Pension reform has started in Russia. On January 1, 2020, the law on changing the parameters of the pension system came into force, which proposes pension reform in the Russian Federation.
- According to the old law, northerners had the right to apply for an old-age pension 5 years earlier than the generally established period - women upon reaching 50 years of age and men at the age of 55 years.
- In the new law, starting from 2021, the standard retirement age for workers in the Far North will be increased to 55 and 60 years (for women and men, respectively).
How have the general rules for receiving an old-age insurance pension changed?
A Russian will receive an old-age insurance pension if he (in total):
1. Reached a certain age.
2. Has the required individual pension coefficient (hereinafter referred to as IPC).
3. Earned the required insurance experience.
The last two parameters - they are discussed in our other article - were not affected by the new reform. The standard retirement age has changed: in accordance with Art. 8 of the Law “On Insurance Pensions” dated December 28, 2013 No. 400-FZ (hereinafter referred to as Law No. 400-FZ) from 01.01.2020 the state will gradually, in 1-year increments, increase it when assigning an old-age insurance pension on a general basis:
- for men - from 60 to 65 years;
- for women - from 55 to 60 years.
The retirement age of state and municipal employees has increased since 01/01/2017. The rate of its growth, according to changes in Appendix 5 to Law No. 400-FZ, from 01/01/2021 will increase from 6 to 12 months.
According to what schedule will people who have the right to receive it early retire?
Starting from 2021, the old-age retirement schedule, in accordance with Law No. 400-FZ, has changed for the following citizens:
1. Northerners (clause 6, part 1, article 32). This category includes people who simultaneously:
- have worked for at least 15 years in the Far North or worked for 20 years in equivalent areas;
- have received the necessary insurance experience (men - from 25 years, women - from 20).
- Their retirement age was raised from 55 to 60 years and from 50 to 55 years (for men and women, respectively). At the same time, they can still become pensioners 5 years earlier than citizens who fall under the general conditions.
2. Teachers and doctors (paragraphs 19–20, part 1, article 30). The period during which they will be able to exercise their right to pension provision will be gradually increased from a year from the moment it arose to 5 years, in accordance with Appendix 7 to Law No. 400-FZ.
3. Creative workers (clause 21, part 1, article 30). For some of them, the age at which they have the right to retire early will increase in accordance with the List of professions and positions approved by Resolution of the Council of Ministers of the RSFSR dated August 28, 1991 No. 447:
- for wrestlers involved in circuses and concert organizations (clause 2) - from 50 to 55 years old;
- for actors of drama theaters (clause 3 and clause 4) - from 50 to 55 years and from 55 to 60 years, respectively.
Citizens of other creative professions will become pensioners at the same time as specialists from item 2 of our list. The duration of the required length of service, the procedure for determining and calculating it, as well as the amount of the IPC remained the same.
Retirement age for northerners from 2021 in Russia
The initial bill on raising the retirement age in Russia, proposed by the Government of the Russian Federation, provided for an annual increase in this standard by 1 year , with a total of 5 years for men and 8 years for women. But by the amendment that Vladimir Putin proposed in his address to citizens of the Russian Federation, these parameters were adjusted:
- The retirement age for women will be increased by 5 years, as for men ;
- a special benefit will be provided for those who, according to the old law, were supposed to retire in the first 2 years of the reform (2019-2020) - payments will be processed six months earlier than the stipulated period .
Consequently, for future recipients of the “northern pension” who have accumulated the necessary length of service in the Far North and ISS regions, the retirement age will change as follows:
- Similar to citizens receiving an old-age pension on a general basis, northerners will have the deadline for receiving an old-age pension increased by 5 years for women and men - up to 55 and 60 years, respectively.
- In 2021, the “period of working capacity” will be extended not by 1 year, but by 6 months .
- In 2021, an increase of 1.5 years instead of 2 years.
- Gradual changes will be carried out until 2023 inclusive, when the final parameters of the new law will be established.
Thus, the transition period will last from 2021 to 2023, and citizens who have worked the required number of years in the conditions of the CS and ISS will begin to receive payments upon reaching the final retirement age of 55/60 years , starting in 2028.
The retirement schedule by year from 2021 for northerners, according to the adopted law, can be presented in the form of a table:
SVP according to the old law (PV - 50/55 years) | According to the new pension reform | |
New PV | New SVP | |
1 p. 2019 | 50,5 / 55,5 | 2 p. 2019 |
2 p. 2019 | 1 p. 2020 | |
1 p. 2020 | 51,5 / 56,5 | 2 p. 2021 |
2 p. 2020 | 1 p. 2022 | |
2021 | 53 / 58 | 2024 |
2022 | 54 / 59 | 2026 |
2023 | 55 / 60 | 2028 |
Note: PV is the retirement age for northerners; SVP - retirement date (in what year); p. - half a year of the corresponding year.
The table presented above contains final data and was compiled in accordance with the adopted law No. 350-FZ of October 3, 2018 and the norm of this law providing for easing in the first 2 years of the reform.
What does the new legislation say about other types of pensions?
The reform also increased the age for establishing the following types of pensions:
1. Insurance in case of loss of a breadwinner, paid to his spouse, parents, grandparents. For men, the age increases from 60 to 65 years, for women - from 55 to 60. Having reached it, these citizens are recognized as disabled in accordance with paragraphs. 3–4 hours 2 tbsp. 10 of Law No. 400-FZ and receive the right to pension provision. Such changes influenced the increase in the fixed payment to the old-age (disability) insurance pension due to the dependence of disabled family members.
2. Social old age (subparagraph 5, paragraph 1, article 11 of the law “On State Pension ..." dated December 15, 2001 No. 166-FZ). This will happen in stages, in increments of 1 year, in accordance with Appendix 1 to the said law. The increase will occur from 65 to 70 years (for men) and from 60 to 65 years (for women).
3. On the occasion of the loss of a breadwinner to the parents of the deceased cosmonaut. The promotion is carried out in the same way as the previous category.
At the same time, from 01/01/2020, a funded pension, as well as urgent pension and lump-sum payments, subject to the required length of service (insurance or for certain types of work) and the IPC, can be established:
- ahead of schedule if the age or period determined by the old version of Law No. 400-FZ has arrived;
- on a general basis for men at 60 years old, for women at 55.
Northern experience for women and men
For early retirement, northerners need not only to reach a certain age, but also to have the northern experience stipulated by laws - a period of official work for a full working day in the regions of the KS and localities equivalent to them (ISS), during which the employer made deductions of insurance contributions to the Pension Fund (PFR). The northern length of service also includes periods of sick leave, annual main and additional leave.
In order to become a pensioner 5 years earlier than the generally established deadlines, you need to have 15 years of work in KS areas or 20 years in areas equivalent to KS.
If the northern length of service, which gives a citizen a benefit for retiring 5 years earlier, has not been fully developed, then the citizen can qualify for a proportional reduction in the retirement age. To do this, at least half of the standard for northern experience must be developed - at least 7.5 years in the KS or at least 10 years in the ISS.
- For one calendar year of work in the KS districts, the retirement period is reduced by 4 months.
- 1 full year of work in the ISS will be counted as 9 months of northern experience in the KS areas.
The scheme for reducing the retirement age in the presence of incomplete northern work experience is presented in the form of a table:
Work experience in the Far North (FN), in years | How much does the retirement age decrease? | Retirement age for northerners under new legislation | ||||
for women | for men | |||||
years | months | years | months | years | months | |
15 and more | 5 | 0 | 55 | 0 | 60 | 0 |
14 | 4 | 8 | 4 | 4 | ||
13 | 4 | 8 | 8 | |||
12 | 0 | 56 | 0 | 61 | 0 | |
11 | 3 | 8 | 4 | 4 | ||
10 | 4 | 8 | 8 | |||
9 | 0 | 57 | 0 | 62 | 0 | |
8 | 2 | 8 | 4 | 4 | ||
7,5 | 6 | 6 | 6 |
It is worth noting that the values in the table are based on the final provisions of the law on increasing the retirement age (i.e. 65 years for men and 60 for women). During the period of transitional provisions (from 2019 to 2023), the retirement age will be lower than the values indicated in the table (will be calculated in relation to the schedule for increasing the retirement age).
Benefits provided by the reform
After changes in legislation, benefits were received:
1. People who previously had 2 years left before retirement have the right to retire 6 months earlier than the period provided for in Appendices 6 and 7 to Law No. 400-FZ. Moreover, this affected citizens who became pensioners both on a general basis and early. A similar provision is provided for persons applying for a social old-age pension. Medical, teaching and creative workers will be able to receive pension benefits six months earlier (clauses 19-21, part 1, article 30 of Law No. 400-FZ), who simultaneously meet two conditions:
- they have developed the required experience in the relevant types of work;
- their IPC has reached the required value.
2. Men with insurance experience of 42 years or more, women - at least 37 years. Only the following are counted:
- time periods during which a person worked (performed other activities) while insured, and his employer (or the citizen himself) paid insurance contributions to the Pension Fund of the Russian Federation;
- periods of temporary disability for which a person received compulsory insurance benefits.
Such citizens can become pensioners 2 years before the fixed retirement age after they turn 60 or 55 years old (men and women, respectively).
Procedure for applying for a pension
According to general rules, pension payments are provided upon application from citizens. But this does not have to be done immediately upon reaching the required age. To receive an increased “northern” pension payment, a person must meet a number of requirements:
- live and work in the Far North;
- have the necessary work and insurance experience;
- reach the appropriate age.
For persons who are military personnel, it is possible to receive two types of payments at the same time - military and northern pensions. In this case, the corresponding allowance for length of service is taken into account.
To apply for benefits, a pensioner needs to contact the Pension Fund at the place of residence and provide:
- passport;
- work book;
- certificates confirming the northern experience received;
- Bank details;
- additional information.
Such additional documents include certificates of the presence of dependents, changes of full name or registration at the place of residence. Submitted documents are reviewed within 30 days, after which payments are calculated. But it is important to take into account that you need to apply to the Pension Fund no earlier than a month before the appropriate age.
The procedure for providing compensation for moving to a new place of residence is regulated by RF PP No. 1351 of December 11, 2014. This regulatory act states the following:
- Compensation for expenses can only be obtained by those who have registration in the Far North region or an area equated to a KS.
- Expenses are compensated if the citizen receives an insurance or state pension. Also, dependent persons are entitled to such expenses.
- The amount of the payment compensates for the amount actually spent on moving. All expenses must be proven using checks and receipts.
- To receive funds, you need to contact the Pension Fund at your place of residence with a corresponding application.
Providing compensation for a trip on vacation and back is regulated by the RF Regulation No. 176 of April 1, 2005. The conditions are as follows:
- compensation is provided to those pensioners who receive old-age or disability pensions;
- Only trips made on the territory of the Russian Federation are compensated;
- The benefit can be applied for only once in a few years.
If a resident of the Far North does not have enough grounds to receive an insurance pension (length of service, etc.), then upon reaching a certain age he has the right to receive social benefits. Retirement occurs under standard conditions, so it is important to take into account age: 60 years for women and 65 for men. Sometimes the old-age pension may be accrued early.
Residents of the Far North and neighboring regions have many different benefits. These can also include relaxations when applying for a pension - length of service, age, increasing coefficients. Even if the retirement age is raised, northerners can still retire earlier than expected. But if an elderly person has no reason to apply for an insurance pension, he will be provided with the standard social “minimum wage”.
Who is not affected by the changes?
The retirement schedule under the new law has not changed in any way for the following citizens:
- persons who have become disabled due to military trauma;
- mothers of many children with five or more children whom they raised until they were 8 years old;
- those who reached retirement age under the old legislation before 01/01/2020, including those who have not yet accumulated the required length of service and IPC;
- residents of the Far North and equivalent areas;
- parents or guardians who raised a disabled person from childhood to 8 years;
- midgets and disproportionate dwarfs;
- women working in the Far North and equivalent areas with two or more children;
- people with the first group of visual disabilities;
- victims of the accident at the Chernobyl nuclear power plant and other radiation or man-made disasters (with the exception of government employees);
- workers in coal mines, mining industry, ferrous and non-ferrous metallurgy, railway and other industries with harmful, dangerous and difficult working conditions.
In order to exercise their pension rights, these persons must accumulate the required length of service (insurance or in certain types of work) and IPC.
Which new categories of citizens will become pensioners early?
In addition to people whose pension conditions have not changed in any way, there are categories of citizens for whom the reform provided the opportunity to receive a pension earlier than the new period. In particular, the new version of Law No. 400-FZ made it possible to assign an old-age insurance pension to mothers with many children with insurance experience of 15 years, who gave birth and raised four children before the age of 8, from the age of 56 (clause 1.1, part 1, article 32 ), three children - from the age of 57 (clause 1.2, part 1, article 32).
At this time, they can become pensioners if they earn the required IPC amount. It should be noted that when determining the right to an old-age insurance pension, a woman’s children are included, in accordance with Part 3 of Art. 32 of Law 400-FZ, those in respect of whom the court has deprived her of parental rights or canceled the adoption will not be taken into account.