Indexation of pensions. What's happening, what to expect in 2021

Indexing

The annual indexation of pensions in 2021 takes place in several stages:

1. From January 1, the old-age insurance pension for non-working pensioners increased. This year, a new approach to determining the interest by which the monthly payment is increased has been introduced.
2. In February, monthly cash payments will increase for a number of beneficiaries. These are veterans, Heroes of the USSR, Russia, full holders of the Order of Glory, disabled people, former minor prisoners of fascism, Heroes of Socialist Labor and Heroes of Labor of the Russian Federation.
3. In April, the social pension to which disabled people are entitled, including disabled children, men and women over 70 and 65 years old, and people who have lost their breadwinner, is increasing.

Each of the listed government support measures is subject to annual increase. If a citizen receives less than the subsistence minimum, the social security department must establish a special surcharge for the difference.

Indexation of pensions from 2015 to 2021 table

From 01/01/2015 Federal Law No. 400-FZ of December 28, 2013 “On Insurance Pensions” came into force, according to which:

• the concept of “fixed base amount” was abolished, instead the concept of “ fixed payment to the insurance pension ” was introduced, which from 01/01/2015 is an independent type of payment and is indexed in the manner prescribed by Article 16 of the Federal Law of December 28, 2013 No. 400-FZ;
• Instead of the concept of “insurance part of the old-age labor pension”, “labor pension”, the concept of “ insurance pension ” is used. The term “indexation of labor pension” has been replaced by the concept of “ adjustment of insurance pension”, the procedure of which is regulated by part 10 of article 18 of the Federal Law of December 28, 2013 No. 400-FZ.

Thus, starting from 01/01/2015, the fixed payment to the insurance pension and state pension benefits are indexed , and insurance pensions are adjusted .

Both adjustment and indexation are an increase in the size of the payment received (pension or fixed payment to the insurance pension), the basis for which is the need to compensate pensioners for the decrease in the purchasing power of the pension due to inflationary processes occurring in the country.

The size of the fixed payment to the insurance pension is subject to annual indexation from February 1 to the consumer price growth index for the past year.

Every year, from April 1, the Government of the Russian Federation has the right to decide on an additional increase in the size of the fixed payment to the insurance pension, taking into account the growth in income of the Pension Fund of the Russian Federation. The indexation coefficient (additional increase) of the fixed payment amount to the insurance pension is determined by the Government of the Russian Federation.

The amount of the insurance pension is adjusted annually in the following order:

1. from February 1 in connection with the establishment of the value of the pension coefficient for the specified date based on the increase in consumer prices over the past year. At the same time, the consumer price growth index for the past year is established by the Government of the Russian Federation.
2. from April 1 in connection with the establishment of the value of the pension coefficient for the specified date. In this case, the cost of one pension coefficient as of April 1 is set in accordance with the formula:

SPKi = (ObSSi + TrFB) / ∑IPK,

where SPKi is the cost of one pension coefficient for the corresponding year; ObSSi - the volume of revenue from insurance premiums for the payment of insurance pensions; TrFB - transfers from the federal budget to the budget of the Pension Fund of the Russian Federation for the payment of insurance pensions, taken into account for the calculation of SPKi; ∑IPK is the sum of individual pension coefficients of insurance pension recipients taken into account for calculating SPKi.

The cost of one pension coefficient annually from April 1 is established by the federal law on the budget of the Pension Fund of the Russian Federation for the next year and planning period. At the same time, the annual increase in the value of the pension coefficient cannot be less than the consumer price growth index over the past year. The methodology for determining the cost of one pension coefficient is approved by the Government of the Russian Federation.

If the value of the pension coefficient established in accordance with paragraph 2 of Part 20 of Article 15 of the Federal Law of December 28, 2013 N 400-FZ “On Insurance Pensions” exceeds the value of the pension coefficient established in accordance with paragraph 1 of Part 20 of Article 15 of the said Federal According to the law, from April 1, an additional increase in the amount of the insurance pension is made by the specified difference.

Indexation coefficients for the insurance part of the labor pension, estimated pension capital, social pension from January 1, 2010 to December 31, 2014:

Indexation coefficients of the basic, insurance part of the labor pension, estimated pension capital, social pension from January 1, 2002 to December 31, 2009

Pension indexation is an increase in the amount of pension payments in accordance with the law. Produced annually to compensate older people for income losses caused by rising prices for consumer goods and services. In other words, indexation is a tool that protects pensions from depreciation. Every year, the state adds a percentage to older people that should cover the rate of inflation.

Indexation of pension payments involves their regular increase by a certain percentage. The recalculation of pensions is based on the pensioner’s subsistence budget in the region of his residence. This indicator, in turn, changes under the influence of inflation. Indexation is carried out in order to protect older people, because the amount of payments guaranteed to them risks depreciating over the years. To prevent this from happening, the state strives to establish a percentage of pension indexation that would cover the inflation rate.

From January 1, 2020, monthly payments to non-working people of retirement age were indexed by 6.6%. The average amount in Russia increased by approximately one thousand rubles. The increase was different for everyone. For example, if the old-age pension was assigned more than the amounts necessary to provide oneself with everything necessary, then 6.6% is added to the previously established indicators. If a person received less than the subsistence minimum, then 6.6% is added to the old-age pension plus last year’s additional payment to the minimum. Working pensioners have not received such an increase since January 11.

On August 1, 2020, there was another increase in pensions, but it did not affect everyone.
According to the Pension Fund of the Russian Federation, the average size of the funded portion is 956 rubles. The increase was 9.13%. Because of this, the average amount increased to 1,043 rubles. This change affected about 80 thousand people. Starting from the same date, participants in the co-financing program will receive an increase. For them, the changes occurred by 7.99%. Indexation procedure in 2021

The changes will also affect the fixed part of the pension. If in 2019 it was 5334 rubles, then in 2021 it is 5686.25 rubles .

The rules adopted since the beginning of 2021 apply only to those citizens of retirement age who are already unemployed and live on money paid by the state. They also apply to those who earn extra money by tutoring, renting out an apartment, selling vegetables from their garden, and in some other situations.

Insurance pensions in January for non-working pensioners increased according to the new calculation of the indexation of the cost of living established in 2021. It provides an increase in payments even in the presence of social supplements. Indexation of 6.6% affected 32 million unemployed people.

Indexation of insurance pension by year

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In 2021, the old-age insurance pension is finally untied from the inflation rate. The growth does not depend on price dynamics last year, but corresponds to a specific value - 6.3% of the current size. The equivalent of one pension coefficient is 98.86 rubles.

The pension indexation table by year is given below:

The guideline for future periods is reflected in the Main characteristics of the budget of the Russian Pension Fund for 2020-2022 (approved by the Ministry of Finance of Russia):

• in 2021, an increase of 6.3% - pension point, costs 98.86 rubles;
• 2022 is expected to bring a further increase of 5.9% - the pension point will be equal to 104 rubles.

The figures are approximate and will most likely be subject to slight revisions. In any case, the indexation of insurance pensions should exceed the rate of price growth. This is evidenced by official inflation data - according to Rosstat, it amounted to 3% last year.

Important! Price growth in 2021 is projected to be 3%, and inflation in 2021 is expected to range from 3.5 to 4%.

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Indexation of pensions in 2021 - how much will pensions increase?

The Ministry of Labor announced the expected increase in pensions until 2020. The insurance payment is planned to increase by 6.3%. Thanks to this, the average annual benefit will reach 17,432 rubles. In 2022, it is expected that pensions will increase by 5.9%, and in 2023 – by 5.6%.

The planned indexation amount exceeds expected inflation. If the latter is too large, the increase will be adjusted upward. The increase will also affect social pensions, but this will not happen before April 1. The project does not provide for changes in the amount of the funded part of the pension, so there will be no changes in this area.

Below is a table with coefficients and indexation dates for 2021.

*) preliminary data.

Below we present the new payment amounts after the indicated indexations in 2021. See comparison table.

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If the pensioner continues to work, then a recalculation of his insurance pension may be due to an increase in the size of the IPC (that is, pension points). Pension points can be increased due to insurance premiums paid for the employee by the employer.

In this regard, from August 1, 2021, working pensioners for whom policyholders (employers) paid insurance premiums in 2020 will receive an increased pension. However, the increase will only affect recipients of old-age and disability insurance pensions.

The maximum increase, which is made in August, is limited to only 3 points (pension coefficients), converted into cash equivalent. As of August 1, 2021, the cost of the 1st coefficient will be 98.86 rubles. Therefore, pensioners will not receive an increase of more than 296 rubles 58 kopecks (98.86 rubles x 3) from August 1, 2021.

Pension calculation

The fixed payment to the insurance pension in 2021 is 6,044 rubles. 48 kopecks, and the average annual amount of payments to non-working pensioners increased to 17,500 rubles. The final amount depends on the amount the citizen received in 2021.

To find out how much the pension increased in 2021, you need to multiply the amount of payments received in 2021 by 0.063. For example, if the pension in 2021 was 11,415 rubles, then after indexation in 2021 the increase will be 719,145 rubles. (11,415 × 0.066), and the total amount will be 12,134.145 rubles. (11,415 + 719,145).

Recalculation of old-age pensions for working pensioners is carried out in August, depending on the amount of insurance contributions transferred for the employee to the budget by the employer in 2021.

Social supplement up to the pensioner's subsistence level

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Pensions will be increased from March 1, 2021 by 2.5 thousand rubles.
All non-working pensioners whose total amount of material support does not reach the value of the pensioner’s subsistence level (PLS) in the region of his residence is established by a federal or regional social supplement to pension up to the amount of the PMS established in the region where the pensioner lives.
The federal social supplement is paid by Pension Fund institutions and is established if the total amount of cash payments to a non-working pensioner does not reach the pensioner’s subsistence level established in the region of residence, which, in turn, does not reach the pensioner’s subsistence level as a whole in the Russian Federation.

A regional social supplement is paid by regional social protection authorities if the cost of living of a pensioner in a constituent entity of the Russian Federation is higher than the same figure in the Russian Federation, and the total amount of cash payments to a non-working pensioner is lower than the regional subsistence minimum.

When calculating the total amount of material support for a non-working pensioner, the amounts of the following cash payments are taken into account:

• pensions (parts of a pension);
• additional material (social) support;
• monthly cash payment (including the cost of a set of social services);
• other social support measures established by the legislation of the constituent entities of the Russian Federation in monetary terms (with the exception of social support measures provided at a time).

In addition, when calculating the total amount of material support for a pensioner, the cash equivalents of the social support measures provided to him for paying for the use of a telephone, residential premises and utilities, travel on all types of passenger transport, as well as monetary compensation for the costs of paying for these services are taken into account.

Indexation of social pension

In April 2021, the annual indexation of social pensions will take place. The growth rate is determined by the increase in the cost of living of pensioners for 2021. The calculation principle has not changed in 2021.

The table of increases in social pensions by year until 2021 looked like this: For future periods the figures are as follows:

• growth is expected to be 2.6% in 2021;
• the increase in social pension in 2022 is planned by 3.1%.

The given figures are planned and, most likely, will be adjusted to take into account changes in the cost of living in 2021.

Indexation of pensions in 2021: who will receive an increase, when and how much?

Many people remember that, when announcing an increase in the retirement age, the country's President Vladimir Putin said that on average the old-age pension would increase by 1,000 rubles annually.

In the case of our citizen Petrova in 2021, this is approximately the case. 975 rubles, of course, does not equal a thousand, as every salesperson in a store will tell you, but it roughly corresponds to the words of the president.

Indexation of pensions in 2021

Indexation of pensions in 2021

Pension indexation from April 1, 2021

Indexation of pensions for working pensioners in 2021

Are self-employed pensioners still employed?

The indexation of old-age pensions by year was carried out unevenly. The goal of such changes is to ensure the stability of real incomes of pensioners and create conditions for an increase in the level of security of the non-working population. The indexing procedure is an adjustment of the basic amounts of payments by the coefficient of change in consumer prices. This makes it possible to neutralize the negative effect of inflation fluctuations for pensioners.

Until 2010, the pension system had a division of pension accruals into basic and insurance parts. Since 2010, only the definition of the insurance part of the pension has been used. Since 2015, this concept has also been withdrawn from circulation - it has been replaced by the term “insurance pension”. Instead of a fixed basic pension, a fixed payment appeared, supplementing the insurance pension.

During the indexation process, not only the basic part of pension payments increases, but also the annual rate. For all categories of recipients, the base portion is the same, and during indexation the annual rate increases more. As a result, all pensioners receive an equal share of their payments, regardless of their accumulated work experience. This approach provides a higher standard of living even for those who do not receive the largest pensions.

In addition, fixed payments are planned for pensions of different categories of disabled people.

The values ​​given in the table apply only to non-working persons. For those disabled people who work, the fixed rate does not increase and remains the same as it was assigned on the date the pension was assigned.

Not all categories of pensioners can count on the promised increase in pensions by almost a thousand rubles. Indexation will affect those whose monthly payment does not exceed 16,000 rubles. For those pensioners who do not meet this requirement, the increase in pension will affect only the insurance part.

Also, payments will not be indexed to citizens receiving social pensions, but who did not have time to accumulate the minimum required number of pension points before receiving an insurance pension. Their pension will be indexed on April 1 to the level of the projected index of increasing the cost of living, which in 2021 is 2.6%.

In addition, the increase in pension payments on January 1, 2021 will not affect all categories of disabled people, as well as veterans of various military operations. Their pension will be increased on the first day of February by 3.8%, and the amount of the pension they receive will depend on the size of the available payments. This premium was calculated based on the consumer price increase index for 2021.

Indexation of pensions for working pensioners was suspended in 2016, but this temporary measure may be canceled in 2021. Intensive and heated discussions in the State Duma allow talk about a possible revision of the decision, since, according to experts, it conflicts with the norms of the Constitution. Many experts are convinced that the return will be socially fair, since people who have retired are often forced to work to ensure a decent standard of living. In addition, they work openly and officially and pay the required insurance premiums in full.

The draft budget for 2021 did not include funds to increase pensions for working pensioners. Many deputies are in favor of developing and adopting a draft law to repeal the Federal Freezing Law, and even V.V. Putin approved the initiative, but there is no news on this topic yet. If the changes are adopted, it will not happen before the spring session.