Pension news 2020: increase, nuances

Retirement age in Russia from 2020 - latest news

The main innovation that has thundered throughout the country is raising the retirement age level. Initially it was planned to increase the retirement age by 8 years. However, the project received a negative reaction from Russians, and the President of Russia decided to agree to the meeting, increasing the retirement age by 5 years.

Social benefits for veterans and disabled people in 2020 in Russia - indexation, exact amount of payments, allowances

The promotion is planned in a smooth, almost imperceptible manner. Thus, already in 2020, citizens will retire at 60.5 (men) and 50.5 years (women). Further, with the onset of subsequent annual periods, the age indicator will increase by 0.5 and 1.5 years until it reaches the level of 65 (for men) and 60 years (for women).

We wrote in more detail about who can retire and when, and also gave an example of a retirement table

As for early retirement , the age limit for early retirement payments will not be raised. In 2020, the retirement ages will be 50 and 45 years. For different jobs - and different insurance, special experience - this age will be different. Read our article about when people will be able to retire early.

Despite the fact that the age for early retirement was not raised in 2019, such a condition is provided for the assignment of this benefit. If a citizen has 2 years or less left before retirement, he can apply for an early retirement pension six months earlier.

Will there be a second indexation of pensions?

When discussing the issue of increasing pension payments, there were rumors that a second indexation of pensions was expected in 2020. The text of the law states that the government does not provide for a second indexation of pensions for non-working pensioners. Citizens were misled by the gradual increase in social, state, military pensions and various additional payments.

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Increasing social benefits

On February 1, 2020, it is planned to increase the amount of some social benefits, additional payments and compensations by 3.4%. There are a number of payments, the indexation of which, according to Russian legislation, is made once a year and depends on the actual increase in prices for goods and services:

• EDV received by Heroes of the USSR and Russia, war veterans, Chernobyl victims, families with children;
• funeral allowance;
• for temporary disability;
• on unemployment;
• set of social services.

State and social pensions

On April 1, 2020, legislation plans to increase state pension payments paid by the state from the federal budget to certain categories of citizens:

1. The state pension for long service is awarded to federal civil servants, cosmonauts, and test pilots.
2. State old age pension is awarded to victims of man-made disasters.
3. State disability benefits are intended to compensate for damage to health caused during military service as a result of radiation and man-made disasters caused by disability.
4. The state survivor's pension is awarded to disabled family members of deceased military personnel, astronauts, and persons who participated in eliminating the consequences of man-made and radiation disasters.
5. Social pensions are calculated as assistance to low-income Russians in the absence of other sources of income.

The social pension indexation coefficient is 2.4. After the increase, this monthly payment will reach 5304.57 rubles. This is much less than the cost of living. To avoid violation of the law, the Pension Fund of the Russian Federation will make an additional payment to all recipients of social pensions up to the regional subsistence level.

In 2020, the average social pension in Russia will be 9,215 rubles.

Indexation of insurance and social pensions in Russia - indexation calendar for 2020

Planned indexations for 2020 for all categories of pensioners are being considered by the Government. The project has not yet been approved, but it is already clear that next year it is planned to carry out several indexations of pension payments, which are carried out annually. These include the indexation of pensions: insurance - in February, social - in April, for working citizens - in August.

In 2020, this scheme was slightly adjusted. Insurance pensions were raised not in February, but on January 1. In 2020 the situation will repeat.

Let's list how - and by how much - pensions will rise.

Thus, the country’s budget includes an increase in pensions in 2019 by 7.05%. And in 2020 and 2021, indexation of pension benefits is planned to be carried out at 6.6% and 6.3%. How will pension payments change? Most likely, they will increase, but not by much.

As for indexation for working pensioners, there will be no indexation in 2019. But there will be an annual recalculation. Read about the latest news for working pensioners in this article

Indexation of pensions in 2020

Indexation in 2020 in Russia for those who are already retired will be carried out with significant changes compared to previous years.

According to the Government’s plans, instead of the usual annual increase in pensions for non-working pensioners from February 1 by the amount of inflation, in 2020 it is planned to carry out indexation from January 1 by an amount exceeding the inflation rate - by 7.05%.

As a result of this, the Government plans to increase the monthly incomes of non-working pensioners in 2020 by an average of 1,000 rubles (that is, in total for the year the total increase will be 12,000 rubles).

Indexation of pensions in 2020, who will get a raise

The increase in pensions from 2020 by an average of 1 thousand rubles will be carried out using an indexation mechanism, so the increase will affect only non-working pensioners, the press service of the Ministry of Labor told reporters.

It is planned to increase monthly insurance pensions by an average of 1 thousand rubles in 2020 through indexation of pensions. This means that the increase in pensions will affect non-working pensioners,” the report says.

Earlier, Deputy Prime Minister of the Russian Federation Tatyana Golikova said that on average per year the income of non-working pensioners after raising the retirement age from 2020 will increase by about 12 thousand rubles. Golikova’s secretariat explained that from 2020, on average, citizens’ pensions will increase by 1 thousand rubles, and every month a citizen will receive an amount of 1 thousand rubles more than a year earlier.

If in 2020 a citizen received a pension in the amount of 14 thousand rubles, then in 2020, taking into account the indexation schedule, it will be 15 thousand rubles. Thus, the additional annual pension income will increase by 12 thousand rubles for a non-working pensioner, depending on the length of service and insurance premiums paid.

New approach to increasing pensions, by how much

If until recently the increase in pensions for non-working pensioners occurred by an amount not less than the inflation rate, then in 2019 the Government will change the traditional approach to increasing pensions, since the total amount of the increase will exceed the level of growth in consumer prices. The procedure itself will be implemented in 2 stages:

From February 1, 2019, indexation will take place taking into account the inflation rate for the past year. According to preliminary forecasts, inflation for 2020 is estimated at 2.9-3.1%. This means that from February 1, the increase will be about 3% or 432 rubles. with an average pension payment of 14,414 rubles.

From April 1, 2019, additional indexation will take place, the amount of which depends on the income of the Russian Pension Fund (it is carried out only if the required amount of funds is available in the Pension Fund budget). For 2020, the release of additional funds that can be used for additional indexation of payments to pensioners will appear thanks to the new pension reform, or rather the increase in the retirement age. If we take into account the increase announced by the Government for 2020 by a total of 7%, it turns out that from April 1 they will increase by another 4% or by 568 rubles. in monetary terms, subject to receiving the national average pension provision in 2020.

On a note

According to Anton Siluanov, head of the Ministry of Finance, the expected increase in VAT to 20% in 2020 (compared to the current 18%) could lead to an increase in inflation to 4.5%. In this case, the February increase will be on average 640 rubles, and the April increase will be only 360 rubles.

The government plans to maintain the given rate (2 times higher than inflation) for at least the next 5 years. In this case, by 2024, Russians will receive pension payments of an average of 20,000 rubles, that is, they will increase by 35% compared to 2020!

According to Tatyana Golikova, Deputy Prime Minister of the Russian Federation for Social Policy, the average increase in payments to pensioners in 2019 will be 1,000 rubles. monthly or 12,000 rub. in just a year. If the planned 7 percent increase is implemented, in 2019 the amount of the average insurance pension in the country will be 15,423 rubles. (for comparison, for 2020 it is 14,414 rubles).

Such a significant increase in benefits compared to previous years was achieved primarily due to budget savings associated with raising the retirement age.

Pension payments to working pensioners, latest news

Golikova previously reported that this package of changes to the pension system does not include indexation of payments to working pensioners.

The law on the suspension of indexation of pensions for working pensioners came into force in Russia in January 2020. On April 11, 2020, Prime Minister of the Russian Federation Dmitry Medvedev said in the State Duma that the possibility of indexing pensions for working pensioners can be discussed, this issue is not closed. The head of the Cabinet of Ministers admitted that it was decided to abandon indexation “only for economic reasons” because “there was not enough money for it.”

Russian President Vladimir Putin noted during the “Direct Line” on June 7 that the issue of indexation of pensions for working pensioners requires elaboration. In particular, this applies to low-wage specialists. He added that we are talking, among other things, about staff in kindergartens and hospitals.

Later, the Pension Fund of Russia (PFR) reported that pensions of working pensioners are increased annually from August 1, the size of the increase depends on the amount of insurance premiums paid by the employer for the working year. The average increase in pension since August 1, 2020 was 169 rubles. According to the Pension Fund of Russia, as of May 1, 2018, there were about 9 million working pensioners in Russia. Their pensions have not been indexed since 2020.

The fund noted that social payments through the Pension Fund are also indexed to all pensioners, regardless of their employment. Upon completion of the pensioner’s work activity, the pension is increased by all indexations that have been made and is paid taking them into account, even in the event of further employment.

Who will not receive a pension increase in 2020

This package also has its limitations. Even in the summer, before the adoption of the law, the Minister of Social Affairs, Deputy Prime Minister Tatyana Golikova gave very important and comprehensive information regarding the indexation of pensions for working pensioners:

— The announced indexation of labor pensions, which is scheduled for January 1, 2020, does not include an increase in pensions for working pensioners. In other words, if you work, then your pension will not be indexed by 7.05% and you will not receive an increase of 1000 rubles.

Also, those who receive a survivor’s pension or a social pension should not count on this increase, since these categories of citizens were not discussed at meetings in the Government dedicated to the indexation of pension payments.

However, according to data from the Russian Pension Fund, it follows that pensions for working pensioners are increased annually from August 1. It is worth noting that as soon as a pensioner has finished working, he can report this to the Pension Fund and immediately, starting next month, his pension will be re-indexed according to the new rules and the promised increase of 1000 rubles will be credited.

Short

Pensions will be increased twice in 2020 - The insurance part of the pension will be increased on January 1 by 7.05%. The social pension will be increased on April 1 by 2.4%

The average old-age insurance pension in 2019 is RUB 14,185.

The average disability insurance pension in 2019 is RUB 8,791.

The average insurance pension in case of loss of a breadwinner in 2019 is 8,856 rubles.

The average social pension in 2020 is 9,082 rubles.

Average pensions for disabled military personnel and participants in the Great Patriotic War are 30,093 rubles. and 35,615 rub.

The smallest and largest pensions in Russia - Pensioners of Kabardino-Balkaria receive the least - 11,413 rubles. Chukotka pensioners have the most - 25,173 rubles

What kind of pension do Russians dream of ? - Working Russians named the size of their desired pension - 37,300 rubles

How to calculate

Pensioners will be able to calculate the increase in their pension themselves. The formula for calculation is quite simple. To do this, you need to multiply the current payment amount by 0.0705 (indexation by 7.05%).

The Russian Pension Fund posted the instructions on its website. Specific examples are also given. Thus, a non-working citizen receives 13,817 rubles in old age. We multiply this amount by the number above - we get an increase of 974 rubles. We add both values ​​and get a pension in 2020 - 14,791 rubles.

The size of the pension increase in 2020 - who will not be able to receive an increase of 1000 rubles?

In Russia, most citizens understand that not everyone will be able to receive an increase in their pension benefit of 1 thousand rubles. This is literally influenced by the adopted legislation and the average pension size.

So that you understand what we are talking about, we will give examples.

Example 1. A citizen will receive an increase of 1,000 rubles to his pension

Petrov receives a pension of 14,000 rubles every month. In 2020, he will receive an increase in his pension of 1,050 rubles, since the amount will be indexed by 7.5%.

Example 2. A citizen will not be able to receive an increase of 1,000 rubles

Ivanov receives a monthly pension payment of 12,400 rubles. His benefit will be indexed at 7.5%. Thus, he will receive an increase of 930 rubles.

And if we take the pension that residents of rural areas receive - approximately 10,000 rubles, then they will receive an increase of 705 rubles.

We can conclude that not all citizens of the Russian Federation will receive an increase of the promised 1 thousand rubles.

For the increase to be equal to 1,000 rubles, the citizen’s pension must be at least 13,334 rubles. If this size is smaller, then the increase will be smaller.

Pension increase in 2020

The Russian Pension Fund has decided to index pensions and benefits in stages. Already on January 1, 2020, payments were raised by 7.05%, which is more than the inflation rate. It affected insurance pensions for old age, length of service or disability of non-working pensioners.

The February indexation with a coefficient of 3.4 will affect single cash payments: for example, funeral benefits. In April, an increase in social and government payments of 2.4% will be introduced. Payments to working pensioners will be reviewed in August. In October, military pensions will increase by almost 6%, but not all of them: indexation of the second pension for military pensioners is not provided.

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Who is entitled to a double bonus from January 1

In January, the fixed supplement to the old-age and disability insurance pension was increased. After indexation, it became 5334.19 rubles. The pension supplement for rural residents will increase by 25% from 2020. The size of the payment, previously called the basic one, does not depend on the amount of insurance contributions; it is assigned by the state in accordance with its type and category of pensioners. The increased bonus is received by:

1. Persons over 80 years old, disabled people of group I.
2. Russians with dependent disabled family members.
3. People who have worked in the Far North and equivalent regions for more than 15 years, with insurance experience for men of at least 25 years, for women more than 20 years, regardless of place of residence.
4. Resident of a rural area, who devoted more than thirty years to agriculture, at the time of retirement, did not work, were not engaged in entrepreneurship.

Assigning a pension using an electronic book

The new bill will be considered in 2020. It concerns the registration of pension payments using electronic books . All information about a citizen’s work activity will be entered into the Pension Fund of Russia database in electronic form, which will significantly improve the work of fund specialists and eliminate possible errors.

The law is planned to come into force in 2020 if approved by the Ministry of Labor.

The bill will affect more than 4.5 million organizations in Russia.

Indexation of pensions for non-working pensioners in 2020

In fact, the indexation of pensions according to the new principle was included in the Law on Raising the Retirement Age itself. The provision on this was contained in an amendment to it. Funds for increasing pensions in 2020 were included in the Pension Fund budget in advance. The term of traditional indexation and its size have been changed. Pensions were indexed from January 1, the increase was 7.05%.

Previous indexation legislation provided for the following:

• The annual increase in pension was made on February 1 after calculating last year's inflation. The pension coefficient and fixed payment were indexed. The purpose of indexation is to compensate for inflationary price increases.
• Additional indexation could have been carried out on August 1 at the initiative of the Pension Fund, if the fund had additional funds for this. It should be noted that this has never happened. Additional annual indexation remained a potential possibility throughout the existence of the legal norm. However, this norm has not been abolished, so pensioners still have hope that the Pension Fund’s income will allow them to index pensions a second time a year.

As for the percentage of increase, it certainly exceeded the percentage of inflation. In 2020, inflation was 4.3%. Increase in pension – 7.05%.

The notorious promised 1000 rubles were awarded only to non-working pensioners. For working pensioners, indexation has been frozen since 2016. There are no plans to defrost it this year.

The level of awareness of pensioners will increase and the financial responsibility of the Pension Fund will appear

A number of amendments will be made to the federal law “On Insurance Pensions” next year. Innovations will be introduced into the work of the Pension Fund of the Russian Federation.

Let's look at what they plan to introduce:

1. Providing a written calculation of the accrued pension. Now this information can be obtained by submitting a request to the fund. Soon it will be possible to obtain data by contacting a Pension Fund specialist directly. Failure to comply with the request will result in liability and appropriate penalties.
2. Notification of pensioners about changes in pension amounts. If this is really the case, then information about why the pension has increased or decreased will be reported in writing.
3. Financial liability for violations in the calculation of pensions or violations of the payment procedure.
4. Conducting recalculation of uncollected amounts. Pensioners are now seeking recalculation of the lost amounts through the court, and it will be possible to contact the fund’s branch, where specialists will carry out the recalculation. It is planned to index the lost pension to inflation.
5. Compensation for moral damage caused to a pensioner. This will be possible in case of violations of property rights.

Experts believe that, thanks to these innovations, the Pension Fund of Russia will become closer to the people.

What will happen to pensions for disabled people of groups 1, 2, 3 in 2020?

Disability pensions will not increase in 2020. So far the Government has not said anything about this. But Russians understand that the state budget does not have enough funds to carry out indexation of pensions for disabled people.

Today, disabled people receive the following pension amounts:

• RUB 2,577 - 1 group.
• 5240 rub. - 2nd group.
• 4454 rub. - 3rd group.

It is possible that the indexation of pensions for disabled people in 2020 will be carried out on a general basis: that is, benefits will be multiplied only by the inflation factor - and no more.

Let us note that the amount of a disability pension today directly depends on the amount of the subsistence minimum - which, albeit slightly, is growing.

Pension indexation in 2020: social payments

The social pension will be indexed in accordance with the increase in the cost of living over the past year from the calculated one. In 2020, the government will increase the social pension by 2.4 percent. As a result, in 2020 the size of the social pension will be 9,215 rubles. The size of the increase in years 20 and 21 will be calculated based on the results of the increase in the cost of living. The social pension is assigned to disabled people of groups 1, 2, 3, disabled children and disabled children.

State pensions for disabled people may become automatic

Increased pension if there are dependents - amount of payment and who is entitled to?

In October 2020, the Pension Fund announced who could receive an increased pension. These citizens include pensioners who have dependent disabled relatives.

Often these are retired parents whose children study at universities and do not have the opportunity to find a job.

Disabled family members may include not only children, but also brothers, sisters or grandchildren who have not reached the age of 18, or who are studying full-time in accredited educational institutions until the age of 23.

The increased payment can be established for a maximum of three family members.

It is known that if a pensioner is dependent on:

• One person, then the amount will be 6,643.87 rubles.
• Two, then 8,304.84 rubles.
• Three, then 9,965.81 rubles.

Those who continue to work can also count on increased pension payments. Read about increasing coefficients for such citizens in pension calculations in this article

Who is scheduled to receive a 1,000 ruble increase in their pension in 2020? per month?

The law on raising the retirement age affected the interests of pensioners receiving an insurance (formerly called labor) pension. That is, those to whom payments were assigned not only because of old age, but also for many years of work experience, accompanied by the payment of appropriate contributions to the Pension Fund. Accordingly, the amendment regulating the increase also does not apply to all categories of pensioners, but only to:

• People receiving insurance pensions and not working. That is, those who currently do not increase their work experience and do not pay further contributions to the Pension Fund.
• Those who receive survivor's insurance pensions. That is, mainly for family members of military personnel and security forces who died in the line of duty.

According to the Ministry of Labor, thanks to the increase in the general retirement age, these categories will be able to receive an average of 12,000 rubles per year more. They will be affected by the increase in pensions by 1,000 rubles per month.

By the way, if the size of their pension is higher than the average, they will add even more than 1000 rubles to it. Since the specific amount of the increase is 7.05% of the actual pension payments that the person receives. So, although the voices of those who were disappointed with the promised increase, since it did not reach a thousand, can be heard, many pensioners in 2020 actually began to receive significantly more every month.

The special increase does not apply to recipients of the social minimum wage. The social old-age pension (due to insufficient work experience) is in no way connected with the social insurance system. Consequently, no additional budget funds were allocated to increase it. The traditional indexation took place on April 1, and was associated with a change in the cost of living for pensioners. The increase in social pension in 2019 was approximately 2.5%.

Working pensioners also did not receive an increase.

Military pensions will increase by 6.3%

From October 1, 2020, the pay of military personnel and persons equivalent to them will increase by 4.3%, and military pensions will also be further indexed by another 2% from October 1 next year.

Thus, the overall increase in military pensions will be 6.3%.

The President of Russia stated this at a meeting ceremony with senior officers and prosecutors on the occasion of their appointment to higher positions, assignment of higher (special) military ranks and class ranks.

In connection with the innovations, the President of the Russian Federation instructed the Government to provide appropriate funds in the draft federal budget for 2019-2021, and asked parliamentarians to support the necessary amendments.

A new system of non-state pension provision will appear

In 2020, a project will be developed for a non-state pension system for Russian citizens. This will mean individual pension capital, which Russians will accumulate during their working lives.

It will turn out that citizens will have the opportunity to form their future pension using personal funds. They will be able to independently deduct a certain percentage of their income - or a certain amount - to the account of a non-state pension fund, which will subsequently pay pension benefits.

You can find out more about the new individual pension capital system in our article.

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