Pension accruals do not keep pace with rising prices and the cost of living. To maintain them at the proper level, ensuring a normal existence, annual indexation is carried out - recalculation in accordance with the level of inflation.
Pension indexation is an annual increase due to a decrease in purchasing power. It is provided for by the provisions of 166-FZ of December 15, 2001. Recalculation of insurance and social benefits is carried out in different ways. The fixed amount of the former increases by the inflation index and the PFR profitability index. The latter are recalculated taking into account the increase in the cost of living, the increase in wages and allowances.
- The insurance is paid from the Pension Fund budget. It includes a fixed payment in a fixed amount. It depends on the type of pension - old age, disability or loss of a breadwinner. It is this that is subject to annual increase by a coefficient approved by the Government.
- Savings are intended for persons born in 1967 and younger. They are paid from savings generated by employers' insurance contributions. Not recalculated.
- State benefits are paid from the state budget to employees, officials, military personnel, astronauts, and pilots. The concept of state pensions also includes social pensions intended for those who have not earned insurance benefits. Fully indexed.
*According to information from the official website of the Pension Fund.
Indexation of insurance pensions
In 2021, indexation was carried out once and by only 1.04, which is significantly lower than the real inflation rate (approx. 14%). This decision was dictated by the desire to ease the burden on the budget during the economic crisis. As a result, as of 02/01/2016. The following dimensions are established.
- for disability - approx. RUB 8,200;
- for loss of a breadwinner – approx. RUB 8,300;
- old age - approx. 13,100 rub.
Table 1 Indexation 2013-2016
| Year Type of payment | 2013 | 2014 | 2015 | 2016 |
| Insurance | 10,12% | 8,31% | 11,4% | 4% |
*According to the official website of the Pension Fund of the Russian Federation.
In January 2021, a fixed one-time payment of 5,000 rubles is provided as compensation. for all categories of pensioners as compensation for the violated order in 2016.
In accordance with Articles 400-FZ dated December 28, 2013. increases are made twice a year.
- from February 1 – taking into account the consumer price growth index for the previous year. This is a mandatory annual recalculation.
- from April 1 - on the profitability coefficient of the Pension Fund of Russia, its value is established by the relevant government of the Russian Federation. Indexation is carried out according to the relevant government decree (it has the right, but is not obligated to make such a decision).
Insurance pensions (excluding fixed payments) are not indexed, but adjusted. This happens at the same time. The first adjustment is made taking into account the cost of the pension coefficient adjusted for last year's inflation. The second adjustment provides for recalculation solely by the value of the pension coefficient. This indicator is established by the law on the PFR budget for the current year. Its cost must not be lower than the consumer price growth index.
Who can expect indexation of pensions in the near future?
There is a category of payment recipients who will be indexed this year. These are military pensioners and citizens equivalent to them, who receive money not through the Pension Fund, but directly from the budget. Military pensions will be indexed from October 1, simultaneously with an increase in salaries for military personnel. The planned increase is 3.7%.
Citizens receive this pension after leaving military service for reasons established by federal law. This is discussed in more detail in the RIA Novosti material.
First of all, we are talking about long-service pensions for military personnel, employees of the Russian Guard, the Ministry of Emergency Situations, the Ministry of Internal Affairs, the FSB, the Federal Penitentiary Service, military employees of civilian ministries and organizations, etc. Such payments are also assigned for disability if a person has lost health for reasons related to service. In the event of the death of a serviceman, disabled members of his family are entitled to a survivor's pension. It is also due to a widow, and if she never marries again, she can receive a second payment - for old age, disability, etc.
Indexation of social pensions
The procedure for their increase is fixed in Art.
25 Federal Law No. 166 dated January 15, 2001 – annually on April 1. The index value is calculated solely on the basis of the growth rate of the cost of living over the past year. Table 2 Indexation in 2013-2016
| Year Type of payment | 2013 | 2014 | 2015 | 2016 |
| State | 1,81% | 17,1% | 10,3% | 4% |
*According to the official website of the Pension Fund of the Russian Federation.
As of 04/01/2016 social pensions increased by 1.04. Their size was:
- average social – 8,600 rubles;
- disabled children – 12,900 rubles;
- disabled due to military injury – 30,000 rubles;
- WWII participants - 32,900 rubles.
The pension benefits of military personnel, former employees of the Ministry of Internal Affairs, the Federal Penitentiary Service, the Ministry of Emergency Situations and other budgetary departments are indexed in accordance with Law No. 4468-I of February 12, 1993. In accordance with Art. 49 of this normative act, an increase is made in connection with an increase in any part of the salary or with an increase in allowances. This is done every year - no less than 2% more than the inflation rate, which is enshrined in Presidential Decree No. 604 of 05/07/2012.
By what percentage will pensions be increased in 2020 from January 1?
From January 1, 2021, pensions will be indexed by 6.6% . The indexation system has changed: if previously they grew by the inflation rate, now they will increase by a fixed amount, which is correspondingly higher than last year’s pension supplements.
Find out how much your pension will increase from January 1, 2020.
Infographics: how pensions will change from January 1, 2021
For example, in 2019, pension payments increased by 7.05% , and the inflation rate was 4.3%. In 2021, the inflation rate is expected to increase by 0.5%, and the pension will decrease compared to the previous year. The average amount of payments to pensioners is 14.8 thousand rubles. 6.6% of this amount is an increase of almost one thousand rubles. But these are calculations in accordance with the average pension; many citizens have an individual pension, so the size of the increase may be different. From January 1, 2021, indexation of social pensions is also expected. Without taking into account length of service, the pension will be increased for disabled people, war veterans, and their widowed mothers by 3.9 percent.
The amount of payments towards the insurance pension will increase to almost 5,690 rubles from 2021.
Since the fixed part is indexed from January 1, the sizes of these allowances will also be changed. This applies to:
- Allowances for dependents. For each disabled family member, the pensioner will now receive 1,895.42 rubles.
- Bonuses for northern experience. For work in the Far North they will pay an additional 2843.13 rubles, and in areas equivalent to the KS, 1895.42 rubles.
- Additional payments for rural experience - 1421.56 rubles.
Indexation in 2021
From 2021, the normal indexation procedure provided for by law returns:
- insurance – twice a year from February 1 and April 1;
- social – once a year from April 1.
A one-time payment of 5,000 rubles received in January 2021. (compensation for 2021) will not affect the amount of salary. Indexation in 2021 will be carried out based on the size of the pension formed at the end of the previous year.
According to the head of the Pension Fund Anton Drozdov, the preliminary inflation rate for 2021 will be 5.8% (information as of 09/09/2016). Therefore, the calculated indexation coefficient is 1.058.
On fixed parameters for increasing pensions in the Russian Federation from the President
For the second reading of the legislative draft on the new pension system in the State Duma, Putin introduced fixed parameters for increasing insurance pensions for the period from 2019 to 2024. He also proposed a new regulation for pension indexation from 2025.
In accordance with the amendments, one pension point will increase by 7.05% next year, which will amount to 87.24 rubles. And the amount of the fixed payment (part of the pension benefit) will be 5334 rubles. – will increase similarly.
In 2021, the value of the pension point (SPB) will increase again, but by 6.6%. In 2021, growth is expected by 6.3%, in 2022 by 5.9%, in 2023 by 5.6%, in 2024 by 5.5%. And in 2024, one pension point will be 116.63 rubles. When compared with the current value for 2021, the planned growth is 43%. And the fixed payment will also increase - by 43% and will be 7131 rubles.
The increase in the fixed payment and pension point will be carried out every year - 01.01.
Consequently, the old-age pension benefit in nominal terms in 2024 will be 43% higher. The fact is that the insurance benefit is calculated according to the formula - the number of pension points is multiplied by the cost of one point and a fixed payment is added.
These amendments fully comply with the Government’s promise that the average pension benefit will increase to 20,000 rubles by 2024 (from the current 14,000 rubles).
Putin's answer on indexation of pensions for working pensioners
Every year, pensions will increase faster than inflation, because the Ministry of Economic Development predicts inflation to be within 4% in 2024. However, the real growth of benefits will be called into question if the authorities fail to maintain inflation levels.
Indexation of pensions in 2021 for non-working pensioners - latest news
The legislation provides for plans to increase the size of pension payments in 2021 in the following order:
- From January 1 - only for non-working pensioners.
Since the beginning of the year, payments have increased only to those recipients of insurance pensions who are not employed.
It is important to note that working citizens are not indexed at this stage; they are “frozen” until they stop working. As soon as a pensioner breaks off official employment, all previously made indexations are applied to his pension payments.
The pension formula is now extremely simple. Its main indicators are:
- pension coefficients generated by a citizen during his work (depending on the number of years worked and earnings received);
- the valuation of one pension coefficient established by law for a calendar year;
- a fixed payment is added to the amount calculated above.
The cost of the coefficient and the size of the fixed payment are subject to indexation. It is necessary to take into account that pension coefficients are individual for everyone and can only be increased through work activity. The law on pensions also defines non-insurance periods for which contributions were not calculated, but pension coefficients are added. This is, for example, military service, childcare time.
From January 1, 2021, the amount of the insurance pension will increase due to an increase in two values:
- pension coefficient set at 93 rubles;
- fixed payment amounting to 5686.25 rubles;
which in percentage terms increases the size of the pension by 6.6 percent.
- Social pensions are subject to indexation from April 1.
This type of pension is established for citizens who, for some reason, do not have the necessary parameters to establish an insurance pension. The increase depends on the increase in the pensioner’s cost of living over the past calendar year and will amount to 7%. This category includes, for example, disabled children, people with disabilities since childhood, and citizens with little experience.
- From February 1, the monthly cash payment (MCB), the set of social services (NSS) and other payments for federal beneficiaries will be increased.
The indexation amount for such types of payments is set at the level of inflation recorded at the end of the previous year. In 2020 they will increase by 3 percent.
How much will pensions increase in 2021?
Since the beginning of the year, the size of pensions has been indexed to all unemployed pensioners in the amount of 6.6%. This is higher than the level of consumer price growth (inflation) recorded at the end of 2021. As a result, after the recalculation, the insurance pension for the majority of its recipients became higher by almost a thousand rubles per month. According to statistics, the average pension is now 16,500 rubles.
It should be borne in mind that the increase is individual; it directly depends on the amount of the pension assigned and received by the citizen.
To calculate, you will need to multiply the pension received last year by 1.066 (all allowances in the form of a monthly cash payment or social supplement to the minimum wage are not taken into account).
For example, at the end of 2021, the insurance pension of citizen K. is 16,548 rubles. The indexation amount from January 1, 2021 is 1092.17 rubles, which will ultimately increase the pension to 16548 × 1.066 = 17640.17 rubles. If before indexation the pension was 10,540 rubles, then it will increase by 695.64 rubles and amount to 10,540 × 1.066 = 11,235.64 rubles.
Table: Indexation of pensions in 2021 for non-working old-age pensioners, depending on the size
| Pension in 2021 | Increase - 6.6% | Pension in 2021 |
| 11 500 ₽ | 759 ₽ | 12 259 ₽ |
| 12 500 ₽ | 825 ₽ | 13 325 ₽ |
| 13 500 ₽ | 891 ₽ | 14 391 ₽ |
| 14 500 ₽ | 957 ₽ | 15 457 ₽ |
| 15 500 ₽ | 1023 ₽ | 16 523 ₽ |
| 17 500 ₽ | 1155 ₽ | 18 655 ₽ |
| 18 500 ₽ | 1221 ₽ | 19 721 ₽ |
According to the Pension Fund of the Russian Federation, the January indexation affected more than 30 million pensioners. For those who receive their pension into their bank account in the first half of the month, the new amounts will be transferred before the New Year holidays.
