An increase in pensions for working pensioners in 2021 will be carried out only as part of an annual recalculation. The increase is assigned as a result of taking into account in the amount of the pension additional pension points generated by transferring insurance contributions from wages. In this case, the recalculation takes into account the coefficients formed over the past year. Accordingly, when recalculating the pension amount in 2021, contributions transferred by the employer for work during 2021 will be taken into account.
Since 2021, pensions of working citizens have ceased to be indexed. Now, all “missed” indexations over the years of work are assigned only after dismissal, that is, after the termination of work and the pensioner’s transfer to the category of unemployed.
No additional increases or indexation of pensions are planned for working pensioners in 2021.
Although the State Duma has repeatedly proposed the return of indexation for working pensioners, a positive decision on this issue has not yet been made.
- It was expected that such a change would occur on January 1, 2021 as a result of bringing the legislation into line with the updated Constitution. However, no changes were approved, and the PFR budget for 2021-2023. was adopted without taking into account the funds necessary for indexation for working citizens.
- At the same time, the discussion on the issue of restoring indexation for working pensioners continued in 2021. On behalf of President V. Putin, the Ministry of Labor has prepared options for resuming indexation. It is expected that the decision will be made by the President himself and will be announced during his next address to the Federal Assembly.
Increasing pensions for working pensioners in 2021
An increase in the amount of pension payments for working pensioners in 2021 will be ensured as a result of recalculation. An increase will be established for all types of insurance pensions: old age, disability or loss of a breadwinner (if insurance premiums were not fully taken into account when assigning payments).
The annual recalculation of pensions for working pensioners will be carried out from August 1, 2021. It is worth noting some important features of this recalculation:
- The amount of the increase is determined individually based on the pension coefficients (IPC) accumulated over the previous year, which were not previously taken into account when calculating the pension.
In this regard, the additional payment to the pension will be greater, the higher the official salary was in the previous year. When recalculating for working pensioners, all contributions transferred for the previous calendar year are taken into account. This means that in 2021, pensioners will receive an increase for the length of service that they additionally accumulated in 2021, while already being retired. - The increase has a limited maximum amount, since no more than 3 pension points are taken into account when recalculating. To form three individual industrial complexes for the full year 2021, the salary must be 32,300 rubles. per month. If a pensioner has not worked for a full year, then 3 pension points can only be generated with a larger salary.
- The cost of one IPC for a pensioner during recalculation is taken in the amount that was established on the date of registration of his pension. This condition applies due to the same notorious indexation freeze, which has been in effect since 2021.
Pension support after retirement
Having learned that indexation has been cancelled, citizens are trying to understand whether a working pensioner receives a full pension or not after dismissal. The law obliges representatives of the authorized body to carry out the procedure. Until 2021, recalculation was carried out within 2-3 months. As a result, pensioners received pension payments in the required amount only after this period. No compensation was provided during this time.
Please note: From 2021, an increased pension is calculated from the first month after dismissal. However, the entire amount is provided only after 3 months, as before. This entire period is fully compensated.
The pensioner is not obliged to contact the authorized body and report that he has stopped working. However, the person has the right to carry out the procedure. However, you need to understand that this will not speed up the period for granting an increased pension.
Increasing pensions for working pensioners from August 1, 2021
The size of the increase from August 1 depends on the citizen’s retirement date. In this case, the size of the maximum increase corresponding to the equivalent of three IPCs can be determined from the table below:
| Retirement date | Cost of IPC, rub. | Maximum increase in August 2021 in rubles |
| Until 02/01/16 | 71,41 | 214,23 |
| After 02/01/16 | 74,27 | 222,81 |
| After 02/01/17 | 78,28 | 234,84 |
| After 04/01/17 | 78,58 | 235,74 |
| After 01/01/18 | 81,49 | 244,47 |
| After 01/01/19 | 87,24 | 261,72 |
| After 01/01/20 | 93,00 | 279,00 |
The amount of the increase in pensions for working pensioners after recalculation from August 1, 2021 will be higher, the later the date of registration of pension payments. But since the additional payment is limited to three IPCs, the additional payment in any case will be no more than 279 rubles. Moreover, such an allowance will be available to citizens who applied for a pension in 2021 and managed to create 3 IPCs on their personal account after retirement.
For those who just retired in 2021, recalculation in August 2021 is not allowed, since all accumulated points were taken into account when assigning payments. If the pensioner continues to work, a recalculation will be made for him in August 2022.
How is the pension calculated and paid?
The following indicators influence the calculation of pension payments:
- Seniority.
- Insurance points.
- Allowances.
- Availability of insignia.
Typically, the average pension is 15,000 rubles. The pension is paid either through a bank or delivered via mail (for rural pensioners).
If pensioners continue to work after reaching the age of 60 (women) or 65 (men), they are awarded pensions without taking into account insurance points. Because of this, there is no increase in pension benefits. As a result, pensioners who did not work, having reached retirement age in 10 years, will have a pension twice as large as those who continued to work.
You can learn more about the retirement age and the amount of pension in the CIS countries from the article on our website.
Features of recalculations
According to the indexation law, no payments will be made to working pensioners. To balance the situation, the government decided to recalculate for citizens who were employed according to the law.
The recalculation will take place like this:
- Tax payments from salaries will be taken into account. To do this, employers will be asked to provide information on the amount of deductions that are made monthly. We are talking about 13 percent contributions to the state, which are deducted from the money earned even before it is issued to the pensioner.
- If the information provided is incorrect, the recalculation will also be incorrect.
- The amount of payments directly affects the accrual of points: the higher it is, the higher the bonus point the pensioner will have after the new calculation.
- For the maximum pension supplement, you need to get three points, which will amount to a maximum pension supplement of 245 rubles.
Of course, the amount is not impressive. The conclusion is the following: for working pensioners in 2021, the recalculation is not carried out to improve their financial condition. Most likely, they are trying to systematize the point system. In addition, in this way the state will be able to receive information about tax deductions.
Will there be indexation of pensions for working pensioners in 2021 (latest news)
Vladimir Putin will address the Federal Assembly on April 21, 2021 with his message.
Many are waiting for the president to return the indexation of pensions for working pensioners, which they lost in 2021. However, according to MK, no such decisions will be announced. At least in relation to all working pensioners, whose total number is 9 million people.
Sources familiar with the situation say that there were intentions to return indexation at first and the government has prepared its proposals in this regard. However, during the discussion, we came to the conclusion that the budget cannot yet cope with such a load - the costs will range from 0.5 to 1.5 trillion rubles in additional expenses.
“The maximum that can be voiced is indexation for the most vulnerable selected categories. For example, for those working pensioners who are disabled,” the newspaper’s interlocutors note, emphasizing that at the moment no one knows the exact option. This will be the president's personal decision.
In accordance with Article 7 of Law No. 385-FZ of December 29, 2015, the Government introduced a moratorium on the indexation of pensions for working pensioners starting in 2021. As a result, for this category of citizens the size of the fixed payment to the insurance pension and the cost of one pension coefficient (IPC) are not indexed, as is provided for non-working pensioners. For this reason, their pension benefits during their working life remain virtually unchanged - they are entitled to an increase only as a result of an annual recalculation in August.
Despite repeated attempts by State Duma deputies, the decision to restore the usual indexation procedure for working pensioners has not been made. The final position of the Government on the issue of indexation of pensions for working pensioners was announced by Finance Minister Anton Siluanov. During his speech in the State Duma on October 28, 2021, he said that the department opposes the return of indexation of pensions for citizens who continue to work.
The Ministry of Finance considers the adopted concept in relation to this category of pensioners fair for the following reasons:
- Even without indexation, the incomes of working pensioners grow annually due to rising wages.
- All missed indexation for the period of employment will be taken into account upon dismissal and determination of the final pension amount.
Based on the above, the Ministry of Finance believes that it is inappropriate to change the indexation rules adopted in 2021, since the main task of the Government is to ensure a high growth rate of income for the population as a whole. For employed pensioners, it is carried out in full due to the increase in wages, which is annually noted by the state statistics service.
In turn, State Duma deputies propose to reconsider the existing indexation procedure, at least for working disabled people and citizens with low wages. Moreover, the issue of restoring the indexation of working disabled people was discussed with the President, who, in turn, proposed considering this option and calculating its feasibility.
Latest news from the State Duma for working pensioners
Deputies of the State Duma have repeatedly tried to restore the “frozen” indexation for this category of citizens, for which a number of bills were prepared and submitted for consideration:
- Bill No. 902475-7 from Senator V.N. Ikonnikov (introduced to the State Duma in February 2021), which proposed restoring the indexation of payments to working citizens from January 1, 2021.
- Deputies from A Just Russia in June 2021 proposed their draft law No. 967775-7, which proposed not only indexation, but also payment to citizens of all lost funds during such a moratorium (for the period from 2021 to 2021).
- A similar bill from the LDPR faction No. 968227-7 was introduced in June 2021 and proposed the lifting of the moratorium on indexation starting July 1, 2021.
Review of the projects was supposed to take place on December 16, 2020, but, unfortunately, their reading was postponed indefinitely. At the same time, most likely, all three projects will soon be rejected, since negative conclusions have already been prepared by the Legal Department of the State Duma and the Government of the Russian Federation. In particular, it is noted that the adoption of such a law:
- will require additional expenses that were not initially included in the budget of the Pension Fund of the Russian Federation;
- will violate the existing “concept for the development of the Russian pension system,” which involves indexing pensions only for non-working pensioners;
- will violate the principle of social justice and somehow infringe on the rights of citizens who already receive pensions.
When to expect the next indexations
In 2021, the procedure for working pensioners was cancelled. However, in 2021 they were also able to receive a one-time payment of RUB 5,000. as compensation for indexations.
Note! The government's opinion regarding working pensioners has not changed. In the future, their insurance pensions will not increase.
If a person decides to stop working, he regains his right to indexation. Moreover, all bonuses to pension payments that occurred before will be provided.
Pension payment procedure
Upon reaching the appropriate age, the retired employee must apply for insurance payments. To do this, you need to fulfill three basic conditions:
- experience of more than 8 years (increases annually, maximum 15 years by 2024);
- reaching 55 and 60 years of age among the female and male population;
- the value of the IPC (pension coefficient) is more than 11.4. The size of the IPC is influenced by the following factors: the amount of deductions; salary amount; experience; baby care; military service; presence of pathologies (disability); labor activity in certain vacancies (for example, diplomats, internal affairs officers, etc.).
It is important to know!
Mixed pension for military personnel To process payments, you should contact the Pension Fund (PFR) with an application and a package of documents, namely:
- Passport details.
- SNILS.
- Employment history.
- A copy of the employment contract.
- Certificate from work about the average salary for 5 years.
- Extract from the employment order.
- Military ID.
The period for reviewing documentation is 10 days. The pension is paid from the first of the new month.
The citizen chooses the method of calculating pension payments at his own discretion. For example, you can receive deductions by mail, by bank card, or at home.
It is necessary to contact the Pension Fund six months before retirement age in order to prepare all documents in advance. However, you are allowed to submit an application no earlier than a month before the retirement period.
