According to innovations in pension legislation, from next year not only the retirement age will change, but also the amount of pension payments. According to the Pension Fund's draft budget, from January 1, 2020, pensions will be indexed by 7.05%, or per thousand rubles. Thus, the monthly average pension will increase from 14,414 rubles to 15,400 rubles. Which pensioners will have their payments increased and which ones will be given an increase - read in our review.
- Not everyone will get a thousand raise.
- Working pensioners will again be left without indexation
- Social pension will be increased
- Villagers and military will receive increases
- You can get a pension at 55 and 60 years old
- The Ministry of Labor is preparing a unified living wage
Pension Fund income
Pension Fund revenues increased in 2020 compared to 2020 by 511 billion rubles (6.2%) and amounted to 8% of Russia’s GDP, the Accounts Chamber concluded.
“Compared to 2020, the Pension Fund’s income increased by 511,355,601.3 thousand rubles (106.2%). The Pension Fund’s income amounted to 8% of GDP (in 2020 - 7.9% of GDP),” the document says.
According to the Ministry of Economic Development, Russia's GDP in 2020 amounted to 110 trillion rubles.
According to the document, the PFR budget for 2020 was executed with a surplus of 153 billion rubles. The main volume of income comes from insurance premiums, the share of which in the Pension Fund’s income increased from 60% in 2020 to 61.6% in 2020. In total, in 2020, insurance premiums were received for 5.4 trillion rubles, of which 5.3 trillion were received for the payment of insurance pensions. “The received contributions covered the need for payment of the insurance pension by 76.6%,” the document notes.
The Accounts Chamber noted that in 2020, the total debt on insurance premiums to the Pension Fund budget decreased by 21 billion rubles (7.7%) and at the beginning of 2020 amounted to 259 billion rubles.
What to expect from the reform
Experts say that the amount of payments will increase by 1 thousand rubles. But this indicator is relative; for each pensioner, the amount of additional payments will be calculated individually.
Note! The indexation coefficient will be 7.05%. To find out how much payments will increase, you need to multiply the current pension amount by the coefficient.
According to the latest news, an additional 1 thousand rubles is given to those pensioners whose pension amount is approximately 14 thousand rubles. If the payments are smaller, the supplement will be much lower.
Social obligations
The Pension Fund fulfilled all obligations for the payment and indexation of pensions and benefits in 2020 on time and in full, the Accounts Chamber concluded.
“All social obligations to increase pensions and benefits were fulfilled by the Pension Fund on time and in full. From January 1, 2020, insurance pensions for non-working pensioners were increased by 7.05%, which is 1.6 percentage points more than the inflation rate for 2020,” the document says.
In addition, insurance pensions for working pensioners have been increased since August 1, 2020. The average increase was 185 rubles (in 2018 - 170 rubles). From February 1, 2020, the lump sum cash payment and other social payments were increased by 4.3%, and from April 1, 2020, social pensions and other payments, the size of the increase depending on the increase in the pensioner’s cost of living, were indexed by 2%.
New procedure for indexing pensions
The President of the Russian Federation has always treated pensioners with special attention and respect. Therefore, the issue of pension indexation worries him very much. In particular, on February 20, 2020, the leader of the country addressed the Federal Assembly with a specific message. The text of the manifesto contained information that pensions would be directly affected by the size of the subsistence minimum (LS). It turns out that the increase will not be added to the existing amount of monetary support, but to the total amount of pension payments.
In each region, social additional payments are made, and at their expense the benefit is brought to the level of the subsistence level. Real indexation standards do not take into account PM, which makes each subsequent increase almost unnoticeable. After all, the cost of living is not taken into account, and the social supplement is reduced in proportion to the amount of indexation.
Amendments to the existing law are aimed at a different scheme of action: first, the total amount of all income of a citizen is brought to a minimum, and only after that indexation is carried out.
This way, it will be possible to pay a premium above the minimum benefit, and the pensioner will receive significantly more money.
It is worth remembering that insurance pensions were already indexed in January 2019. But after this procedure, they will be indexed again, and there will be no need to write a corresponding application to the Pension Fund. In the period from 2020 to 2024, the expected level of additional payments is estimated at 120 billion rubles. Social benefits will increase for 12% of pensioners classified as unemployed.
Indexation of pensions for working pensioners in 2020 - latest news
For working pensioners, the traditional annual indexation was “frozen” from January 1, 2020. Initially, this decision was planned as temporary, but now the Government reports that this approach will be applied on an ongoing basis - this mechanism for increasing payments to working citizens will not be returned.
Anton Siluanov, at a meeting on June 27, 2018, said that as part of the pension reform, which is planned for 2020, no adjustments are provided regarding the indexation of pensions for working pensioners - as before, there will be no .
“We believe that the adopted concept is justified, because the real incomes of our workers are growing. We therefore believe that changing this approach is not appropriate at this time.”
— Anton Siluanov, First Deputy Prime Minister and Minister of Finance of Russia
The Government does not require indexation of pension payments to working citizens for the following reasons:
- According to official statistics, only since the beginning of 2020 there has been an increase in wages of Russians by 9%. There are two important conclusions from this:
- it is believed that the incomes of working pensioners are already growing due to rising wages ;
- wages are growing at a rate greater than pensions are indexed, so the incomes of working pensioners are growing faster than those of non-working pensioners.
- Upon retirement, the accumulated indexation for the missing years will be taken into account in full in the final calculation of the pension provision of such a citizen.
Since the Government no longer intends to restore the indexation procedure for pensioners who continue to work, the only increase in the pension provision of such citizens remains the annual undeclared recalculation from August 1.
As a result of this automatic recalculation, payments to working citizens will be adjusted depending on the total number of insurance premiums paid over the past year. , no more than 3 pension points can be taken into account , which means an increase of a maximum of 244.47 rubles. (taking into account the cost of one point in 2020 in the amount of 81.49 rubles).
Regional payments for the Day of the Elderly
The Federal Budget of the Russian Federation does not provide for special mass subsidies by September 1. Payments for the Day of the Elderly are a regional initiative. Because of this, the amounts and conditions for receiving them vary greatly:
- Nenets district - 5,000 rubles each. pensioners over 70 years of age who have accumulated the necessary local experience, have a disability and other benefits;
- Ryazan and Yaroslavl regions – 500 rubles;
- Yamalo-Nenets Autonomous Okrug – 1,038 rubles. for women and men, over 60-65 years old;
- Chelyabinsk region – 700 rubles. to all pensioners.
Additionally, in the regions, the size of the payment is affected by the status of a pensioner. Thus, the Internet resource reports that residents of the Nenets Okrug who have officially worked in its territory for more than 15 years can count on 10,000 rubles. by October 1st. But, in most cases, holiday subsidies do not exceed 1,000 rubles.
Registration procedure
Such payments cease for the duration of the employment of the citizen receiving the pension, when changing residence and leaving Russia. In addition, payments cease to be received if the pensioner's income exceeds the amount below which such government funding is due. Recalculation is also carried out when changing the region of residence, on which the pensioner’s minimum monthly allowance established there depends.
Social benefits are of a declarative nature, i.e. the citizen must apply for them himself. To receive additional payment you need:
- visit the territorial branch of the Pension Fund of the Russian Federation;
- clarify the list of required documents;
- fill out an application with the submission of documentation according to the list;
- Expect the result of the review within five working days from receipt of the application.
Indexation of pensions in 2020
To fulfill the task of increasing citizens' incomes set by Vladimir Putin to the Government, from 2020 it is planned to increase pensions at a rate exceeding the inflation rate . average annual increase of 1,000 rubles as a guideline .
In 2020, relative to the current average pension in Russia (more than 14 thousand rubles), this amount corresponds to an increase of 7% (with a projected annual inflation of 3-4%). It is assumed that this rate of “twice as high as inflation” will be maintained in subsequent years, due to which by 2024 the average pension benefit for Russians will be 20 thousand rubles . (35% increase compared to 2018).
Now, according to the law, pensions for non-working pensioners are indexed annually no less than by the amount of inflation . The possibility of an additional increase in 2020 and its increase above inflation will be based, first of all, on savings (reduction of Pension Fund expenses) due to an increase in the retirement age. The Government has repeatedly noted that all funds released as a result of the planned pension reform will be used directly for payments to pensioners .
As the head of the Ministry of Labor Maxim Topilin noted, this possibility is already provided for by law, so no additional changes will be required to the pension legislation - it will only be necessary to adjust the draft budget of the Pension Fund for 2019 .
Legislation in the regions
In fact, only some constituent entities of the Russian Federation have introduced this payment. It is not practiced in Moscow; in the capital there is a monthly pension supplement and a number of other serious social support measures for older people. In the Moscow region there are no such significant preferences for elderly people, but the payment has not been approved either.
Where this compensation is established (for example, in the Yamalo-Nenets Autonomous Okrug, the Nenets Autonomous Okrug, in the Chelyabinsk Region), there are a number of conditions for its appointment:
- residence and registration on the territory of a constituent entity of the Russian Federation is required;
- receiving a pension, that is, having pensioner status;
- age (in Yamalo-Nenets Autonomous Okrug and Nenets Autonomous Okrug);
- work experience in the region (Yamalo-Nenets and Nenets Autonomous Okrug).
The payment is in no way connected with the Pension Fund. This is a one-time payment and it is assigned automatically, without requests, from the budget of the constituent entity of the Russian Federation.
Who can count on additional payments?
The increase of 1 thousand rubles is primarily associated with an increase in the retirement age. Payments are provided not for everyone, but for certain categories of citizens. These include the following persons:
- non-working pensioners;
- citizens receiving insurance pensions.
Note! Insurance pensions are paid for old age, disability, and loss of a breadwinner.
For pensioners who work, indexation has not been carried out since 2016. There are no changes in the near future.
A few words about pension reform
If we consider annual payments, the pensioner’s income will increase by 12 thousand rubles. Indexation will take place on January 1, 2019, and will be valid until December 31, 2019.
From January 1, 2020, indexation will be carried out again, which will increase the pension amount by 6.6%. According to the latest news, such growth rates are planned until 2024. This will improve the life of the population and increase pensions by 6 thousand rubles.
What changes will occur in the indexing system?
On the agenda of officials is the issue of changing the system of indexing pension payments for the better. The government plans to develop a system that will allow each pensioner to receive an income equal to the level that officials previously promised people. As mentioned earlier, pensions are planned to be indexed twice in 2020. But there is one “but”, if the main indexation occurs in April, then it will not be possible to achieve an annual income from increases of 12,000 rubles, which means that the government will a priori fail to achieve its goals.
