Pre-retirement people - a new status during the easing of the pension reform proposed by Putin

Pension Fund - employer - employee

In order for an employee of pre-retirement age to take advantage of benefits, the employer must promptly submit information to employment centers (Rostrud letter No. 858-PR dated July 25, 2018).
The Pension Fund will rely on this data to determine the legality of providing benefits to citizens and compensation to employers, for example, for employee training. Why is this necessary? If an employee retires on a general basis, determining the pre-retirement age is simple - subtract five years from the 55 or 60 specified in the law. And if there are grounds for early assignment of a pension (work in the North, on preferential lists, etc.), it is easy to make a mistake. In addition, the next three years will be transitional; the boundaries of the retirement age will shift. Therefore, the employer needs to conclude an additional agreement with the Pension Fund on information interaction to the previously signed document “On the exchange of electronic documents in the electronic document management system of the Pension Fund of Russia via telecommunication channels.”

For his part, an employee who has reached pre-retirement age must issue a certificate giving the right to benefits (Resolution of the Board of the Pension Fund of the Russian Federation dated November 29, 2018 No. 464p). You can contact the Pension Fund branch, leave a request at the MFC or on the State Services website. Within one working day, the employee will receive an electronic document or refusal explaining the reasons.

Don’t forget to submit information so that your employees don’t have problems applying for the benefits they are entitled to.

Pre-retirement age: new definition

For the first time in Russian legislation, the legal term “pre-retirement age” will be officially designated. The concept was voiced during a televised address by V.V. Putin. to the people and is introduced at least for the transition period from 2020 to 2028. during the gradual increase in the retirement age.

Quote . “For the transition period, I propose to consider the pre-retirement age to be five years before the retirement date,” - V.V. Putin.

Since the definition of “pre-retirement age” will be associated with the provision of social guarantees, the concept will be enshrined in the law on increasing the retirement age.

The right to additional days for medical examination

In 2020, Art. 185.1 of the Labor Code of the Russian Federation, which obliges the employer to annually provide an employee of pre-retirement age with two additional days for a medical examination. In this case, the employer is obliged to maintain the employee’s position and average salary.

The employee must write a statement and agree with the manager on the dates of the upcoming medical examination.

The law does not oblige the employee to be sent for medical examination. The employee undergoes such a medical examination voluntarily, except for the cases specified in the Labor Code of the Russian Federation.

Who can apply for support

The concept of “pre-retirement age” is enshrined in the legislation of Federal Law No. 350S of 2020. But when determining the status of a citizen in order to receive benefits, they can be guided by both age and other indicators.

Most social support measures and job guarantees apply to persons who have 5 years of work left before they retire. Thus, in 2020, taking into account the norms of the transition period, this category includes women over 51 years old (born after 1968) and men over 56 years old (born in 1963). In the future, this indicator will shift in accordance with changes in the retirement age.

It should be taken into account that there are beneficiaries who receive status ahead of schedule.

Table 1. Categories of pre-retirement citizens eligible for early receipt of status

Source: Pension Fund website

The exception is tax benefits - they are tied to age. In most cases, the deduction is provided from the age of 55 or 60; with the right to early retirement, it is shifted to 50 and 55 years.

Job security guarantees

We talked in detail about the rights of an employee and the responsibilities of an employer regarding the dismissal of pre-retirees in our previous article. Here we just recall the main provisions.

Federal Law No. 352-FZ of October 3, 2018 introduced Art. 144.1, which for unjustified dismissal (and unjustified refusal to hire) threatens an official with a fine of up to 200 thousand rubles or in the amount of his salary for a period of up to 18 months or compulsory work for up to 360 hours. Dismissal at the initiative of the employer must be justified and properly formalized. If you are not satisfied with an employee, but there are no legal grounds to part with him, you should not persuade him to write a statement of his own free will. The Resolution of the Plenum of the Supreme Court dated November 27, 2018 No. 37 states that if evidence of pressure on an employee is found, the employer will be punished in accordance with the Criminal Code of the Russian Federation.

Pre-retirees under the 2020 Pension Reform

From January 1, 2020, as part of the 2019 Pension Reform:

• legislatively enshrined in the Federal Law “On Amendments to Certain Legislative Acts of the Russian Federation on the Issues of Assignment and Payment of Pensions” dated October 3, 2018 No. 350-FZ,
• the concept of “citizens of pre-retirement age” was adjusted,
• a new concept of “pre-retirement people” was introduced and
• a new preferential category of citizens has been defined - “citizens of pre-retirement age (pre-retirement people)”.

The new pension legislation includes the following as pre-retirement citizens (citizens of pre-retirement age):

• citizens aged “no more than 5 years before reaching retirement age” established by Federal Law No. 350-FZ dated October 3, 2018, taking into account the transition period.

For citizens of pre-retirement age (pre-pensioners), a number of new benefits and social support measures were established, including:

• additional guarantees of employment have been established for pre-retirees. Employers are subject to administrative and criminal liability for dismissing workers of pre-retirement age or refusing to hire pre-retirement workers due to age;
• an increased amount of unemployment benefits has been established for pre-retirement people;
• Pre-retirees are allowed early access to an old-age insurance pension;
• benefits have been established for pre-retirees on travel on public transport and on paying for housing and communal services;
• exemption of pre-retirees from property and land taxes and a number of other tax benefits was introduced;
• benefits have been introduced related to the possibility of annual medical examination for pre-retirement people. At the same time, the employer has an obligation to annually provide employees of pre-retirement age with two days of free medical examination while maintaining their wages.

Benefits for pre-retirees, the conditions for receiving them within the framework of the Pension Reform of 2020, Federal Law No. 350-FZ dated October 3, 2018, were introduced into various federal laws and have certain features:

• tax benefits for pre-retirees - established by Federal Law No. 378-FZ of October 30, 2018 “On Amendments to Articles 391 and 407 of Part Two of the Tax Code of the Russian Federation”;
• benefits associated with the possibility of annual medical examination for pre-retirees are established by Article 185.1 “Guarantees for employees when undergoing medical examination” of the Labor Code of the Russian Federation;
• additional guarantees of employment for pre-retirees are established by Article 5 “State policy in the field of promoting employment of the population” of the Law of the Russian Federation of April 19, 1991 No. 1032-1 “On employment in the Russian Federation”.

Social support measures for citizens of pre-retirement age (pre-pensioners) within the framework of the 2020 Pension Reform are established not only by federal, but also by regional legislation:

• for example, in the city of Moscow - Law No. 19 of September 26, 2020 “On additional measures to support residents of the city of Moscow in connection with changes in federal legislation in the field of pensions”;
• in the Moscow region - Law of the Moscow Region No. 153/2018-OZ “On amendments to some laws of the Moscow Region regulating the provision of social support measures” and Law of the Moscow Region No. 154/2018-OZ “On amendments to some laws of the Moscow Region regulating provision of social support measures to certain categories of citizens residing in the Moscow region, with free travel on transport in the city of Moscow”;
• in St. Petersburg - Law of St. Petersburg dated September 26, 2018 No. 501-100 “On amendments to certain laws of St. Petersburg in terms of providing additional guarantees of social protection for citizens who have reached the age of 60 and 55 years (for men and women, respectively)” .

Preferential conditions for receiving unemployment benefits for pre-retirees

Federal Law No. 350-FZ dated October 3, 2018, as part of the implementation of the Pension Reform of 2020, introduced a new article 34.2 “Additional guarantees of social support for citizens of pre-retirement age” into the Law of the Russian Federation No. 1032-1 “On Employment in the Russian Federation”.

In accordance with this article of the Law of the Russian Federation No. 1032-1 “On employment in the Russian Federation”:

• the period of payment of unemployment benefits to pre-retirees recognized as unemployed in the prescribed manner, dismissed for any reason during the 12 months preceding the start of unemployment, with the exception of:

  citizens seeking to resume work after a long (more than one year) break,

• citizens dismissed for violation of labor discipline or other guilty actions provided for by the legislation of the Russian Federation,
• as well as citizens sent by employment services for training and expelled for guilty actions,

cannot exceed 12 months cumulatively within 18 months;

• period for payment of unemployment benefits to the specified pre-retirees:

  having an insurance period of at least 25 and 20 years for men and women, respectively, or

• having the specified insurance length and the required work experience in the relevant types of work, giving the right to early assignment of an old-age insurance pension in accordance with Federal Law No. 400-FZ “On Insurance Pensions”,

increases beyond the established 12 months by 2 weeks for each year of work exceeding the insurance period of the specified duration;

• the period of payment of unemployment benefits to these pre-retirees cannot exceed 24 months in total for 36 months;
• specified pre-retirement people who were in labor relations during the period preceding the onset of unemployment at least 26 weeks, unemployment benefits are calculated:

  in the first 3 months in the amount of 75% of their average monthly earnings calculated for the last 3 months at their last place of work,

• in the next 4 months - in the amount of 60% of such earnings,
• in the future - in the amount of 45% of such earnings.

At the same time, the amount of unemployment benefits for these citizens cannot be higher than the maximum amount of unemployment benefits and below the minimum amount of unemployment benefits, annually determined by the Government of the Russian Federation, increased by the size of the regional coefficient;

• specified pre-retirement people who were in labor relations during the period preceding the onset of unemployment less than 26 weeks, unemployment benefits are calculated:

  in the amount of the minimum unemployment benefit;

The minimum and maximum amounts of unemployment benefits:

Early retirement for pre-retirees

In accordance with Federal Law No. 350-FZ dated October 3, 2018, appropriate adjustments were made in paragraph 2 of Article 32 “Conditions for early retirement” of the Law of the Russian Federation No. 1032-1 “On Employment of the Population in the Russian Federation” regarding early retirement pre-retirement people:

• at the suggestion of the employment service authorities in the absence of employment opportunities

  unemployed pre-retirement people,

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• who have not reached the age entitling them to an old-age insurance pension, and
• having an insurance period of at least 25 and 20 years for men and women, respectively, or
• having the specified insurance period and the required work experience in the relevant types of work, giving the right to early assignment of an old-age insurance pension in accordance with Federal Law of December 28, 2013 N 400-FZ “On Insurance Pensions”,
• dismissed due to the liquidation of an organization or termination of activities by an individual entrepreneur, reduction in the number or staff of employees of an organization, individual entrepreneur,

Such early retirement of pre-retirees is established in accordance with the procedure and on the conditions provided for by Federal Law No. 400-FZ of December 28, 2013 “On Insurance Pensions”:

• availability of appropriate insurance experience - at least 25 and 20 years for men and women, respectively;
• the presence of a corresponding value of the individual pension coefficient (pension points) - in 2020, not lower than 16.2 , with a subsequent annual increase until the value is reached 30 .

Upon reaching the age of a pre-retirement person, which gives the right to an old-age insurance pension, including one assigned ahead of schedule:

• a pre-retirement pensioner has the right to transfer to an old-age insurance pension.

In addition to this early pension, a pre-retirement pensioner may be provided with a long-service pension:

• in accordance with Article 7 “Conditions for assigning pensions to federal state civil servants” of the Federal Law of December 15, 2001 No. 166-FZ (as amended on December 27, 2018) “On state pension provision in the Russian Federation.”

The rules in accordance with which employment service bodies issue proposals for the early assignment of pensions to unemployed pre-retirees are determined by:

• Order of the Ministry of Labor of Russia dated June 29, 2012 No. 10n (as amended on June 20, 2016) “On approval of the Administrative Regulations for the provision of public services for the implementation of social payments to citizens recognized as unemployed in the prescribed manner.”

Upon entry into work, the payment of the insurance pension established for unemployed pre-retirement workers stops. After the termination of the specified work, the payment of this pension is restored.

Article 32 “Conditions for early retirement” of RF Law No. 1032-1 “On employment in the Russian Federation”

Tax benefits for pre-retirees

As part of the implementation of the Pension Reform of 2020, Federal Law No. 378-FZ of October 30, 2018 amended:

• in Article 391 “Procedure for determining the tax base” and
• Article 407 “Tax benefits” of part two of the Tax Code of the Russian Federation.

Federal Law No. 378-FZ was developed to provide additional social guarantees to pre-retirees in connection with the gradual increase in the retirement age that began on January 1, 2020 for various categories of citizens, including in the case of a social pension or early retirement from an insurance pension.

This Law provides for the preservation of federal real estate tax benefits provided until January 1, 2020 to pensioners who, from January 1, 2019, fall into the category of pre-retirees, i.e. meeting the conditions for assigning an insurance pension established in accordance with the legislation of the Russian Federation in force as of December 31, 2018.

According to Federal Law No. 378-FZ, starting from 2019, pre-retirees will have the right to:

• for land tax benefits in the form of a tax deduction for the cadastral value of 6 acres - Article 391 “Procedure for determining the tax base” of the Tax Code of the Russian Federation and
• for property tax for pre-retirees in the form of exemption from payment for one object of a certain type - Article 407 “Tax benefits” of part two of the Tax Code of the Russian Federation.

To use the right to these tax benefits, it is advisable for pre-retirees to contact any tax office with an application for a tax benefit, indicating the supporting documents issued by the Pension Fund of the Russian Federation. The issue is being considered that the Pension Fund of the Russian Federation itself will regularly automatically send information about citizens of pre-retirement age to the tax authorities. In this case, the transfer of pre-retirees to a preferential tax regime will occur without the direct participation of the pre-retirement.

In addition to property tax benefits, a number of federal subjects provide regional benefits for pre-retirees, including transport tax. Due to the fact that the transport tax is regional, benefits are provided at the local level. If a pre-retirement owner owns a vehicle, he should contact his local tax authority and find out whether such tax breaks apply to pre-retirees in his region.

Employment of pre-retirees

Main benefit for pre-retirees:

• this is a ban on their dismissal on the basis of age.

Federal Law No. 352-FZ dated October 3, 2018 “On Amendments to the Criminal Code of the Russian Federation” supplemented the Criminal Code of the Russian Federation with Article 144.1 “Unreasonable refusal to hire or unjustified dismissal of a person who has reached pre-retirement age”:

• unjustified refusal to hire a person on the grounds that he has reached pre-retirement age, as well as unjustified dismissal of such a person from work for the same reasons -
• shall be punishable by a fine in the amount of up to 200 thousand rubles or in the amount of the wages or other income of the convicted person for a period of up to 18 months, or by compulsory labor for a period of up to 360 hours.

This legislative norm came into force on October 14, 2018.

Now, the dismissal of a pre-retirement worker at the initiative of the employer without sufficient grounds, as well as the unjustified refusal to hire pre-retirement workers, threatens the manager:

• a fine of up to 200 thousand rubles or
• in the amount of salary or other income for a period of up to 18 months or
• compulsory work for up to 360 hours.

Given the gradual increase in the retirement age, as well as the right of certain categories of employees to receive early pensions, it may not be easy for an employer to determine which of its employees belong to the pre-retirement category. The Pension Fund of the Russian Federation can help him with this, where the employer can send a corresponding request.

Of course, the introduction of criminal liability does not mean that the dismissal of an employee of pre-retirement age is completely excluded:

• the employer can dismiss pre-retirees on the same basis as other employees in the event of liquidation of the organization or reduction of personnel (staff), in case of gross violation of labor duties by the employee (for example, absenteeism or showing up at work while drunk);
• in other words, the justified dismissal of a pre-retirement employee at the initiative of the employer is not prohibited;
• but it is assumed that the employer will take a particularly responsible approach to making a decision to dismiss a pre-retirement employee, knowing what consequences this may have for him.

An equivalent crime includes refusal to hire a pre-retirement person.

If, after all, a pre-retirement pensioner turns out to be unemployed, then he has the right to apply for unemployment benefits. These benefits for pre-retirement workers, as noted above, are increased in comparison with identical unemployment benefits for other citizens.

Also, it should be noted that in 2020, a state program for training (retraining) pre-retirees at state expense began to operate.

If you have any questions about the violation of your rights, or you find yourself in a difficult life situation, then an online duty lawyer is ready to advise you on this issue for free.

PENSION REFORM 2020: INCREASING THE PENSION AGE

Right to study

A special federal program guarantees pre-retirement people the right to undergo retraining or improve their skills. Order of the Ministry of Labor of the Russian Federation dated March 1, 2019 No. 131 determined the directions for the implementation of the program:

• studying supply and demand in the educational services market;
• professional development and advanced training of citizens of pre-retirement age;
• development of Internet technologies for distance learning;
• monitoring the employment of pre-retirees;
• professional skills competitions, etc.

5 billion rubles have been allocated for the implementation of the federal program. During 2020, regional authorities must develop their programs.

Pre-retirees can undergo retraining:

• in the direction of the employment center in educational institutions;
• under the programs of the WorldSkills Russia union, leaving a request on the organization’s website;
• at the direction of the employer within the organization or under an agreement with a third-party educational institution.

Compose orders for medical examination, retraining and advanced training easily and quickly in the Kontur.Personnel program.

To learn more

A training course in any of the options can last from 16 to 500 hours, while the law does not limit educational institutions in formats: full-time, correspondence and distance learning are acceptable.

If an employer sends you for training within the framework of a regional program, he must agree on the list of employees with the employment center and the Pension Fund branch. An organization can reimburse costs from the federal or regional budget if two conditions are met:

• training must be completed;
• After training, employees must maintain their employment in the organization in the reporting year (with the exception of voluntary dismissal).

The Ministry of Labor plans to monitor the employment of pre-retirement workers who have completed training under the regional program, but in what form is still unclear.

Who in Russia will have their pensions increased from October 1, and who will be left without an increase?

The increase in pensions from October 1, 2020 will affect military pensioners, as well as those who served in other law enforcement agencies. Let us remind you that these categories of citizens receive pensions directly from the budget. For those who receive social payments from the Russian Pension Fund (PFR), nothing will change from October, but from the New Year, non-working pensioners will receive a substantial increase.

Who will receive an increased pension from October

From October 1, there will be an indexation of pensions for military personnel , law enforcement officers, and equivalent services. The corresponding decree was signed by the head of the Russian government, Mikhail Mishustin . The planned increase in the fixed part of pensions will be on average three percent. The increase in military pensions and pensions of other security officials is associated with another government decree - from the beginning of October, salaries will be increased 1.03 times for citizens working in some federal institutions, having military ranks, holding positions in the military and law enforcement agencies, as well as conscripted or by contract. The increase will also affect employees of the Ministry of Internal Affairs, the National Guard, the criminal investigation department, the prosecutor's office, the courier service, and so on.

Let us note that people who have served in the army or law enforcement agencies and have earned sufficient work experience in civilian life can count on two pensions - a military one and one paid through the Pension Fund.

Who will not be affected by the October pension increase?

Indexation of pensions for non-working pensioners will not be carried out from October 1; this measure will be implemented only from the beginning of 2021. Insurance pensions of Russians will be indexed by 6.3%, social pensions by 2.6%, reaching an average of 17,443 rubles in 2021, 18,357 rubles in 2022, and 19,283 rubles in 2023.

Let us repeat: the increase in pensions from the New Year will affect only non-working pensioners. The government explained that working pensioners receive salaries, so indexation of pensions (frozen at the end of 2020) is not yet provided for them. This category of citizens received a slight upward adjustment to their pensions in the form of compensation for contributions to the Pension Fund, which are also made from the salaries of working pensioners.

Note that when a pensioner completes his working career, his pension is immediately indexed for the entire missed period. Also in July, a full indexation of pensions was carried out for non-working pensioners who received additional payments as guardians of minors. Previously, according to the law, retired guardians who received additional payment for this were considered to be working, but now this injustice has been eliminated.

What other changes await Russians from October 1, as well as what payments are provided for children, read the material of the Federal News Agency .

Other benefits and guarantees

The government has approved several more benefits for citizens of pre-retirement age. They do not directly affect employers, but you need to be aware of them. Let's briefly list:

1. Pre-retirees have preferences in terms of payment of unemployment benefits (Resolution of the Government of Russia dated November 15, 2018 No. 1375):

The government also approved a special rule for the unemployed of pre-retirement age: for those who have an insurance period of more than 25 years (for men) and 20 years (for women), the payment period will be increased by two weeks for each additional year of work. But no more than 24 months in 36 months.

1. The government has retained tax benefits (Article 407 of the Tax Code of the Russian Federation) for those who have reached 55 years of age (women) and 60 years of age (men), namely:

• exemption from property tax on one piece of real estate (apartment, house, garage, outbuilding);
• land tax deduction (for six acres).

1. The State Duma of the Russian Federation is considering a draft law that will give pre-retirees the right to alimony due to disability.

How to confirm pre-retirement status

In many cases, it is not necessary to confirm your pre-retirement status with special certificates to receive the appropriate benefits. The Russian Pension Fund has launched an information service through which information is provided about Russians who have reached pre-retirement age. This data is used by authorities, departments and employers to provide appropriate benefits to citizens.

The pre-retirement person himself does not need to receive a document confirming his right to benefits - just submit an application to the department providing the benefit, which will already have all the necessary information!

But if you are still required to provide a certificate of pre-retirement status, you can order it on the Pension Fund website. In your personal account on the official website of the Pension Fund of Russia there is a special electronic service that allows you to order a certificate in PDF and XML format about classifying a citizen as pre-retirement age. If desired, the generated certificate can be received by email, saved, printed, and also viewed in the “Call History” section.

Regional benefits

At the level of regions or local administrations, their own social support measures can be introduced.

Rice. 2. The decision on free travel is made at the local level

Among these it is worth highlighting:

• monthly cash payments;
• one-time financial assistance;
• discounts on rent and/or utilities;
• free or partially paid travel on public transport;
• discounts on the purchase of tickets for suburban railway transport;
• free entry on certain days to cultural institutions and events, such as theaters, exhibitions, museums, etc.
• partial reimbursement of costs for domestic flights from rural or remote communities;
• benefits for medical care, health improvement, dental prosthetics.

The list of regional privileges depends on the economic condition of the subject. Benefits can be provided to all PAPs or only to certain categories: disabled people, labor veterans, women.

You can find out a list of measures to support pre-retirees at the regional level from the local administration or social protection department.

Read in detail what benefits Moscow left for pre-retirees