Payments to pensioners in 2020: will there be a one-time payment of 15,000 rubles, how to receive it

Will there be a lump sum payment to pensioners in 2020? This question rightfully worries many Russian citizens today who receive pension income. Pension provision, as is known, is a type of social benefits guaranteed by the state. The types, sizes, categories of recipients and conditions for the appointment of such benefits are regulated by the legislation of the Russian Federation. For example, Federal Law No. 400 (FZ-400) provides for the indexation of pension payments, which must be carried out by the government every year in accordance with the general level of inflation.

Meanwhile, the provisions of Federal Law No. 385 (FZ-385) from 2020 replace such indexation with a one-time cash payment, which is a one-time measure of financial support for Russian pensioners. Every year the following questions are actively raised: will there be a payment of one-time cash assistance in the current 2020 to citizens of retirement age, what size of such a one-time benefit can older people expect, and whether we should expect any increase in pensions at all.

• Pension provision in the Russian Federation: general information
• One-time payment of 5,000 rubles: what is its essence
• Should I expect a one-time cash payment this year?

What are the chances of pensioners receiving a one-time payment of 15,000 rubles?

Valery Ryazansky, who replaces the head of the social committee, explained that for now this proposal exists at the initiative stage. Our country's Pension Fund simply does not have the funds for such an expensive program.

About 650 billion rubles are allocated monthly for pensions for residents of our country.

Sultan Khazmaev, in response to this, cited a practice in which payments were made to families with children. Payments were made in two directions:

1. For children under 3 years of age;
2. For children aged 3 to 16 years.

In some regions, one-time benefits were also paid to adolescents aged 16 to 18 years, but this was not done everywhere. This month, the president of our country announced that families raising children under the age of 16 can count on another lump sum payment.

In total, almost 555 billion rubles were spent on all benefits.

Elderly people received payments only in Moscow. Here, approximately 1.6 million pensioners received assistance in the amount of 4,000 rubles as part of the implementation of a program to support residents in self-isolation.

One economy for all: why do pensioners need payments of 5 thousand rubles?

The government has approved the delivery schedule and the size of the lump sum payment to pensioners. More than 221 billion rubles will be presented in January, and the amount of 5 thousand rubles for each pensioner will not be taxed. Federal News Agency correspondent discussed with an expert whether there are economic reasons for approving this payment and what will happen next.

Dmitry Medvedev stated , the law will clearly state who is entitled to compensation and when it should be received. These are all pensioners who receive pensions through the Pension Fund, regardless of whether they work or not. Medvedev released data according to which we are talking about 44 million people.

“Here we can only proceed from the premise that if there is no fish, there is only cancer. That is, either pensioners will receive nothing, or at least 5 thousand rubles. It is clear that this is a half-measure that is trying to solve the issue of the poor. If we do full indexation, then those who have a larger pension will receive more. And so these are one-time payments, and earrings are given to all sisters, money is distributed equally to everyone. A person who receives little will be happy with this payment. This is a kind of compromise that was offered to us. If you divide this amount by 12, you will get the average monthly increase in pension. Yes, it turns out to be a little less than with indexation, but I repeat: for those who do not reach the subsistence level, this is a great help,” comments Konstantin Dobromyslov, head of the Department of Social Development of the Office of the Federation of Independent Trade Unions of Russia.

Read on the topic: Temporary measures: why instead of indexation, pensioners will receive 5 thousand rubles

It is also important that the government plans to return the usual indexation for non-working pensioners from next year. Its size is not yet clear, since we need to wait for the final indicators of price growth this year.

“When the government was calculating how much could be allocated, it was based on the assumption that the cost of living was expected to increase. It was recently raised. And we understand that according to the laws, pensions in the constituent entities of the Russian Federation cannot be paid less than this subsistence minimum, that is, it would still have to be reduced. Based on these considerations, a compromise amount was found. Next year, the authorities promise to make a full indexation corresponding to the inflation rate that will be at that time. In the meantime, this is a forced decision given the country’s budget deficit,” continues the FAN expert.

In the meantime, the Cabinet of Ministers is guided by the latest report of the Ministry of Economic Development, which predicts inflation at 5.8-5.9%, and these figures are included in the Pension Fund budget.

“There are enough reserves for a one-time payment: they are calculated in trillions. The only question is the redistribution of budget money by item. This is the task of the Ministry of Finance: how, where and from whom it can be taken away with minimal losses, in order to fulfill obligations and not greatly injure anyone. Now there will be pre-election discussions of different parties, and each will outline its program and criticize the government’s work in this regard. Each party promises to do better, but we have the same economy for all parties. No one is proposing radical changes. The wheel of history is inertial, spinning, and many things are already predetermined by events in history, such as the fall in oil prices and changes in the ruble exchange rate. The next question is optimization and maneuvering in this trend,” adds Dobromyslov.

What reserves does the state have for people of retirement age?

A certain difficulty is that approximately 49% of funds for the Pension Fund come from the state budget. This is due to the fact that the state has lowered the insurance rate for entrepreneurs and businessmen who pay wages exceeding the minimum wage.

Due to assistance to entrepreneurs, part of the money that should have ended up in the Pension Fund, as well as in other departments, was lost.

According to experts, losses will amount to approximately 400 billion rubles. These funds will be taken from the federal treasury.

It is expected that August 2020 will please pensioners with a payment based on the unfavorable economic situation caused by the coronavirus pandemic.

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• Which pensioners are entitled to lump sum payments from August 1, 2020?
• Will there still be indexation of pensions for non-working pensioners: latest news
• What will happen to the pensions of working pensioners?
• Who will be affected by the increase in funded pension in August 2020?
• The government proposed to compensate for the lost pension indexation by 14.4%
• How much has the cost of living of a pensioner increased since June 1?
• Will the pension reform be canceled in Russia?
• Will there be indexation of lump sum payments to pensioners?
• Entitled payments to pensioners that they may not know about
• What are social security pensioners entitled to due to coronavirus?
• Where to go if you haven’t received compensation for quarantine
• Will there be a one-time payment of 5,000 rubles to pensioners in 2020?

Expert opinion

Polyakov Kirill Yaroslavovich

Lawyer with 7 years of experience. Specialization: criminal law. Extensive experience in drafting contracts.

Some regions of Russia introduced payments to pensioners at the beginning of quarantine measures due to the pandemic. They affected people over 65 years of age.

Pensioners received their initial payment in the spring. The governor of the Tyumen region extended quarantine measures until August 16, promising pensioners to receive repeated coronavirus compensation.

Local pensioners are hoping to receive additional funds in the amount of 2,000 rubles.

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A professor at the State Economic University of St. Petersburg in an interview with URA.RU said that pensions need to be indexed every six months. Payments need to be increased not by a certain amount, but by an interest rate that is faster than inflation.

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Who will receive 5,000 rubles in January?

Will there be a payment of 5,000 rubles to pensioners in 2020?

The Pension Fund budget for 2020 provides funds for the payment of a one-time benefit to pensioners in the amount of 5,000 rubles. They plan to allocate 930 thousand rubles in the budget for these purposes, and another 5.1 thousand rubles for the delivery of these funds.

These expenses will be financed from the balances in the Pension Fund budget for previous years. If we divide the amount of 930 thousand rubles. based on the amount of the pension supplement (5000), it turns out that only 186 people will receive a one-time benefit. In fact, this means that 5 thousand rubles. not all pensioners will receive it, taking into account that the total number of pension recipients, according to Rosstat as of January 1, 2020, is 43,865 thousand people). How many pensioners are there in Russia in 2020? However, this does not mean that there will be no increases in 2020 for most pensioners. An increase in pension provision for different categories of pensioners is already planned: Pensions will be indexed: for insurance - by 6.6% from January 1, for social - by 7% from April 1. For military pensioners, pension increases will take place only from October 1, the increase will be 3%. It will be made through the indexation of military pay.

One-time benefit to pensioners in 2020

In the explanatory note to the draft law on the budget of the Pension Fund for 2020-2022. it is reported that in 2020 a one-time payment of 5,000 rubles will be made to pensioners. The explanatory note states that one-time payments will be made in accordance with Law No. 385-FZ of November 22, 2016. It provides that a benefit of 5,000 rubles. should have been paid as a one-time payment back in January 2020. No new laws regarding the one-time benefit of 5,000 rubles. was not accepted in 2020. The funds provided for in the PFR budget for 2020 will be used to pay funds to citizens who did not receive them in 2020. For reference, the decision to make a one-time payment of 5 thousand in January 2020 was made due to incomplete indexation of pensions citizens in 2020. Pension provision then had to be indexed in accordance with the inflation rate over the past year - in 2020 it was 12.9%. That is, pensions then should have also increased by 12.9%, but they were increased only by 4%. To compensate for such a slight indexation, the Government decided to pay all pensioners 5,000 rubles. https://my-azzart.com/ All visitors to our virtual hall will be able to enjoy the free game and even risk real money. https://my-azzart.com/faq

Who will receive 5,000 rubles in January?

The conditions for assigning a one-time payment of 5,000 rubles are regulated by Law No. 385-FZ. The increase is paid regardless of the type of pension assigned - all pensioners can apply for such an additional payment. In addition, the fact whether a citizen is working or not working is not taken into account. According to the law, a one-time benefit is 5 thousand rubles. assigned to: citizens permanently residing in the territory of the Russian Federation; as of December 31, 2016, receiving a pension. Pensioners who were not paid these funds in January 2017 will be able to receive a lump sum of 5 thousand in 2020. For example, the payment of a pension to a citizen at that time could be suspended for the following reasons: he did not receive his benefit for 6 months in a row; moved to a permanent place of residence outside the Russian Federation to a state with which the Russian Federation does not have an agreement; did not appear at the appointed time for re-examination at the medical and social examination institution (applies to disabled pensioners), etc. In addition, a Russian could have been assigned this benefit, but it was not paid due to the death of the recipient. In this case, the legal heirs of the pensioner will be able to receive the money, provided that the citizen died after December 31, 2016 and did not receive these funds during his lifetime. There are no other categories of citizens who are entitled to a payment of 5,000 rubles. in 2020, not provided for by law. Only those persons to whom an additional payment was assigned, but for various reasons was not paid, will be able to receive money.

The main thing for today

Financial support for pensioners: the issue is not resolved

The spread of coronavirus infection around the world has led to economic problems. The disease has not escaped our country either. In April 2020, quarantine measures were introduced. Russian pensioners had to remain in self-isolation for a long time.

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To support the population, the President and the Government of the Russian Federation have created financial support programs. But Russian pensioners were not given the honor of being included in the financial support program. And they turned out to be the least protected.

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Initiative of the Public Chamber of the Russian Federation

Sultan Khamzaev, a member of the OP of the Russian Federation, sent a letter addressed to the head of government, Mishustin, with a proposal for a one-time payment to pensioners.

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The letter presents the following arguments:

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1. During the coronavirus pandemic, prices have increased. The costs of pensioners have increased by approximately 4,000 rubles per month. This amount was calculated by economists.
2. Pensioners are forced to purchase medicines and medicines in order to improve their health and support their immunity. Pension benefits cannot cover additional expenses.
3. In the current situation, older people are limited to self-isolation. They are forced to follow the recommendations of doctors. Because of this, they did not have the opportunity to have additional sources of income.

There are no funds in the Pension Fund

The Federation Council stated that no funds were included in the budget to pay pensioners. Valery Ryazansky, who holds the position of deputy head of the committee on social issues, said that the initiative of the OP can only be resolved at the government level.

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The senator said that the cost of paying pensions is about 650 billion rubles monthly. There are no additional funds in the Pension Fund. Currently, this proposal is still under consideration.

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Related materials

00:03 — June 8, 2016

“In our country, pension is synonymous with poverty”

Head of the Accounts Chamber of Staff Yuri Voronin on the dangers of pension reform
In order to fully index pensions in 2020, the authorities will have to freeze the salaries of public sector employees, the American financial corporation admitted.

“We believe that this indexation next year will cost 200 billion rubles in social spending,” said Bank of America’s chief economist for Russia and the CIS, Vladimir Osakovsky. The government will have to freeze wages in budget-financed sectors in order to avoid cuts in other expenditure items, such as health care or education, Osakovsky predicted.

“It's like a Christmas bonus, like in Greece. The measure was introduced temporarily, but, as you know, there is nothing more permanent than temporary. Therefore, it cannot be ruled out that next year the government will again want to pay a one-time bonus instead of indexation,” Tabakh concluded.

Will pensioners receive payment?

There has not yet been a response from the Prime Minister to the Public Chamber’s appeal for additional financial assistance to pensioners.

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Absolutely all pensioners will receive such a payment, without taking into account the size of the pension, status and other features. If the government approves a one-time payment, it will be credited automatically. There is no need to submit any documents to the Pension Fund.

After the pension reform carried out in 2020, the concept of a labor pension was replaced by two separate pensions: insurance and funded. At the same time, the law allows certain citizens to receive the funded part of their pension provision in the form of a lump sum payment.

Read about who is entitled to EDV from the funded part of the pension in our article.

What you need to know about a lump sum payment from the funded part of your pension

What is this?

According to the law, if a citizen has pension savings in an account with the Pension Fund or Non-State Pension Fund, he has the right to receive them within a certain period or in the form of a one-time benefit. Article 2 of Federal Law No. 360 of November 30, 2011 provides for three main types of payments of the funded part of the pension, namely:

• perpetual (monthly during the life of the insured);
• urgent (during the period established by the pension recipient);
• one-time (one payment).

In the event of the death of a pensioner, the funded part of his pension can be received by his legal successors.

Law on lump sum payment of funded pensions

The procedure for paying funded pensions is regulated by Federal Law No. 360 “On the procedure for financing payments...”, which came into force on July 1, 2012.

Who is entitled to a lump sum payment of the funded part of the pension?

According to the approved rules of the compulsory pension system, all citizens who have formed a funded pension have the right to receive pension savings, namely:

• insured persons born in 1967 or later, and who preferred the formation of two provisions at once - savings and insurance;
• citizens who independently made voluntary contributions under the State Co-financing Program;
• women who used maternity capital funds to form their own future pension.

In the period from 2002 to 2005, their employers made mandatory insurance payments for the funded component of their labor pensions. As practice shows, it is precisely such citizens who have the right to count on receiving a lump sum payment, since they fully meet the necessary requirements.

The following insured persons can apply for this security as a one-time payment of all available funds:

• having disabilities of any of the existing groups;
• those who have reached retirement age (including early) and are on old-age insurance;
• receiving survivor's pensions;
• are recipients of social benefits in old age.

Conditions and procedure for payment to working pensioners

A one-time method of receiving savings is not available to all pensioners. According to Article 4 of Federal Law No. 360, only insured persons can receive accumulated funds at once:

• are recipients of a survivor's or disability pension;
• for whom, when establishing an open-ended or fixed-term funded pension, the amount of monthly payment would be no more than 5% of the old-age insurance pension;
• receiving social benefits in old age due to lack of sufficient work experience or the number of pension points.

You can receive all pension savings at one time no earlier than after five years. This is only possible if the citizen continues to form a funded pension by contributing money through the employer or through voluntary payments.

One-time payment to disabled people: are there any special features?

Expert opinion

Polyakov Kirill Yaroslavovich

Lawyer with 7 years of experience. Specialization: criminal law. Extensive experience in drafting contracts.

As mentioned above, citizens receiving disability benefits have the right to receive a funded pension in a lump sum.

Amount of lump sum payment from the funded part of the pension

The size of the payment of the type in question depends on how much funds have been accumulated in the personal account of the insured person. You can find out the current amount of savings by contacting the Pension Fund. If the formation of a funded pension took place in a non-state pension fund, then you should contact them directly.

How to calculate: calculation formula

With a one-time payment of the funded part of the pension, the citizen receives all pension savings at once and in one payment. At the same time, a citizen can apply for a lump sum payment next time only after five years.

How to apply for and receive a lump sum payment of pension savings

Where to go and what to do?

To receive accumulated funds, you should contact those institutions where the funded pension provision was directly formed. In other words, if the funded part of the pension is in a non-state pension fund, then you need to contact the non-state pension fund, and if it is in a state fund, then directly to the Pension Fund.

Moreover, in the second case, you can submit an application in the following ways:

• during a personal visit to the Pension Fund or MFC;
• via the Internet (via the official website of the Pension Fund of Russia or the Unified Portal of State Services);
• by mail.

After checking the package of documents, the institution makes a decision and notifies the insured person about it within five days. In case of refusal to pay, the fund must not only notify the pensioner, but also return to him the entire package of documents submitted during the application.

The terms of application and payment of the funded part of the pension are described here:

What types of pension payments are there?

Article 2 of the above-mentioned Federal Law No. 360 provides for such types of payments as:

• one-time;
• unlimited (lifetime)
• urgent (when setting a certain deadline;
• to the legal successors of the deceased.

The following video explains what types of pension savings payments there are:

What documents are needed?

According to Decree of the Government of the Russian Federation No. 1047 dated December 21, 2009, the package of documents necessary for processing a one-time payment consists of:

• statements;
• passports;
• papers confirming the right to receive an insurance or state old-age pension to determine its size (if the applicant is on a state pension on this basis).

In some cases, Pension Fund employees may require additional documents confirming special circumstances. So, if the applicant receives a social pension for old age, disability or loss of a breadwinner, then it is necessary to supplement the package with documents confirming work experience.

If the application is submitted not by a pensioner, but by his representative, then his passport and a notarized power of attorney must also be attached. It should be noted that instead of original documents, the law allows the submission of notarized copies.

If you submit your application by mail, you should only attach them - there is no need to include original documents.

Application for a one-time payment of the funded part of a pension: sample

• name of the fund;
• information about the applicant;
• SNILS;
• pension savings account number (filled in by a pension fund specialist;
• information about established pensions;
• desired method of receiving funds;
• date of completion;
• applicant's signature.

If, instead of a pensioner, his legal representative applies for payment, then the application must reflect the relevant information about him.

Payment procedure and terms

If the set of documents is presented in full, and the information specified in them is true, then the pension fund authorities make a positive decision and assign a payment from the day of application (but not earlier than the day the corresponding right arises).

A pensioner has the right to receive the funds due to him in the way he chooses:

• via mail (at the office or at home);
• through a delivery organization (at the box office or at home);
• through a bank (at the cash desk or to a current account).

You can receive all pension savings at one time no earlier than after five years.

If refused

For what reason can they refuse?

According to Government Decree No. 1047 “On approval of the rules ...” dated December 21, 2009, a one-time payment of accumulated funds may be denied to the following persons:

• not entitled to receive pension benefits;
• the amount of funded pension provision of which would amount to more than 5 percent of the old-age insurance pension;
• receiving a funded pension according to the approved schedule;
• who received the previous lump sum payment less than five years ago.

What to do?

If the pension fund has unlawfully refused to release accumulated funds, then you should go to court to resolve this issue. You can submit a claim and all related documents either in person (through the office) or by sending it by mail.

In this case, the judicial body must be located in the same region as the branch of the pension fund that refused payment.

Thus, not all citizens can receive a funded pension in the form of a one-time payment. In this regard, before submitting an application, it would not be superfluous to make sure that the law allows for a lump sum payment of funds in a particular case.

Representatives of the Russian Pension Fund noted that in September pensioners will receive monthly benefits within the previously established deadlines. The only exceptions will be those elderly people whose pension receipt date falls on a weekend. In this case, pensioners can contact the benefit provider to clarify the specific payment date.

Related materials

00:03 — August 16, 2016

Submit for indexing

Where will the government find money to increase pensions?
Its amount is 5 thousand rubles. It will be listed in January 2017.

“Based on the results of today’s discussion, I believe it is correct to carry out indexation in the form of a one-time cash payment,” said the head of government.

In 2020, due to financial difficulties (for example, a growing budget deficit), the state raised pensions only once and by 4 percent. Inflation in 2015 reached 12.9 percent. Indexation is carried out twice a year, taking into account rising prices, so that the standard of living of the population does not decrease.

The decision on the second indexation of pensions in a year was constantly postponed. They promised to accept it taking into account the economic situation.

Thus, Deputy Minister of Economic Development Oleg Fomichev said in early June that there is simply no money in the Russian budget for a second increase in pensions. According to him, the issue with pensions will become clearer when it becomes clear how the revenue side of the budget is collected.

That same month, the Prime Minister assured Russians that all social obligations would be fulfilled.

On August 23, following a government meeting, Medvedev said that the authorities could postpone the difficult decision until a favorable moment. “But in this case, I take a principled position - we need to speak honestly with people, not promise something that we cannot fulfill today, but fulfill what we promised, even if in a slightly different form. That is why we are making this decision today,” he said (quoted by TASS).

The main argument for using one-time payments is the decline in the level of well-being of the population. Prices are rising, life is becoming more expensive. “This has affected our citizens, especially people with low incomes. And it’s especially difficult now for the older generation who live on pensions,” the Prime Minister emphasized.

It is especially difficult for Russians living on pensions now, the government stated

Photo: Viktor Korotaev / Kommersant

More than 200 billion rubles. Thus, about 40 million Russians will receive payments.

There is no money in the budget for additional support for pensioners. Medvedev instructed the Ministry of Finance to find funds.

“At the same time, it is necessary to try to maintain the parameters of the budget for 2017 in order to prevent an imbalance in the financial situation,” the head of the Cabinet emphasized.

Earlier, on August 15, Vnesheconombank published a forecast according to which the cost of indexing public sector salaries and payments to pensioners for the budget for 2017-2020 will be 5.3 trillion rubles, including 3.5 trillion rubles for the federal budget.

The budget situation is really difficult. Medvedev noted that treasury revenues for the first half of the year were 11 percent lower than planned. He admitted that in 2020, revenues could fall by 1.5 trillion rubles. “This is one of the possible negative options,” said the Prime Minister.

He estimates that the 2020 budget deficit will exceed 3 percent of GDP if oil prices remain below $50 a barrel.

The government has several options. First, you can increase the national debt. On August 22, Minister of Economic Development Alexey Ulyukaev said that the budget deficit this year could be covered by increasing external borrowings.

Secondly, the state can increase the fiscal burden on citizens - tax increases in Russia are being discussed quite actively. Thus, the possibility of increasing personal income tax to 20 percent was considered. Proposals to raise taxes on the rich are periodically introduced.

Thirdly, you can use the pension savings of Russians. Freezing them for 2020 could save the budget about 400 billion rubles, the Ministry of Finance reported in March.

In addition, the lump sum payment itself allows the government to save some money. “If we talk about the long term, this makes things easier for the government. If indexation had been carried out, then, firstly, this amount would have been spread out, and secondly, the next indexation would have to be carried out to a larger amount. And so - they paid it one time, and then indexations will go to what was under-indexed. This reduces the long-term basis for increasing payments,” Anton Tabakh, associate professor of the Department of Labor, Faculty of Economics, Moscow State University, explained in an interview with Lenta.ru.

In 2020, the state will carry out full indexation, Medvedev promised

Photo: Sergey Fadeichev / TASS

The government promises that in February 2020, pension indexation will be carried out in full and taking into account inflation for 2020 (the Bank of Russia predicts that prices will rise by 5-6 percent). Full indexation will require more than 270 billion rubles, Medvedev said.

How exactly the Ministry of Finance will find these 270 billion rubles is still unclear. But on July 11, Bank of America reported that the government does not have enough money for everyone who lives off the treasury.

Categories of pensioners who can count on pension indexation in September

Traditionally, in September, some categories of elderly people can count on indexation of monthly payments. Which pensioner will receive the long-awaited increase in the coming month and in what amount?

Persons who have reached the age of 80 and receive a regular insurance pension will receive an increase in their monthly benefit in September 2020. At the same time, pensioners will not have to contact government authorities with a corresponding application. All recalculations will be made automatically.

In this case, an additional payment will be made in a fixed amount, the amount of the increase will be 5685.25 rubles. In addition, the size of the pension will increase for pensioners who have dependent children under 23 years of age who are enrolled in full-time studies at higher educational institutions. Their monthly allowance will increase by 1895.42 rubles.

The September increase in pensions will also affect those pensioners who acquired a new status for themselves only last month, but the indexation of their benefits was not carried out due to official employment. This month they will be able to count on indexation of their pension in full.

Such changes will affect the category of citizens whose work experience or pension points were not taken into account in full when applying for a pension benefit.

In addition, there are cases where years of work in rural areas were not taken into account when applying for a pension. For this reason, pensioners who have work experience in rural areas can count on increased payments. Pension Fund specialists promise to review the affairs of such pensioners in September and make the necessary recalculation. In this case, the amount of the supplement can be up to ¼ of the fixed component of the insurance pension.

In monetary terms, this allowance will be equal to 1,421 rubles. This amount will be paid monthly.

However, Russian legislation stipulates that this bonus will be paid only to those pensioners whose work experience in rural areas exceeds 30 years. But that’s not all; financial assistance will be provided only if the pensioner continues to live in the village.

One-time payment of 5,000 rubles: what is its essence

At the end of 2020, the inflation rate was officially registered at 12.9%. Accordingly, the index for the recalculation of social payments (cash benefits) provided for by law should have been 12.9% for the next year 2020. However, starting in 2020, amendments came into force that led to the implementation of the following measures:

1. the index of the first recalculation of cash benefits was only 4%;
2. the second indexation of social payments was not carried out (it was cancelled); working pensioners, that is, persons of retirement age who continue to work for hire, were not accrued bonuses.

It turns out that in 2020, the Russian government financed only a 4% inflationary increase in cash benefits instead of the required 12.9% index, corresponding to the actual inflation rate recorded by official statistics based on the results of 2020.

The unrealized balance (8.9%) of the provided indexation of the state's social obligations for the payment of pensions was replaced in 2017 with a one-time cash payment in the amount of 5,000 rubles.

Federal Law No. 385 establishes such a payment as a one-time measure to fulfill the state’s social obligations regarding partial compensation of inflationary costs to Russian pensioners.

Pensioners of all possible categories received a one-time cash supplement in January 2017, which amounted to 5,000 rubles.

It should be understood that such a one-time subsidy is not additional assistance from the state.

This is compensation for the total inflation premiums that were not received by Russian pensioners during the past 2020, although provided for by the norms of the legislation in force in the Russian Federation.

It should be noted that compensation for inflation costs with a lump sum cash payment turned out to be beneficial for the following categories of pensioners:

• pensioners who continue to work (according to current legislation, social benefits regularly received by working pensioners are not indexed at all);
• persons of retirement age whose monetary allowance is less than the average level (the amount of a one-time cash payment was determined taking into account the average indicators for the country);
• subjects receiving social benefits in accordance with the norms of Federal Law No. 4468-1 (for example, military personnel, former employees of the fire service, state security structures, internal affairs bodies).

An interesting fact is that it was initially assumed that military personnel would not receive this payment at all. Meanwhile, the decree of the President of the Russian Federation provided the military with the opportunity to receive the same 5,000 rubles along with other categories of Russian pensioners (according to V.V. Putin).

However, as some experts note, replacing full indexation with a one-time cash payment also has negative aspects that are characteristic of certain categories of benefit recipients:

1. Those pensioners who receive regular benefits assigned in an amount exceeding the national average are faced with uncompensated losses from inflation.
2. Persons of retirement age who are citizens of the Russian Federation but living abroad are not taken into account when assigning this one-time payment.
3. If the state’s social payments were timely and fully indexed in accordance with the actual level of inflation, then the amount of the monthly pension would increase by an increase that would remain invariably relevant for all subsequent years, and would also become the basis for future recalculations.

Pension increase in October 2020

From October 1, 2020, Pension Fund employees will begin recalculating pension payments for a number of categories of citizens. Today, the Russian Prime Minister signed a corresponding decree.

First of all, Mikhail Mishustin ordered an increase in monthly benefits for former law enforcement officers, as well as for retired employees of the Ministry of Internal Affairs.

There are plans to increase pensions for this category of citizens by 1.03 times. These measures are aimed at increasing pensions for persons who held certain positions and ranks during their service, as well as for those who served in military service under a contract. The bonus will also apply to people doing military service in the National Guard and other government departments:

• employees of the Department of Internal Affairs of the Russian Federation;
• persons serving in agencies involved in the fight against organized crime;
• leadership of federal services.

Due to the unstable situation in the world caused by the coronavirus pandemic, Russian citizens have the opportunity to receive the full range of necessary services without leaving home. To do this, just use the Government Services portal.

Pension Fund specialists note that the online portal allows you to avoid additional contacts. In a similar way, you can issue a power of attorney to receive pension payments.

This measure should continue the social program to support the population in connection with the COVID-19 quarantine, which has significantly worsened the financial situation of citizens. For many months, older people were isolated, exposed to stress, and deprived of their usual activities, including the opportunity to work.

Due to low pensions, many citizens spend most of their money on medicines, so they often have to save on such important things as food and proper rest. The crisis has exacerbated this trend, so older people need additional financial resources more than ever.