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In 2019, a large-scale pension reform began in Russia, within the framework of which the government plans to gradually increase the age for going on well-deserved rest and increase the amount of benefits for pensioners. The reform will last until 2028, but the minimum pension will increase already in 2020. How much will it be increased? What other changes are expected in this part and what categories of recipients can count on them?
Current situation
The minimum old-age pension today is equal to one subsistence minimum of a pensioner (PMP). Each region of the Russian Federation has its own PHC, so the size of insurance payments due by age is often different.
The average national minimum wage is 8.7 thousand rubles.
This amount is enough to meet basic needs, but is sorely lacking to maintain an average and above average living standards. To partially correct the situation, the state annually indexes pension payments - in 2020, indexation is also provided, but this time it will be held according to a new methodology.
New Indexing
Since 2019, the indexation procedure has changed - President Vladimir Putin gave the corresponding order. We are talking about the invariability of the size of social co-payment. This means that in 2020 the surcharge is established relative to the new size of PHC in a particular region and is paid in addition to the minimum pension.
How does it work in practice? A pensioner receives 7.5 thousand rubles in a region where the cost of living is 9.5 thousand. The social supplement due to him will amount to 2 thousand rubles, and his minimum pension from January 1, 2020 will be equal to the cost of living. Social supplement is paid to insurance, state and other benefits for retirement. But that is not all.
From January 1, 2020, the amount of payments by age will be indexed by 6.6%, and in April 2020 social payments will be indexed by 7% - these ratios are included in the draft budget.
At the same time, the projected level of official inflation is still fixed at around 3.8%.
Thus, the indexation amount for non-working pensioners from 01.01.20 will be 7500 x 6.6% = 495 rubles. The total amount payable will be equal to 7500 + 2000 + 495 = 9995 rubles. If the official inflation rate is higher, the size of the indexation will increase accordingly.
Below - it is impossible
Currently, the constituent entities of the Russian Federation are working on new values of the PHC and their statements. After that, the regions will transfer information to the Pension Fund of the Russian Federation, and he will make it public.
Data on some areas are already known, respectively, we can say what will be the minimum pension for residents of these territories.
- 9 173 rub. - in the Sverdlovsk region;
- 8747 rub. - in the Oryol region;
- 8522 rub. - in Mordovia;
- 8502 rub. - in Udmurtia;
- 8 138 rub. - in Adygea;
- 7 953 rub. - in Chuvashia.
The regional authorities will not be able to artificially lower the standards, since the settlement rules are general, the methodology for determining the cost of living is the same for everyone. The allowance for a well-deserved rest cannot be lower than the fixed PMP.
The procedure for assigning surcharges
The procedure for assigning co-payments for recipients of insurance and social pensions is different. Recipients of insurance pensions will be raised to a new subsistence level and indexed.Social pensions will not be indexed - their size will increase to the new size of the regional PMP. The Russian government plans to increase this category of payments on April 1 of next year.
What else to expect?
The cost of living is constantly growing - in this regard, experts predict that pension payments will increase regularly and inevitably. The level of the minimum pension next year, in their opinion, will be 9-9.2 thousand. On average, in Russia it will grow by a thousand rubles. At the same time, experts doubt that surcharges will somehow improve the well-being of older people who are on a well-deserved rest. Old age allowances, as before, are not enough for basic needs - inflation will “eat up” the premium.
Does not apply to workers
The increase in payments will not affect working pensioners - their benefits will remain the same as in 2019. The state does not index payments, since there is a moratorium according to which the fixed payment and the cost of a pension point are frozen. The amount of pension benefits directly depends on these two factors.
Working pensioners can not expect an increase until August 2020, after the Pension Fund recalculates and takes into account seniority and contributions for previous periods. In this case, the recalculation will cover the 2019th year.
Retired pensioners will receive the amount of indexation and social supplement (if their payment is below the subsistence level) the next month after the official dismissal. The FIU will recount the allowance based on the missing indexations. The recipient will receive an increased benefit in a few months.
The average annual pension
In 2019, the average annual amount of insurance benefit in Russia is 14.5 thousand. In 2020, it will increase to 15.5-16 thousand. It is possible that during the year there will be other legislative changes related to the ongoing reform.
Read also:
- Pensions in the Ministry of Internal Affairs in 2020
- Early retirement in 2020
- Pension indexation in 2020
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