2020, the reduction coefficient for military pensioners was cancelled. More precisely, it was canceled for WWII participants. As a result of the Decree, their benefits should increase by approximately 9.5 thousand rubles monthly.
The timeliness of this payment can be debated. But first, let's figure out what the reduction factor is and why it is applied to military pensions.
What is a reduction factor
In 2012, the concept of a reduction factor when calculating pensions appeared. It only applied to pensions of former military personnel. This decision was forced by the Government in order to combat the economic crisis in the Russian Federation.
Thanks to this law, people who defended their country, sometimes at the cost of their health and immediate risk to their lives, cannot receive their well-deserved pension in full. In 2012, they were entitled to only 54% of its size.
Expert opinion
Grigoriev Pavel Kirillovich
Head of the department for conscription of citizens for military service of the Russian Federation
The coefficient of 0.54 did not apply to representatives of the judiciary and military investigative bodies, which is strange in itself, and invariably causes discontent among other retired military personnel.
The essence of the coefficient: the pensioner is given an amount calculated as the earned pension multiplied by the coefficient.
Second pension for law enforcement officers
Former police officers are entitled to receive a second pension from the Pension Fund.
For its registration, the following conditions must be met:
- reaching retirement age;
- accumulation of a certain amount of points;
- having sufficient experience;
- making regular contributions to the state budget by the Ministry of Defense during the service of the pension applicant.
Men acquire the right to this benefit from the age of 61.5 years, and women from the age of 56.5 years. They must accumulate at least 13.8 pension points and have at least 9 years of work experience.
How much is it in 2020
Calculation of the individual reduction coefficient: for a year of service on top of 20 years of military experience, a former employee of the Ministry of Internal Affairs of the Russian Federation is plus 3% to the coefficient. He himself changed several times:
- During the period from 2012 to 2020 it increased from 54% to 62.12
- By 2020 it had grown to 69.45
- By 2020, its size was 72.23.
This is important to know: Indexation of pensions for military pensioners in 2020
Today it is planned to increase it to a maximum of 85%, but the increase is still frozen, at least until 2020. The only thing that received approval from deputies was the abolition of the reduction coefficient for military pensioners in 2020, which affected WWII veterans.
A separate approach is used when calculating mixed length of service. Preferential length of service includes at least 25 years of cumulative work experience, of which 12.5 are in the Ministry of Internal Affairs. The reduction factor increases by only 1% annually for each additional year.
The last increase in this indicator is planned in October - up to 73.68% (approximately 2%). Calculated on a national scale, the figure looks impressive. But for each individual person, given the rise in inflation, this amount means nothing.
Pensioners of the Ministry of Internal Affairs and the military will have their pensions indexed in 2020 – In civilian life
What do you think is the largest structure ever created in Russia in terms of the number of people involved? Undoubtedly, these are military and paramilitary bodies. On the Internet they are called security forces.
These include the Armed Forces, the Ministry of Emergency Situations, firefighters, and the Ministry of Internal Affairs. The latter occupy a special place in this list. They protect and maintain order on the territory of our country day and night. Their number exceeds 800 thousand employees.
But how does the state treat these employees? Do fellow police officers spend their old age with the same dignity as they devote themselves completely and completely to service? The security forces themselves are dissatisfied: pension provision does not pamper them. But maybe next year something will change? How much will Ministry of Internal Affairs pensions be indexed in 2020? Will the reduction factor for former police officers be abolished: answers to these and other questions in this review.
Police pensions - latest news
The pension structure for police officers differs from the usual civilian pension. The fact is that the Ministry of Internal Affairs belongs to the law enforcement agencies (army, Ministry of Emergency Situations, etc.), and they are on completely different benefits.
If for civilians the pension amount is calculated based on the points accumulated over the entire period, then for military retirees, including police, the long-service benefit is assigned as a percentage of the current salary (or, more correctly, allowance).
The payment of police pensions is characterized by the law of the Russian Federation under number 4468-I. For all persons who fall under the scope of this decree (listed in Article No. 1), a strict procedure for the calculation, indexation and payment of old-age benefits is defined.
In the future 2020, no fundamental changes in pension calculation rates are expected, with the exception of a moratorium on indexation of the reduction coefficient. The period of its validity (moratorium) just ends after the 12th strike of the chimes on December 31, 2020. This means that the pension of the Ministry of Internal Affairs will again receive an additional source of indexation from January 1, 2020.
But how much will they add? Reading the official paper, namely Article 43, which both specifies the indexation rate of 2% and determines the possibility of increasing this coefficient in accordance with the inflation rate in the country, it becomes not clear what to expect for the police.
But let's try to figure it out. What can former employees of the Ministry of Internal Affairs expect in 2020, based on the experience of past years?
Police pension: is it possible to live on?
In 2010, Russian security forces, including the Ministry of Internal Affairs, received a significant increase in their allowances. From that moment on, young people began to strive to serve in the army under a contract. Also, in local police departments in the regions, the number of young officers wishing to build a career in this particular path has increased.
This is no coincidence, because employees could fully receive:
- good pay;
- free visits and treatment in departmental hospitals and hospitals;
- maintenance (free food in canteens, uniforms and other material benefits);
- departmental housing (apartments and dormitories) for temporary use.
Also, security forces could count on receiving ownership of an apartment, subject to submitting an application and serving a certain number of years.
Let’s take a closer look at the wages and pensions of retirees. After allowances increased noticeably in 2010, paying pensions became more difficult. After all, the length of service benefit directly depends on the current level of remuneration.
To understand what we’re talking about, let’s look at how pensions were calculated for police officers who retired.
How is the pension calculated?
For employees of the Ministry of Internal Affairs, in order to retire, one of two conditions must be met.
- Serve at least 20 years. In this case, the retiree is entitled to a benefit equal to 50% of the additional income. If a person remains in service after 20 years of service, his future pension is indexed by 3% for each year.
- With a total experience of 25 years, exactly half of which (12.5 years) is service in the Ministry of Internal Affairs. It does not matter where the person worked for the rest of the term. The amount of the pension under this retirement scheme is the same as in the first case. But the annual increase during continued service is already less - for each year you can get +1% to the payment.
It is worth noting that the maximum amount that a retired police officer can earn is 85% of the DDV. This corresponds to a length of service equal to 32 years. This procedure applies only to the first case (that is, when a person served in the Ministry of Internal Affairs immediately after graduating from the relevant educational institution). For the second case, with an increase in payments by 1%, it is impossible to reach the 85% level.
DDV is a monetary allowance that is taken into account when calculating the amount of the pension. For each retiree, its size is different and is equal to the allowance that the police received at their last duty station. This includes all bonuses for rank, merit and other achievements.
In addition, retirees are entitled to bonuses for the presence of disabilities received during the performance of their official duties, as well as in other life situations. The full list of allowances is specified in Law No. 4468-I.
Reducing factor - saving the budget
In order to prevent impoverishment of the budget, after increasing allowances for security forces in 2010, parliamentarians introduced an adjustment (lowering) coefficient in 2012. Its value at that time was 54%.
Now the pensions of former employees of the Ministry of Internal Affairs began to be additionally multiplied by 0.54. In fact, this innovation contributed to a reduction in benefits by almost 4 times (taking into account the first reduction of 50-85%).
But not everything is so bad, officials assured from high stands. After all, this is only a temporary state of affairs. A mechanism is provided to ensure that this new reduction factor is increased to 100%. To this end, Article 43 4468-I of the law stated the following (among other things):
... ensure an annual increase in the reduction factor by 2% until the indicator reaches 100% of the value. If possible, annual increases may be made by more than 2%, in accordance with the state budget law.
This state of affairs was perceived with a large degree of negativity by all retired security forces, including the structures of the Ministry of Internal Affairs. This is no accident. After all, if you make calculations, then the reduction coefficient will be able to reach 100% (that is, a complete abolition of the reduction in old-age benefits) only by 2044 (subject to a 2% increase).
But the government nevertheless met halfway and ensured an annual increase in the reduction coefficient even higher than the inflation rate officially established by the federal budget.
Will there be a premium in 2020?
The annual indexation of pensions for military personnel, firefighters, police officers and other retired security officials occurs by the inflation rate, which is indicated in the budget legitimized by a federal decree.
According to the law, the increase in payments will be made from October 1. That is, in 2020 pensions will also be increased on October 1. It is not clear why, but indexation is carried out almost at the end of the year (and inflation begins already on January 1).
The inflation index has been set for 2020. It is 3.8%. It is by this amount that allowances and, accordingly, pension payments will increase. But security forces should also tune in to an additional increase in money by increasing the reduction factor. It has never been indexed since 2017. It remained at the same level (72.27%).
The reduction factor was usually indexed from the beginning of the year (January 1). But in 2020, in accordance with Federal Law No. 460, it was decided to increase by 2% from October 1, 2020.
This is an indicator of the difficult situation of the entire structure of the Ministry of Internal Affairs. The fact is that a large number of Russians serving in the Ministry of Internal Affairs are on state support.
And an increase in pensions, even a minimal one, has a noticeable impact on the state budget.
Therefore, as part of the future so-called reform of the Ministry of Internal Affairs, which will begin in 2020 and continue until the end of 2024, a number of measures have been developed that will help to achieve a noticeable reduction in the burden on the budget.
As for the reduction coefficient, in 2020 it should be increased by 2%, as specified in Article 4468-I of the law. After indexation, the calculation of pensions for police retirees will change. This means that the total growth rate in 2020 will be 3.8+2=5.8%.
Reform of the Ministry of Internal Affairs 2020: what to expect?
The structure of the Ministry of Internal Affairs has many ramifications. There are many positions here that, in fact, are not involved in law enforcement in any way.
First, we will indicate which units are included in the Ministry of Internal Affairs system.
- Police.
- State traffic inspectorate.
- Investigation Department.
- Migration Service.
- State drug control.
In addition to these departments, the structure includes:
- educational institutions (police schools);
- medical institutions (hospitals, specialized clinics);
- resort establishments.
These structures are supported by the state. This means that pension benefits for employees of these agencies are accrued in the same way as for police officers. This state of affairs has a significant impact on the budget.
In order to increase allowances for employees of the Ministry of Internal Affairs, pensions for retirees, and at the same time reduce the burden on the budget, parliamentarians decided to carry out a reform. And although no official government decree has yet been issued in this regard, there are several opinions of high-ranking officials that have leaked onto the Internet.
What to expect from the reform: latest news
At one of the meetings of parliamentarians, the current Minister of Finance A. Siluanov said literally the following:
We are working (together with the Ministry of Defense) to gradually increase the minimum length of service, upon reaching which the right to receive a pension benefit arises.
Now security forces can retire after serving for 20 years. It is proposed to increase this value to 25. And although these are only words, there are prerequisites for the implementation of what the government has planned. In August 2020, the country's President Vladimir Putin signed a decree. The document allows certain ranks to remain in service for 5 years longer. Namely:
- majors and lieutenant colonels - up to 55 years old;
- colonels - until they reach 60;
- generals - 65.
For now this is voluntary. If a person still wants to serve for the good of the Motherland, he can stay. And if not, then no one will force you. But this “voluntary formulation” may turn into an obligation with another unimpressive amendment.
It is also planned to transfer all departmental hospitals to the Ministry of Health. This can and will have a positive effect on reducing budget funds. But now all “Ministry of Internal Affairs officers” will have to go to regular clinics, where the conditions are not so great. Long live private clinics. Well, is it profitable? And to whom?
Latest news marked “Important”
And the author would like to end this article with a happy happy ending. Yes, somehow it doesn’t work out. Quite by accident, the author came across bill number 802513-7.
The document contains only 2 pages, which literally say the following:
The second part of Article 4468-I of the law is suspended until January 1, 2021. From January 1, 2020, take the value of the reduction factor equal to 73.68%.
If we omit all government officialdom, this wording means that in the future 2020, the increase in the reduction coefficient by the established 2% has been canceled.
Source: https://avin-kursk.ru/pensiya/pensioneram-mvd-i-voennym-proindeksiruyut-pensii-2020-god.html
Will the reduction coefficient for military pensioners be abolished: latest news
Today the coefficient is 72.23%. According to the Government's promises, the coefficient should gradually reach 100% and virtually disappear in the near future. But no one knows when exactly.
In 2020, it was planned to completely abolish the reduction rate for military pensioners who are the age of an ordinary Russian pensioner. There is no news about this yet.
This indicator was canceled only for pensioners who participated in the Second World War. Considering their age and number, it becomes clear why the “servants of the people” decided to take such a long-awaited step.
When will the cancellation take place?
The answer to the question of when 100% accrual of military pensions will return is unknown. The reduction factor is changed manually every year when drawing up the budget, and they periodically threaten to freeze it for an indefinite period.
Many pensioners believe that they will not live to receive their full pension. It is quite possible that it will be canceled only for small groups of pensioners, such as WWII veterans.
The abolition of the reduction coefficient for military pensioners over 60 years of age (for women - from 55 years of age) deserves a separate discussion. Upon reaching the appropriate age, they become entitled to 2 types of pensions: social old-age pension. However, the reduction rate also applies to her. It has long been planned for them to abolish this obvious injustice.
However, things are still there, pensioners will have to wait, and how long is unknown; the coefficient is still fixed and applied.
At the beginning of 2020, social pensions were increased in the amount of 7% for everyone except the old-age pension of former employees of the Ministry of Internal Affairs.
Most likely, there is no chance of a 100% return of pension payments for this category of pensioners: neither in the near nor in the distant future. According to legislators, an unfair situation will arise when a serviceman of general retirement age of low rank receives a payment that exceeds the pension of a 50-year-old colonel.
The fact that this situation is now unfair for many more people is not taken into account.
Calculation of pension payments for internal affairs employees
The amount of pension provision and the specifics of its calculation are revised by law almost every year.
Thus, pensions in the Ministry of Internal Affairs in 2020 based on length of service are calculated in accordance with the following formula:
DD x 0.5 x 0.7368 , where DD is salary, consisting of salary for the position, as well as salary for rank and bonus for length of service.
The pension of a police officer in 2020 is calculated taking into account the so-called reduction coefficient equal to 0.7358, which is gradually increasing at the legislative level (in 2020 it was 0.7223) and will subsequently be brought to 1.
Please note: for each additional year if you have 20 years of specialized experience, a bonus of 3% is awarded, the maximum amount of which can reach 85%. When receiving a pension benefit based on total length of service, the increase is only 1% for each additional year.
Calculation of insurance pension
In addition to long-service benefits, persons serving in the Ministry of Internal Affairs are entitled to receive an insurance pension. It is due to men from 61.5 years old, and to women from 55.5 years old, provided they have at least 16.5 years of insurance coverage and a pension coefficient of 30 or higher.
The old-age insurance pension for former employees of the Ministry of Internal Affairs is calculated in accordance with the formula:
IPC x SPK , where IPC is the individual pension coefficient; SPK is the value of the pension coefficient at the time when a pension was assigned to a specific person.
The minimum pension of the Ministry of Internal Affairs in 2020 is 9 thousand 154 rubles, however, the majority of former police officers receive higher payments.
The size of the military pension after innovations
Expert opinion
Grigoriev Pavel Kirillovich
Head of the department for conscription of citizens for military service of the Russian Federation
This year, military pensions will be increased by more than 6% in October. This increase includes an indexation of military pay by 4.3% and an increase in the coefficient to 73.68% (versus today's 72.23).
This is important to know: Medical support for military pensioners
The State Duma, by the way, planned to freeze the coefficient. However, payments to former military personnel will be increased by an additional 2% due to an increase in the coefficient. The presidential decree on the abolition of the reduction factor actually increases the pension of WWII participants by 9 thousand rubles. This is the only real increase in pensions in recent years.
Features of pension provision for FSB employees
According to the norms of domestic legislation, the FSB pension for long service is awarded to employees who, by the time of dismissal, have served at least two decades in this service.
Also, pension payments are assigned to those who were fired due to reaching the age limit provided for FSB employees, staff reorganization, or due to a complex health condition.
Important! Such persons must be at least 45 years of age and have a minimum cumulative work experience of 25 years, of which more than half must have served in law enforcement, criminal justice, and fire protection systems.
How is pension calculated for former military personnel?
According to Art. 43 of the legislative act of February 12, 1993 number 4468, the amount of payments to former army employees and their relatives is determined by taking into account monetary allowances. In addition, the size of the pension depends on:
Pension coverage for army employees is divided into 4 types:
- For 20 years of service.
- For 12.5 years of service, with the recipient’s total experience of at least 25 years.
- For the loss of a breadwinner for disabled relatives: sons/daughters; mother/father with a disability or retired; a wife who is caring for a child under fourteen years of age.
- Due to disability that occurred during military service or due to illness during this period.
Salary is the salary of an army employee, including salary and allowances. According to Art. 2 of the legislative act of November 7, 2011 number 306, military personnel receive bonuses for:
- rank - 5-30 percent;
- access to classified information – up to 65 percent;
- service under special conditions; performing tasks that are dangerous to life and health; achievements in service – up to 100 percent;
- conscientious performance of official duty - up to 300 percent of the annual salary.
Calculation algorithm
The initial value is taken as the salary of a military personnel. Then a bonus for the rank is added to it, the resulting result is multiplied by the bonus for length of service. The result obtained is added to the sum of the salary and bonus for the rank. This forms the basis for calculating pension benefits.
The base is multiplied by an adjustment factor (depending on length of service) and a reduction factor. The product is then multiplied by the district index. The result obtained will indicate the size of the military pension.
What can military retirees expect?
From January 1, 2021, it is planned to increase military pensions, some of which also apply to combat veterans:
- an increase in the base amount (the starting figure for calculating the pension), that is, the salary according to rank and position (more precisely, 50% of it, which is due for 20 years of service), by 3% annually;
- increase by 1% if military service is 12.5 years;
- planned indexation and postponement of the increased payments due to this;
- cancellation of the reduction factor;
- expansion of the program of benefits provided (for disability and loss of a breadwinner)
Former military personnel and the families of those killed may receive bonuses provided for by new laws recently adopted by the State Duma. For example, a bill on increasing survivors’ pensions passed the first reading; it is possible to postpone the indexation period from October 2021 to an earlier time.
Advice!
You need to carefully monitor the benefits provided - some of them are only available after submitting an application.
The pension of combat veterans is formed on the basis of the type of pension status, disability, length of service, rank, amount of insurance payments made and additional benefits. All benefits are granted only on the basis of an issued certificate, which is an official document confirming status.
Federal laws provide for an increase in the pensions of combat veterans when the indicators that determine the composition and size of the assigned pension change. In addition to free housing, discounts on housing and communal services, tax deductions and the provision of allowances and compensation provided for by federal laws, there may be additional benefits provided by regional authorities.
Results
Due to the difficult financial situation in the country in recent years, the size of pensions paid to the military and law enforcement officers has been reduced. In 2021, it is planned to index the pay of active military personnel and pensioners by 4%. It is possible to change the reduction factor by 2%. Benefits will be expanded at the federal and regional levels. To calculate the pension due, it is necessary to take into account individual indicators.
