Home » News » New rules for calculating military pensions from October 1, 2021 and an increase - latest news
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Agata Kozhukhova
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Every year, government authorities increase pension payments. Military pension is no exception. From October 2021, a situation is foreseen to improve the financial situation of military personnel and citizens of our country. This category has the right to expect an increase in pension accruals due to indexation. The government implements this scenario every year.
Increase in military pensions from October 1, 2020
From October 1, 2021, military pensioners will receive an increased pension. For this purpose, additional funds have already been provided in the state budget of our country.
Government Resolution No. 939 of June 27, 2021, signed by the President of the country V.V. Putin, established an increase in pension accruals by 3%. It will be carried out by increasing the official salaries of military personnel by position. But the final amount of allowances will be determined on an individual basis. Its size will be influenced by a number of indicators. such as position, length of service, rank. The financial situation will be improved for approximately 2.6 million pensioners of the following categories:
- citizens who served under a contract;
- employees of the Russian Guard in the past, ex-representatives of the FSB, the Ministry of Internal Affairs, the Ministry of Emergency Situations, the Federal Penitentiary Service, customs authorities, and the fire service.
Defense authorities are confident that the increase in military pensions in 2021 is insufficient. However, the authorities of our country claim the opposite.
Why is the government taking extreme measures?
A change in the retirement age is not the only thing that awaits military personnel who will still have time to retire in the coming years. Recent news suggests that all pensions will now be subject to equalization. For comparison, it’s worth taking an ordinary employee who, at the age of 20, decided to go into contract service. After working for 25 years under the new legislation, he will be able to retire at 45 years of service. Also, his pension, if the rank is not higher than sergeant, will be about 10 thousand rubles. The same amount of pension awaits a serviceman who will carry out his activities until the age of 65. However, here it is worth taking into account various allowances and benefits. Also during 2018, an interregional abolition of indexation of pensions was announced. This means that military personnel received only one lump sum payment from the state. As inflation rises every year, military personnel worry that pensions are not changing. The consumer basket is losing its weight, and there is no longer enough money.
Today, all military personnel are concerned about two main issues:
- Can you count on indexing in 2021?
- What additional benefits will be introduced to improve the well-being of citizens.
- Will the reform of military pensions in 2021 make it higher than in 2021?
The answer to these questions can be given now. Since most of the innovations have received approval from the governing bodies. Benefits and benefits will remain unchanged. It is also worth noting that the retirement age will be increased according to a special grid. You can find out about it on the official website of the Russian Pension Fund.
Enhancement Dimensions
As mentioned above, the increase in pensions in 2021 will be 3% for military pensioners.
State authorities have already ordered the allocation of 6 billion rubles from the country’s budget for such payments. Leonid Gorin said that in 2021 it is enough to index military pensions by 3% once. For comparison, in 2021 there was an additional increase of 2%. According to officials, government authorities are fulfilling their obligations to annually increase pension payments even without additional funds.
The authorities decided to increase pensions annually quite a long time ago. Since 2012, the price growth index has been 2%, and pensions have increased by at least 3%.
Accordingly, the final coefficient should be 70%, but in fact it is higher and amounts to 73.68%. Therefore, the authorities claim that indexation obligations are being fulfilled in full. It turns out that the current indexing is carried out completely according to the law.
How is military pension calculated?
The basic amount for calculating a pension is the military personnel's allowance (DV). Its size depends on:
- the title of retiree, which he received upon his retirement;
- position held during service.
The resulting amount is not strictly fixed throughout the entire pension period. Every year, according to the resolutions of the Government of the Russian Federation, the additional income increases by the inflation factor included in the budget. That is, the value of the pensionable income of a retiree every year will be equal to the maximum allowance of an active military man at the level of similar ranks and positions.
Next, according to paragraph 2, the length of service coefficient is determined. If you “work” in the army for 20 years, its value is 50%. For each year there will be an increase in pension by 3%. The maximum value of this coefficient can only reach 85%. This corresponds to a service life of 32 years.
For persons whose service experience is 12.5 years in the army, and the total length of service is 25 years, the increase for length of service beyond will be made at the level of 1% per year.
A formula for calculating a pension for a military retiree (with a service period of, for example, 25 years in the army) is already emerging:
DDV*(50% + 15%)*Kpon
Only point 3 remains (the most interesting). This is a reduction factor. Since the beginning of 2012, it was introduced against the backdrop of a significant increase in military salaries. Its value was 54%. That is, in our case, the pension is reduced by another half.
Russian President V. Putin promised that this reduction factor will increase by 2% annually until it reaches the maximum 100%.
All components of the military pension calculation were received. Now let's see:
- which of these indicators is guaranteed to increase in 2021;
- what indicator is planned to increase in 2021;
- and what possible bonuses (rumors) will be applied next year.
It is worth noting that the budget officially includes indexation of payments to military pensioners for 2021 at the level of 4.3%. But due to the difficult situation in Russia (covid-19, financial burden, something else), parliamentarians reduced this figure to 3%. In 2020, indexation is planned from October 1.
What benefits do military retirees have?
Annual pension increases are not the only benefit for military retirees. Additionally, salaries are being increased for active military personnel.
To carry out indexation, funds are spent not from the Pension Fund, but from the state budget of the country. This leads to a delay in the recount, which various government benefits are required to compensate for. This refers to additional payments, social services and the provision of other material assets.
Military retirees regularly use the following benefits:
- travel on public transport;
- assistance in changing place of residence;
- other types of social support;
- discounts on housing and communal services;
- assistance in solving social problems.
Additionally, pensioners have access to medical care provided by departmental medical institutions. They have the right to count on vacation trips to a sanatorium, as well as free dental prosthetics.
The amount of benefits depends on length of service, place of service and other factors.
