Indexation of the social pension from April 1, 2020 implies an increase in the amount of payments without taking into account additional payments to the level of the current subsistence level. This is one of the instructions of the President of the Russian Federation, given back in February of this year.
In short, pensioners with the lowest pensions now begin to receive more. Moreover, this year, for such citizens, both an increase in payment and subsequent indexation were provided for. As a result, the average pension amount increased by 400 rubles. It turns out that a pensioner will receive 5,000 rubles more per year. If we calculate that there are about 4 million such citizens throughout the country today, it turns out that about 20 billion rubles will be spent from the budget in a year to implement the order.
Who is affected by indexing?
Having heard about the possibility of increasing pensions, many senior citizens became interested in the question of who is entitled to this increase. It applies to pensioners who meet the following requirements:
- lack of work (we remind you that people who have retired and continued to work do not receive increases or additional payments, and they are indexed separately from everyone else in August, and the increase is made according to its own scheme and it depends, among other things, on the size of insurance premiums);
- We are talking about social pensions, plus the size of their pension is usually lower than the regional subsistence level for this category of citizens (if the figure is higher, then there will be no additional payment, but only indexation).
It is also possible that a person’s pension was indexed at the beginning of the year, but it still does not reach the minimum subsistence level established in the region. What will happen then? In general, such a situation is unlikely. However, these citizens will be able to receive an additional payment up to the subsistence level. But insurance pensions are not subject to indexation in April, since the increase applies to social pensions.
Let us remind you that now the additional payment will be paid to pensioners separately so that the assistance from the state is noticeable. Although previously it was included in the total amount.
By the way, to carry out indexation, pensioners themselves do not need to do anything - the Pension Fund will make all the calculations independently and assign the required accruals to everyone.
It became known to whom and by how much pensions will be increased from April 1, 2020
Starting April 1, Russia will increase pensions again – this time social pensions. Indexation is low - only 2 percent. But people with low pensions will receive a more significant increase.
Let us recall that from January 1, 2020, insurance pensions of non-working pensioners were indexed by 7.05% - this is higher than the inflation rate in Russia for 2020 (4.3%). Social pensions are also indexed annually from April 1, taking into account the growth rate of the cost of living of a pensioner in the country over the past year. Last year they were increased by 2.9%, this year the indexation will be only 2 percent (RF Government Decree No. 271 of March 15, 2109). Not much, however.
The increase will apply to all recipients of state pensions, regardless of the fact of work (both working and non-working).
From April 1, 2020, pensions for state pensions, including social ones, will be indexed. There are almost 4 million recipients of this type of payment in Russia, of which about 3.2 million receive a social pension. The increase will affect the following categories of pensioners:
- Disabled citizens - disabled people, citizens who have lost their breadwinner, women over 60 and men over 65;
- Military personnel serving under conscription, members of their families;
- Participants of the Great Patriotic War;
- Persons awarded the badge “Resident of besieged Leningrad”;
- Victims of man-made and radiation disasters (Chernobyl), members of their families;
- Cosmonauts, members of their families, flight test personnel, and so on.
Their material support increases annually in accordance with the procedure provided for in Article 25 of Law No. 166-FZ of December 15, 2001 “On State Pension Security in the Russian Federation.” Annual indexation for them should be carried out in accordance with the increase in the pensioner’s cost of living over the past year. The indexation coefficient for 2020 was approved by Government Decree No. 271 of March 15, 2019.
As noted in the explanatory note to the draft Resolution on Indexation in 2020, the cost of living in 2018 increased by exactly 2% - from 8,315 rubles. up to 8483 rub. Accordingly, state and social pension provision for citizens in 2020 must also be indexed by 2.0% .
As a result of indexation of social and state pensions, the Government plans to increase the average payment by 182 rubles. ( up to 9266 rub. ). You can calculate the amount of the increase from April 1st yourself by multiplying the amount of your pension by 0.02. For example, for a payment of 9,000 rubles. the increase will be 180 rubles, that is, from April 1, 2019, the pensioner will be paid 9,180 rubles.
As noted in the explanatory note to the draft Government Resolution, from April 1, 2020, pensions will be increased as follows:
- for disabled children - an average of 268 rubles. (up to RUB 13,674)
- disabled people from childhood, group 1 - an average of 270 rubles. (up to 13812);
- conscripted military personnel who became disabled - by 251 (up to 12,899);
- family members of a deceased conscript serving - by 214 (up to 109,642);
- those who received a military injury, participants of the Second World War - 279 rubles. and so on.
Funds to provide citizens with increases in social or state pensions in 2020 are already provided for in the Pension Fund budget . Monthly costs for indexation will amount to 779 million rubles. (this is almost 7 billion rubles by the end of the year).
Social pensions are payments to disabled pensioners who have not received the right to receive an insurance pension (for example, they did not have enough points or length of service). The size of the social pension for old age, disability or loss of a breadwinner is fixed and enshrined in Art. 18 of Law No. 166-FZ. These amounts are indexed annually depending on the increase in the pensioner's cost of living . The government decided to increase them from April 1, 2020 by 2%.
The amount of increase to the social pension from April 1, 2019 can be determined using the table below:
|Type of social pension
|Increase from 04/01/2019 (in rubles)
|Amount of social pension from 04/01/2019 (in rubles)
|By old age
|Unemployed women over 60 years of age and men over 65 years of age (from 2019 will gradually increase to 65/70 years of age)
|Women over 50 years old and men over 55 years old from among the indigenous peoples of the North
|For loss of a breadwinner (child under 18 years old or under 23 if a full-time student)
|those who have lost one parent
|those who have lost both parents, a single mother or whose parents are unknown
|Disabled people of 1st group
|Disabled people 2nd group
|Disabled people of 3 groups
|Group 1 disabled since childhood
|Group 2 disabled people since childhood
The payment amounts indicated in the table are increased by the regional coefficient established in the recipient’s area of residence. In addition, if the assigned pension amount is less than the pensioner’s subsistence level (PLS), then a social supplement up to the PMS will be assigned. A detailed table indicating the size of PMP by region can be found in the article at the link.
The amount of the state pension is set as a percentage of the social pension . This percentage is established for each type of state pension in accordance with Art. 14-17.2 of Law No. 166-FZ. As a result of indexation of the social pension from April 1, 2020, the amount of payments for state security will also increase.
Below is a table from which you can determine how much the state pension pension will increase from 04/01/2019:
|Category of state pension recipients
|Increase amount from 04/01/2019 (in rubles)
|Pension amount from April 1, 2019 (in rubles)
|disabled people of group 1
|disabled people of 2nd group
|disabled people of 3 groups
|Victims of radiation or man-made disasters (Chernobyl victims)
|Living or working in an area of radioactive contamination
|Conscripted military personnel who became disabled due to military trauma
|disabled people of group 1
|disabled people of 2nd group
|disabled people of 3 groups
|Family members of conscripts who died due to military trauma
|Family members of conscripts who died due to illnesses acquired during service
The payment amounts indicated in the table are additionally increased by the regional coefficient established in the subject of residence of the citizen. If the assigned pension amount is less than the pensioner’s subsistence level (PLS), then a social supplement will be assigned up to the PMS.
Certain categories of Russians have the right to count on state pension support without having any work experience. What kind of benefit is considered social, what is it?
The legal status of the social pension is enshrined in Federal Law No. 166 , which regulates the procedure for protecting vulnerable categories of citizens. The state provides financial support to disabled and low-income Russians: old-age and disability pensioners, orphans, and minors who have lost their breadwinner.
Permanent residents of the Russian Federation and disabled citizens belonging to one of the groups receive a guarantee of the right to a social pension:
- Disabled people, including children with disabilities since childhood.
- Minors who have lost their parents, as well as children whose parents are unknown (registered at the request of the guardianship authorities, internal affairs, medical institutions). When a child loses a parent or guardian, he or she is supported by the state until the age of 18. If he is studying full-time, the age limit for benefits is raised to 23 years.
- Residents of the Far North (Aleuts, Kamchadals, Koryaks, Khanty, Mansi and 34 other small nationalities), after reaching retirement age.
- Men 70 years old and women 65 years old . If a person, by the time he reaches the retirement age limit, does not meet the criteria for insurance coverage, has never worked or has an insufficient number of pension points, after 5 years from the established age limit he is assigned social benefits from the state.
The basic amounts of state benefits are established by federal legislation.
What kind of indexing?
Unfortunately, the size of today's pensions is far from ideal, especially in undeveloped regions of the country. Taking into account inflation and rising prices, the real cost of payments is constantly decreasing. In order to somehow keep the situation under control, the state from time to time increases the size of pensions by indexing them. Moreover, their size varies greatly for different categories. So, this year the pension has already been increased 2 times:
- in January – insurance pensions by 7.05%;
- in April - social pensions by 2%.
Thus, thanks to the January increase, pensions were increased by an average of 1,000 rubles. The last change was not so significant. Social pension recipients received an increase of 2%.
It is impossible to say about the amount of the increase. The calculation is made individually for each case. But the calculation is not difficult - you need to add 2% to your social pension .
Even if the increase is small, it will at least slightly compensate pensioners for the increase in prices for the most necessary products and things.
Increasing social pensions in Russia: latest news
In accordance with Article 25 of the federal law “On State Pensions”, from April 1 of each year, social and state pensions must be indexed. The indexation coefficient depends on the increase in the pensioner’s cost of living. The state budget of the Russian Federation for 2020 preliminarily provides funds for such indexation in the amount of 2.4%.
The increase from April 1, 2020 will primarily affect persons receiving pensions:
- for length of service, as compensation for lost earnings due to termination of work in law enforcement agencies or military service;
- for old age, such payments are due to persons who have reached the age of 65 years for men and 60 years for women and do not have sufficient work experience to obtain an insurance pension;
- on disability;
- for the loss of a breadwinner.
By the start of payments, the indexation amount may be adjusted upward. The final decision should be announced after a government meeting at the end of January. Also, the press service of the Pension Fund reported that: “Social pensions are planned to be indexed from April 1 according to the growth index of the pensioner’s cost of living for the previous year. In 2020 – by 2.4%.”
How is a pension related to the cost of living?
Unfortunately, the pension system is designed in such a way that some citizens have to live on monthly payments, the amount of which is lower than the minimum subsistence level established in their region. Sometimes this situation happens even to those who have worked conscientiously for the benefit of their country for 20 - 25 or more years.
This state of affairs is very critical for a pensioner who does not have additional income. Many of them simply have to survive on the funds they receive. Therefore, the state is trying to help here too. Support is provided in the form of an additional payment up to the subsistence level (only for those pensioners who are no longer working). Funds to cover the difference are taken from the regional and federal budgets. As a result, all pensioners receive at least the minimum subsistence level in their region.
What surcharge mechanism was used previously?
Additional payments and indexation are different forms of support for pensioners, although they are aimed at increasing the amount of payments to Russians. However, until recently, the practice was to apply them in such a way that indexations increased pensions, and after that the person simply received a smaller additional payment. How did this happen? Let's look at the situation using an example.
Evstropova receives a pension of 7,900 rubles. From January 1, the amount was indexed by 7.05% or 557 rubles. As a result, the payment amount increased to 8,457 rubles. Additionally, the state pays the citizen an additional amount that is less than the minimum wage in the region, equal to 8,900 rubles. As a result, only 443 rubles remain from last year’s additional payment of 1,000 rubles. In fact, Evstropova receives the same money. It turns out that there is simply no real increase in payments. It was precisely because of this that many pensioners did not notice the indexation.
How is it happening now?
After the presidential decree, a new mechanism for applying indexation and surcharges was developed. In order it will look like this:
- the increase is calculated taking into account the ongoing indexation;
- this amount will be fixed;
- further they will make the difference between the cost of living and the amount of payment without taking into account indexation;
- the pensioner will be paid both amounts.
If we consider the situation using the previous example, it turns out that Evstropova will receive an increase of 557 rubles for indexation and another 1,000 rubles up to the subsistence level. The total amount is 1,557 rubles. Pension with additional payments – 9,457 rubles.
As a result, even citizens with a small pension will receive an increase, which will be expressed in a real increase in the size of the pension.
Indexation for previous years
Pension indexation is carried out every year. So, its size for 2020 should be 6.6%. It turns out that next year Evstropova will receive a pension in the amount of 8,457 * (100 + 6.6) = 9,015 rubles. The total additional payment will be 558 rubles. When calculating the additional payment to the subsistence level next year, the indexation of the current year will be taken into account, but the next year will not. Therefore, the additional payment will be: 8,900 – 8,457 = 443 rubles. In total, Evstropova will receive 9,458 rubles per month. However, the payment may be larger if the cost of living for pensioners is increased in the region of residence.
In subsequent periods, indexation accounting will be done in the same way. It may turn out that due to indexation, the pension will already be greater than the monthly minimum, therefore, no additional payments will be made.
Amount of social pension payments from April 1, 2020
If we talk about average figures, the amount of the social pension after 04/01/2018 will be 9062 rubles, that is, it will increase by 255 rubles. The state is allocating 9.6 billion rubles for 2.9 percent indexation, which will be spent by the end of the year. On March 22, Dmitry Medvedev signed a document on the indexation of social pensions from 04/01/2018.
The change in payment amount is as follows:
Those who received 12082.06 rubles will receive 12432.44
These are disabled children of the 1st group and disabled children.
Those who received 10068.53 rubles will receive 10360.52
- disabled people from childhood, group 2;
- disabled people of the 1st group;
- children who have lost both parents.
Those who received 5034.25 rubles will receive 5180.24
- citizens who have not earned their pension but have already reached 60 and 65 years of age;
- citizens of northern nationalities aged 50 and 55, belonging to small nations;
- children left without one parent;
- disabled people of the 2nd group.
Those who received 4279.14 rubles will receive 4403.24
These are disabled people of the 3rd group.
Pensions of the following categories of citizens of the Russian Federation will increase by 2.9% from April 1, 2018:
- WWII participants, Leningrad siege survivors;
- those who have completed military service upon conscription; members of their families will receive the same bonus;
- those who suffered in large-scale disasters; members of their families will receive the same bonus;
- cosmonauts, test pilots and members of their families;
- former officials;
- children whose both parents are unknown.
Plan for future indexation of pensions
In 2020, from January 1, pensions increased by 7.05% . Plans have already been set for the next 5 years. The situation will happen as follows:
- 2020 – 6,6%;
- 2021 – 6,3%;
- 2022 – 5,9%;
- 2023 – 5,2%;
- 2024 – 5,5%.
Also, when making calculations, you need to take into account the current cost of living. It is established separately in each region, plus it varies for children, the working population and pensioners. The latter must be taken into account if you want to find out the amount of the surcharge.
Who is assigned social pensions?
Social pensions are provided for disabled categories of citizens (Clause 6, Article 5 of the Law “On State Pensions”). Disability benefits are assigned:
- disabled people of groups I, II and III, including disabled people since childhood;
- disabled children;
- WWII participants and decorated blockade survivors who violated the law or intentionally caused harm to their health, which resulted in disability;
- military personnel who committed a crime and became disabled as a result.
According to Part 3 of Article 9 of the Law “On Insurance Pensions”, disability benefits are assigned to the listed persons if they have no insurance experience at all.
Social pension in case of loss of a breadwinner can be received by:
- persons under 18 years of age, without parents (one of them), or under 23 years of age, if they are full-time students (if, in accordance with Part 11 of Article 10 of the Law “On Insurance Pensions”, the deceased breadwinner did not have insurance experience , or he died as a result of a crime committed by a disabled member of his family);
- family members of a serviceman whose breadwinner’s death was caused by a crime committed by him.
Old-age social pension is assigned:
- representatives of the small peoples of the North, specified in the Decree of the Government of the Russian Federation of October 1, 2015 N 1049, aged 50 and 55 years (women and men, respectively);
- citizens of the Russian Federation aged 60 and 65 years who have no grounds for receiving an insurance pension and who do not work (Part 5 of Article 11 of the Law “On State Pensions”).
From January 1, 2020, a new category of disabled citizens was introduced into the Law “On State Pensions”: children whose both parents are unknown. These are those whose birth registration was made on the basis of a statement from the guardianship authorities to the police about the birth of a found (abandoned) child or the birth of a child left in a maternity hospital by a mother without documents. Belonging to this category is a separate basis for the assignment of a social pension.
In addition, provision is made for the payment of a social pension to HIV-infected minors (Article 19 of Federal Law No. 38-FZ of March 30, 1995).
Recalculation of additional payments from 2020
The innovation regarding a different mechanism for calculating additional payments came into force on April 1 of this year. However, the indexed values began to apply on January 1. It turns out that for 3 months the additional payment was made according to the old rules. The introduced law also assumes that recalculations will be made during this period. That is, those who will now receive an increased additional payment will receive an increase for the previous 3 months.
The size of the conversion will be different for everyone. For some it may be 300 - 500 rubles, and for others it can be several thousand. The additional payment for these 3 months will be made to recipients no later than July 1, 2020.
How to apply for an increase?
Pensioners are freed from the need to make calculations themselves or require them to be carried out by the Pension Fund. The entire procedure will take place without a request. Pension Fund employees will carry out the calculations themselves, formulate a new amount of pension and additional payments, and calculate how much additional payment needs to be made for the first 3 months of this year.
There is no need to bring any documents to the Pension Fund, including supporting certificates. Payments for the first 3 months will be made gradually until July 1: for some earlier, for others later.
Sources of financing and improving the lives of pensioners
An increase in pensions and other payments is always associated with additional expenses from the state treasury. This statement is also true regarding the new additional payment procedure. They will require more money. In just 1 year, this will cost about 20 billion rubles. They will be allocated from the federal (not local) budget. In turn, the state treasury will be replenished by taxes and revenues from oil sales.
Unfortunately, even with the increase in payments, Russian pensioners are unlikely to live better. After all, the new technology for calculating additional payments will affect people who receive monthly amounts that do not reach the subsistence level. Even with the new additional payments, people are unlikely to live better, although 300–600 rubles will be a good amount for them.