Leap year 2020 brought a lot of troubles to planet Earth. Every day the evening news on TV strives to receive a Nobel Prize for the nature and scale of what happened. But watching all the events, we forgot about our own well-being. Prices are creeping up, life is becoming more expensive. What about the salaries and pensions of citizens? In this article we will talk about military pensioners. What will military pensions be like from January 1, 2021? What kind of indexation did legislators plan? Will you have enough money for a summer vacation or will you have to make ends meet again?
Cancellation of pensions for military personnel in 2019
Recently, the Government has been increasingly talking about the abolition of pensions for military personnel in 2020.
Information about the cancellation began to appear when the NIFI under the Ministry of Finance was given instructions to analyze how the pension is formed and how it is calculated. At the moment, the key factor for calculating pensions is length of service. The size of the pension will depend on the number of years worked. Now the statements of the Ministry of Finance and the Government of the Russian Federation are used instead of length of service “Social package”. This causes a lot of negativity on the part of citizens and reduces confidence that the state will not abandon its citizens in old age.
Some may think that then the motivation and attractiveness of a military career for young people will decrease. But, on the other hand, with the introduction of social packages, military personnel retiring at a young age will also receive payments - weekend benefits. Currently, a pension is accrued if the length of service is at least 20 years. Or 25 years when the military age is 45. Half of this period should be devoted to the army. If the long-service pension is replaced with a social package - even if you end your career early for any reason (health, family circumstances, and so on), the military man will still receive something.
Letter in an envelope
In the middle of the restrictive period due to the pandemic, the Agency for Strategic Initiatives, led by General Director Chupsheva, proposed organizing an increase in pensions by 5-10%. These measures were supposed to support the Russian population during difficult times associated with loss of income and the pandemic.
A corresponding letter was sent to M. Mishustin. Mrs. Chupsheva proposed raising the salaries and pensions of all civil servants by 5-10%. This would strengthen the economy by supporting both citizens and small and medium-sized businesses.
At the moment there is no official information on this letter. Therefore, this proposal remained within the framework of “initiatives”.
Will pensions be cancelled?
The main reason for the possible cancellation is the difficult, unstable economic and political situation, due to which the state is abandoning some social programs.
If the pension is nevertheless cancelled, then the military will have no choice: work in civilian life or live on a pension. The payment will be a one-time payment and for further survival, you will still have to look for work. Military personnel will be able to receive free professional retraining opportunities. Some of them go to work in universities and other organizations to pass on their experience to young people. But adapting to civilian life after several years of service is still difficult. And if to this is added the need to work in a completely different field, the serviceman is unlikely to be happy with such changes.
Consequences
Not only the attractiveness of military professions, but also the authority of the Russian army will decrease. Military pensions are received by employees of the Ministry of Defense, Ministry of Internal Affairs, Ministry of Emergency Situations, FSB and other security forces. If there is any innovation. The post-career payment should provide the military man with a comfortable year or two of life. During this time, he will rest and get used to a “free” life without a military regime.
Savings due to the proposed innovation could amount to 500-700 billion rubles annually. Experts are inclined to believe that the abolition of pensions will not happen. In the Russian government system and politics, the greatest weight is given to military units, criminal enforcement bodies, internal affairs bodies, and so on. They are unlikely to support the new law and it is extremely difficult to resist such a large number of employees. In addition, there will be a personnel crisis in the security sectors.
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.
The abolition of military pensions will excite everyone, because then it is likely that the pension may be abolished altogether. In many countries, pensions do not exist at all. People work as long as they can. Lump-sum old-age benefits are also not paid in all countries where there is no pension.
Military sanatoriums today
Current army health centers are large complexes where you can undergo not only preventive therapy, but also follow-up treatment after hospital discharge.
Prevention and proper rest are the tasks that medical staff set themselves. For this purpose, on the territory of the sanatoriums there are not only medical buildings, but also cinemas, dance halls, sports grounds, libraries, gyms, swimming pools and much more.
In addition to the recommended treatment, citizens can undergo consultation with various specialists. Modern medical capabilities, technical innovations and natural factors can almost completely restore the body.
Most of the sanatoriums are located in picturesque places with a unique climate. Near some of them there are many different kinds of attractions.
Latest news on military pensions
The latest news today focuses attention not on cancellation, but on increasing indexation. That is, the amount of the pension paid should increase with inflation. The increase in expenses for essentials should not exceed the increase in pensions. There was also talk about increasing military service from 20 to 25 years.
On the one hand, with an increase in indexation, costs will increase, but with an increase in service life, costs will decrease. If the length of service is a quarter longer than it was before, then the need for new personnel will be reduced by a quarter. This means that the average amount of payments will increase, but the number of payments itself will decrease.
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.
What to expect for those who have already retired?
The abolition of military pensions does not pose a threat to current retirees. The proposed new law will not affect them, even if the pension is cancelled. After all, if a pensioner, for example, is already 65 years old, then giving him a lump sum benefit and then sending him to work would be stupid. In case of cancellation, the state will deal with the employment of former military personnel, and no one will employ those who have not worked for a long time and receive a pension. No one will be able to engage in professional retraining or send them to receive other education.
Firstly, due to the lack of jobs and university places. Jobs are simply not designed for this category of people. Secondly, due to the specifics of education (most military personnel have no education other than military education, and sometimes even no military education). The lack of professional skills in economics, finance, teaching or other fields leaves a meager choice of possible job options.
You should expect new, more relevant and truthful news on this topic towards the end of 2020. At the moment there have been no official statements on this matter. So, there’s no need to worry just yet.
What changes will happen to military pensions?
You can learn that pensions will be canceled for everyone starting in 2020 from citizens who are serving in the military. However, in reality this statement is wrong. Employees of the Ministry of Finance, after studying the procedure for calculating payments for the group of people in question, planned to reduce the amount of support for the military.
Currently, this issue is only being discussed. No affirmative decision was made on it. They want to cancel payments to security forces due to the fact that they can retire on preferential terms, which makes it possible to continue working in civilian professions.
Often, when introducing new rules in Russia, authorities are based on what provisions apply in other states. A number of countries do not provide pensions for military personnel.
In 2020, military personnel can receive benefits without indexation . The increase is planned to take place only in October. The last time the amounts for such citizens increased was in 2017.
The prospect of pension reform for military personnel
Experts said that if military pensions are abolished in Russia, this will significantly reduce treasury expenses. On average, savings will be about 750,000,000,000 rubles.
In this case there are also negative points:
- the authority of military service will decrease;
- a crisis in personnel selection for work in law enforcement agencies will begin.
For these reasons, they still cannot clearly decide whether benefits for military personnel will be canceled or not.
Changes for working military retirees
Military personnel are paid an appropriate allowance based on their length of service. This category of citizens is also endowed with the right to continue working after retirement. In this case, the pension continues to accrue .
In order to save the federal budget, government officials decide whether they will pay benefits to working pensioners.
Insurance benefits for the military
A citizen who has served in the military can count on 2 types of pensions.
Including:
In the latter case, funds are allocated by the Pension Fund. The registration process requires the provision of data regarding the length of service. This includes time of service in the unit and work in civilian professions.
What awaits citizens who have retired?
The abolition of pensions for working pensioners, as well as for non-working retired security forces, is not envisaged. If a person has reached the age of 65, then no one will send him to work.
When considering whether reform is planned to eliminate military benefits, it is important to note that there are currently no jobs designated for this category. In addition, government agencies have not created conditions for social adaptation.
Federal Law No. 76 of 1998 “On the status of military personnel” provides that the main factor for military retirement is length of service. Currently, this indicator should be at least 20 years.
In addition, pension provision is guaranteed to those who have reached the age of 45 and have at least 25 years of service in the military.
Where to look for vacancies
The easiest way to find a job is on specialized job search sites: avito.ru, rabota.ru, job.ru, hh.ru.
On specialized portals with forums for the military, create your own topic about finding a job on the forum or search for an existing one. A good option for finding a job or just interesting and useful news may be the large official website of the Russian Ministry of Defense.
Through friends. Word of mouth is the best employer! They are usually afraid to hire people “from the street” for the position of security guard, preferring “trusted and acquaintances”. Therefore, do not be shy - ask your friends if they or someone they know needs someone for a similar job. Very often this option works best.
Expert opinions on the abolition of military pensions
Speaking about whether benefits for security forces will be abolished from 2020, it is important to note that expert opinions on this issue are divided. Many supported the idea of depriving military personnel of pension benefits.
Proponents of abolition point out that upon retirement, a significant amount is paid to the military. They propose to develop a law according to which a military personnel discharged from the reserve will be able to receive an education and work in a civilian profession, if there is such a need.
This is especially true for those who leave the service at an early age.
Will military pensions be abolished?
Whether military personnel will be deprived of pension benefits depends on how long the instability in the economic situation continues. If such a period drags on, politicians can put into effect all the laws that are currently being discussed.
Speaking from the point of view of financial security, one-time payments cannot be compared with monthly security.
Soon after deprivation of military benefits, the following consequences will appear:
- a one-time payment will not provide a decent standard of living for a citizen over a long period of time;
- the absence of social adaptation programs will affect the fact that former military personnel will be left without means of subsistence;
- there will be a decline in the authority of military service.
For these reasons, it is impossible to say for sure whether pension payments will be canceled soon or not.
The value of the reduction factor for military pensions
The calculation of benefits for military personnel is based on the magnitude of reduction factors. The use of this concept is associated with 2012. Since that time, the indicator has been 54%. This means that the pension cannot be more than 54% of the salary received by the military.
The last time this ratio increased was in 2020. The value became equal to 72.23%.
It is planned to increase this indicator in October 2019. Due to the changes, the coefficient will be 73.68%.
Latest news from the Duma
In the spring of this year, the President of the country made an important decision that allowed for a systematic increase in allowances for pensioners - the freeze on the reduction coefficient was finally lifted. This value is the basic indicator used when carrying out indexation charges.
Over the past three years, its growth has been temporarily stopped, and until this point, starting in 2012, the indicator increased by 2 points annually.
The latest news from the Duma promises an increase in pensions by 4% from 2020 in relation to the amounts current for 2020. The total reduction factor will be 75.15%.
This is important to know: Compensation for overtime for military personnel
Additionally, citizens who served in state military bodies will receive an increase in assistance by 3.8% due to indexation. The increase will occur against the backdrop of rising wages for military personnel.
Funds for these activities are included in the draft budget.
Removing the freeze on the reduction factor (hereinafter referred to as the test - KP) gives favorable forecasts for further improvement in the standard of living of older citizens who have dedicated their working career to service in military structures. Thus, in 2035 their income will double compared to current ones.
Consequences of the abolition of pensions for military personnel
Speaking about the year in which the funded part of the pension was abolished, it is important to take into account that changes in this direction affected not only those who are serving in military service. Savings have been suspended since 2015.
At present, it is difficult to talk about the scale that the military pension reform will bring, since it is impossible to predict the reaction of citizens. All that can be said is that the adoption of such a law will reduce the authority of military service.
Thus, the abolition of military pensions will have a beneficial effect on the country's budget. Moreover, the result of these innovations will not only be positive. A negative point will be a decrease in the authority of authorities.
Will there be changes to military pensions?
2019 is in many ways a landmark year for the entire pension system in the Russian Federation.
The gradual increase in the old age pension age made it possible to unprecedentedly index payments to an amount almost twice as high as inflation.
What about changes to military pensions? Despite the fact that the principles for forming civil and military pensions are quite different, some changes in 2019 will affect many former military personnel.
The amount of payment for former military personnel in 2019
In 2012, it was established at the legislative level that payments to army pensioners should be indexed every year at an amount of 2% higher than inflation. However, since 2015, when economic difficulties began in the country, accompanied by rapid increases in prices for goods and services, this rule was not observed.
Funds were invested in the budget for 2020, which would ensure the indexation of payments by 4.3 percent, which fully corresponds to the inflation rate predicted by the Central Bank of the Russian Federation for this period.
It is worth noting that pension accruals for former military personnel largely depend on the amount of pay for active military personnel, which will be increased by 4.3%.
However, when calculating pensions, there is a reduction factor, the size of which increased from year to year. It was planned that in 2020 it would amount to 72.23% of the amount of cash allowance.
In the fall of 2020, Russian President V.V. Putin, holding a meeting with military personnel and law enforcement officers, announced the need for an additional indexation of payments to military pensioners by 2%.
The necessary funds are planned to be allocated by increasing the reduction factor to 73.68% of the military’s salary. Thus, pensions for former military personnel will be indexed by 6.3%. Payments taking into account this increase will begin to be made from October 1, 2020.
In addition to military pensioners, former employees of other structures equivalent to troops can count on such significant indexation, in particular:
Will the long service benefit increase?
The project, which provides for an increase in length of service, also involves compensatory mechanisms aimed at increasing the amount of payments. However, at the moment, all allowances and benefits for length of service remain at the same level . The October indexation will affect only the basic amount of pensions for former security forces.
The increase in the retirement age in the country, carried out by the Government since 2020, has raised many questions not only among people who receive or plan to receive an old-age insurance pension, but also among the military, whose payments are formed in a different way.
One of the conditions for their appointment is the length of service, which this year remains the same - 20 years, despite the existence of already well-developed legislative initiatives providing for its gradual increase by 5 years.
At the same time, all military pensioners will face a serious indexation of 6.3%, which, however, has been postponed until October of this year. There are no other significant changes in the procedure for calculating these payments.
Work of sanatorium institutions in the summer of 2020
In June, sanatoriums in the Krasnodar and Stavropol regions opened. Sanatorium institutions in the Kostroma, Ryazan, Yaroslavl and Tula regions began operating on June 15, 2020. Medical organizations in the North-West of the Russian Federation began to function on June 29, 2020. Sanatoriums in Crimea, Central Russia, the Volga region, the Urals, and Siberia are also already open. On August 1, the Obukhovsky sanatorium began operating in the Sverdlovsk region. Sanatorium organizations that will begin accepting vacationers from September 1:
In the Tyumen region:
- "Birch Grove";
- "Geologist";
- "Martin";
- "Light";
- SPA hotel Ingala.
In Bashkiria:
- "Krasnousolsk";
- "Tanyp";
- "Yumatovo."
Information provided directly by the resorts. The data may change at any time.
