Minimum pension in the Krasnodar region from January 1, 2020

In Russia there is a social program to support pensioners, one of its measures is the establishment of such a standard as a minimum pension. Although there is no such term in the legislation, the state’s obligation to provide non-working pensioners with an income level not lower than the subsistence level is spelled out.

In the article we will discuss what the minimum pension is set in the Krasnodar Territory in 2020 for non-working pensioners, what it depends on and how it is indexed.

Legal basis

In Art. 12.1 Federal Law-178 “On State Social Assistance” dated July 17, 1999, establishes the following rules:

• the level of financial support of a pensioner cannot be lower than the minimum subsistence level of a pensioner (hereinafter referred to as PMP);
• a similar indicator (amount in rubles) is approved in each region annually on the basis of the norms of Part 4 of Art. 4 134-FZ “On the subsistence minimum”;
• if the income level is below the PMP, the pensioner is given a social supplement up to the required amount.

Based on these standards and in accordance with local legislation, the minimum pension was increased in Krasnodar and the Krasnodar Territory from January 1, 2020, as the PMP increased from 8,657 rubles (indicator for 2020) to 9,258 rubles.

Minimum pension from January 1, 2020

The pension amount is determined based on many indicators. However, to establish the minimum benefit value, you only need to know the minimum subsistence level. The minimum pension is determined for each region. There have been some changes in 2020 that are mentioned in the article.

How is the minimum pension calculated?

The minimum pension amount is assigned based on the subsistence level (LS) established by the region. Low-income elderly citizens whose income is less than the monthly minimum are assigned a social supplement to their pension to achieve the required value.

In 2020, citizens of some regions will need to re-register the supplement due to an increase in the minimum pension.

What is considered the minimum pension in Russia?

The pension is formed from various indicators, some of which depend on the citizen’s work activity. However, the minimum pension depends on the level of the subsistence minimum, which is established individually in each subject of the country. This indicator changes annually based on the region's budget.

Social pension in 2020

In 2020, the country’s authorities increased social pensions for various categories of citizens: those who have lost their breadwinner, those who have the status of “disabled,” or those who have reached the retirement age limit. The changes that have arisen are associated with indexation (by 7%), focused on price growth over the past year. Thus, the amount of social pension by the end of the year will be presented on average as 9,925 rubles.

As a result of indexing, the size of social pensions for beneficiaries of different groups will be:

Minimum pension in Russia from January 1, 2020 by region (table)

The minimum pension is focused on the subsistence level. The size of the presented indicator depends on many factors, among which the region has an important influence.

For clarity, we suggest that you familiarize yourself with the minimum pension values ​​in 2020, depending on the region in which the pensioner lives.

The table is compiled on the basis of regional regulations (decrees, decrees, orders), which establish the cost of living for a pensioner from January 1, 2020. The cost of living for a pensioner in the Russian Federation as a whole for 2020 is set at 9,311 rubles .

Additional payment up to the subsistence level for pensioners in 2020

Low-income citizens of retirement age receive an additional payment up to the established subsistence level. As in previous years, the additional payment is calculated using the following formula:

D = VPM –OMP,

Where

• D – additional payment;
• VLM – the cost of living in the region;
• GMO – general financial situation.

A citizen’s material security consists of several indicators:

• the amount of pension benefits;
• other additional social income;
• monthly payments, including a set of social benefits. services.

Conclusion

A large number of changes occurred in 2020, some of which affected pension provision, including the minimum pension.

As before, the size of the pension benefit is determined by the subsistence level, which is established by the authorities of the constituent entity of the Russian Federation in which the pensioner lives.

If there is a lack of funds received from the state, an additional payment is made up to the established value.

Source: https://pfrf-kabinet.ru/novosti/minimalnaya-pensiya-2020.html

How is PMP formed?

Until 2020, there was no approved methodology for determining the regional indicator, which adversely affected the situation and material security of pensioners. But changes have occurred, and the regions have already approved the amount of PMP for 2020 in accordance with the new Rules developed by the Ministry of Labor and approved by Government Resolution No. 975 of July 30, 2019.

What are the advantages of this approach:

1. Unified rules for calculating PMP are being introduced based on local and federal indicators (a specific formula), which does not allow regions to unreasonably underestimate indicators.
2. As a result, regional PMP is growing at the same pace as the federal one.

Due to the introduction of the new procedure, the figure in some regions increased significantly, by 1,000–2,000 rubles at once.

In the Krasnodar Territory, PMP increased by 601 rubles.

Law on freezing military pensions until 2021: 381-FZ of December 2, 2019

Multifunctional center - Krasnodar

Organization

New indexing rules

Note that the PMP is not actually equal to the minimum pension (although according to norm 12.1 of the Federal Law-178 it turns out that way), since there are rules for its indexation. From 2020, the pension size is first indexed, but to determine the size of the social supplement, the initial indicator is taken into account, without indexation. For example, a citizen receives 10,000 rubles, and PMP - 11,000 rubles, the social supplement is 1,000 rubles. Taking into account the indexation of pensions in 2020 for non-working citizens by 6.6%, the following calculation is obtained: 10,000 x 1.066 + 1,000 = 11,660 rubles.

Thus, the size of the minimum pension in 2020 is determined by region, taking into account local PMP and indexation.

Multifunctional center - Krasnodar

Where to apply

The situation of working pensioners

Separately, we note that the minimum pension in the Krasnodar Territory in 2020 is not established for working pensioners, since it is believed that the citizen provides himself with additional income at the place of work.

Indexation of pensions for working pensioners based on Federal Law-385 has been “frozen” since 2020. But it is carried out after dismissal in accordance with the standards of Federal Law-400.

Some pensioners, in order to receive a larger pension, quit for some time, and then, with the consent of the employer, take up the same job again. According to the rules of clause 88 of Order No. 885n of the Ministry of Labor of Russia dated November 17, 2014, in this case the pension must be recalculated on the basis of the employer’s reporting, and the latter may be fined (if there is intent, such judicial practice already exists).

Fine for unofficially working pensioners in 2020 - introduced or not?

Multifunctional center - Krasnodar

Establishment

The situation in the region

234,000 people receive the minimum pension in Kuban. Information provided by the local branch of the Pension Fund for 2019. This is a significant indicator (more than 14%), since as of 2020, a total of 1,651,500 pensioners lived in the region.

Many citizens lack confirmed insurance experience, since in the 1990s many archives of organizations were simply liquidated, without transferring documents to the State Archival Funds. As a result, people could not obtain the necessary evidence of work activity during a certain period.

Multifunctional center - Krasnodar

Organization

Directorate of the Russian Pension Fund - Krasnodar

Where to go

Directorate of the Russian Pension Fund - Krasnodar

Where to contact

Directorate of the Russian Pension Fund - Krasnodar

Where to go