2015 is equally harsh for everyone: employees, entrepreneurs, public sector employees, and even military retirees. The latter, by the way, unlike all other citizens of retirement age, were left without the traditional “New Year’s” indexation. Why did the State Duma suspend the growth of military pensions in 2020? Will there be a promised increase? How else did the pension system reform affect the military? We will try to answer these and many other questions in our article today.
2015 can safely be called the final year in a series of pension reforms in the country. First we had funded pensions, then we became acquainted with the concepts of “pension capital” and “valorization”, and now labor pensions have disappeared from our vocabulary.
The principle of calculating military pensions
Fortunately, or maybe vice versa, military pensions were left behind the scenes of the pension system reform. Legislatively, they are still controlled by the Law of the Russian Federation No. 4468-I of 02.12.93. Which, in general, did not prevent Federal Law No. 400 of 12.28.13, which came into force on 01.01.15, from having a certain impact on the military.
As is known, several years earlier, Article 2 of the Federal Law No. 309 dated November 8, 2011 introduced amendments to the Law of the Russian Federation No. 4468-I, providing for the introduction of adjustment (lowering) coefficients for long-service pensions.
From 01/01/12 and to this day, the pension of military personnel is calculated using the formula:
SDD *PC, where
SDD is the total monetary allowance of a military man in service, equal to the sum of wages by position, by rank and an increase for length of service. PC - correction factor in the year of registration of the pension for length of service.
In January 2012, the PC was 54%. Since then, in accordance with Part 2 of Article 43 of Law No. 4468-I, the PC has been increased 4 times: in January and October 2013 and 2014. As of October 2014, the PC was 62.12% and has not changed further.
Increase in pensions for military pensioners from June 1, 2020
Answering questions from senators, he clarified that the minimum pension threshold for former FSB employees is about 30 thousand rubles, and for employees of the Ministry of Internal Affairs - 17 thousand rubles. There are about 2.6 million military retirees in total, with an average length of service of 27 years.
In January of the previous year, the law was suspended that the percentage of pay that is used to calculate military pensions should be increased. In order to determine the amount of funds provided, the indicator of monetary allowance is taken into account, amounting to 72.23%. While there are no plans to abolish the document canceling the increase in DD, it will remain in effect until January 1, 2020.
Why were military pensions frozen?
On the eve of the huge “pension restructuring”, at the beginning of December 2014, Federal Law No. 397 came into force, which suspended the effect of the above-mentioned 43rd article for 12 months. While “civilian” pensions were indexed in the usual manner, the military was essentially left with nothing.
The main reason for freezing military pensions in 2020 was, of course, the economic crisis. When the exchange rate is off the charts and sanctions are at their peak, a three percent increase in military pensions is a lot. We should also not forget about the obligations undertaken by our state to equalize the rights of Crimeans and Sevastopol residents with the rest of the inhabitants of Russia. According to information from sources in the Ministry of Finance, published by the Vedomosti news agency, the estimate of the necessary cash injections for Crimea was several times higher than the initial amount - 92 billion rubles.
Therefore, it is not at all surprising that the 2020 budget could not cope with the double indexation of military pensions. The question is different. The long-awaited indexation of military allowances is due to take place in October. Will it be enough to cover the annual inflation rate?
It’s already obvious that he won’t be able to. According to preliminary estimates by Rosstat, inflation will remain at a “double-digit level” until the end of the year, and therefore a 5.5% increase in the SDA will not be enough to prevent further depreciation of pensions.
Let us recall that in 2013 and 2014, military pensions were not indexed, therefore, despite the increase in the reduction coefficient, at the end of the year, military pensions depreciated by four and a half percent. Add to this the lack of growth in PCs and the belated growth of SDD in the new year, 2020. It is unlikely that the resulting picture will please you.
Indexation of pensions for military pensioners in 2020 - when is the increase and by how much?
As mentioned earlier, the increase in pensions for military pensioners in 2020 will be 6.3%. Initially, it was planned to increase only by 4.3% (this was stated by Presidential Decree No. 604 of 05/07/2012 ) - but a little later Putin made amendments that additionally increased by another 2%. The planned indexation will be carried out on October 1, 2020 , and the first increased benefit will be received in the same month in accordance with the standard payment schedule.
- BO is the basic salary a person received in the army. Suppose we have a military pensioner with the rank of lieutenant who received a salary of 55 thousand rubles (taking into account the new indexation).
- DN are additional allowances (for rank, for awards, for special conditions of service, and so on). Let our lieutenant have a bonus of 10 thousand rubles.
- VL is length of service (for 20 years of service a coefficient of 0.5 is assigned + for each additional year 0.03 points are added). Let's say our lieutenant served for 25 years, then the VL will be 0.5 + 5 x 0.03 = 0.65.
- PC is a reduction factor. In October 2020, after indexation, it will be 0.7368.
- As a result, we get this: (55,000 + 10,000) x 0.65 x 0.7368 = 31,130 rubles.
- By the way, there are calculators available online for approximate calculations - for example, on the website of the Nachfin under the Ministry of Defense of the Russian Federation.
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Conditions for receiving a civil pension by military personnel
But there is also something positive. In 2020, military pensioners who have reached “civil retirement age” can still apply for an old-age insurance pension in addition to their existing long-service pension. And those who are still far from retirement should plan to receive it. To be eligible for a “civilian pension”, a military person must:
- register SNILS with the Pension Fund of the Russian Federation;
- have officially worked in civilian life for at least 6 years (since 2016 - 7 years);
- accumulate “civil pension rights” in the amount of = 6 points (from 2020 - 7 points);
- reach the official retirement age;
Please note that years of service in a “civilian” position should not be included in length of service. Otherwise, such experience is not taken into account. To understand whether you have enough experience to receive a “civil pension”, read Art. 11 and 12 Federal Law No. 400. They tell in great detail which periods can be included in the “civilian” experience without prejudice to the military one.
The next step is collecting documents. They are exactly the same as for ordinary citizens, with the exception of a certificate of payment of a long-service pension. It will need to be requested in advance from the department that assigned the military pension. The certificate is required to confirm the status of a military pensioner. By law, military pensioners cannot receive a fixed supplement to their old-age pension. A certificate from the law enforcement agency allows you to clarify this point and prevent the payment of excess funds.
If a military pensioner has pension savings, then in addition to the standard package of documents for assigning the insurance part of a “civilian” pension, he will need to provide a separate package of documents for payment of accumulated funds. The pensioner receives savings in the pension fund that managed them. You can find out where your funded pension is located directly from the Pension Fund or on its official website.
Latest news on indexation of military pensions in 2020
The most current information about Russian benefits comes from the recent large-scale press conference of the head of state, among the issues of which the further development of the system for calculating payments to persons of retirement age was also mentioned. The President immediately noted that starting next year, Russia will continue to serve its pensioners through regular indexation of benefits. Vladimir Putin also clarified the process of indexing old-age payments. He did not announce the exact amount of the increase, but said that it would be accrued in accordance with the depreciation of the previous year. The Russian leader made special mention of a single transfer of funds in the amount of 5 thousand rubles, which, according to his statement, will be very useful for certain representatives of the entire older generation of citizens.
Increasing pensions for military pensioners in 2020 - latest news
An increase in pensions for military pensioners in 2020, as well as for employees of the Ministry of Emergency Situations, police officers, employees of the Federal Penitentiary Service and state drug control by 6.3% became possible after the adoption of a special bill by the government. 4.3% is the new value of inflationary compensation for pension payments to military personnel, and 2% is an adjustment to the lowering pension index based on amendments made by the President of the Russian Federation to the current Law.
“The average salary of a commander-level military service officer in 2020 is almost 89 thousand rubles. A lieutenant receives about 66 thousand. After increasing salaries by 4.3%, the amounts will be 92.5 and almost 98 thousand, respectively. In this way, military wages will be calculated, based on increased salaries, and the amount of pension benefits after retirement will increase.” – says Deputy Minister of Defense of the Russian Federation Tatyana Shevtsova. Thus, tracking the amount of indexation of pension payments for those who are already receiving them or are just planning to retire in 2020 is very simple: you need to know the amount of salary received by officials of a certain rank and title, and add 4.3% to it.
Military pensions from April 1, 2020
Thus, in 2020, payments to military pensioners will be increased in full, but not from the beginning of the year (i.e. from January 1), but only from October 1, 2020. The increase will be made by increasing the salaries of military personnel and persons related to them equal and additional indexation by 2% (i.e. by a total of 6.3%) due to an increase in the reduction factor to 0.7368.
- The increase in the amount of monetary allowance from October 1, 2020 by 4.3% is not enough even to compensate for the inflation rate, since in fact the increase will only affect the last months of the year (from October to December). This means that indexation for 2020 as a whole will be only 1.075%.
- Indexation, as a result of which pension provision should increase annually by 2% above the inflation rate, was not actually carried out. Starting from 2020, payments were underindexed by almost 20%, i.e. almost a fifth of the pension amount. Therefore, in 2020 such an additional payment should be carried out.
- In the period from 2012 to 2020, inflation was about 50%, and the amount of pensions for military personnel increased only by 35%. In addition, due to the increase in the VAT rate (from 18% to 20%), an accelerated increase in prices is expected in the first half of 2020, in which no increases are provided.
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Indexation of pensions for military pensioners in 2020 is scheduled for autumn
However, even taking into account the positive changes, the majority of pensioners themselves have a rather pessimistic attitude. And all because these increases in pensions, in essence, only create the appearance of pension growth, an illusion. These measures are unable to stop the real decline in living standards. The forecast for price growth for the next three years will significantly exceed the percentage increase in payments. The budget of retired defenders of the Motherland will also be hit by monthly payments for utilities, which will increase again and will continue to do so.
According to experts, most of the funds that were organized to help in the long-term crisis, today can be said to be devastated. Over the past year, about a trillion in state currency was taken from there for state projects. At this rate and appetite, within a few years there will be no money there at all, which will certainly affect both the salaries and pensions of the country’s population.
10 Jun 2020 lawurist7 141
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Increasing pensions for military pensioners in 2020, indexation
Already in January, pensions of former military personnel were increased by 4%, which, in his opinion, corresponds to the level of wages for workers in key economic sectors. Shoigu also recalled Vladimir Putin’s instructions to carry out indexation in relation to “military” accruals during 2020, 2020, 2020 .
“This is a guarantee for the country’s economy, which allows us to create a safety cushion regardless of how energy prices fluctuate or what sanctions are imposed. No matter who of our partners wants to do the next thing in relation to our country. And this safety cushion allows us to approve all social obligations taking into account the instructions of the president, his decree, national development goals, and national projects,” noted Andrei Makarov.
Cancellation of pensions for military personnel in 2020
At the same time, the period of 20 years of service will remain for disabled people, for employees who have reached the maximum age for service, as well as in connection with organizational and staffing measures. For now, one can only guess what the pension reform of 2020 will consist of. The forecasts for it are quite contradictory.
According to some other experts, talk about cancellation is being inflated on purpose - the freezing of the main part of the pension caused a lot of negativity, information about its cancellation will cause a lot of excitement, and when this does not happen, people will treat the freeze calmly. The hypothesis applies here: to make a person happy, take everything from him. And then return at least a quarter.
