What changes will happen to military pensions?
You can learn that pensions will be canceled for everyone starting in 2020 from citizens who are serving in the military. However, in reality this statement is wrong. Employees of the Ministry of Finance, after studying the procedure for calculating payments for the group of people in question, planned to reduce the amount of support for the military.
Currently, this issue is only being discussed. No affirmative decision was made on it. They want to cancel payments to security forces due to the fact that they can retire on preferential terms, which makes it possible to continue working in civilian professions.
Often, when introducing new rules in Russia, authorities are based on what provisions apply in other states. A number of countries do not provide pensions for military personnel.
In 2020, military personnel can receive benefits without indexation . The increase is planned to take place only in October. The last time the amounts for such citizens increased was in 2019.
The prospect of pension reform for military personnel
Experts said that if military pensions are abolished in Russia, this will significantly reduce treasury expenses. On average, savings will be about 750,000,000,000 rubles.
In this case there are also negative points:
- the authority of military service will decrease;
- a crisis in personnel selection for work in law enforcement agencies will begin.
For these reasons, they still cannot clearly decide whether benefits for military personnel will be canceled or not.
Will there be a complete abolition of military pensions?
Even today, the economic situation in the country is unstable. In this regard, some benefits are eliminated or frozen. This makes us think that the military pension may also be eliminated.
If this does happen, the military will not be able to choose between civilian work and living on pension payments.
The money will be transferred to the military one-time, so the person will still have to find something. This is the only way he can survive.
In case of cancellation of the pension, the military man will be given the opportunity to retrain and acquire another specialty for free.
Many military personnel choose the path of teaching after finishing their career. They pass on their experience and knowledge to the younger generation. But we should not forget that it is very difficult to adapt to civilian life when so many years have been devoted to defending the Motherland.
Now imagine a military man getting used to ordinary life. And at the same time, he still needs to look for a job in a completely different field. It's doubly hard.
Changes for working military retirees
Military personnel are paid an appropriate allowance based on their length of service. This category of citizens is also endowed with the right to continue working after retirement. In this case, the pension continues to accrue .
In order to save the federal budget, government officials decide whether they will pay benefits to working pensioners.
Insurance benefits for the military
A citizen who has served in the military can count on 2 types of pensions.
Including:
- by length of service;
- insurance
In the latter case, funds are allocated by the Pension Fund. The registration process requires the provision of data regarding the length of service. This includes time of service in the unit and work in civilian professions.
As of 2020, such payments can be received upon reaching 56.5 years of age for a female representative and 61.5 years for a male representative. Sometimes a well-deserved vacation is granted ahead of schedule. This applies to those who work in hazardous industries or in the Far North.
How is an insurance pension assigned to a military man?
To register insurance contributions, a citizen is required to have a minimum length of service. In 2020, the figure is 10 years. This period includes the time when the person worked officially. It is necessary for the citizen to make contributions to the Pension Fund.
If the specified conditions are met, then the person has the right to apply to the pension authorities. This is needed to apply for benefits. You should visit the FIU at the citizen’s place of residence. It is also possible to send documentation through multifunctional centers.
Two pensions at once
For employees of the Ministry of Internal Affairs, a combination of two pensions is provided - an insurance pension and a long-service pension. By increasing the length of service for employees of the Ministry of Internal Affairs, the state intends to reduce the number of recipients of this pension, and therefore save money in the budget. Future retirees must meet other requirements.
To receive a social pension, you must work at least 12.5 years as a military personnel. In this case, the total experience must be at least 25 years.
Military personnel have the right to receive two pensions at once
What awaits citizens who have retired?
The abolition of pensions for working pensioners, as well as for non-working retired security forces, is not envisaged. If a person has reached the age of 65, then no one will send him to work.
When considering whether reform is planned to eliminate military benefits, it is important to note that there are currently no jobs designated for this category. In addition, government agencies have not created conditions for social adaptation.
Federal Law No. 76 of 1998 “On the status of military personnel” provides that the main factor for military retirement is length of service. Currently, this indicator should be at least 20 years.
In addition, pension provision is guaranteed to those who have reached the age of 45 and have at least 25 years of service in the military.
Military personnel receiving a long-service pension
According to the head of the Ministry of Finance of the Russian Federation, Anton Siluanov, due to the difficult demographic, economic, and political situation in the country, the pension conditions of military personnel must be transformed. The politician stated this at a press conference. Funding for most social programs is being reduced, and staffing is being cut in many government areas. Therefore, it is necessary to reform the military sphere as well.
The official said that the following proposals are already being considered in joint work by the Ministry of Finance and the Ministry of Defense:
- on increasing the length of service from 20 to 25;
- on providing monetary benefits to military personnel forced to end their careers earlier than the deadline established by law;
- on maintaining old settings until January 1, 2023;
- on adjusting the age for military retirement.
Deputy Prime Minister of the Russian Federation T. Golikova stated that in 2020 everything will remain as before, there will be no changes for security forces in the issue of formations and registration of pension benefits.
The conditions under which a law enforcement officer can retire are currently spelled out in the regulatory document “On the Status of Military Personnel.” In accordance with the legislative act, a military man can become a pensioner after serving at least 20 full years from the date of his registration in the ranks of the army, the National Guard or another law enforcement unit.
Expert opinions on the abolition of military pensions
Speaking about whether benefits for security forces will be abolished from 2020, it is important to note that expert opinions on this issue are divided. Many supported the idea of depriving military personnel of pension benefits.
Proponents of abolition point out that upon retirement, a significant amount is paid to the military. They propose to develop a law according to which a military personnel discharged from the reserve will be able to receive an education and work in a civilian profession, if there is such a need.
This is especially true for those who leave the service at an early age.
Will military pensions be abolished?
Whether military personnel will be deprived of pension benefits depends on how long the instability in the economic situation continues. If such a period drags on, politicians can put into effect all the laws that are currently being discussed.
Speaking from the point of view of financial security, one-time payments cannot be compared with monthly security.
Soon after deprivation of military benefits, the following consequences will appear:
- a one-time payment will not provide a decent standard of living for a citizen over a long period of time;
- the absence of social adaptation programs will affect the fact that former military personnel will be left without means of subsistence;
- there will be a decline in the authority of military service.
For these reasons, it is impossible to say for sure whether pension payments will be canceled soon or not.
The value of the reduction factor for military pensions
The calculation of benefits for military personnel is based on the magnitude of reduction factors. The use of this concept is associated with 2012. Since that time, the indicator has been 54%. This means that the pension cannot be more than 54% of the salary received by the military.
The last time this ratio increased was in 2020. The value became equal to 72.23%.
It is planned to increase this indicator in October 2020. Due to the changes, the coefficient will be 73.68%.
They are trying to deprive the military of preferential pensions
Against the backdrop of heated debate in society about the upcoming increase in the retirement age of Russians, more and more rumors are appearing about the upcoming reform for military pensioners. Several versions are being considered - from a serious increase in the retirement age to replacing the military pension with a one-time payment. “Our Version” found out how true these rumors are.
Subject: Army
Pension reform for military personnel is being developed by the Financial Research Institute, subordinate to the Ministry of Finance. Changes are being proposed for the security forces that, without any stretch of the imagination, can be called radical. Instead of paying long-service pensions, those dismissed may be offered... a one-time social payment. The amount of this payment is unknown. Retirees are offered a pension, like other citizens, after reaching retirement age. According to experts, if the proposal is accepted, the military will practically lose their main benefit.
The military was asked to switch to self-sufficiency
The developers of the reform believe that the skills acquired in the service will help former military personnel quickly find decent, well-paid jobs and become self-sufficient. However, according to experts, the military's ability to adapt to civilian life after service is clearly exaggerated. Not every officer continues to work after being transferred to the reserve. And it’s not just a matter of reluctance - some of them cannot work for health reasons. According to the developers of the reform, the main goal is to make the social package for military personnel more targeted, taking into account the retiree’s opportunity and desire to start a civilian career, and also more fully taking into account the financial situation of his family. A good severance package will be especially attractive to those who leave military service at a relatively young age and decide to pursue a career in the civilian world. This does not take into account the risks that young and promising officers will quit at the first opportunity, which will lead to personnel turnover in the troops.
The idea of pension reform is also questionable because it is proposed to compensate only a small part of the pension, with nothing else shining in return. By the way, let us remind you that the state is still encouraging military pensioners not to sit idly by after dismissal. Those who continue to work after entering the reserve receive the right to a civil pension, which becomes additional to the military one. It is paid through the Russian Pension Fund upon reaching the state-established retirement age and the minimum required work experience, which in 2020 was eight years and will increase by one year to 15 years by 2024.
Budget savings from the reform of the military pension system could amount to 500–700 billion rubles per year. Therefore, many experts are confident that due to the difficult economic situation, changes in the calculation of military pensions may occur as early as 2018
It should be noted that now a military pension is assigned to military personnel who, on the day of dismissal, have served in the law enforcement agencies for 20 years or more. In addition, those dismissed upon reaching the age limit, health conditions or in connection with organizational and staffing events and who have reached the age of 45 on the day of dismissal can count on it. To do this, you must have a total work experience of more than 25 years, of which at least 12 years and 6 months are service in law enforcement agencies. The average pension for military pensioners ranges from 20 to 30 thousand rubles. Today it turns out that in the period from 45 years, when military personnel generally retire, to 60 years, when they become entitled to a regular pension, the average military man receives about 5 million rubles. It turns out that the lump sum payment proposed by the reform project should be approximately this amount, which is very doubtful.
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Vasily ZATSEPIN, head of the laboratory of military economics at the Gaidar Institute of Economic Policy:
– The government has been receiving proposals for reforming the pension system for military personnel for several years. There were both hard and soft options, but they were abandoned. Probably, this time too there will be no special changes and cosmetic changes will be carried out. It is possible that the length of service required to receive a pension will be increased, most likely from 20 to 25 years.
It should be noted that fulfilling obligations to military pensioners is indeed a serious financial burden for the state today. And here you can save serious money. To do this, it is necessary to clearly define who is a military pensioner and who is not. According to the Ministry of Defense, in 2020 there were about 900 thousand pensioners in the military department (while the number of military pensioners of all law enforcement agencies is approaching somewhere around 10-12 million - editor's note). So it is necessary to more clearly define in the law who is a military pensioner, and this will solve the problem with military pensions.
The abolition of military pensions will lead to a social explosion
The current Russian scheme, when a military pension is assigned immediately upon dismissal from the Armed Forces with a certain length of service, but without reference to the serviceman’s age, is not common in other armies of the world. But the severance pay scheme does not apply there either. At the same time, according to preliminary calculations, after such a reform, budget savings could amount to 500–700 billion rubles per year. Therefore, many experts are confident that due to the difficult economic situation, changes in the calculation of military pensions may occur as early as 2020.
Opinions on the methods of reforming the military pension system are diametrically divided. According to some, military retirement in 2020 will be no different from previous years - the accrual procedure, as well as other important points, will remain the same. Indeed, the official position of the state on the issue of pension formation remains unchanged at the moment. It should be noted that recently conversations regarding changes in the pension sector remain just conversations - no laws on this issue have been adopted in recent years.
There are also opinions that although the reform of the military pension is inevitable, it will definitely not take place simultaneously with an increase in the retirement age: this will create the preconditions for a social explosion. Therefore, the decision on the retirement age for military pensioners may be postponed for several years until the majority of the population gets used to the new retirement age. At the same time, only future pensioners will be subject to the reform; those who are already receiving a pension will not be affected by the changes.
Experts are skeptical about the latest proposals to reform military pensions, but admit that changes cannot be avoided. The military budget today is focused exclusively on rearmament of the army, and the state is looking for ways to find additional resources. The easiest way to take money is from military pensioners. The process of cutting benefits may slow down only because other law enforcement agencies are also interested in preserving military pensions. After all, pension reform concerns not only military personnel, but also law enforcement officers, penal system agencies, security and foreign intelligence services, fire departments, as well as investigators, prosecutors, etc.
These law enforcement agencies individually, and even more so collectively, have considerable weight and will certainly use powerful administrative resources to preserve pensions. However, it will most likely not be possible to completely maintain the current conditions for their appointment. The complete abolition of pensions for military personnel is, of course, a completely extreme option; A certain compromise will probably be found, and as a result a balanced decision will be made that can find understanding among the employees and management of all law enforcement agencies.
BY THE WAY
The economy cannot be fooled; in practice, the situation of military pensioners is already worsening every year due to the freezing of pension indexation. This indicator is the most important condition for ensuring a normal standard of living for people. But due to the financial crisis, the authorities cannot offer retired military personnel serious promotions. Only at the beginning of 2020 did the government decide that military pensions should be increased by 4%. However, further increases will have to wait a long time. The next one is planned only for October 2019.
After that, retired employees will have to wait another year before their next promotion. Each of the planned revisions should increase the size of the military pension by 4%.
Consequences of the abolition of pensions for military personnel
Speaking about the year in which the funded part of the pension was abolished, it is important to take into account that changes in this direction affected not only those who are serving in military service. Savings have been suspended since 2015.
At present, it is difficult to talk about the scale that the military pension reform will bring, since it is impossible to predict the reaction of citizens. All that can be said is that the adoption of such a law will reduce the authority of military service.
Thus, the abolition of military pensions will have a beneficial effect on the country's budget. Moreover, the result of these innovations will not only be positive. A negative point will be a decrease in the authority of authorities.
Are they eligible to receive a second one?
After citizens reach the retirement age established by the legislation of the Russian Federation (55 years for women and 60 for men), former military personnel have the right to apply for a second benefit - old-age insurance.
But in order to receive such payments, you must have civilian experience that is not included in the military pension provision.
In 2020, the minimum length of service to receive an insurance pension is 9 years, and increases every year. By 2025, 15 years of civilian experience will be required.
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The amount of the second security is directly dependent on the amount of wages and insurance contributions to the Pension Fund until 2002. However, payments will not be increased if the former military man has dependents.
The calculation of support for military personnel does not include a fixed payment. For this reason, their insurance pension is less than that of ordinary pensioners. But every year, the insurance coverage of the military is indexed and therefore the amount paid increases.
