Pension in 2021 - latest news on indexation: to whom, when and how much

Retirement age in Russia from 2021 - latest news

The main innovation that has thundered throughout the country is raising the retirement age level. Initially it was planned to increase the retirement age by 8 years. However, the project received a negative reaction from Russians, and the President of Russia decided to agree to the meeting, increasing the retirement age by 5 years.

Social benefits for veterans and disabled people in 2021 in Russia - indexation, exact amount of payments, allowances

The promotion is planned in a smooth, almost imperceptible manner. Thus, already in 2021, citizens will retire at 60.5 (men) and 50.5 years (women). Further, with the onset of subsequent annual periods, the age indicator will increase by 0.5 and 1.5 years until it reaches the level of 65 (for men) and 60 years (for women).

We wrote in more detail about who can retire and when, and also gave an example of a retirement table

As for early retirement , the age limit for early retirement payments will not be raised. In 2021, the retirement ages will be 50 and 45 years. For different jobs - and different insurance, special experience - this age will be different. Read our article about when people will be able to retire early.

Despite the fact that the age for early retirement was not raised in 2019, such a condition is provided for the assignment of this benefit. If a citizen has 2 years or less left before retirement, he can apply for an early retirement pension six months earlier.

The Russian Pension Fund has recorded a new wave of refusals to pay insurance pensions.
The Ministry of Labor explained that not everyone will be able to count on future payments. Reaching retirement age no longer guarantees full payments. Due to a lack of points, many Russians may lose their insurance coverage. Who is entitled to it and what to do so as not to be left without funds in old age - in the material of the portal iz.ru. Who is affected by the refusals?
The refusals began last year.
As a rule, people who do not score the required number of points are deprived of part of their pension. The Pension Fund of the Russian Federation assured that cases of refusal to accrue an insurance pension are still isolated. Last summer, PFR Chairman Anton Drozdov said that 47 thousand pensioners do not have the minimum length of service. He estimates that this is about 1% of the total. What are these points and how does your pension work out now?
The point system of pensions appeared in Russia three years ago.
Payments are divided into two types: insurance and savings. To calculate the insurance pension, which is exactly what we are talking about, an individual coefficient is used. In other words, every year of a person’s work activity is transformed into points. How are they calculated?
The scoring scheme is calculated using a formula.
The number of points required to receive an insurance pension only increases every year. If in 2021, in order to receive a pension, it was enough to score 9 points, now it’s already 13.8. Those retiring in 2025 will need to save twice as much, with a minimum of 30 points. In this case, the minimum experience increases to 15 years. Before the introduction of the point system, this figure was five years. The annual increase in length of service requirements implicitly increases the retirement age as a whole. What do you need to do to get points?
In addition to the length of service requirements, deductions made during the period of employment are taken into account.
That is, citizens with a certain level of income will be able to apply for a future pension. The salary should be higher than the minimum wage: in 2021 it is 9,489 rubles. The greater the salary and length of service, the correspondingly higher the future pension. Who is at risk of missing out on their pension?
Employees who receive their salary in an envelope do not receive points due to the fact that the employer did not transfer money to the pension fund for them. Citizens receiving low white wages also risk being left without a significant part of their pension contributions.

There is another problem: public sector employees receive salaries in accordance with the approved tariff schedules, and their size has recently increased.
But at the same time, people began to be registered not for full time, but for half or a quarter. Insurance premiums are paid from this part of the salary. It turns out that due to this, the employee will lose his insurance pension in the future. It turns out that these people will be left without a pension at all?
Those who have not accumulated the required number of points are entitled to only a social pension.
Its size is significantly less than the insurance premium, and the payments themselves begin five years later: women can count on it at 60 years old, and men at 65 years old. Thus, retirement for this category of citizens is delayed. This year the size of the social pension is about 5 thousand rubles. In addition to this, citizens are additionally paid benefits so that the total amount reaches the subsistence level in the region. Can years of experience not be counted?
If the company in which a person worked went bankrupt, often after years it becomes difficult to raise information about pension contributions and this data may not be counted.

The only way to challenge this is to go to court.
There is a Supreme Court ruling according to which a citizen has the right to bring two witnesses to the Pension Fund. They must confirm that he actually worked for this company. What else affects your future pension?
There are coefficients that affect the size of the pension, both plus and minus. After a certain salary threshold - 85 thousand rubles - the size of the future pension will be influenced solely by the length of service. For example, by receiving the maximum salary and accordingly making contributions to the pension fund for the required 15 years, a citizen can count on a pension in the amount of 16,985 rubles. The pension of an employee with a maximum salary, whose work experience is 30 years or more, will be 29,156 rubles. You can calculate the approximate size of your future pension using the calculator on the website of the Russian Pension Fund.

A reduction factor has been introduced for military pensioners.
Long service payments to retired military personnel amount to 72% of their salary. What about maternity leave?
The length of service also includes periods of leave to care for children up to one and a half years.
After the birth of the second child, the points awarded during maternity leave are doubled. According to the formula, 1.8 points are counted for the first child, 3.6 points for the second, and 5.4 points for the third and subsequent children. Why is this happening?
In many ways, changes in the pension system are due to the fact that a large generation is retiring, while the number of young working people is steadily declining.

On the other hand, the size of the pension largely depends not on how much money a particular employee contributed during his career, but on the current volume of funds in the Pension Fund.

Indexation of insurance and social pensions in Russia - indexation calendar for 2021

Planned indexations for 2021 for all categories of pensioners are being considered by the Government. The project has not yet been approved, but it is already clear that next year it is planned to carry out several indexations of pension payments, which are carried out annually. These include the indexation of pensions: insurance - in February, social - in April, for working citizens - in August.

In 2021, this scheme was slightly adjusted. Insurance pensions were raised not in February, but on January 1. In 2021 the situation will repeat.

Let's list how - and by how much - pensions will rise.

Thus, the country’s budget includes an increase in pensions in 2019 by 7.05%. And in 2021 and 2021, the indexation of pension benefits is planned to be carried out at 6.6% and 6.3%. How will pension payments change? Most likely, they will increase, but not by much.

As for indexation for working pensioners, there will be no indexation in 2019. But there will be an annual recalculation. Read about the latest news for working pensioners in this article

Pensions 2019-2020 for pensioners: latest news today

Already now, non-working and working pensioners want to know how much their pensions will increase and be indexed in 2021. What innovations regarding pension increases should be expected based on the current plans of the executive authorities of the Russian Federation. Read below for important latest news regarding legislative initiatives regarding support for pensioners from January 1, 2021.

Old-age insurance pensions will be indexed in 2021 by 6.6%, in 2021 - by 6.3%, follows from the draft main characteristics of the Pension Fund budget for 2021 and the planning period for 2021 and 2021 (available from RBC). These pension indexation parameters exceed the Ministry of Economic Development's inflation forecast (3.8% in 2021 and plus 4% in 2021), the rbc.ru portal reports the latest news. According to the draft basic parameters of the PFR budget, the average annual pension in nominal terms will increase by almost 1 thousand rubles. annually - in accordance with calculations of the Ministry of Economic Development. The average pension will increase in 2020 to 16,284 rubles, and in 2021 it will reach 17,212 rubles. The Russian Pension Fund expects that about 180 thousand citizens will be able to receive the funded part of their pension in 2021 ahead of schedule, the press service of the Russian Pension Fund told TASS. “For 2021, we are planning approximately 180 thousand citizens who will receive an early funded pension,” the Pension Fund said. According to the fund, at the end of 2018, 65.3 thousand people received a funded pension (there are no official data for 2021 yet). For all types of pension savings - funded pension, urgent payment, lump sum payment and payment to legal successors - the total number of recipients in 2018 was 1.01 million people. According to the annual report of the Pension Fund for 2017, the total number of recipients of pension savings in 2017 amounted to 1.072 million people. Of these, 50.8 thousand are recipients of funded pensions. According to the current legislation, a funded pension is formed for working citizens born in 1967 and later, due to the fact that their employers pay insurance premiums to finance the funded pension, as well as for men born in 1953-1966 and women born in 1957-1966. in favor of whom, in the period from 2002 to 2004, employers paid insurance premiums for the funded part of the labor pension, from participants in the state pension co-financing program and from those who allocated maternity capital funds to form pension savings. According to the Pension Fund of Russia, despite the increase in the age of retirement for old-age insurance pensions for women and men will be up to 60 and 65 years, the appointment of a funded pension and other types of payments of pension savings (one-time payment of pension savings and urgent pension payment) from January 1, 2020 is established in the same order: for women - at 55 years old, for men - at 60 years old. The right to early payment of pensions is available to workers in harmful and dangerous working conditions, the navy and civil aviation, rescuers and firefighters, urban transport drivers, employees of institutions executing criminal penalties in the form of imprisonment, a number of civil servants, teachers and medical workers, as well as a number of creative workers , informs the portal banki.ru The funded pension system, which has not shown its best side, will be replaced in 2021 by individual pension capital (hereinafter referred to as IPC). According to the proposed system, writes RBC, Russians will independently form an additional part of their pension. Working citizens will have to make another contribution from their salaries. And since this will be another payment for a future pension, because no one has canceled the 22 percent that the employer contributes to the Pension Fund, experts called the new pension system nothing more than a “pension tax.” Russian President Vladimir Putin indicated that he approved this on the condition that the payment would be voluntary. At the moment, we are talking about the fact that they will pay from one to six percent of the salary. It is noted that one of the latest versions of this bill states that citizens will be able to receive their pension only 30 years after the first contribution. What does “Cumulative part of pension” mean? A funded pension is a monthly lifetime payment of pension savings, which are formed from insurance contributions from employers and income from their investment. This innovation was adopted in 2002. In theory, it was assumed that the funded part would increase every year until the citizen’s retirement age. Basically, these deductions should grow due to the income of the company in which they are kept. For the first time, contributions from working Russians to the funded part of pensions were used for current payments to pensioners in 2014. The funded part of the pension was frozen for the first time in 2014. This made it possible to save funds from the federal budget by reducing the transfer to the Pension Fund. Before the freeze, employers' insurance contributions for pensions (at a rate of 22% of salaries) were divided into two parts: 16% - for the formation of an insurance pension; 6% - for the formation of pension savings, if the citizen has not chosen only an insurance pension, Interfax explains.

22.06.2019 17:15

The size of the pension increase in 2021 - who won’t be able to get an increase of 1000 rubles?

In Russia, most citizens understand that not everyone will be able to receive an increase in their pension benefit of 1 thousand rubles. This is literally influenced by the adopted legislation and the average pension size.

So that you understand what we are talking about, we will give examples.

Example 1. A citizen will receive an increase of 1,000 rubles to his pension

Petrov receives a pension of 14,000 rubles every month. In 2021, he will receive an increase in his pension of 1,050 rubles, since the amount will be indexed by 7.5%.

Example 2. A citizen will not be able to receive an increase of 1,000 rubles

Ivanov receives a monthly pension payment of 12,400 rubles. His benefit will be indexed at 7.5%. Thus, he will receive an increase of 930 rubles.

And if we take the pension that residents of rural areas receive - approximately 10,000 rubles, then they will receive an increase of 705 rubles.

We can conclude that not all citizens of the Russian Federation will receive an increase of the promised 1 thousand rubles.

For the increase to be equal to 1,000 rubles, the citizen’s pension must be at least 13,334 rubles. If this size is smaller, then the increase will be smaller.

In 2021, payments for pensioners will be updated on behalf of the president

On February 20, 2019, Vladimir Putin at the federal meeting called for the recalculation of pension amounts by 7.05% after indexation on January 1, 2019. Until this date, pensioners receiving pension payments below the subsistence level had the right to an increase up to the regional limit of purchasing power. For this reason, they might not have felt the indexed increase that began in January, seeing in it their previous increase.

At the call of the president, this shortcoming should be eliminated by increasing the size of the pension to the subsistence level and then starting indexation by 7.05%. It is stipulated that this will be carried out “retroactively” so that pensioners receive this compensation without delay. Additional payments to pension payments will begin with the March 2021 pension payment.

On February 21, 2019, a message was received from the Ministry of Labor that the scheme for calculating social bonuses in order to calculate the new pension amount had been changed. It became known that an increase in pensions is expected only for 12% of pensioners who are not engaged in working activities. Thus, working pensioners in 2021 found themselves with suspended indexation and supplements to their pensions.

Photo: publicdomainpictures.net

Assigning a pension using an electronic book

The new bill will be considered in 2021. It concerns the registration of pension payments using electronic books . All information about a citizen’s work activity will be entered into the Pension Fund of Russia database in electronic form, which will significantly improve the work of fund specialists and eliminate possible errors.

The law is planned to come into force in 2021 if approved by the Ministry of Labor.

The bill will affect more than 4.5 million organizations in Russia.

What can military retirees expect in 2021?

Military members can expect a significant increase in their pension in 2021. Tatyana Shevtsova, Deputy Minister of Defense, announced that this measure is designed to help retirees maintain an adequate standard of living at ever-increasing prices. In January 2018, there was already an increase in payments for the military by 4%, and in the future they are planned to increase in the same direction over two years to reach an increase of 12% by 2021.

Regarding the reduction coefficient, it is known that on December 5, 2017, the Russian Government decided to freeze it at 72.23% of the total amount of funds until 2020. At the same time, experts have noted that these measures are good enough to provide the military with a decent old age after retirement.

Please note that on January 1, 2012, a measure such as a reduction coefficient, designed to keep pensions for the military at the same level, without simultaneous increases with the salaries of employees, was adopted at the federal level. This measure was introduced in order to save money from the state budget.

The level of awareness of pensioners will increase and the financial responsibility of the Pension Fund will appear

A number of amendments will be made to the federal law “On Insurance Pensions” next year. Innovations will be introduced into the work of the Pension Fund of the Russian Federation.

Let's look at what they plan to introduce:

1. Providing a written calculation of the accrued pension. Now this information can be obtained by submitting a request to the fund. Soon it will be possible to obtain data by contacting a Pension Fund specialist directly. Failure to comply with the request will result in liability and appropriate penalties.
2. Notification of pensioners about changes in pension amounts. If this is really the case, then information about why the pension has increased or decreased will be reported in writing.
3. Financial liability for violations in the calculation of pensions or violations of the payment procedure.
4. Conducting recalculation of uncollected amounts. Pensioners are now seeking recalculation of the lost amounts through the court, and it will be possible to contact the fund’s branch, where specialists will carry out the recalculation. It is planned to index the lost pension to inflation.
5. Compensation for moral damage caused to a pensioner. This will be possible in case of violations of property rights.

Experts believe that, thanks to these innovations, the Pension Fund of Russia will become closer to the people.

What will happen to pensions for disabled people of groups 1, 2, 3 in 2021?

Disability pensions will not increase in 2021. So far the Government has not said anything about this. But Russians understand that the state budget does not have enough funds to carry out indexation of pensions for disabled people.

Today, disabled people receive the following pension amounts:

• RUB 2,577 - 1 group.
• 5240 rub. - 2nd group.
• 4454 rub. - 3rd group.

It is possible that the indexation of pensions for disabled people in 2021 will be carried out on a general basis: that is, benefits will be multiplied only by the inflation factor - and no more.

Let us note that the amount of a disability pension today directly depends on the amount of the subsistence minimum - which, albeit slightly, is growing.

Increase in pension payments in 2021

The issue of increasing income for retirees who left work for a well-deserved rest has been worrying government officials for many years. It has long been noted by experts how weak the financial resources of the Russian pension system are, and have a number of problems. As a result, a dignified, secure old age for citizens is unfeasible and beyond the capacity of the state.

By a joint decision of the Government of the Russian Federation, social protection and the Ministry of Labor, a bill was created in 2021, with the help of which an increase in pensions will be organized. Savings for federal budget funds, according to the project, will be achieved by extending the working age. Thus, in 2019, unemployed pensioners will receive an increase in pension payments in the amount of 7.05%, which is the first time in history when the level of pension indexation exceeds the inflation rate in the country (4%).

As Tatyana Golikova explained, the increase will occur gradually. The Chairman of the Accounts Chamber and the Deputy Prime Minister for Social Affairs said that first, on February 1, 2019, 4% will be added, in line with inflation, and on April 1, 2019, the next increase of 2.4% from the saved funds is expected. It should be noted that previously only the size of the price increase was the limit for increasing such payments.

Then the pension part, which is fixed, becomes 5331.7 rubles monthly instead of 4982.9, as it was in 2021, and this is with the individual pension coefficient (IPC), which already costs 87.19 rubles. It is stipulated that the introduction of individual pension capital (IPC) on a voluntary basis is expected. It is assumed that people will form it themselves. And insurance for such types of savings is a special state task for the safety from loss and protection of citizens’ personal savings, according to Anton Siluanov, Minister of Finance.

Increased pension if there are dependents - amount of payment and who is entitled to?

In October 2021, the Pension Fund announced who can receive an increased pension. These citizens include pensioners who have dependent disabled relatives.

Often these are retired parents whose children study at universities and do not have the opportunity to find a job.

Disabled family members may include not only children, but also brothers, sisters or grandchildren who have not reached the age of 18, or who are studying full-time in accredited educational institutions until the age of 23.

The increased payment can be established for a maximum of three family members.

It is known that if a pensioner is dependent on:

• One person, then the amount will be 6,643.87 rubles.
• Two, then 8,304.84 rubles.
• Three, then 9,965.81 rubles.

Those who continue to work can also count on increased pension payments. Read about increasing coefficients for such citizens in pension calculations in this article

Military pensions will increase by 6.3%

From October 1, 2021, the pay of military personnel and persons equivalent to them will increase by 4.3%, and military pensions will also be further indexed by another 2% from October 1 next year.

Thus, the overall increase in military pensions will be 6.3%.

The President of Russia stated this at a meeting ceremony with senior officers and prosecutors on the occasion of their appointment to higher positions, assignment of higher (special) military ranks and class ranks.

In connection with the innovations, the President of the Russian Federation instructed the Government to provide appropriate funds in the draft federal budget for 2019-2021, and asked parliamentarians to support the necessary amendments.

Who will remain unaffected by the upcoming 2021 reform to increase the retirement age?

There is no specific list of categories of citizens who remain outside the bill proposed by the Government. The only mention of this topic can be considered the message from the Pension Fund of July 14, 2021 on their official website. According to the published news, persons who are not covered by the reform include:

• citizens under the care of the state due to health or social circumstances;
• victims of radiation and man-made disasters;
• workers of the railway, metro, subways, as well as hot shops;
• workers involved in the extraction of mineral resources, participants in the development of deposits;
• female textile workers;
• female persons performing the duties of tractor drivers at agricultural enterprises and in the construction and road sectors;
• truck drivers in mines and quarries;
• drivers of urban public transport following fixed routes;
• workers employed in logging and timber rafting;
• persons who are members of civil aviation crews or who carry out aircraft maintenance;
• testers and those who take part in tests to study various types of aircraft;
• FSIN employees working directly with prisoners;
• rescuers, members of emergency rescue teams or units.

The government remains of the opinion that reform is necessary for the state. As Anton Siluanov said, from January 1, 2019, indexation is a priority task of the state in order to improve the lives of older people.

A new system of non-state pension provision will appear

In 2021, a project will be developed for a non-state pension system for Russian citizens. This will mean individual pension capital, which Russians will accumulate during their working lives.

It will turn out that citizens will have the opportunity to form their future pension using personal funds. They will be able to independently deduct a certain percentage of their income - or a certain amount - to the account of a non-state pension fund, which will subsequently pay pension benefits.

You can find out more about the new individual pension capital system in our article.

Follow us for changes in pension legislation or ask our lawyers any questions you have on the website.