The rapid change in the pension sphere of our country has left many questions for the entire population. Men and women will now be destined to go on a well-deserved rest 5 years later. On this occasion, a wave of indignation swept across the country. The Russians did not have time to get used to the idea that a new VAT was waiting for them, as the parliamentarians had already introduced a completely new by-law promising such global changes. And although there is a lot of negativity towards officials, there are also positive aspects. The country expects an increase in pensions in 2020 to old-age pensioners. Moreover, the size of this indexation promises to be impressive. And how are things really? What does the official paper say? You will find answers to these and many other questions in this review.
How are pensions arranged in Russia?
The pension system of our country is not unique for every person. It has its own significant differences. The very first and most important difference between age-related benefits is the source of funding. Currently, there are three official sources in the pension system:
- Pension Fund;
- federal treasury (budget);
- private pension fund.
Let's start with the second on the list. From the general budget of the country receive monetary allowance for old age (and not only for old age) categories such as:
- warriors and security forces;
- civil servants;
- law enforcement agencies.
The first includes all law enforcement agencies whose status is approved at the state level and secured by laws. This is the army, the Ministry of Emergencies, firefighters, guards and others. The second category is joined by officials holding their permanent posts in the regions, as well as senior federal managers.
The last group is law enforcement. The court apparatus with all its employees, prosecutors, police, investigative officers. These lists are not complete, but within the framework of this article such a mention will be sufficient.
From the pension fund
All other Russians who have worked in civilian positions receive subsidies from the Pension Fund (PF), to which they make deductions from their salaries.
Separately, we note the fate of payments that are made, or rather, should have been made from non-governmental organizations that have taken upon themselves the obligation to collect and increase part of the pension provision of citizens. The so-called non-state pension funds (NPFs), which include large insurance organizations and banks, since 2002 have accepted deductions from the salaries of Russians to the funded part. But this new practice has been discontinued since the end of 2013.
The fact is that parliamentarians, led by the president of the country, decided to impose a moratorium on the funded part, as a measure of removing the PF from the crisis state. On January 1, 2014, the relevant amendments to the decree on pension insurance came out and entered into force, which froze the accumulated funds of citizens for a year. In subsequent years, this norm was extended until the last decree passed it right up to the end of 2020. The innovation, not having time to go out, did not take root among the officials. The Russians were not able to appreciate the introduction of the funded part of the pension.
In the old version, when non-state pension funds were still accepting savings funds from hard workers' salaries, the percentage deduction scheme was as follows:
- 10% went to insurance payments to current retirees;
- 6% were transferred to savings in NPFs;
- 6% for future insurance pension to the PF account.
The moratorium on savings essentially added PF another 6%. Under the new scheme, 12% is now being charged for insurance benefits.
Fortunately, not all Russians switched to savings. And those who nevertheless joined the NPF practically lost the money transferred. Although parliamentarians say the opposite. Like, since 2021 the moratorium is ending, and accumulations will continue to replenish. But reality is not so "innocent." You can return the invested money only in emergency cases (death of a loved one, disability, etc.). In other cases, the money is almost gone.
What served to draw such a skeptical conclusion? The point is in the new trend of the Ministry of Finance. A. Siluanov announced a new system, called individual pension capital (IPC) back in 2016. So far, there have been no official decisions in this direction, but according to the comments of the Minister of Finance, IPK will replace the not accustomed scheme with NPFs.
Payroll deductions in the amount of 6% will again go to non-governmental organizations for the formation of funded payments. But the Minister did not mention the fate of the money that citizens have already given back since 2002. Their fate remains a mystery.
What did the reform bring?
After the events that took place in the second half of 2018, the well-known phrase about endless observations can be rephrased with confidence as follows: “You can endlessly look at three things: how the fire burns, how the water flows and how the Russian people criticize the authorities for increasing the age they deserve to be honored recreation".
We omit allegorical digressions. Changes in pension legislation have brought an increase in the age of prescribing old-age benefits. Now he is 60 and 65 years old for women and men. Other age limits have also changed.
- Increased the long experience.
- Transferred for 5 years the appointment of a social pension with insufficient work experience.
- We extended the period of going on a well-deserved rest by special experience for certain categories (Far North, teachers, hot shops, hazardous production).
- Changed the order and size of the indexation of pensions.
The government’s decree indicating these changes was numbered 350. This is exactly the paper that caused a storm of indignation among the country's population, and which the authorities tried to keep silent about until the day of the opening ceremony of the World Cup.
But since the reform has already been completed, let's see if the pension of Russians will be increased in the future 2020, as well as what increase the current pensioners can count on.
How much pensions will increase: latest news
The fact that Russia has too low pension coverage in old age (even its average rate) is not argued even by high-ranking officials. Let us turn to the data of Rosstat. In 2018, the average rate of old-age benefits in our country was 13,400 rubles.
But the average value does not reflect the real situation. For example, in some regions, local authorities have to establish surcharges or introduce adjustment factors that would ensure the size of payments, along with the cost of living in the city. But this subsidy is provided only to non-working pensioners. But for those who continue to work after 60 or 65, there is no such benefit.
Indexation of payments to the non-working population who are on a well-deserved rest will happen already in 2020. V. Putin took care of this. Back in 2018, for the second reading of the then bill, numbered 489161-7, the president proposed amendments, which were unconditionally and fully approved by the State Duma.
The head of the country signed the document regulating the future adjustment of payments on September 6, 2018. The order under the number 1633 was issued already on 48 sheets. Among other things, paper contains the following data.
Table of gradual growth of pensions in Russia until 2024.
At the same time, the main law on insurance pensions (Federal Law 400) was amended. Now, in article 18, which states the rules and rules for indexing old-age allowances, paragraph 10 is not valid until 2025. The president ordered the adjustment to be carried out on January 1 of each year. And already in 2025, return to the previous order:
- carry out the first increase on February 1;
- re-indexing (if necessary) - April 1.
Answering the main question of the article: "What will be the increase in pension in 2020?" - According to Putin’s decree, by 6.6%.
Look again at the growth chart presented above. In the 3rd and 4th columns, incomprehensible contractions of the IPC and EF appeared. But the question is: wasn’t the IPC that the finance minister spoke about secretly introduced by parliamentarians? Are ordinary citizens of the country again put the sticks in the wheels. Or is it an echo of the same sensational reform?
To answer these questions, we will understand how the calculation of the amount of pension is carried out in our country. To do this, we turn to the 400 decree.
What does the law say?
The insurance pension received by the majority of the population of Russia is divided into three types. It:
- upon reaching a certain age (old age);
- upon receipt of a disease falling under the group (for disability);
- at the death of the breadwinner (assigned to relatives or dependent).
The calculation of the latter differs from the first two. But we will not consider it.
The methodology for calculating the amount of old-age allowance is given in the 400 federal decree. It is considered as follows:
IPK x cost of IPK + PV x KFV.
In the first place is the notorious IPC. But, perhaps ironically, or maybe on purpose, parliamentarians have so designated a reduction from the "individual coefficient of a senior citizen." In fact, these are points that a person has earned over his entire working life (official), and he has nothing to do with the first PKI (individual pension capital).
Well, thank God, many sighed. Although everything here remains the same and without drastic changes. But let's understand the formula to the end.
The second variable is the price of one ball in a certain period of time. In our table of pension growth, this is column 3. As you can see, in 2019 the value is 87.24 rubles.
PV is an abbreviation for fixed payment (4 columns in the table). On the same 2019, its size is 5334.19 rubles. And accordingly, the KFV is the coefficient responsible for the annual indexation of this fixed fee.
A similar procedure for calculating disability benefits. The technique implies uniformity of calculation. Of all the variables, an individual value for each person here only has an individual score (IPC). The remaining parameters are determined at the legislative level.
It is also worth mentioning another, separate subsidy, which is intended for those citizens whose seniority has not reached the required value for receiving pension insurance. This is a social pension. The right to receive this benefit is:
- citizens over the age of 65 and 70 for women and men;
- disabled people of all groups;
- persons not eligible for an insurance pension.
Here are the data for 2018.
For healthy people with insufficient experience - 5180.24 rubles. Disabled people of the 1st group at birth, as well as children with disabilities - 12,432.44 rubles. When the 2nd group since childhood, 1 group, as well as for children who have lost mom and dad - 10,360.52 rubles.
And what awaits the security forces?
It is worth noting that the procedure for calculating old-age benefits, or rather, for seniority, is of a different nature to military pensioners, obeys a different law, and is also indexed, according to inflation, which is laid down in the budget. For former combatants, payments are assigned according to their salary by rank and position, plus all allowances. Together, this is called military allowance.
To calculate how much a retiree will receive in his old age, his monetary allowance is calculated depending on the length of service and is multiplied by a decreasing coefficient. In 2020, it will amount to 75.15% of the allowance.
But by what principle is the term of service accepted.
- When serving in the army for 20 years, 50% of the monetary allowance is charged. At the same time, for each year more 3% are added on.
- If the warrior worked for 25 years, half of which he gave to his homeland, and worked the remaining time in a civil position - also in the amount of 50% of the military allowance. But here for every year over 1% is charged.
The maximum interest rate you can reach is 85%. This means that the soldier will have to be in the service for 32 years.
And here is the calculation of the retirement benefit for years of service.
Cash allowance x 50-85% x 75.15%.
Additionally, in 2020 parliamentarians provided for an index of 3.8%.
Disability and survivor benefits for relatives are also provided for retirees. The calculation of these values is made with the participation of monetary allowance. We will not dwell on this in detail. This topic is a separate review.
And what awaits working retirees?
Here are some interesting statistics. As of 2018, of the total number of Russian residents who are on a well-deserved vacation, 15 million people continued to work (and with official employment). But the figure attracts the attention of a friend. If in 2016 almost 40% of the total number of people worked, then already in 2018 - 20%. What led to a double reduction in workahol "on vacation"?
The fact is that the legislator canceled the annual indexation as a working pensioner. This happened in 2016, which caused a sharp reduction.
Now about the main thing. Putin's amendment No. 1633 refers to the indexation of old-age insurance pensions, without any reservation or “hard workers on vacation”. Does this mean that such an unprecedented increase applies to everyone?
Unfortunately not. The Ministry of Labor made explanations to a well-known newspaper. He explained that such indexation applies only to non-working people who are on a well-deserved rest.
Fact. In Moscow, for such a category of citizens as a working pensioner, a special subsidy is applied. It lies in the fact that the city hall introduced the city social standard. And if a person in total has less than 17500 rubles (2018), then he is provided with a transfer of allowances up to this figure.
The only thing that these categories of citizens can calculate is the annual recount of their accumulated points. After all, man continues to work.
What do we have in the end?
Thanks to the new legal act 350, which changes the provisions of several documents on pension provision in our country, future pensions will be as much as 43% higher. In digital terms, in relation to 2018 with its average of 13400 rubles, 2024 will bring an increase in benefits to 20 tons.
The work has been done voluminous. Parliamentarians were able to ensure the growth of insurance pensions above the inflation rate in the country. The latter is planned to be no higher than 4% until 2024, against 6% (on average) according to adjustments on the same date.
But what really happens? The Ministry of Finance speaks of low inflation, while in grocery stores a package of milk has dropped by 100 grams. One egg in a dozen disappeared somewhere, and the usual half-liter of beer became 0.45 for everyone. Natural decline, comrades ...