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What's new in the adoption of pension reform. Changes in pension legislation
It took deputies of the State Duma less than three months to adopt the final version of amendments to the current pension legislation. The start of transformation will begin in the first days of 2019 and will stretch over the next ten years. The article examines what changes are coming, as well as who and to what extent they will affect.
Normative base
This is a long overdue reform. Many experts and analysts spoke about the necessity and inevitability of its implementation, however, for most Russians, the future changes came as a complete surprise.
Reasons and need for changes.
The need for changes is simple - the lack of funds in the pension fund (hereinafter referred to as PF), required to pay decent pensions to the population, comparable to the level of wages. The reason for this was the demographic collapse that occurred after the collapse of the Soviet Union.
The current retirement age was established in the first half of the last century. It responded to the realities of the time, when the average life expectancy was just over 40 years, and for every pensioner there were about 4 people of working age. Over the past 80 years, the situation has changed dramatically. There has been a significant increase in both life expectancy and the number of pensioners themselves.
Already today, there are only 2.3 people from the working-age population per 1 pensioner, and over the next 5 years this proportion will drop to one to two.
Pension reform will reduce the financial burden on the Pension Fund. This will happen due to an increase in the amount of revenue contributed by working citizens.
What laws were changed by Federal Law No. 350 of 2018?
The adoption of Federal Law No. 350-FZ of October 3, 2018 required the introduction of a number of amendments to the current codes of the Russian Federation:
- Budget Code.
- Tax code.
- Labor Code.
- Criminal Code.
Scroll major changes:
- Responsibility has emerged for discrimination against persons of pre-retirement age.
- Tax benefits have been preserved for such a category of citizens as pre-retirees.
- Additional paid non-working days have been introduced for medical examinations.
- Additional sources of financing for the Pension Fund are funds from the sale of confiscated property and funds seized from corruption activities.
Initial version of the reform
In April 2018, Dmitry Medvedev announced the upcoming reform. In May, the draft bill was submitted to the President of the Russian Federation for review.
On July 19, 2018, it was approved in the first reading. 2/3 of the deputies, mainly from the ruling faction, voted for its adoption.
It is worth noting that the consideration of the bill was very heated, many deputies stated that it was possible to correct the current situation without resorting to such radical measures.
- It was intended to establish a fairly long period (from 2019 to 2034), during which a smooth and as painless transition to the new provisions of the law was to take place.
- During the introduced adaptation period, it was planned to annually raise the retirement age to 65 years for men and 63 for women.
- For persons with extensive work experience, minor concessions are provided. The male population can retire after working for 42 years, and women - 37 years.
Presidential Amendments
For a month and a half, since the completion of the first reading of the bill, the President paused and did not comment on the upcoming reform. During this time, there was a significant decline in his rating. Trade union organizations, initiative groups of citizens, and deputies prepared and sent a number of appeals to him with objections.
And so, on August 29, 2018, the much-anticipated address of the President to the citizens of his country took place. Vladimir Putin explained the reason for his silence by his desire to understand the current situation in detail and comprehensively.
He carefully studied and analyzed the proposals submitted to him and came to the conclusion that it was impossible to postpone the reform any further. He made some adjustments to the version proposed by the Government, but in general, the main postulates remain the same:
- in order to avoid discrimination against the female population, increase their retirement age by the same number of years as for men - 5 years;
- in view of the above changes, the period for adaptation will end in 2028;
- in view of the fact that, more than other citizens, the new provisions of the legislation will affect people of pre-retirement age, the President proposed to give them a special position;
- men and women who started their working career early should have the opportunity to go on vacation not only after reaching a certain age, but also after reaching 42 and 37 years of experience;
- since motherhood has always been under the special control of the state, and mothers of many children spend a lot of energy and health on raising children, it is necessary to support them with the possibility of early retirement 3-5 years earlier;
- additional support for rural residents is a long-standing issue, so people who have been living and working in agriculture for a long time (30 years or more) should receive an additional supplement to pension payments (it was set at the previously announced level of 25%);
- the right to early retirement (only 6 months later, not 12) for persons retiring in 2019 and 2020.
Retirement in 2019-2028
To clearly demonstrate the future transition, the stages and ages of reaching the new retirement age are presented in the table.
| Year of birth | Age (men) | Age (women) |
|---|---|---|
| 1959 | 60 years 6 months (including benefits) | — |
| 1960 | 61 years 6 months (including benefits) | — |
| 1961 | 63 | — |
| 1962 | 64 | — |
| 1963 | 65 | — |
| 1964 | 65 | 55 years 6 months (including benefits) |
| 1965 | 65 | 56 years 6 months (including benefits) |
| 1966 | 65 | 58 |
| 1967 | 65 | 59 |
| 1968 | 65 | 60 |
Growth of pensions and changes in the value of pension points
In accordance with the Government's plans, the ongoing reforms will allow for an increase in pensions and the value of pension points.
The planned indexation of pensions and the value of pension points in 2019-2024, for convenience, is presented in tabular form.
| Year | Indexing size | Pension point cost |
|---|---|---|
| 2019 | 7,05% | 87 rub. 24 kopecks |
| 2020 | 6,6% | 93 rub. 00 kop. |
| 2021 | 6,3% | 98 rub. 86 kop. |
| 2022 | 5,9% | 104 rub. 69 kop. |
| 2023 | 5,6% | 110 rub. 55 kopecks |
| 2024 | 5,5% | 116 rub. 63 kop. |
All recalculations have been postponed to the first day of the new year – January 1, 2019. On average, over 6 years, 1,000 rubles per month annually.
What categories of citizens are excluded from the reform?
Due to the special procedure for the formation and payment of pensions, the above reform does not apply to employees of law enforcement and military departments - the Ministry of Defense, the Ministry of Internal Affairs, the FSB, the Federal Security Service, the Russian Guard, the Ministry of Emergency Situations and the Prosecutor's Office.
Also excluded from the scope of the reform are:
- citizens with special working conditions (harmful, dangerous);
- participants in the liquidation of consequences at the Chernobyl nuclear power plant;
- persons who, due to social factors or health conditions, cannot continue to work;
- test pilots;
- , doctors and teachers.
The length of service for preferential categories will remain the same, but the deadline for applying for it will be postponed.
Feedback on the ongoing reform
The upcoming reform has met with extremely negative reviews among the population. Rallies and pickets took place in a number of cities. The Communist Party of Russia attempted to hold a referendum on this issue, but did not manage to collect the required number of signatures.
Currently, an initiative group of State Duma deputies from the Communist Party of the Russian Federation, the Liberal Democratic Party and A Just Russia have sent a complaint to the Constitutional Court of Russia against the adopted law. The court will consider this appeal for compliance with the provisions of the upcoming reform of the Constitution. If violations are discovered, the Law will be repealed.
However, most analysts believe that the prospect of such a decision is extremely unlikely..
Pros and cons of the upcoming reform.
Oddly enough, the reform still has a number of advantages:
It is obvious that cons also a lot:
- reduction in real incomes of citizens;
- falling consumer demand;
- the number of people who cannot take legal retirement due to old age due to their death will increase;
- government spending on retraining programs will increase;
New category – pre-retirees
The pre-retirement age was increased by presidential amendments by three years and amounted to five years before retirement. In addition, citizens of this age are given a special status, with a number of benefits and guarantees.
The moment of approaching pre-retirement age during the transition period is presented in the table.
| Year of birth | Men | Women | Coming year (male/female) |
|---|---|---|---|
| 1959 | 55 years 6 months | — | 2019/ — |
| 1960 | 56 years 6 months | — | 2019/ — |
| 1961 | 58 | — | 2019/ — |
| 1962 | 59 | — | 2021/- |
| 1963 | 60 | — | 2023/2018 |
| 1964 | 60 | 50 years. 6 months | 2024/2019 |
| 1965 | 60 | 51 years old. 6 months | 2025/2019 |
| 1966 | 60 | 53 | 2026/2019 |
| 1967 | 60 | 54 | 2027/2021 |
| 1968 | 60 | 55 | 2028/2023 |
Guarantees for pre-retirees:
- Tax breaks (exemption from property and reduction of land tax).
- A special procedure for paying benefits in case of job loss (larger amounts, longer terms for receiving payments).
- Additional non-working days (every year two days are provided for medical examination).
- Employers' liability for age discrimination.
- Opportunity to improve your knowledge and undergo retraining.
Early retirement in 2019-2020.
The President has introduced relaxations for those citizens who must face the introduced changes earlier than others. These are men and women planning to retire in old age in 2019 and 2020. They will have the opportunity to retire 6 months earlier.
Preferential pensions for civil servants, military and security forces
- required experience in state/civil service;
- reaching the required age.
Previously, the requirement for civil service experience was 15 years. After the adopted amendments, the requirement for the required length of service will gradually become stricter and by 2026 it will be 20 years.
The age requirement is 65 for men and 63 for women.
The amount of payments depends on length of service and ranges from 45% to 75% of the employee’s average monthly earnings. 45% is the minimum amount, which increases by 3% for each additional working year above the established one. The total amount of payments cannot exceed 75% of the average monthly earnings in service.
Military personnel and security forces. Today, the length of service is 20 years or more. Or if you have 12.5 years of military service and 25 years of total work experience. With the adoption of amendments to the current legislation, military service will increase to 25 years.
Fresh statements by the President regarding the reform and its implementation were announced at the annual December 2018 press conference.
The news of changing the retirement age excited the public.
Many people who were planning to retire in the coming years will now be forced to work for several more years.
It is expected that the new bill will be considered by the State Duma in the near future and adopted, taking into account all the necessary amendments, this fall.
The essence of the pension reform of 2018
Increasing the retirement age has been planned by the government for many years.
Currently, the PFR budget has a deficit of funds, which is planned to be filled with contributions from working citizens. The longer a Russian can work, the more additional funds will flow into the fund’s budget.
Another reason for the adoption of the reform is the planned increase in life expectancy of the country's population.
So far, no clear action plans have been announced to improve the quality of life of citizens, but the government considers it advisable to begin adapting the pension system to future demographic conditions as early as possible.
The essence of this reform is to gradually increase the age for receiving an old-age insurance pension. Currently, women over 55 years of age and men over 60 years of age can become pensioners.
If the bill is successfully approved, the age for a well-deserved pension will change:
- for the female half of the country’s population – from 63 years of age;
- for men - from 65 years old.
In addition, the reform may affect the procedure for the formation of pension savings, conditions for early retirement and the process of providing citizens with monthly payments.
The implementation of amendments and changes to Russian legislation is planned from the beginning of next year. Delays may be caused by the difficult financial and economic situation in the Russian Federation and other nuances.
The retirement age will be increased gradually.
From the launch of the project, the age limit is planned to be raised for one year on even dates. Such a process will drag on for at least 10–16 years, that is, until 2034 inclusive.
Pension reform in 2018: retirement table
As stated above, the changes will be implemented in stages.
The government plans to increase the retirement age of Russians by 5 years for the male half of the population and by 5 years for the female half. The process will tentatively begin in 2019.
UPD: The President of the Russian Federation has made amendments to the law - the retirement age for women will also be raised by 5 years, as for men. That is, the new retirement age for women in Russia is 60 years old.
Comment from the President of the Russian Federation
“The draft law proposes to increase the retirement age for women by eight years - to 63 years, while for men it is raised by five years. That won't work, of course. It is not right. And in our country there is a special, caring attitude towards women. We understand that they not only work at their main place of work, they, as a rule, are responsible for the entire house, caring for the family, raising children, and caring for grandchildren. The retirement age for women should not be raised more than for men. Therefore, I consider it necessary to reduce the increase in the retirement age for women proposed by the bill from eight to five years,” Putin said during his speech.
He also proposed providing for the right to early retirement for mothers with many children.
“That is, if a woman has three children, she will be able to retire three years early. If there are four children - four years earlier. And for women who have five or more children, everything should remain as it is now; they will be able to retire at 50,” the Russian President added.
Below is the retirement table following the 2018 pension reform, showing the planned changes to the law.
Thus, the annual change in retirement age will be carried out in increments of one year.
Consequences of the 2018 pension reform
Despite a lot of positive feedback about innovations from the state, the majority of the country's population reacted negatively to the news about raising the age for a well-deserved retirement.
The protests are associated with many reasons, one of which is low life expectancy in certain regions.
| Name of city or region | Average life expectancy in years |
||
| for women | for men |
||
| Saint Petersburg | |||
| Rep. Adygea | |||
| Voronezh region | |||
| Ryazan region |
|||
| Kirov region |
|||
| Oryol region | |||
| Rep. Tyva | |||
| Chukotka Autonomous Okrug | |||
Thus, according to data for 2017, many citizens do not live to see retirement. This is especially true for the male half of the country's population.
Raising the retirement age in the near future, given the statistics, looks inappropriate.
Despite the task set by the President of the Russian Federation to increase the life expectancy of Russians, it will not be possible to achieve the desired result in the shortest possible time. Even taking into account the effectiveness of future government measures, the process will take at least a decade.
State representatives assure that all planned changes in legislation are aimed at increasing the quality of life of citizens and improving their well-being.
As Prime Minister D. A. Medvedev said at a government meeting, the reform will gradually increase the size of pension payments up to 12 thousand rubles per year.
In practice, Russian citizens will have to face the following consequences:
- rising youth unemployment;
- the need to retrain the adult generation;
- the risk of facing discrimination based on age;
- lack of jobs for older people;
- a decrease in consumer demand due to a decrease in estimated income;
- low labor productivity.
Supporters of the innovations believe that the reform will make it possible to attract experienced and qualified older specialists to work. In practice, many employers will refuse to hire older people and will give preference to the younger generation.
The increase in youth unemployment is caused by many internal and economic problems.
Extending the retirement period could lead to jobs that were intended for young professionals being reserved for older citizens forced to work due to changes in the law.
In addition, the issue of developing retraining programs for older people is an urgent issue.
Many areas require contact with digital technologies. Some professions disappear, being replaced by others, or develop over time. Without appropriate training, it will not be possible to master new in-demand specialties.
The amounts of pension payments in some regions are extremely low, so pensioners are forced to continue working in order to receive additional income.
After the reform is approved, the income level of older people will sharply decrease, even if the citizen is officially employed. This will also have a negative impact on the country's economic sphere.
Are there any positive aspects to the reform?
It is difficult to answer this question unambiguously, because changes in the law will lead to a lot of negative consequences for the economy and the financial situation of older people and young people.
Some experts believe that the reform will help balance the fund’s budget and “patch” the existing “holes” in it.
Another positive aspect is the planned increase in the amount of payments. However, in this case, the monthly amount received by the pensioner will be supplemented by only one thousand rubles. It is also unclear when the pension increase is expected.
Are changes possible in the 2018 pension reform?
Innovations are not supported by most of the country, even young people under the age of 35. Protests from the population may have a certain impact on the process of adopting the bill.
At the moment, the reform has not yet been approved by the State Duma, so amendments may be made to the text of the document.
Perhaps the “strict” conditions proposed by the government were announced specifically in order to be able to slightly soften the planned changes without causing a big resonance in society.
UPD 08/29/18: The draft amendments to pension legislation have already passed the first reading in the State Duma. The bill envisages a gradual increase, starting in 2019, of the retirement age to 65 years for men and to 63 years for women (the transition period for them will continue until 2028 and 2034, respectively). Amendments to the document are collected until September 24.
The President also proposed providing tax benefits for citizens of pre-retirement age.
“We traditionally provided these benefits only upon retirement. But in this case, when changes are coming to the pension system, and people were counting on these benefits, we are obliged to make an exception for them, to provide benefits not in connection with retirement, but upon reaching the appropriate age. That is, as before, women will be able to take advantage of benefits when they reach 55 years of age and men - from 60 years of age.”
The document has already been officially published on the state Internet portal of legal information. In its final form, it was adopted by State Duma deputies on September 27 by a majority vote (333 votes for and only 82 against). Earlier, in the second reading, deputies considered the main amendments to pension reform(including those that were adopted unanimously). The adopted law was approved by the Federation Council on October 3.
The main planned changes to pension legislation from 2019, which are included in the final law, will be:
All of the above offers were formalized in the form of amendments to the law, considered and adopted by the State Duma in the second reading on September 26, 2018 The law was adopted in its final form the very next day - September 27, 2018, after which it was approved by the Federation Council on October 3, 2018 and signed by the President.
What were the main changes adopted during the reading of the bill on raising the retirement age?
On September 26, the second reading of the pension reform bill from 2019 took place. Its contents as amended was approved by the relevant committee and recommended for adoption. The draft law, which was reviewed and approved in the State Duma, provides for the following adjustments to the retirement age:
- for 5 years, i.e. up to 60 and 65 for women and men respectively. or equivalent areas, an increase is provided for up to 55 and 60 years.
- For, retirement will be deferred for 5 years after developing the required experience in the specialty (25 or 30 years, depending on working conditions).
- The age to apply is also will be increased by 5 years - i.e. up to 65 and 70 years old.
Every year the standard age value will increase by 1 year until its final value is established. But for those who, according to the old legislation, had to retire in 2019/2020, it will be possible to do this on preferential terms - six months earlier than the new law establishes.
Putin's amendments to pension reform
During the second reading, presidential amendments were unanimously adopted, the purpose of which is relaxation of proposed pension changes:
- Mothers of many children will be able to:
- at 57 years old - women who gave birth and raised 3 children;
- at 56 years old - women with 4 children.
- Citizens who have worked for at least 37 or 42 years(women and men, respectively) will be able to reach the prescribed retirement age (but not earlier than 55 and 60 years).
- For pensioners living in rural areas and having at least 30 years of insurance experience, a fixed payment to the insurance pension
All of the above amendments introduced by the President were unanimously adopted by the State Duma during a meeting on September 26, 2018 - 385 deputies voted “for” the adoption of these proposals (85.6% of those present at the meeting).
Fragment of the broadcast of the plenary meeting on September 26, 2018 with the results of voting on amendments to the bill on raising the retirement age
Pre-retirement age
As part of the new pension reform for the transition period (2019-2028), a new concept was legislatively introduced - , which begins 5 years before the citizen reaches the age of appointment. A number of measures will be provided for pre-retirees aimed at providing additional guarantees and protecting their interests.
On September 25, the State Duma finally adopted a bill on criminal liability for refusal to hire or dismissal based on reaching pre-retirement age. In case of such a violation, the employer faces a fine of up to 200 thousand rubles, wages for a period of up to 18 months, or compulsory work of up to 360 hours.
In addition, other support measures were proposed for pre-retirees:
- To pay a funded pension The current retirement age will be maintained - 55 and 60 years. At the same time, the possibility of both this pension (when all pension savings are paid one-time in full) and (i.e. over a certain period of time) will be provided.
- All provided for by federal laws benefits for pensioners(eg, etc.) will be saved for - i.e. They can be used upon reaching the ages of 55 and 60, and not depending on the status of a pensioner. In some regions, similar other social support measures, which are installed in specific subjects:
- benefits for utility bills;
- for sanatorium-resort treatment;
- for travel by transport, etc.
- Providing annually 2 days, paid at the expense of the employer, for citizens of pre-retirement age to undergo free medical examination.
- Increasing the maximum amount of unemployment benefits for pre-retirees to 11,280 rubles. instead of the previously established 4900 rubles, which will be paid for a period of up to 1 year.
The decision regarding all the above measures was made in parallel with the adoption of the law on raising the retirement age- i.e. in September-October 2018. Some of them were adopted as amendments to this law, while others were adopted as separate bills. October 3, 2018 President V. Putin signed the entire package of pension laws.
Our president, who has repeatedly spoken out against the decision to increase the retirement age, suddenly agreed with it.
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In 2005 During a direct conversation with the people, Putin announced that while he is president, there will be no increase in the age limit for retirement.
2010 Putin, then prime minister, did not agree with Economics Minister Kudrin that raising the retirement age was impossible. The argument is still the same: Russians don’t live that long.
year 2012. Presidential candidate Vladimir Putin gives a negative answer to the same question.
However, you can see it for yourself:
The elections are over. The pension fund is poorly replenished. The government is unable to eliminate the “shadow” sector of the economy. The number of pensioners is growing, and the number of citizens making contributions is falling. And again Kudrin, not a minister, but a financial expert under the government, raises this issue. And Putin cautiously begins to support him. So far, only “theoretically”: it is possible to raise it, but not now and not sharply. And only if citizens support the authorities in everything. Putin still needs the support of citizens: the 2018 elections are ahead.
And the people supported him.
Now you can make unpopular decisions. Gradually and carefully. First, the experts speak, then information support, the government develops a bill, the regions work it out, and the Duma approves it. But the President, according to Dmitry Peskov, is not yet in the subject.
And only on August 29, 2018, Putin, under the “pressure” of authoritative experts,... From the president’s mouth, the reform sounds softer, has many benefits, and doesn’t seem so scary.
Let's try to figure it out, you and I.
Although it was previously assumed that women would be given as many as 8 years, the president, as expected, “defended” the women.
According to the developers of the bill, increasing the retirement age became possible because people remain able to work longer.
To be convincing, we are given statistical data, which we, the people, needlessly, according to Putin, do not believe. But here’s how to explain what we saw in clinics: it’s not old men and women who sit in line to see a cardiologist, but the working population over 30 years of age who have already suffered heart attacks. Stroke has also become “younger,” and mortality from cancer is not decreasing. The environment is worse, the availability of free medical care is lower, and healthy products, such as sea fish, are expensive. And how can you trust statistics?!
Maybe its percentage has increased due to the increase in life expectancy of our deputies?! Maybe we should have started with them! It seems that they would not be against it, but would be delighted. Such calls were made.
The retirement age will not increase by 5 years immediately, but gradually, starting in January 2019
Those who were planning to go on vacation in 2019 will take the first blow. They will have to rework the year. True, so that the “pioneers” do not worry too much, each of them in 2019-2020 is given the right not to wait six months until their “retirement” age and to write an application to the Pension Fund. This is, of course, little consolation for those who were already making their plans for a well-deserved rest and counting the months. Those who no longer work remember how hard the last days of work are. Even those who wanted to continue working further are at a disadvantage: either they would receive a salary and a pension, or else they would receive just one salary.
Women born in 1968 and men born in 1963 will work for an additional 5 years.
A new definition of the added 5 years of working age appears - "pre-retirement age".
During this period, benefits are assigned to people who were supposed to retire.
Tax benefits: they will not pay on their only property. For Muscovites whose apartments are expensive, this is a significant relief. For regional pensioners, whose apartments and houses are not particularly expensive, this benefit will not help improve their well-being.
In the regions there are benefits for paying taxes. Provided. Local authorities also decide on granting such privileges. Judging by TV news, many governors promise to maintain such benefits based on age, and not on pensioner status.
Payment benefits are also heard from officials, but, as before, they are only for beneficiaries.
Additional leave: at the request of the employee, the employer is obliged to give him 2 days of paid leave per year to undergo medical examination.
Social protection:
- You cannot refuse employment based on your age limit. It’s just not clear how to determine what was rejected because of age?! Who will directly say this?!
- You can't fire people because of their age. They even promise criminal liability for this. This is already significant. Although this point is unlikely to please the employer, whose main production line is a 24-hour assembly line. Working three shifts is hard for young people, and after certain years it is especially hard. The employee himself will quit.
- It’s good that from January 1, 2019, the benefit for registering as unemployment for people over 50 years old will be doubled: from 4,900 rubles to 11,280 rubles. The amount is decent for regions where the average salary is 15,000 rubles. You can spend the allowed year on that kind of money.
- Training/retraining programs for people after 50 years of age are also a good thing, but only if they are guaranteed to provide a job after training.
- , which gives the right, has been changed: 37 years for women and 42 years for men. You must start working at age 21 in order to retire 2 years earlier. Wherein .
- For mothers with many children: three children for a mother - minus three years of work, four - four, and if there are 5 children or more in the family, you can become a pensioner at 50 years old.
- There are proposals for working people over 50 years to reduce their income tax. An enterprise where 50% of employees are elderly will be provided with tax breaks.
- And it sounds completely unrealistic: to make it “people’s”. Everyone will agree with this proposal, Mr. President.
Is it difficult to find a job after 50?!
This issue is central to the reform process. We are convinced that the unemployment rate in our country is low, that everyone can find a job if they want. Those who have looked for a job at least once in recent years will say that this is not so. Everyone wants to see a young, promising, efficient, highly qualified employee who does not claim a high salary.
There is an opinion that the speed of thinking in people of pre-retirement age is no longer the same, the thinking itself is conservative, and health can also fail. The knowledge and skills of such people are irrelevant. And with a lot of work experience and experience, they must be paid a high salary.
And the fact that today the labor market does not supply labor due to a shortage of young people will not save the situation. The shortfall will be made up by Belarusians, Ukrainians and other former allied people. And our low-skilled labor segment has long been filled with Kyrgyz and other Central Asian workers.
What will “current” pensioners receive as a result of the reform?
One of the goals of the reform is to reduce poverty and improve the living standards of older people. It is planned to index pensions by a percentage above the inflation rate.
Those who no longer work are promised an increase of an average of 12 thousand per year, i.e. 1,000 per month. The fact that this is an average was not noticed by many of my friends. A thousand rubles will be added only to those who currently receive a pension of 14,414 rubles. If you get less, you add less; if you get more, you add more. It’s easy to calculate your future pension: add 7.05% to the amount you already receive.
I don’t think that 615,183 rubles added to the minimum pension in Russia of 8,726 rubles will reduce the poverty level of an elderly person.
And if the state raises VAT from 18% to 20% on goods, then this entire increase will not be felt at all. And there is talk about this.
From January 1, 2019, they will start paying an additional 1,300 rubles. non-working pensioners with at least 30 years of experience in agriculture (25% of the fixed insurance payment of 5334.19 rubles).
Yes, let’s not forget, the funeral benefit increased by 3.1%: from the current 5,701.31 rubles. for 5875.05 rub. Apparently they added a bouquet of flowers to the grave.
Pensions of working pensioners will not be indexed. In August, as before, they received an addition to the pension earned over the previous year, but no more than 3 points. The increase will be: 3 points * 81.49 rubles = 244.47 rubles per month.
Who will retain benefits when the law is adopted?
They will work longer. They will go on vacation at the age of 60 for men and at 58 for women.
The reform will not bypass teachers and doctors. The length of work experience in the specialty remains the same - 25 years, only retirement can be carried out 8 years after completing the preferential length of service. The process of introducing this innovation is also extended over time: 25 years in 2019 + 1 year, 25 years in 2020 + 2 years, etc.
Preferential pensions have also been preserved for creative people with 15 to 30 years of experience. Instead of 50/55 years, you can retire at 58/63 years.
- indigenous peoples of the North (due to their small numbers: as of 2010, about 260 thousand people);
- workers on list No. 1 and 2, who previously went on vacation early, having the required length of service.
Important: everything listed above is a draft that can be changed.
The project is not popular either with the people or, oddly enough, with the majority of deputies. There are protest rallies across the country. But not so active and numerous that the project would not be approved by law. Moreover, as Putin said, there are no other ways to solve the problem. And this sounds like an order to introduce these changes into our lives.
In Russia, in 2019, updates to the pension reform come into force, which have caused a lot of controversy and discussion in the media and among the population. Therefore, it is necessary to understand the reasons for changes in the policy of the Pension Fund of the Russian Federation, and how this will affect the indexation of contributions.
What will happen to pensions in 2019
The planned actions to implement pension reform in 2018 are based on the decree of the President of the Russian Federation dated May 7, 18. The implementation goal concerns national and strategic development goals up to 2024.
Therefore, the Russian Government was given a number of instructions reflecting the essence of the pension reform:
- reducing the level of the poor population by half and preventing an increase in this threshold at the expense of persons on well-deserved retirement due to old age;
- increasing the growth of payments outpacing the inflation rate;
- creation and implementation of federal and regional programs to support pensioners and increase the quality of life of the country's citizens.
Based on this, starting from January 1, 2019, the Government of the Russian Federation will begin to implement measures to stabilize the system by increasing deductions to 40% of wages. Naturally, this should be influenced by indexation that is almost twice as high as annual inflation. In addition, the planned volume will be influenced by an increase in retirement within five years.
Additionally, government officials plan to develop and implement a system of personal capital formation in old age. The IPC system will act as an alternative to the funded part and in the future should increase the amount of old-age payments by 15%.
Reasons for the new reform
The reasons that led to pension reform in Russia relate to changes in the socio-economic field.
Increasing life expectancy of citizens
Average Soviet-era statistics indicate a life expectancy of 40 years. Therefore, these data became the basis for establishing the following dates for retirement in old age:
- for the female population - at 55 years old;
- for the male population - upon reaching 60 years of age.
In 2018, the forecast was 72.9 years.
For information: an addition to the May decree of the President was the need to increase the average life expectancy of the population to 78 years by 2024, and to 80 years by 2030.
The number of pensioners is growing steadily every year
According to Rosstat, the number of men and women of working age will decrease by four million people.
Lack of funds in the Federal budget
The government has calculated that to implement all planned national projects, it is necessary to find 8 trillion rubles. These additional funds are needed for 6 years, i.e. until 2024. It is noteworthy that this amount is 50% of the annual federal budget.
Lack of positive dynamics in the funded pension system
Starting in 1414, a decision was made at the top level to temporarily “freeze” the funded portion. Thus, working people do not receive money into the savings fund, and all deductions accumulate on the insurance part of the Russian Pension Fund.
Consequences
In accordance with the need analyzed by government agencies, an update is coming in 2019 in the form of a reform:
- raising the retirement age as a means of receiving insurance payments;
- change in indexation, and every year 1000 rubles will be added to deductions;
- the possibility of receiving a social pension by increasing the length of service;
- correction of the current rules for the retirement of beneficiaries based on length of service and for working people in the Far North.
Expert forecasts
According to Dmitry Malykh, the 2019 pension reform should be applied to persons currently under the age of 45. However, he also notes that there is a high probability that a person will work more for several years than his neighbor who was born a year later.
In addition, a number of experts note that with proper preparation and correction at all levels, this reform will take the country to a new economic level.
Retirement in 2019
According to Federal Law No. of December 28, 2013 (Article No. 8), three mandatory conditions must be met to apply for old-age insurance contributions:
- reach the retirement age established by the new rules;
- have a minimum level of experience;
- availability of a certain number of points on an individual account in the Russian Pension Fund.
Increasing the retirement period in the Russian Federation from 2019
Based on information about the new pension reform, in 2019 there will be updates to the requirements for length of service and the number of points accumulated in the Pension Fund of the Russian Federation.
Please note: points under the RF Pension Fund system have been increasing since 2015, and the age will begin to increase from January 1, 2019.
Thus, citizens retire with the following indicators:
- women over 55.5 years old with 10 years of insurance experience and IPC - 16.2 points;
- men with 60.5 and similar experience and scores.
It is noteworthy that the minimum requirements for receiving labor benefits in connection with old age are indicated here. These innovations are due to V.V. Putin’s proposal to soften the pension reform.
Categories of people retiring in 2019 in the Russian Federation
Based on the schedule established by Federal Law, the following will retire in 2019:
- On a general basis, in the first and second quarters, no one will be able to complete the insurance portion of the length of service until the citizen reaches the appropriate age;
- In the second half of the year, registration can be carried out by men born in the first 6 months. 1959 and women 1964
In addition, the following categories can submit documents:
- upon reaching old age before 2019, but temporarily postponing retirement;
- availability of grounds for early receipt of old-age contributions.
Taking into account the adjustments and news about pension reform (Russia), in the first half of the coming year the appearance of new pensioners is almost reduced to zero.
Preferential pension
According to the law adopted by the Russian Government, the update of the reform will also affect a number of participants in preferential categories. Starting from January 2019, the general rules for processing payments will be adjusted for the following citizens:
- People living and employed in the Far North, as well as in other regions subject to the same harsh conditions. For women, this applies when they reach 50/55 years, for the male population - 55/60 years. Consequently, taking into account the new rules, northerners make deductions from 50.5 and 55.5 years;
- It was decided to maintain special experience for teachers, medical employees and workers in creative professions. However, the paperwork will be delayed for eight years from the date of obtaining the required work experience.
When is early retirement possible after long service?
In accordance with the pension reform and news about it, it is planned to update the period for registering contributions for well-deserved retirement for people in preferential categories.
It becomes obvious that information from the Cabinet of Ministers about raising the retirement age affects every person who did not have time to submit documents to the Pension Fund. That is, according to the current Federal Law No. dated December 28, 13 (Article No. 8, paragraph 1), people under 55 and 60 years of age will make old-age contributions according to the new rules.
Information about retirement from 2019 by year
The transition period, timed to update the deadlines for retirement, will be five years for the Russian population. Moreover, it affects everyone who was planning to retire from 19 to 23, i.e., the male population of 1959-63. births and female 1964-68 birth.
Who will not be affected by the age increase in Russia?
Raising the retirement age, as well as other changes in the legislation of the Russian Federation, affects a large part of the population. However, there are a number of categories for which the previous rules will remain valid, despite the innovations in the system:
- For persons who have already made contributions for old age as of January 1, 2019. There are no plans to return accrued funds or limit the rights of pensioners for well-deserved rest;
- If a person has worked in dangerous and harmful conditions all his life:
- labor activity related to geological surveys, prospecting, including the Ministry of Emergency Situations, as well as forest management;
- work in difficult conditions underground and in hot production workshops;
- mining sector;
- drivers of public urban passenger vehicles with regular flights;
- pilots, engineers, technologists involved in the aviation sector, etc.;
- For persons who have the right to retire early in accordance with their level of health and other social reasons:
- with a disability of the first degree, including those with impaired functioning of the visual apparatus, midgets, dwarfs with a violation of proportions;
- mothers of five or more children who raised them until they were at least eight years old;
- mothers of two or more children with work experience in regions close to the Far North;
- fathers, mothers, guardians of persons with childhood disabilities, raising children under eight years of age, as well as others;
- The civilian population who received injuries or other suffering as a result of emergencies associated with man-made, radiation disasters, including at the Chernobyl Nuclear Power Plant, Mayak PA.
Pension reform - latest news
Having familiarized yourself with the pension reform and the latest news, it is also worth noting the proposal put forward by the President dated August 29, 2018. The easing period for receiving old-age contributions should be increased for women by no more than five years and a grace period should be introduced in the first 2 years of the new law.
It is noteworthy that the corresponding amendment has already been prepared and submitted to the State Duma for consideration in the 2nd and 3rd readings. A number of other provisions will also be subject to adjustment, which will be known after the State Duma meeting.
In addition, the new bill develops the grounds for early termination. For example, for the male population, the work experience must be continuous for at least 40 years, and for the female population - 45. Thus, if this condition is met, individuals will be able to qualify for contributions 24 months ahead of schedule. However, there is an amendment here too - not earlier than 55 and 60 years of age. However, the President indicated the need to soften these conditions for 36 months, which will also be considered in the 2nd reading of the bill by the State Duma.
It is noteworthy that the IPC system provides for voluntary contributions to an individual account from the working population. In other words, an employee, including a self-employed person, will be able to independently deduct 0-6% from his salary to create personal capital. To do this, it is enough to fill out an application indicating the percentage part and submit it to the manager.
Watch the video about the details of the pension reform from 2019
November 14, 2018, 16:44 November 14, 2018 16:44
