Is the old age pension expected to increase in 2020?

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Published: March 25, 2016

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The specific amount that the pension cannot exceed is not indicated anywhere.

Theoretically, whatever we earned, that’s what we’ll get.

But there are still some nuances that can limit it in size or, on the contrary, make it larger.

• What affects the size of the old-age pension?
• Which specialists have the highest pensions in Russia?

Does work experience matter?

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Pension security depends on several nuances.

For example:

1. official length of service throughout the applicant's life;
2. salary size;
3. time to retire.

The insurance period is calculated based on the data provided on the personal account. That is, the Pension Fund takes into account information from the citizen’s insurance certificate. It shows all contributions to the Pension Fund and official length of service.

After the introduction of new amendments to the pension reform, there is now a funded part of the payment. It is formed due to length of service and the presence of additional factors. And it is calculated in the form of points, which are calculated at the rate established for a given period of time.

The number of points for a pensioner is unlimited. But the minimum value for 2020 is 8.25 points. Every year the indicator will increase until it reaches 15. The cost of the coefficient in the presented year is 78.58 rubles. The amount is indexed annually either once or twice, depending on the current situation of the state.

The accumulation of the coefficient also depends on the amount of earnings. And the higher it is, the higher the pension provision will be. Work experience also affects the indicator. The maximum size directly depends on the quantity. If the pensioner continues to work, his pension increases annually by the amount of contributions.

The insurance part is a fixed payment that everyone must pay. The citizen forms the funded part of the pension independently. He has the right to invest it, which will allow him to receive a tangible increase in security.

After retirement, each person has the right to determine the period for which the provision must be extended. This can be either a one-time payment or maintenance for life.

How to apply

Algorithm for applying for insurance pension benefits:

1. The future pensioner selects the required documents confirming the length of service and the benefits provided.
2. Preparing a statement.
3. Submits a package of documents to the Pension Fund branch.
4. If necessary, provides additional documents.
5. Finds out information about a positive decision made.
6. Receives pension benefits.

Where to contact

The application is submitted in the following ways:

• to the territorial branch of the Pension Fund of Russia;
• through the MFC;
• by post;
• on the Pension Fund website in electronic form.

Russian citizens who have moved abroad send an application directly to the Russian Pension Fund.

Documents are considered submitted on the day when the Pension Fund or MFC specialist accepted them and registered them.

If the papers are sent by mail, the date of the stamp on the envelope is considered the day of circulation. When filling out an electronic form, the time for submitting it online.

What documents are needed

The future pensioner fills out an application for a pension benefit. Documents must be attached to it to process the payment.

The package of documents includes:

• Russian passport (residence permit);
• SNILS;
• work book, papers confirming work experience;
• information on average monthly earnings for the last 5 years;
• other documents.

Appointment dates

The Pension Fund considers the application within 10 working days from the date of application. Additional documents can be submitted no later than 3 months.

If the deadline for circulation is exceeded, the moment of filing is recognized as the day on which the last paper was received.

Compensation is assigned from the day the documents are accepted, subject to reaching the required age. A citizen can submit an application within 30 days before termination of the employment contract. In this case, payment is assigned from the moment the work is completed.

Old age benefits are transferred to the citizen on a monthly basis. The pensioner chooses the delivery method, notifying the Pension Fund of this by application.

The pension is delivered:

• by Russian Post (a specialist brings it home or issues it at the post office);
• through a bank account (can be obtained at a branch or asked to be transferred to a Mir plastic card);
• a specialized organization (come to the company’s office or arrange home delivery).

A pensioner can instruct a trusted person to receive the pension in his place under a power of attorney.

Every year he needs to confirm registration at the place of receipt.

What determines the highest security?

There is a certain list of specialists who receive higher wages, which allows them to increase their security in the future. The maximum amount of old-age pension is also a controversial issue not regulated by current legislation. Many people are wondering what determines the indicator in 2020?

Mainly from profession and length of service. Highly paid specialists are judges and notaries. It is these workers who will receive maximum security upon retirement.

Government employees will also receive a significant increase. An internal affairs employee or a military pensioner can boast of decent security. An increased payment awaits both astronauts and testers. But their salaries are not that high by average standards.

Accordingly, even good specialization does not guarantee an optimal pension. The main thing is to get a good job at a working age. The key to decent security is also the correct management of your own savings when creating deductions.

Of course, you need to work only if you are officially employed. If this is a black salary, then you will not receive money for your pension.

It is a controversial issue if citizens continue to work while delaying the registration of pension payments. The payment does not become higher even in this situation.
The amount simply increases due to new employer contributions to the pension account.

Who is eligible

Federal Law No. 400 clearly defines the circle of persons who receive old-age compensation.

Categories of persons who have the opportunity to apply for a pension benefit:

• citizens of Russia;
• civil servants;
• persons who worked in the northern regions;
• foreign citizens (Russian work experience).

In what case is a woman’s pension for 2 children recalculated? What types of pensions can be assigned? Find out here.

Conditions of receipt

Citizens are paid a pension benefit if three conditions are met:

1. Achieving the required age of Federal Law No. 400: 55 years for women and 60 years for men.
2. Insurance experience of 15 years or more. It increases gradually, in 2020 it is equal to 9 years and by 2025 it will increase to 15 years.
3. IPC of at least 30 points (by 2025). In 2020 you need to score 13.8.

The legislator allowed some citizens to retire earlier. Age benefits are provided based on professional and social criteria.

On the contrary, civil servants have been going on vacation later since January 1, 2020. In 2020, men will retire at 61 and women at 56. Every year the age will increase and will become 65 years for men, 63 years for women.

What is the maximum old-age pension in 2020

The maximum payout cannot be determined. It depends on several factors, such as retirement age, length of service and pension contributions. In accordance with the Federal Law on Insurance Pensions, the age will not be increased. This is done to reduce the costs of the Pension Fund.

But now they have found another way. All people who retire much later can receive an increase in benefits based on hours worked. The later a citizen retires, the higher the rate.

In accordance with Pension Fund of Russia statistics, the average Russia showed was within 13,700 rubles. But here there is a main condition - for insurance payment - minimum work experience and the corresponding age. The latter is 55 for women and 60 for men. If there are other factors, then they have the right to go on vacation earlier.

2017 made it possible to calculate the average for payments of this type. If compared with a person’s salary, the volume will be 40% of the average income. And the social payment now amounts to 8,562 rubles. If this is a disabled child, then the payment is 8,790 rubles. If you are disabled due to a military injury, then the payment is 30,700 rubles.

What is the average pension in Russia?

According to the Russian Pension Fund, the average old-age pension in Russia at the end of 2020 - beginning of 2020 is approximately 14,100 rubles.
If we compare it with wages, then, according to analysts’ calculations, this pension amount is about 40% of the average earnings in Russia.

The average social pension is 9,045 rubles.

The average pension paid to disabled children is 13,699 rubles.

Pensions received by citizens with disabilities due to military trauma average 30,700 rubles.

It is worth noting that in the post-Soviet space, the Russian Federation is one of the richest countries in terms of pension provision for citizens. The only competition we can have is the Baltic region, but it is worth considering that in the Baltic states the costs of utilities for all the “earnings” of pensioners are quite high.

If you pay attention to the pension policy pursued by the state, it can be noted that compared to the 90s of the twentieth century, the crisis in this area has begun to fade away.

Moreover, the average pension is growing (according to conservative estimates) 2 times faster than consumer price inflation. This is facilitated by the indexation of pensions carried out by the Government of the Russian Federation twice a year - 01.02 and 01.04 (find out how pension indexation will occur from 2019).

Calculator

How does work experience affect? Work experience directly affects the savings and insurance part of the payment. The more a citizen works, the greater the chance of receiving an increased coefficient.

If a person does not agree with the upcoming payment, then he has the right to challenge the amount. So how to challenge and how to increase?

The only way to challenge, as well as increase, is to contact the Russian Pension Fund with supporting documents. Various statements, contracts and payment documents are suitable for this.

See who has the right to choose a pension. Will there be a tax deduction when buying an apartment for pensioners? Find it at the link.

How to count

You can do this yourself on the official website of the Ministry of Labor of the Russian Federation, as well as the Pension Fund of Russia. Since mid-2013, a mechanism has been launched where each insured person can calculate their future payment using a lightweight calculator.

It is worth understanding that he will not calculate the exact payment, but he can predict an approximate payment based on various factors.

When calculating, you need to enter the following data:

1. gender;
2. wages;
3. period of military service.

The calculator will calculate on the date of the request. It is based on a specialized formula, which has also undergone several changes and has its final form in Federal Law No. 400 of December 28, 2013.

It is worth understanding that the calculator reduces the payment somewhat due to the pension coefficient. It is set depending on the country’s economy and demographic situation. Therefore, it is impossible to provide for it in the tool.

Amount of fixed payment to the insurance pension

As of the end of 2020, the fixed pension payment is equal to 4805.11 rubles, which are accrued every month. This amount can be increased if the pensioner is included in the preferential list - then, depending on the category, the amount of the additional payment will be 6246.64-21622.99 rubles. The table shows the categories of citizens who have the right to a monthly fixed payment:

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Benefits and compensation

In addition to the pension, pensioners have the right to receive additional benefits and compensation. If they are not engaged in labor activity, they are already considered an unprotected category of people. In this connection, the government somewhat clarified the benefits and placed them in the Federal Law.

It is worth remembering that additional benefits may be available in each individual region of the country.

So, compensation and benefits:

1. The current Tax legislation allowed all pensioners to receive tax deductions for the purchase of real estate, and also not to pay taxes on various types of income;
2. Pensioners can take advantage of the compulsory health insurance program. They have the right to receive free help. If these are disabled people, then medications can be purchased with a 50% discount;
3. compensation for paid housing and communal services. A pensioner is almost always recognized as low-income. Accordingly, he is entitled to a certain subsidy to pay for real estate. This is considered an additional measure of social support;
4. Pensioners have the right to use public transport free of charge.

Pension increase

The pension is indexed annually to keep pace with rising inflation.

Recipients of payments are interested in when there will be an increase in pensions in 2020 for old-age pensioners, while the latest news concerns changes in indexation rules.

It is now held once a year in January, rather than twice as in the previous year.

At the beginning of 2020, all non-working pensioners received 3.7% more compensation.

Minimum size

The amount of minimum old-age compensation depends on the pensioner’s minimum subsistence level. Every year the government sets its size (in 2020 the PMP is 8,540 rubles). Regional authorities pay their allowances from the budgets of their constituent entities.

If below the subsistence level

There are regions in which the minimum amount of compensation is less than the minimum wage.

If the pension does not reach the subsistence level in the region, then the citizen has the right to ask for an additional payment. You need to contact the social security authorities for it.

Working pensioners cannot apply for a supplement. If a pensioner receiving additional payment gets a job, he loses it.

Most often, requests for additional payment are granted. If a pensioner receives a refusal, he has the right to appeal it in court.

What pension will old-age pensioners have in 2020?

Social pension is calculated by the Pension Fund. Although its amount is fixed by the legislation of the country, payments are made from the federal budget:

• the amount of the benefit is strictly established;
• payments are indexed annually, taking into account inflation over the past year;
• is compared with the subsistence level in the region and adjusted to it.

Every year the social pension undergoes indexation. It was last held in April 2020. As a result, the amount of cash payments increased. At the moment, the benefit amount is 5,035 rubles.

It is worth noting that in some cases the established pension amount increases. Namely:

• the increased coefficient in the calculation increases for residents of the Far North;
• if a person received a disability pension, but he has reached the age limit (women 60 years old, men 65 years old), he is assigned a social benefit. Its size cannot be less than previous payments;
• a social supplement can be assigned to a person whose monthly income is below the established minimum.

Minimum pension from January 1, 2020 (table by region)

According to the legislation in force in Russia, a non-working pensioner cannot receive a pension below the minimum amount established in the region in which he lives.

The minimum pension is equal to the minimum subsistence level for a pensioner (PMP) established in the constituent entity of the Russian Federation. All regions have already approved the cost of living for a pensioner for 2020.

, which means it is known what the minimum pension will be in Russia from January 1, 2020 (see table by region).

The value of the PMP for 2020 in the regions was approved according to a unified methodology developed by the Ministry of Labor.

• This methodology does not allow local authorities to unreasonably “lower” standards, but requires that PMP in the regions grow at the same rate as the federal one.
• Due to the introduction of uniform calculation rules in some regions of the Russian Federation, the minimum pension has increased quite significantly - by 1-2 thousand rubles.

Low-income pensioners whose income is less than the subsistence level are assigned a social supplement to their pension. Its size is determined by the difference between the total financial support of the pensioner and the minimum pension established in the region.

Please note that in 2020, in some regions of the Russian Federation, pensioners will need to renew their social supplement to their pension. This applies to those entities in which the amount of the minimum pension has increased significantly.

Minimum pension in Russia from January 1, 2020

According to Part 1 of Art. 12.1 of Law No. 178-FZ of July 17, 1999 “On State Social Assistance”, material support for a non-working pensioner cannot be lower than the pensioner’s subsistence level established in a specific subject of the Russian Federation.

For 2020, the highest cost of living (and, as a result, the minimum pension) is set in the Chukotka Autonomous Okrug (19,000 rubles). The least is in the Chuvash Republic, 7953 rubles. The table of PMP values ​​approved for 2020 by region of the Russian Federation is presented below.

Table - Cost of living for a pensioner from January 1, 2020

Subject of RFPMP, rub. Subject of RFPMP, rub.

The table is compiled on the basis of regional regulations (decrees, decrees, orders), which establish the cost of living for a pensioner from January 1, 2020. The cost of living for a pensioner in the Russian Federation as a whole for 2020 is set at 9,311 rubles .

Social supplement up to the subsistence level

In accordance with parts 4 and 5 of Art. 12.1 of Law No. 178-FZ, low-income pensioners are assigned a federal or regional social supplement up to the subsistence level. Its purpose: to ensure that the material support of a non-working pensioner is not lower than the minimum pension in the region.

The amount of such surcharge (SD) is calculated using the following formula:

where PMP is the regional subsistence level of a pensioner, and MO is the general material support of a citizen.

The amount of financial support for a pensioner (MO) includes the following amounts:

If the total income of a pensioner is below the subsistence level established in the region of his residence, the pensioner can apply for a social supplement to his pension - federal or regional.

Federal or regional supplement to pension - what is the difference?

The type of social supplement to the minimum depends on how the cost of living compares in the region where the pensioner lives and in Russia as a whole.

• If the PMP in a constituent entity of the Russian Federation is lower than that established for the country as a whole, then low-income pensioners living in this region will receive a federal supplement (FSD). For its appointment, you need to contact the Pension Fund of the Russian Federation.
• If the PMP in the region is higher than the federal one, then a regional social supplement (RSD) will be assigned. It is paid by the social security authorities.

The cost of living for a pensioner in 2020 in the Russian Federation as a whole will be 9,311 rubles . To determine what additional payment is assigned in your region, you need to compare this amount with the cost of living of a pensioner in your region for 2020 (with data from the table).

For example:

• federal social supplement in 2020 will be paid to such regions as Belgorod, Voronezh, Yaroslavl, Samara, Omsk regions, etc.;
• regional surcharge - in Moscow, Smolensk, Novgorod, Vologda regions, etc.

Social supplement up to the minimum pension is not assigned automatically. To receive it, you must submit an application : to the Pension Fund for the appointment of an FSD or to the social security for an RSD.

Supplement to pension up to the subsistence level in 2020: who needs to re-register

In 2020, the Ministry of Labor introduced a unified methodology for calculating the living wage of a pensioner for all constituent entities of the Russian Federation. The standards for 2020 were calculated taking into account these rules.

In this regard, in some regions, the PMP values ​​established for 2020 increased by 1-2 thousand rubles compared to last year (see table of the minimum pension in 2020).

In some regions, the minimum pension not only increased, but also exceeded the subsistence minimum established for the Russian Federation as a whole (federal PMP).

Pensioners will only benefit from such an increase - there will be a good increase in their pension. But you need to pay attention to whether the type of social supplement in the region has changed from federal to regional.

If it has changed, you need to re-register it by submitting a new application to social security. Otherwise, the pensioner will remain without an increase from January 1, 2020 and will receive payments below the subsistence level.

If the type of surcharge has not changed, you do not need to apply anywhere. From January 1, the surcharge will be automatically recalculated taking into account the new cost of living.

Let's explain the situation with an example:

• In 2020, the PMP in the Novosibirsk region was 8,814 rubles, and in Russia as a whole - 8,846 rubles. Pensioners living in the Novosibirsk region, whose financial support was below 8,814 rubles, received a federal social supplement (FSD). It was paid by the Pension Fund of the Russian Federation.
• In 2020, the cost of living in the Novosibirsk region will be 9,487 rubles, and the all-Russian minimum will be 9,311 rubles. Due to the fact that the regional PMP will exceed the federal one, the Pension Fund of the Russian Federation will cancel additional payments to low-income Novosibirsk residents. Now they will have the right to a regional pension supplement (RSD), for which they need to contact the social protection department and write an application.

Similar changes will occur in other regions . Low-income pensioners from:

• Amur, Irkutsk, Kaliningrad, Tomsk, Vologda, Smolensk, Pskov, Novosibirsk, Novgorod regions;
• Trans-Baikal Territory, Karelia, Krasnoyarsk Territory and the Kabardino-Balkarian Republic;
• St. Petersburg and Sevastopol.

Until the end of 2020, pensioners living in these constituent entities of the Russian Federation need to contact the social security department and submit an application for a regional social supplement to their pension.

Employees of social security and the Pension Fund are already beginning to notify pensioners of the need to re-register additional payments in 2020 (including on their official websites).

Message on the official website of the Pension Fund of the Russian Federation

The minimum pension amount from January 1, 2020, how much it is, table by region

In 2020, the country launched a large-scale pension reform designed for 10 years. The project contains a number of innovations, the main one of which is an increase in the age threshold. In addition, the incomes of older citizens will also change.

It is noteworthy that the first increase in minimum pensions is planned for next year, 2020.

How exactly will the budget of the most vulnerable category of the population increase, and who exactly will be able to count on an increase - this is what today’s material is about.

What will be the minimum pension in Russia from January 1, 2020

Understanding modern pension legislation is not easy. A reform designed to improve the material living conditions of Russian pensioners is being implemented. The lack of information gives rise to many questions in this direction. The main one is what will be the minimum pension in the new year?

It is difficult to answer this unequivocally; it all depends on the type of payment the person receives. Thus, when assigning insurance benefits for old age or disability, their recipient can count on a double increase.

The first is due to the growth of inflation processes and indexation carried out in accordance with the inflation coefficient. As a result, citizens’ incomes will increase by 6.6% of current ones. The second is due to the growth of primary healthcare in a particular region.

If a citizen is assigned a social pension, then the increase in his income from January 1 will occur only due to an increase in the PMP. Current payments will be indexed no earlier than April. The preliminary forecast for the regulatory index is 7%.

Note! The principle chosen by the Government of the country for calculating current payments to the elderly part of the population deprives local authorities of the opportunity to deliberately underestimate already low payments. The law requires that the level of primary care in local areas systematically increase - as is the case with the federal indicator for the country.

Due to the adopted changes, the income of the low-income category of the population will increase on average by 1 - 2 thousand rubles.

Living wage - table by region

The summary table has been developed in relation to the local regulatory documents of the subjects that regulate the basic level of PMP, which has been in effect since the new year.

How to get it?

Based on how the PMP indicator in a particular federal subject of the country compares with the federal PMP standard established in 2020, a social subsidy can be determined for an elderly person. It may be local, regional or federal in nature. Let us remind you that in 2020 the level of PMP, regulated by regulatory documents, will be 9,311 rubles .

The difference between the federal and regional allowance can be clearly seen from the table below.

The social supplement to the insurance type of old-age accruals is due from the 1st day of the next reporting period after submitting the application. The subsidy for those who have disabled status or receive survivor benefits will be assigned automatically from the moment they determine the corresponding current payments. There is no need to personally contact the pension department and submit an application for this category of recipients.

A pensioner’s right to receive a subsidy will be lost if he becomes officially employed or moves outside the state on a permanent basis. A person is obliged to notify the pension department and the social security service about these factors in order to recalculate or completely cancel the surcharge.

Labor

The size of a citizen’s labor pension depends on the following factors:

1. The nature of the recipient's work at his last place of employment.
2. The total amount of work experience available to a pensioner.
3. The recipient reaches the legally established age to receive such a pension.
4. From the availability of government awards and insignia received by the recipient during the conduct of his work.
5. The average salary of a pensioner at his permanent place of work.

How is the pension calculated?

There are several types of pension provision in Russia. According to Federal Law No. 166 of December 15, 2001, they are divided by type of purpose. Pension happens:

Articles on the topic Social payments to young families Financial assistance to low-income families Payments upon dismissal due to reduction

• Old-age insurance (or labor insurance) - is assigned when a citizen reaches the age of retirement, has the required length of service and the required number of pension points.
• Social – recipients of this payment include disabled people, people who have lost their breadwinner or have lived to old age, but do not have the minimum insurance period.
• State - is considered as an option to compensate for lost income for certain categories of workers (for example, victims of radiation disasters or astronauts). Pension accrual of this type is determined by other conditions - the necessary length of service for a certain field of activity, the absence of other income, etc.

The pension for a specific recipient is formed from contributions that the employer makes to the Pension Fund of Russia (PFR). An employee’s pension payments are formed depending on his age and can consist of one or two sections:

• The insurance part is a mandatory component of any pension; it represents the guaranteed amount of payments that the employee will receive upon retirement. For persons born before 1967, the insurance portion is the only component of the pension.
• The funded part is valid in addition to the insurance section for those born in 1967 and later. Implies the possibility of investing with the help of non-state funds to obtain greater returns. But since 2014, this part of payments has been “frozen” - an option to solve this problem is the introduction of individual pension capital (IPC), which accumulates part of the savings.

The size of your pension in 2020 is influenced by many factors. The main ones include:

• salary size;
• income on a self-employed basis (relevant for lawyers, notaries, individual entrepreneurs);
• selected pension option;
• the age when a person retires;
• duration of insurance (work) experience;
• time of application for a pension;
• military service, maternity leave, higher education, and other socially oriented life periods.

The special online program “Pension Calculator” allows you to calculate your pension if you know all the necessary parameters, but it should be taken into account that the result obtained by this counter will be of a conditional demonstration nature. When calculating using Pension Fund formulas, they operate on a much larger number of data, including all existing rights and benefits at the time of applying for pension payments (for example, an increased fixed payment for disabled people or a special coefficient for those who worked in the Far North).

By old age

This is the most common type of pension payment. To be able to receive an insurance pension in 2020, an employee retiring must have:

• retirement age is 55 years for women and 60 for men (in some cases, for example, for those working in difficult working conditions, this figure is lower);
• accumulated 13.8 pension points;
• work experience of at least 9 years.

In connection with the Russian pension reform, these indicators will increase annually until they reach the maximum value - 15 years of experience and 30 points (for comparison, in 2020, 8 years of experience and 11.4 points were required to receive insurance payments). Those who retire earlier have a certain advantage over those who will retire in a few years.

The insurance points required for social benefits are formed from the amount of employer contributions. The higher the official salary, the larger the transfers to the Pension Fund, which will increase the size of the future pension. Moreover, even deductions from the “minimum wage” will bring 1 point in 2020, and the maximum is 8.26 points for a very large salary. Non-working periods of socially significant activity also have their “price”; for example, a year of military service or caring for a disabled person of the first group will bring 1.8 points.

Social

The social pension is associated with people with disabilities, but the circle of its recipients is much wider. Similar payments are assigned:

• persons with disabilities (including disabled children);
• for minors in case of loss of a breadwinner (when studying full-time while receiving higher education, the issuance of a pension can be extended up to 23 years);
• persons of retirement age who have not accumulated the minimum insurance period (including foreign citizens and stateless persons who have lived in Russia for at least 15 years).

The size of the social pension in 2020 is directly related to the pensioner’s subsistence level (PMP). The average for Russia is 8,726 rubles, but it differs greatly by region. If the basic part of the social pension is less than the PMP indicator for a given area, then the pensioner is entitled to a social supplement so that the total amount is not less than the subsistence level in the region.

State

State pension provision is compensation for lost income or harm to health when leaving service. State pension is accrued:

• for length of service;
• by old age;
• for the loss of a breadwinner;
• on disability;
• social.