In 2018, there will be another increase in pensions, a corresponding instruction was given by President V.V. Putin during the next meeting of the commission for regulating social and labor relations. The authorities plan indexation of 3.7%, which is faster than expected inflation rates. However, today there are three types of payments on the territory of the Russian Federation: working and non-working pensioners, as well as social pension. Will they all be revised and to what extent?
The increase is projected to be 3.7%, significantly higher than the expected inflation rate in 2017 (3.2%). The Ministry of Finance is confident that it will be able to fulfill Vladimir Putin’s instructions and carry out synchronous indexing as early as January 1, 2018. As a result, officials expect to increase the level of well-being of pensioners. According to forecasts, the average increase in payments will reach 400 rubles. and from 01/01/2018, the so-called “old-age pension” will be fixed at the amount of 14,045 rubles. (today the amount is 13,657 thousand rubles).
Previously, the authorities planned an increase of 4%, but a significant slowdown in inflation rates made it possible to reduce the scale of indexation. In 2017, the total increase was almost one and a half times higher - 5.4% in February and 0.4% in April. However, many were left without the expected increase, since the government refused to index payments for working pensioners.
The next review is scheduled for April 2018, and it will coincide with increases in survivor pensions, military pensions and other social payments. In general, the Ministry of Labor claims that a strategy has already been developed gradual increase the size of pensions and by 2030 they will amount to several subsistence minimums.
For working pensioners
Previously, the government considered the possibility of resuming the indexation of payments for pensioners who continue to work. However, the Ministry of Finance rejected this initiative. The economic crisis was reflected in a decrease in budget revenues and, as a result, the government was forced to limit existing expenses by imposing a moratorium on increasing payments to working pensioners. Thus, about 14 million citizens were left without an annual increase.
The head of the Ministry of Finance, Anton Siluanov, emphasizes that this category of citizens has the main source of income - wages, from which employers transfer monthly insurance contributions. Most analysts consider this approach not entirely fair, because even taking into account indexation, citizens’ incomes remain low, which forces them to look for additional income. Perhaps this is why, according to the Ministry of Labor, in August 2018 a slight increase in the pensions of working pensioners will still occur. However, there is no need to delude yourself. The increase will depend on the amount of taxes paid by the employer this year and maximum size it will be equal to 3 points.
Attention! In 2017, 1 point is equal to 78.58 rubles, and in 2018 – 81.49 rubles. Accordingly, the maximum increase will be 244.50 rubles.
Social pensions
In 2018, there will be a simultaneous increase in pensions, including for former military personnel. The corresponding initiative was made by the President of the Russian Federation Vladimir Putin. The head of state notes the improvement in budget indicators, which will allow the authorities to carry out indexation for more than 2.6 million citizens.
The revision of insurance payments depends on the increase in prices over the past year and the size of the IPC (individual pension coefficient), and social payments - on the size of the PMP ().
Indexation in 2018 is scheduled for April 1, representatives of the Ministry of Labor emphasize, and it will amount to + 4.1% of this year’s amounts. In 2017 this is:
The approximate calendar for pension revision in 2018 will look like this:
Despite regular revisions, average pensions in Russia remain low. At the same time, the PFR budget remains deficit, which does not allow officials to use more significant allowances.
Despite the increase
Last news on raising pensions in 2018, supported by the Russian government and Vladimir Putin, will not be able to change the negative dynamics. According to the forecasts of the Ministry of Economic Development, real payments will be reduced, which will negatively affect the well-being of citizens.
Analysts believe that without changing the basic accrual parameters, the authorities will not be able to balance the existing pension model. First of all, it is necessary to move to a gradual increase in the retirement age, which will halve the Pension Fund budget deficit. If the authorities do not take this step, then by 2030 about a third of citizens (32%) will be able to claim a pension, which will create an additional burden on the Pension Fund budget. As a result, the government will be forced to increase budget transfers, which currently reach 4% of GDP.
A gradual increase in the age limit will reduce the Pension Fund budget deficit to 2.2% of GDP, while this measure will have a short-term effect. The government will be able to launch the reform after the end of the elections, experts predict, but to fully solve the problem, a comprehensive approach will be required. For sustainable growth of payments, it is necessary to increase contributions, which cannot be achieved without a significant increase in wages.
Waiting for a salary increase
As part of Vladimir Putin’s May decrees, in 2018 state employees will another promotion salaries. In addition, officials plan to expand this initiative to categories that were not covered by the decree. Wage indexation is planned at 4%, representatives of the Ministry of Labor emphasize.
At the same time, officials plan to significantly increase the minimum wage, which next year will reach 9,489 rubles. As a result, the minimum wage will increase by 21.7%, officials emphasize. The authorities intend to gradually increase the minimum wage until this figure equals the subsistence level.
Next year, doctors' salaries should be twice the regional average. In addition, the salary of the military must correspond to salaries in leading sectors of the economy.
The budget has the necessary resources to increase salaries, the government emphasizes. However, experts are not so optimistic. The increase in budget revenues is associated with an improvement in the external environment. Rising oil prices lead to an increase in export revenue, but the “black gold” market may present an unpleasant surprise. As a result, the implementation of government plans to increase wages and social benefits will be in jeopardy.
Video: Putin on raising pensions in 2018
On January 1, 2018, phased indexation of pensions began. The changes affected labor pensions of non-working pensioners, as well as social and insurance pensions. This year, pensions were indexed by 3.7% not from February 1, as usual, but from January 1, since last year’s inflation rate, which is usually measured at, turned out to be a record low of only 2.5%, and funds had already been allocated to the budget, designed for a higher rate.
According to the Minister of Social Protection Topilin, such early indexation will ensure an increase in real pensions this year. That is, this year pensions are indexed to a value that is higher than the inflation rate, and not equal to it, as in previous years.
Pension increases in 2018: the latest news
- Latest news and changes
- Increasing pensions for disabled people
- Increase in pensions of the Ministry of Internal Affairs
Increase in pensions in 2018. Latest news and changes
Since January 2018, the state began to pay the new kind pensions for “foundling children” whose parents are unknown, which made it possible to equalize their rights to payments with children abandoned by their parents.
Since January 1, pensions have been indexed by 3.7% for non-working pensioners and by 4% for military personnel.
Came into force from the beginning of the year new law on the indexation of pensions for dismissed pensioners. Now, after 3 months, during which the recalculation lasts, the Pension Fund will pay the indexed pension not from the 4th month, but from the first month after dismissal.
On February 1, social payments were indexed by 2.5% and additional payments to civil aviation flight personnel and coal industry workers increased. The additional payment is an independent benefit, calculated using a special formula that takes into account length of service, average monthly salary, contributions to Pension Fund, the average salary in the country. The amount of payments will change every 3 months: May 1, August 1, November 1.
From April 1, it is planned to index social pensions for old age, disability and loss of a breadwinner by 2.9%.
Initially, the budget included funds designed for indexation at 4.1%, but the growth rate living wage among pensioners was much lower.
Since 2018, funds from the federal budget have also been allocated for additional payments to pensioners in order to bring the amount of payments they are entitled to to the level of the subsistence level.
Since 2016, a bill on paying an additional 13 pensions to pensioners has been actively discussed, but the majority of members of the State Duma do not support this idea and propose to increase existing pensions instead.
Pension increase from January 1, 2018
From January 1, pensions for non-working pensioners were indexed. The labor (insurance) pension consists of 2 parts: fixed and insurance.
Fixed is the amount that the state undertakes to pay in any case. The insurance is made up of points accumulated during work. The point has a specific value.
As a result of indexation by 3.7%, the cost of one pension point increased from 78.58 rubles to 81.49 rubles.
The insurance pension is divided into several subtypes:
- old age;
- on disability;
- for the loss of a breadwinner.
The size of the fixed part of the payment as a result of indexation was:
- 4982 rubles - old-age pension and for disabled people of group 2;
- 9965 rubles - pension for disabled people of group 1;
- 2491 - survivor's pension and for disabled people of group 3.
Increase in social benefits for pensions from February 1
On February 1, social payments were traditionally indexed. They are paid to the following categories of citizens:
- disabled people of groups 1, 2, 3;
- military veterans;
- WWII participants;
- heroes of Russia;
- residents of besieged Leningrad;
- former concentration camp prisoners;
- heroes of the USSR and the Russian Federation;
- liquidators of the Chernobyl accident;
- family members of fallen soldiers.
Social benefits consist of monthly cash payments, funeral benefits, and a certain set of social services. Social services are understood as: payment for travel, sanatorium treatment, provision of free medicines or their payment. Social services can be received in kind or in monetary terms. The amount of social benefits on February 1 was indexed by 2.5%, respectively, payments are:
- 5701 rubles - funeral benefit;
- 1075 rubles is the monetary equivalent of a set of social services.
Size monthly payments for each individual category of citizens has its own meaning.
Will there be 2 indexation on April 1
On April 1, a planned indexation of social pensions, not labor pensions, is planned. Social pensions do not depend on last year’s inflation level, but are calculated based on the current price level and the cost of living. The social pension is due to those who have no work experience and cannot receive labor pension. Such a pension, like an insurance pension, is divided into several subtypes:
- old age;
- on disability;
- for the loss of a breadwinner.
Pension indexation will be carried out by 2.9%, since this is exactly what the actual growth rate of the living wage of pensioners turned out to be. last year. Thus, the following pension values are expected depending on the category of citizens:
- 13,410 rubles - pension for disabled children;
- 13,556 rubles - pension for disabled children;
- 12,688 rubles - disability pension for conscripts;
- 10,746 rubles - survivor's pension for the families of conscripts.
According to the law, the social pension cannot be lower than the subsistence level in the region, so if after calculations the value turns out to be less, then additional payments are assigned.
Indexation of pensions for working pensioners
Back in 2016, the increase in insurance payments for those pensioners who continue to work was suspended. In 2018, this rule is still in effect and their pensions were not indexed in January. According to the Ministry of Finance, working pensioners are in unequal conditions with non-working ones due to the fact that their financial situation can be significantly improved through wages.
However, on August 1, 2018, there will be another annual non-declaration recalculation, for which you do not need to contact the pension fund. The employer independently transfers the employee’s data to the Pension Fund and the pension increases by the number of points earned in the past year. The only limitation is that the increase can be no more than 3 points per year.
Indexation of pension after dismissal
On January 1, 2018, a new law came into force that changes the procedure for indexing pensions after dismissal. In the previous 2 years, 3 months passed after dismissal, for which the reporting was first received by the Pension Fund of the Russian Federation, then reviewed there, and only then the pension was recalculated, taking into account all the indexations that took place during this time. The increased pension was paid starting from 4 months after dismissal, and the preceding months were lost. Now, purely technically, the recalculation procedure will also take 3 months, but pensioners dismissed after January 1, 2018 will also be able to receive an additional payment for the months during which the Pension Fund makes the recalculation.
The pensioner himself does not need to contact the Pension Fund; all reporting is submitted by the employer.
How many points are needed to calculate a labor pension in 2018?
In order to start receiving an insurance (labor) pension in 2018, you must have at least 9 years of experience and 13.8 pension points. These numbers increase every year, and by 2025 the government wants to gradually approach the following values: 15 years of work experience and 30 pension points.
If there is not enough length of service or pension points, a social pension can be assigned, for women from 60 years of age, for men from 65 years of age.
There are also premium coefficients for calculating the insurance pension. If a citizen refuses to receive payments for a period of 1 to 10 years, then his pension may increase significantly. For example, if you refuse payments for a period of 10 years, the size of the fixed part of the payment will increase by 2.1 times, and the amount of the insurance portion will increase by 2.3.
Increasing pensions for disabled people
From April 1, social pensions for disabled people will increase by 2.9% and will be accordingly:
Increase in military pensions from February 1
Every year, according to the law, military pensions and salaries are indexed on February 1. Payment increases have been frozen for several years. In 2018, changes were made to pensions: firstly, they were indexed by 4%, and secondly, this happened not on February 1, but on January 1, along with an increase in insurance pensions.
In addition, an annual increase in the reduction coefficient is provided, according to which pension provision can also be calculated. Usually it increases by 2% and the state plans to increase it to 100%, while now it is 73.23%. This year the reduction factor remained unchanged.
Additional payment to military pensioners of 2,500 rubles in 2018
Since the beginning of 2018, rumors have been actively circulating that the military will be given an additional payment of 2,500 rubles monthly, but the information was only partially confirmed. Firstly, the additional payments will affect only a third of elderly military personnel, and secondly, the amount will depend on rank.
Increase in pensions of the Ministry of Internal Affairs
Indexation of pensions will also affect employees of the Ministry of Internal Affairs. The coefficient by which the pension will increase in 2018 is small, only 4%, but this figure is not yet final.
Since the fall of 2016, the State Duma has been considering a bill on 13 pensions for pensioners of the Ministry of Internal Affairs, but a decision on this issue has not yet been made. According to forecasts, such a bill is likely to be rejected, since the state has already approved the budget for 2018-2020 without taking into account such payments.
How much will a disabled child's pension be?
The social pension for a disabled child in 2018 is 12,082 rubles. Such pensions are received not only by disabled children, but also by adult citizens who have the status of “childhood disabled.” Unlike children, they have 3 disability groups. Benefit amount for each group:
- 1 group - 12082 rubles
- Group 2 - 10068 rubles
- Group 3 - 4279 rubles.
How much will the survivor's pension be?
If a child has lost one or two parents, he is entitled to a survivor's pension.
Its current amount is: 5,240 rubles if one parent died and 10,481 rubles if both. From April 1, 2018, survivor pensions will be indexed by 2.9%.
Families of deceased military personnel can receive a separate type of survivor's pension.
After last indexing in 2017, the amount of social pension is 5034 rubles. At the same time, it can be increased:
- 40% - a military man died from a disease acquired during work;
- 50% - the military man died from injuries during work;
- 150% - the military man died from an illness during his service;
- 200% - died from military trauma.
Increase in pension of 5,000 rubles in 2018
In 2016, due to the unstable economic situation, the government was unable to index pensions to in full, therefore all pensioners were issued lump sum payment 5000 rubles.
In 2017 and 2018, the pension was indexed to values higher than last year’s inflation, so there is no need for such a payment. The budget for 2018 did not include funds for such a payment, so it will not happen.
Raising the retirement age in 2018
In recent years, the issue of increasing the retirement age of the working-age population has been increasingly discussed. This is explained by the fact that, according to surveys, more than half of people who have retired continue to work, which means that in fact they do not yet need pension security so urgently.
In most neighboring countries, the retirement age has already been raised, but in Russia such a decision has not yet been made. As analysts expect, perhaps after the next presidential election this topic will be raised again.
Federal social supplement
Federal social benefits are a type of financial assistance to non-working pensioners whose pension provision is below the subsistence level in the region. According to the law, such additional payment must be regular and made until the pensioner finds a job, or the amount of his total income becomes equal to the subsistence level. Total income refers to all types of pensions, additional payments, compensations and benefits received by him.
Those pensioners who:
- live on the territory of the Russian Federation;
- does not work;
- receive pension benefits below the regional subsistence level.
The size of the social supplement varies depending on the region and the cost of living in it. That is, it is exactly the amount that does not reach the pensioner’s subsistence level.
On December 15, 2017, Dmitry Medvedev signed an order to allocate 7 billion rubles for additional payments to pensioners. At the same time, the funds will be distributed among 13 regions in which pensions for non-working pensioners are below the subsistence level. The list of regions includes:
- Sakhalin;
- Kamchatka;
- Chukotka;
- Komi;
- Yakutia;
- Primorsky Krai;
- Khabarovsk region;
- Arkhangelsk;
- Magadan Region;
- Murmansk region;
- Nenets Autonomous Okrug;
- Jewish Autonomous Region;
- Moscow region.
An example of a federal social supplement. The federal cost of living (LM) for a pensioner in 2018 is 8,726 rubles. The regional cost of living, for example, in Vladimir is less, 8,452 rubles. The pensioner was assigned financial support in the amount of 7,500 rubles. Since the regional minimum wage is lower than the federal one, a federal social benefit is assigned. 8726-7500 =952 rubles.
An example of a regional social supplement. The federal cost of living for a pensioner in 2018 is 8,726 rubles. Regional. for example, in Murmansk it is 12,523 rubles. Payments to a pensioner amount to 10,500 rubles. The value is greater than the federal one, but less than the regional one, so there will be the following additional payment: 12523-10500 = 2023 rubles.
Supplement to pension for those over 80 years old
Pensioners over 80 summer age in 2018, the fixed part of their insurance pension will be increased by 2 times, that is, by 100%. The size of the fixed payment is now 4982 rubles, respectively, the amount doubled will be equal to 10334 rubles.
For pensioners who live in the Far North, the payment increases additionally depending on the coefficient. For those who have worked in the Far North for 15 or 20 years, the payment is additionally increased by 30 or 50% of the already doubled value of the fixed part of the pension.
Such an increase will affect all pensioners of this age with the exception of disabled people of group 1, whose pension is initially 2 times higher.
For pensioners in this old age In addition, a compensation payment is provided to pay for the services of a person who would take care of them, because often older people cannot take care of themselves and they need the help of an outsider. The amount of compensation is 1200 rubles.
Additionally, regions provide their own benefits and social support measures.
After the pensioner turns 80 years old, the pension will be automatically increased starting from the month following the month in which the birthday occurred. The pensioner does not need to go anywhere for this; the Pension Fund will do everything itself.
The pension fund independently calculates the pension after the pensioner reaches the age of 80.
A new type of pension for children whose both parents are unknown
On January 1, 2018, a new type of payments came into force for the so-called “foundling children,” that is, children whose parents are unknown. This measure was taken in order to put abandoned children on the same level as other orphans who can receive pensions. At the moment, the pension amount is 10,068 rubles and is paid monthly. From April 1, 2018, it will be indexed by 2.9% and will already amount to 10,359 rubles.
The state tries to annually index all possible types of pensions for certain categories of citizens, but the budget does not always have funds for this. In some cases, you can get by with federal or regional additional payments, in others, indexation is simply frozen for several years.
In any case, the government is constantly introducing new types of additional payments and compensations that allow pensioners to live at a more or less acceptable level.
Social pensions for working and non-working pensioners in Russia will be indexed from April 1, 2018 and will amount to more than 9 thousand rubles. The Russian Pension Fund spoke about this.“State pension pensions, including social ones, will be increased for working and non-working pensioners by 4.1%. As a result, the average annual social pension will increase to 9,045 rubles,” the pension fund reported.
Note that the amount of 9,045 rubles is equivalent to 103.7% of the minimum subsistence level for a pensioner.
The pension fund also noted that the average social pension for disabled children and people with disabilities since childhood of the first group next year will be 13,699 rubles.
Let us remind you that it became known earlier that spending on social payments in Russia in 2018 will increase to 981 billion rubles.
According to Topilin, indexation of social pensions from April 1, 2018 is planned in the draft budget of the Russian Federation at the level of 4.1%. “Social pensions, nothing changes there [in the indexation mechanism],” the minister said, explaining that indexation will be 4.1%.
At the same time, according to him, indexation is not provided for working pensioners next year. “No, we have not changed the conditions, the moratorium has been maintained,” Topilin added.
Earlier, the press service of the Russian Pension Fund (PFR) reported that the average increase in old-age insurance pensions in 2018 could be about 400 rubles. According to the Pension Fund of Russia, in 2017 the average old-age insurance pension was 13,657 rubles, and in 2018 it could rise to 14,045 rubles.
Indexation of pensions in 2018: who will receive what increase?
Pensions will increase three times, but once each for different categories of pensioners: in January, April and August. For the most part, everything is as usual, but in 2018 there were some changes in the rules for indexing pensions.January. Non-working pensioners
The increase for this category will take place on January 1. The government decided to move the indexation date forward a month - before this, the increase was accrued from February 1. By law, pensions grow at the level of last year's price increase. Therefore, the Pension Fund of the Russian Federation usually waited for Rosstat to finally calculate inflation. And only after that they began to distribute pensions. In 2018 the increase will be faster.
It was decided to index pensions by 3.7% from January 1, 2018. Do this earlier in order to ensure a more significant increase in real pensions next year,” said Minister of Labor and Social Protection Maxim Topilin recently.
The government initially planned an increase of about 4% next year. This was the forecast for current inflation. But the reality turned out to be much more positive. Now, according to recent data from Rosstat, for Last year(since last September) prices have increased by only 3%. Therefore, the Cabinet of Ministers decided not to wait for official figures and immediately budget an increase of 3.7%. In any case, it will be higher than real inflation.
Let us remind you that this year the average old-age insurance pension is 13,657 rubles. Taking into account indexation, in a year it will increase to 14,045 rubles. That is, the average increase will be about 400 rubles.
April. Social pensioners
More than 4 million people receive a social pension in Russia. As a rule, these are disabled people, war veterans, children left without a breadwinner in the family and other beneficiaries, as well as those who have not earned the required length of service. Now the average social pension is 8,742 rubles. From April 1, 2018 it will increase by 4.1%.
For comparison, the average annual social pension for disabled children and group I disabled children since childhood is 13,241 rubles. But there are also those who receive only 5 - 6 thousand rubles. As the Pension Fund of Russia explains, all pensioners (both social and insurance) whose income is below the pensioner’s subsistence level (PL) in their region of residence are entitled to social supplements. They increase the benefit amount to the PMP level.
August. Working pensioners
In total there are 43 million pensioners in Russia. Of these, approximately a third (14 million people) are employed. Pension indexation does not apply to them. Several years ago (after another reform) it was canceled. Working pensioners were given only an increase due to an increase in length of service.
We have not changed the conditions, the moratorium has been maintained,” Maxim Topilin explained recently.
Companies continue to pay insurance premiums for working pensioners. According to the new rules, they are transformed into pension points. One point in 2017 is valued at 78.58 rubles, and next year it will be 81.49 rubles. And the higher the salary, the more points you can earn. But there is a ceiling: the maximum increase in 2018 can be up to three pension points, that is, about 245 rubles, the Pension Fund specified.
For working pensioners, other incentives have appeared - for example, you can postpone retirement voluntarily (or suspend receiving a pension) and then receive an increasing coefficient (the formula is on the Pension Fund website). But very few have taken advantage of this so far.
The latest news suggests that the pension increase for non-working pensioners in 2020 will be made regardless of the region. The news from the Government is very promising.
If you have retired and have no additional income other than payments from the state, you can count on an increase in the near future. For those who want to know how much pensions for non-working pensioners will be increased in 2020, the latest news from the State Duma will be provided full information about upcoming projects.
Decision of the Ministry of Labor on an increase in pensions for non-working pensioners
According to the minister, the Ministry of Labor is doing everything possible to ensure that the growth of pensions of non-working pensioners is faster than the existing inflation. For this purpose, economic growth and state budget reserves are studied.
As of January 1, 2020, you can count on indexing
The increase in pensions for non-working pensioners will be carried out according to the plan.
In the spring and summer, the government plans to index monetary relief two more times. If everything goes well, then pensions will be constantly increased and this will gradually improve the lives of those pensioners who, after going on vacation, were unable or did not want to continue working.
If everything goes well, then the next indexation should be expected in April. The third increase is planned for August 2020.
This will allow senior citizens to new year holidays feel the real concern of the state. Indexation will take place in all regions of the Russian Federation and all beneficiaries will be able to receive an increase in state or private banks at their place of residence.
To receive it you do not need to provide additional documents or certificates. The process will be simplified as much as possible so as not to cause unnecessary worries and misunderstandings.
Recalculation of pensions of non-working pensioners
As the government stated, the recalculation of pensions has already begun, so all pensioners who do not work can rest easy and have no doubt that they will receive indexation and an increase.
All recalculations will be made by employees social service. Senior citizens only need to choose the bank from which they want to receive their money.
Inflation and indexation
The level of indexation depends on inflation. The increase in government payments to people on well-deserved retirement is tied to inflation.
If prices rise faster than indexation, then pensioners will not feel any improvement in their financial condition. For them everything will be the same: high prices and low cash payments. From the very beginning, indexation was set at 3% with an eye to rising inflation. If it increases, then additional indexing is possible.
In reality, they will receive 6.6% more than now. It’s hard to say whether it’s a lot or a little. According to experts, even a minimal increase will allow you to buy more food or medicine.
Amount of pension increase for non-working pensioners
If you have been on vacation for a long time, do not work anywhere, and you are interested in an increase in the pension for non-working pensioners in 2020, the latest news takes basic data on the average old-age insurance pension at the level of 14,500 rubles and states that payments will be increased by 1,000 rubles.
The social pension is much lower and amounts to no more than 9,042 rubles. The planned increase in pensions for non-working pensioners will add an average of 3.8% to each type of payment. This is exactly the amount that all elderly people who do not work but rest after their many years of work can count on.
Note! If your pension is below the minimum subsistence level, then you should take advantage of additional social benefits that are available in the regions.
Be that as it may, the decision on indexation has already been made, it’s only a matter of time before older people receive their increased payments due. The next increase is expected in spring and summer. We hope the process will not stop there and will continue.
Content
Legislative decisions of the Government of the Russian Federation provide for an increase in pension and social payments every year. In December, the Pension Fund (PF) announced the indexation of pension accruals for retired citizens who do not have additional income from work. What will be the real increase in pensions for non-working pensioners in 2018 and when can citizens who have rightfully deserved a vacation be expected to receive such an increase?
What is pension indexation
It is known that pensions are indexed by the Government in order to implement nationwide measures, the purpose of which is to improve the quality of life of Russians and compensate for price increases. When talking about indexation, it is necessary to distinguish this term from the recalculation of pension insurance payments, especially since these concepts are often confused. Indexing affects exclusively non-working pensioners, and recalculation of accruals is provided for working pensioners.
If old man continues to work, receiving a salary; recalculation depends on transfers from his employer. Upon dismissal, all indexations that occurred during his work are taken into account and after 3 months the amount of pension benefits increases by the required coefficients. There is no need to apply for such promotions yourself. The territorial bodies of the Pension Fund independently carry out the calculations.
In discussions about reform, the State Duma believes that working pensioners do not need indexation of insurance coverage, explaining this by a shortage of money in the funded part. As a possible way out of this situation, to replace frozen pension savings NPFs are invited to submit an application for discussion on the implementation of the IPC (individual pension capital) system, which would relieve the burden on the budget and increase provision for everyone.
Average pension in Russia
The average annual pension amount does not depend on the cost of living. According to calculated data from the Pension Fund of Russia, payments to old-age pensioners in 2018 will amount to 14 thousand rubles. on average, while today the pension subsistence minimum is 8,496 rubles. Through indexation, the Government of the country significantly reduces the difference between these indicators. Some older Russians receive benefits below the minimum subsistence level. Such citizens are entitled to special additional payments, which are also regularly indexed simultaneously with labor pensions.
Legal regulation
Supplements for payments to non-working pensioners in 2018 are established in accordance with the main legal documents in this area: the laws “On insurance pensions” No. 400-FZ and “On state social assistance» No. 178-FZ, which provides for an annual increase from February in fixed insurance payments, the pension coefficient and social supplements based on the consumer price increase index of the past year. This amount is set by the Government of the country, and the source of funds is the budget of the Russian Pension Fund.
The cost of the coefficient every year from April is determined by the law on the budget of the Pension Fund of the Russian Federation for the current and next period. To implement indexing in 2018 under a special regime, it was necessary to make changes to this legal area: a law was developed and considered by the State Duma simultaneously with the law on the Pension Fund budget. At the end of 2018, on December 28, the President signed Law No. 420-FZ dated December 28, 2017, which approved the specifics of increasing the insurance pension for the next year. The PF budget for 2018 was adjusted by law dated December 19, 2016 No. 416-FZ.
Increasing pensions for non-working pensioners
According to the new legal norms, indexation is provided for all grounds for assigning insurance pensions - old age or disability, loss of a breadwinner. It will be produced at an accelerated pace, taking into account the excess of expected inflation in 2018. The goal is to provide a more tangible increase in income for non-working pensioners in the new year. At the same time as the indexed insurance part, the cost of the pension coefficient (point) will increase.
The provision of social pensioners will not be left without an increase. This group of people includes disabled people, WWII veterans, separate categories dependents and Russians who were unable to retirement age earn the required number of years of work (insurance) experience. For such categories, legislative changes clarify that the final material support of a pensioner citizen must be no less than for the previous year (taking into account the current year’s social benefits).
The upcoming indexation is provided only for non-working elderly people, and working pensioners are expected to provide for themselves. They are scheduled to receive an increase based on the points they earn starting in August. Experts consider this approach not only erroneous, but discriminatory and socially unfair. Many pensioners work for a small income that does not cover rising prices, and are deprived of indexation. According to the law, after leaving work, such citizens wait 3 months for the indexed increase. In 2018, they will already receive an increase in benefits after dismissal from the 1st month.
Indexation percentage
According to the new law No. 420-FZ, the fixed insurance payment has been increased by 1.037 times and its established amount is 4982 rubles. 90 kopecks The coefficient is also increased by 1.037 times and is equal to 81 rubles. 49 kopecks The indexation value, amounting to 3.7%, is higher than the indicator for forecasting economic inflationary processes (2.6%). Currently, the consumer price index is 3.2%. For the first time during the crisis years, the indexation of pensions for non-working citizens in 2018 was marked by a level higher than actual inflation (by 1.1%). The size of the increase in social security will be 4.1%.
When will the pension be increased?
Previously, insurance (labor) pension accruals were indexed from February 1, but in 2017 the coefficients were replaced by a one-time compensation payment of 5 thousand rubles. The innovations of Law No. 420-FZ are not only recalculation, but also changes in payment dates. It was decided to increase the increase ahead of schedule from January 1, 2018 and once. The effect of the relevant rules on additional annual increases has been suspended until 2018. Federal beneficiaries will begin to receive indexed payments from February 1, the size of their increase takes into account the inflation forecast - 3.2 percent.
How the insurance part will change
As a result of the approved pension growth indices from January 1, 2018 (for comparison, data for 2017 are also shown) will be the following values:
Individual pension coefficient in 2018
The legal basis for pension provision is reviewed every year. In 2018, to assign an insurance pension to a Russian it is required seniority 9 years or more. To calculate pension payments, all the rights of a citizen-pensioner are taken into account, converted into points: his length of service work activity; wage; employer insurance contributions. To acquire the right to insurance pension, you need to have a total of 13.8 points. Such coefficients (pension points) have also been increasing since January, along with general indexation from 78 rubles. 28 kopecks up to 81 rub. 49 kopecks
Indexation of fixed payment
The slowdown of inflation processes in Russia allowed the Ministry of Economic Development to predict a decrease in the price index. Pension indexation funds have already been included in the country's budget in a higher amount of 3.7-3.8%, which corresponded to the early inflation forecast. The government decided to increase the increase by 3.7 percent and make ahead of schedule for one month. As a result, the fixed payment is indexed by a factor of 1.037 times (in the amount of 4982.9 rubles) and the average annual amount of security accrued for old age is projected at the level of 14075 rubles.
Military pension from January 1, 2018
Former military personnel, like other persons with pensioner status, hope for an increase in state material payments and expect an increase in the so-called “reduction coefficient” for calculating their pensions. At the same time, the Government of the country decided to freeze the reduction coefficient and return to considering the issue of increasing it during the execution of the budget.
So far, along with the indexation of pensions for non-working pensioners in 2018, the provision of military pensioners is indexed by 4 percent. Their average increase will be about a thousand rubles, from 24,500 to 25,500 rubles. This will happen not from February, but from January 1, as for civilians. In addition, the President established that indexation should be carried out every year for military employees of the Prosecutor General’s Office and the Investigative Committee, with the establishment of a monthly additional payment for the rank. These innovations take effect from 02/01/2018.
The purpose of the changes is to increase social protection employees who resigned from the Prosecutor's Office or the Investigative Committee. Until 2018, military prosecutors and investigators were subordinate to the Ministry of Defense, and then they became part of the staff of the Prosecutor General’s Office or the Investigative Committee. As a result, there was a difference in the provision of such pensioners. The exact amount of increase for them depends on the rank (title) upon dismissal from the authorities.
Increase in social pensions from April 2018
Amendments introduced pension law social pension payments were also affected. Provision is made not only for the indexation of pensions for non-working pensioners in 2018, but also for working persons in this category who receive social pension from the state. It will be 4.1%. The increase period is set from 04/01/2018. Social pensioners will be paid additionally up to the subsistence level.
According to the state statistical service, in a number of regions of the country the minimum subsistence level of a pensioner has decreased, which, as a conclusion from the current legislation, entails a reduction in social security payments, but with the latest legal innovations this will not be allowed. It was decided that the total financial support of a pensioner citizen should be no less than last year (taking into account current additional payments and benefits).
How much will pensions be indexed?
Currently, over 4 million people receive a social pension. The growth percentage for them will be 4.1 versus 1.5 percent in 2018, and the average pension social payment will increase to 9,045 rubles, whereas previously social security from the state was 8,700 rubles. The pension increase in 2018 for non-working pensioners of this group will be carried out in the spring of the coming financial period: these pensioners are included in the 2nd stage of indexing.
Indexation of social benefits for disabled people
The state also pays social pensions to disabled people, who are also scheduled for an increase. Such indexing will be carried out according to the characteristics of disability assignment. So, some people receive 15,000-16,000 rubles, and many who do not have the necessary experience, who have only 5,000-6,000 rubles. These disabled people with incomes below the subsistence level are entitled to additional social protection.
Social pension payments indexed by 4.1% (for comparison: in 2018 the increase was 1.5 percent). Thus, the average pension for disabled people of the 1st group. from childhood or a disabled child in 2018 will reach 13,699 rubles against the previous 13,026 rubles. It is important that this coefficient is also higher than the predicted inflation level. The size of the final social assistance supplement depends on the group and the reason for receiving disability (see table above).
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Indexation of pensions for non-working pensioners in 2018: news about payment
