Every year, an increase for working pensioners in August is carried out by the Pension Fund according to the new Law No. 400-FZ. Not only the name of the allowance has changed, but also the basic calculation rules.
Currently, the increase in pension amounts in August for working pensioners is called recalculation. It is carried out without submitting an application. As a result, the number of points accumulated at the end of the year and the amount of monthly payments themselves increases.
Therefore, it would be incorrect to call such an increase indexation. Pension indexation is not carried out for working pensioners, but recalculation is carried out for work in August. You can find out what the increase will be in August and whether you are entitled to it from this article.
What pensions will increase from August 1
Calculation of additional payments is carried out only for insurance pensions. This is due to the fact that the increase occurs only due to insurance premiums. All other payments remain the same. It must also be emphasized that there will be no increase in the fixed payment from August. The size of the fixed payment will also remain the same.
Working pensioners who receive old-age and disability insurance pensions have the right to an increase if they received a “white” salary. Recipients of payments in the event of the loss of a breadwinner also have the right to recalculation, but only once - from August 1 of the year following the year the payments were assigned.
Recipients of payments under the co-financing program
Since 2008, Russia has had a program for co-financing pension savings. Under this program, Russians can voluntarily make contributions to pension savings, and the state doubles the transferred amount. In fact, the annual fee can range from 2 to 12 thousand rubles
– these are the amounts the state is ready to double. There is an exception - if a person already has the right to an insurance pension, but has not applied for it, his contributions increase not 2, but 4 times.
Now it is no longer possible to join the program (this could be done from October 1, 2008 to December 31, 2014), but if before this date the applicant managed to make the first payment, he is a participant in the co-financing program.
Essentially, contributions are added to pension savings and can be received in the same way when you reach retirement age. In the case of voluntary insurance contributions, they can be received one-time (no more than once every 5 years), or an urgent payment can be made
. And in case of immediate payment of pension savings, the pension amount will increase by 7.99%.
True, there are few such pensioners in Russia - 32 thousand people.
What is pension recalculation in August for working pensioners?
First, you need to remember that the amount of any insurance pension is calculated based on accumulated pension points (individual coefficient). And even after her appointment, their number is not final. For a working pensioner, their number may be increased.
From 2020, all insurance contributions from our salaries are transferred into points and are taken into account on an individual personal account.
Many continue to work after retirement. In this case, insurance premiums from their wages continue to go to the Pension Fund. They are converted into so-called points. To get them back as part of your pension, you do not need to write any applications. For this purpose, the Pension Fund of the Russian Federation will carry out an undeclared return of accumulated points annually in August for pensioners who continue to work.
Recalculation for pensioners in August (clause 3, part 1, article 18 of the Law “On Insurance Pensions”) is calculated based on unaccounted coefficients after the pension was assigned.
- For example, recalculation in August 2020 for working pensioners will be calculated from unaccounted points for the period of work from January 1, 2018 to December 31, 2020. If he officially worked during the specified period, then an increase will be established for him from August 1.
Supplement for working pensioners
Employed elderly Russians have their pensions recalculated annually. But the amount of the increase is significantly less than for non-working pensioners. It depends on the person’s earnings over the past year. The maximum increase awaits those who received an average of at least 28 thousand rubles. In this case, the pension will increase by three points, or 279 rubles.
If the employer made all the necessary contributions to the Pension Fund, the increase will occur automatically. But, if a pensioner worked unofficially, he will be left without an increase.
It is worth recalling that at the beginning of summer the president ordered that attention be paid to the situation of working pensioners. The fact is that many elderly Russians find themselves idle due to the pandemic and will not receive either wages or indexation. Vladimir Putin hinted to the government that such citizens also need benefits. Perhaps by the end of summer this issue will move forward.
The number of working pensioners in Russia exceeds 9.5 million people.
Recalculation restrictions in August
Salaries, and therefore insurance premiums not taken into account after appointment, are different for all working pensioners. Therefore, the bonus in August will be individual.
But there are important restrictions introduced by part four of Article 18 of Law No. 400-FZ:
1. For “silent” pensioners who do not have a funded payment, the maximum such increase in August is limited to 3 points.
2. For those who create savings in non-state pension funds (NPFs) and management companies, the maximum increase in the month of August is limited to 1.875 points.
Due to the fact that since 2014, all of our insurance premiums are transferred to the formation of insurance payments, regardless of the choice of NPF or Management Company, then for recalculation in August 2020 the maximum limit will be three points for everyone.
Suggestions for the future
The A Just Russia party has submitted a proposal to the State Duma that may please all recipients of old-age pensions. Deputies proposed to legislatively provide for the payment of an additional five thousand rubles monthly to all persons over 75 years of age. However, the budget does not yet provide sufficient funds for such a benefit.
In addition, a proposal is being considered to pay ten thousand rubles for children aged 16 to 18 years. This proposal may be considered in the near future.
Let us recall that in the updated Constitution of Russia, support for family and childhood, as well as indexation of pensions, are prescribed by law. In the near future, the relevant laws will be adopted by the State Duma.
Other pension supplements
Along with pension provision, Russians can simultaneously receive additional payments that are not subject to indexation or are indexed, but according to different rules:
Who is entitled to pension recalculation in June-July 2020, and how to quickly make sure that everything is correct
- EDV. They pay only to beneficiaries (persons with disabilities, veterans, people injured at the Chernobyl nuclear power plant). Indexation will take place in February. Therefore, the January pension was without an increase in the monthly allowance.
- Additional social payment to achieve the minimum subsistence level. Its increase is due only to an increase in the pensioner’s monthly minimum wage.
In 2020, the federal PM is 8,846, which is 120 rubles more than last year. This is the amount the pension increased for citizens who received benefits less than the subsistence level.
- Compensation for caring for a person with a disability remains the same amount - 1,200 rubles per month.
Since compensation is paid along with the pension, 1,200 rubles are not taken into account, so the increase is calculated minus this amount.
Deputy Isaev: Recalculation will take place without declaration
The undeclared increase in pensions in August 2020 was the removal of bureaucratic obstacles. This was stated by Andrei Isaev, , in a commentary to FAN.
The parliamentarian noted that the August adjustment of payments to working pensioners is traditional.
“Every year in August, pensions for working pensioners are recalculated. They continue to work - they accumulate points. In this regard, the pension should be increased. Every year, from August 1, such a recalculation is carried out - this is correct and normal,” Andrei Isaev said in a commentary to FAN.
The undeclared recalculation of payments is an indicator of overcoming bureaucratic barriers, the parliamentarian added.
“The recalculation will take place without any notice, and that’s good. Because it is clear that the statement in this case was of a formal nature. Who is against his pension being increased? Therefore, this is the elimination of bureaucratic obstacles,” summed up Andrei Isaev.
What is the calculation of pension increases for working pensioners?
To improve the financial situation of citizens, the Government of the Russian Federation annually indexes the size of their pensions. In 2020, such indexation was carried out from January 1 at 7.05%. But not all citizens are entitled to an increase in benefits, but only those officially unemployed. A moratorium on freezing payments to employed individuals has been introduced since 2020 due to a lack of budget funds.
According to officials, working pensioners will compensate for monetary losses due to the abolition of indexation thanks to their salaries. At the same time, in order not to offend those who are employed at all, a special increase was provided for them. The amount depends on the number of IPC (pension points) accumulated during work. For all employees, pension insurance contributions are paid by employers, which means that a specialist has the right to count on a review of the amount of his pension provision.
Read: What is the increase in pension in 2020
Distinctive features of “Pensions 2019”
The pension increase in 2020 for non-working pensioners differs from all previous indexations in several factors:
- indexation is carried out with a coefficient higher than the inflation rate, even taking into account that which has not been finally determined by Rosstat (price growth is assumed to be no more than 3.4%);
- the increase is made not on February 1 and August 1, but on the very first day of the year;
- the amount of the increase differs from that advertised by many media.
The latter should be mentioned separately: almost immediately after the announcement of the reform, some officials began talking about an increase of 1,000 rubles. Some of them added that we are talking about the average pension in the country, the amount of which is 14,414 rubles. The media, having picked up this news, kept silent about the average pension and announced only the amount of the increase.
As a result, many pensioners were misled and with full confidence are waiting for a pension of 1,000 more from January 2020. Alas, but in vain. The increase is calculated individually. And to the minimum pension of 6,000 rubles. Indexation will allow you to get only 423 rubles.
The Pension Fund of Russia has announced the date for the recalculation of pensions, which many Russian pensioners have been waiting for, PRIMPRESS reports.
As noted by the Pension Fund, pension benefits for more than 14 million pensioners will be increased from August 1.
So, first of all, recalculation will be made for working pensioners. Senior citizens have been waiting for this increase for a whole year, because every year in August, pensions of workers are increased due to accumulated pension coefficients. To receive the increase, the pensioner must have worked during the previous (that is, 2019) year. The recalculation will be carried out automatically, without submitting applications, based on personalized, individual accounting data.
“Unlike the annual indexation of insurance pensions for non-working pensioners, which takes place from January 1, when the size of pensions increases by a certain percentage, the recalculation of the insurance pension of a working pensioner is individual in nature and depends on the level of wages of the worker in 2020, the amount of insurance contributions made for him by the employer , ultimately translated into pension coefficients. Recipients of insurance pensions for old age, disability, and loss of a breadwinner are entitled to an undeclared recalculation of the insurance pension. As mentioned, this recalculation is of an application-free nature, i.e. there is no need to submit an application,” the Pension Fund commented.
It is noted that the maximum increase will be 3 pension points, the cost of which is currently 93 rubles. But it is impossible to say now how much each pensioner will receive, because this additional payment will be individual for everyone. On average, it will be from 214 to 279 rubles, as specified by the Pension Fund.
In addition, from August 1, recipients of funded pensions and participants in the state pension co-financing program will see more money in their accounts. In this case, the indexation will be 9.13% and 7.99%, respectively.
Earlier it was reported that the State Duma spoke about the increase in pension payments for Russian citizens.
The authorities have set a deadline for increasing pensions to 20 thousand rubles, based on the average payment amount. As Svetlana Bessarab, a member of the State Duma Committee on Social Policy, Labor and Veterans Affairs, clarified, currently the average pension in Russia is about 16 thousand rubles. Read also:
The Pension Fund of Russia told how to apply for an additional payment to your pension in the amount of 2843 rubles
The size of this increase is indexed annually
