Northern pension since 2020: what and how will change

The recently adopted Pension Reform in the Russian Federation entails innovations for potential recipients of the so-called northern pension. What and how will change from 2020 for Russians working on a permanent or rotational basis in areas of the Far North or equivalent localities? Is it worth counting on the preservation of the former benefits to the northerners in terms of age requirements, taking into account northern experience and the possibility of receiving increased benefits?

Retirement conditions

The main change in 2020 concerns new requirements for the age of northerners, giving the right to retire. Until recently, women and men received the right to rest at the age of 50 and 55, respectively. But as a result of the introduction of the new Pension Reform, this age will be gradually increased by 5 years (by adding to the existing standards for 1 year in 2019-2023) as the “mitigating circumstances” in the first two years of the introduction of innovations, citizens received the right make payments 6 months before reaching new age standards. Thus, in 2020, applicants for a northern pension will be:

• women who have reached 51.5 (instead of 52) years;
• men who have reached 56.5 (instead of 57) years.

In all subsequent years, the retirement age will increase by 1 year, until in 2023 it reaches the level of 55 years for women and 60 years for men, set for northerners. For the rest of the Russians, the new standards will be 60 and 65 years old by this time, respectively.

New age requirements do not apply to certain categories of northerners for whom special criteria are established:

• 50 years to the mothers of two or more children, provided that they have worked for at least 20 years of experience, including 12 in the Far North (CS) or 17 for equated areas (ISS).
• 45 years old women and 50 years old men who are permanent residents of the northern and equivalent territories, have earned 20 or 25 years of service, respectively, as a reindeer herder, fisherman or hunting hunter.

Does the minimum “northern” experience change

The latest news does not portend changes in 2020 in terms of length of service, which gives northerners the right to receive a pension. The following minimum indicators are still valid here:

• 15 or 20 years (according to data on insurance premium payments to the FIU) for the CS and the ISS, respectively;
• 20 years of “female” or 25 years of “male” general experience;
• the set of the established minimum for pension points is approximately 18.6 in 2020 (it will grow by 2.4 points annually until it reaches 30 IPC).

In order to receive a northern pension, it is necessary to correctly register labor relations with the employer. For example, for an employee of a company unit from the Arctic (with the head office located in the capital), the exact location of the place of work must be indicated in the work book, otherwise it will not work to claim increased benefits or focus on the retirement age.

With a lack of years of work to meet the minimum requirements, you can achieve retirement at an earlier age (But in any case, you need more than 10 years of experience in the ISS or 7.5 years in the CS) according to the following scheme:

• a full worked calendar year in the areas of the COP allows to reduce the age norm by 4 months;
• years spent in the ISS are brought to the experience of the Far North by reducing the first indicator by 25% (since 12 months of work in the ISS is equivalent to 9 months of work for the CS).

What will happen to the size of payments

In 2020, payments to northerners, like all Russians, will also be increased due to indexation. Planned growth indicators so far look like this:

• For insurance pensions (appointed by old age, disability, breadwinner) - from January 1, 2020 by 6.6% (with expected inflation of 3.8%). Accordingly, an increase is expected due to the growth of two indicators:

• For social pensions (assigned to citizens who do not have a minimum length of service) - from April 1, 2020 by 3.9% in the index of growth of the living wage for pensioners.

For recipients of the northern old age or disability pension in 2020, it is still possible to have an additional increase if the above requirements for seniority (northern and general) are met. The right to use it does not depend on the place of residence of the pensioner at the moment. The size of the surcharge will be calculated relative to the indexed fixed payment and will be:

• 50% - for those who have worked at the COP for over 15 years (2843, 13 rubles)
• 30% - for those who have worked in the ISS for over 20 years (1705, 88 rubles).

Instead of the indicated amounts, citizens living in the northern regions of the country can also receive increased payments due to the increasing district coefficient (if it is set for their region of residence). But in the event of a move, its action is canceled. If a pensioner has the right to receive both options for surcharges, he will have to choose which will be more profitable in his case.

Read also:

• The minimum pension in Moscow and the Moscow region in 2020
• How much pension will grow in 2020
• Survivor's pension in 2020

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