Recalculation of pensions for pensioners in 2020

April 1, 2020 President V. Putin signed a law providing for the recalculation of pensions in 2020 for non-working pensioners. It came into force from the date of its publication, that is, from 04/01/2019. Let us recall that Vladimir Putin, speaking on February 20, 2020 with a message to the Federal Assembly, proposed changing the current procedure for indexing pensions assigned at an amount below the subsistence level pensioner (PMP) . The President noted in his address that low-income pensioners who are now receiving minimum pensions “feel deceived”, since they were not affected by the indexation of 7.05% from January 1, 2020. According to the approved law, the territorial bodies of the Pension Fund carry out the corresponding recalculation by July 1, 2020 . According to the Chairman of the Pension Fund of Russia A. Drozdov, all additional payments have already been made with the May payments. 4.5 million people received them.

Let us remind you that the minimum pension in Russia is considered to be the amount of the pensioner’s subsistence level (PLS), established in each specific subject of the country (see table by region). To ensure that the financial support of pensioners does not fall below this value, they are assigned social supplements to the PMP.

It is because of such additional payments that citizens receiving the minimum pension did not feel a significant increase from January 1, 2019. Indexation according to the old rules concerned only the amount of pension provision assigned by the Pension Fund, that is, it did not take into account the social supplement.
As a result of indexation, the pension itself increased, and the social supplement to PMP decreased. But in total, the size of the pension provision did not change . The increase occurred only if the regional PMP changed.

It is for this reason that V. Putin ordered the recalculation of pensions above the subsistence level. carry out this recalculation “retroactively” (that is, from January 1, 2020). This recalculation was carried out “retroactively” - the changes affected payments from January 1, 2020. All funds underpaid in the first months of the year were compensated after the recalculation.

The essence of the bill

The adopted document implements the task set by Russian President Vladimir Putin during his 15th Address to the Federal Assembly - to increase the income of non-working pensioners above the established subsistence level.

The prerequisite for revising the very principle of calculating additional payments and indexations were complaints from pensioners who, after the January indexation of 7.05%, did not feel a real increase in income. We are talking about people whose pensions are below the subsistence level.

We invite you to watch the live broadcast of the President’s address:

How was it before?

When calculating, we took the established amount of the pension payment, applied 7 percent indexation to it, and then (if indexation did not raise income to the PM level) added the missing amount. As a result, for the poorest segments of the population, the real size of the payment after indexation did not increase. At the beginning of 2020, people received an amount equal to the subsistence minimum, as before (before indexation).

For example, a certain resident of the Moscow region (PMP = 9,908 rubles), receiving a pension of 8,000 without indexation, could count on an additional payment of 1,908 rubles. But, after indexation, the pension will be 8,564 rubles, and the additional payment will be 1,344 rubles. In both cases, the person will receive 9,908 rubles.

Sovcombank deposit “SuperLeto”: basic conditions

This year there was an important change in the rules for recalculating pensions after a person quits his job. Just as before, in this case the person’s pension payment is indexed taking into account all those annual increases that did not affect him. But - and this is an important point - in 2020 the increased pension is due earlier than it was in 2020.

True, there are some nuances that need to be remembered. Despite the fact that the right to recalculate a pension now arises the very next month after leaving work, it will be implemented, as last year, only in the third month. Let's figure out why this is happening and what has changed compared to previous years.

Under special conditions, pensioners today can open replenishable deposits at Sberbank, as well as time deposits without the ability to manage their money, but with the highest return.

This deposit is designed to receive a guaranteed maximum income. Its advantages are:

√ maximum interest rate for the selected period, regardless of the deposit amount;
√ automatic transfer to the best possible rates at Sberbank upon reaching retirement age and prolongation of the deposit.

Among the disadvantages, it should be noted that there is no possibility of replenishing and partially withdrawing money without losing interest.

Conditions

— Term: from 1 month to 3 years inclusive;
— Replenishment: not provided;
— Partial withdrawal: not provided;
— Minimum amount: 1,000 rubles / 100 US dollars;

Conditions for calculating interest

— Interest is accrued monthly;
— The accrued interest is added to the deposit amount, increasing income in the following periods;
— Accrued interest can be withdrawn and also transferred to the card account;

Interest rates

Without capitalization / With capitalization

In Russian rubles

Term	Interest rate
1-2 months	3.45 / 3.45
2-3 months	3.75 / 3.76
3-6 months	4.35 / 4.37
6-12 months	5.00 / 5.05
1-2 years	5.00 / 5.12
2-3 years	4.85 / 5.08
3 years	4.75 / 5.09

In US dollars

Term	Interest rate
1-2 months	0.01 / 0.01
2-3 months	0.01 / 0.01
3-6 months	0.35 / 0.35
6-12 months	0.60 / 0.60
1-2 years	0.85 / 0.85
2-3 years	0.65 / 0.65
3 years	0.55 / 0.55

— Sberbank is temporarily not opening new deposits in euros; it offers individuals and pensioners to use a Savings Account in euros at a rate of 0.01% per annum.

See savings offers at Pochta Bank. More details {amp}gt;{amp}gt;

This is a typical replenishable deposit for those clients who prefer to save and regularly set aside money for a rainy day. Its advantages are:

√ possibility of replenishment;
√ maximum interest rate for the selected period, regardless of the deposit amount;
√ automatic transfer to the best rates possible at the Bank upon reaching retirement age and prolongation of the deposit.

Conditions

— Duration: from 3 months to 3 years inclusive;
— Minimum amount: 1,000 rubles / 100 US dollars;
— Replenishment: provided for the following contribution amounts:
— — cash — from 1,000 rubles / 100 US dollars;
— — non-cash — unlimited.
— Partial withdrawal: not provided.

Conditions for calculating interest:

— Interest is calculated monthly.
— The accrued interest is added to the deposit amount, increasing income in subsequent periods.
— Accrued interest can be withdrawn and also transferred to the card account.

Interest rates

In Russian rubles

Term	Interest rate
3-6 months	4.05 / 4.06
6-12 months	4.60 / 4.64
1-2 years	4.50 / 4.59
2-3 years	4.35 / 4.54
3 years	4.15 / 4.41

In US dollars

Term	Interest rate
3-6 months	0.10 / 0.10
6-12 months	0.30 / 0.30
1-2 years	0.50 / 0.50
2-3 years	0.35 / 0.35
3 years	0.20 / 0.20

If the terms of the deposit indicate that partial withdrawal is not provided, this does not mean that the depositor cannot return his own money before the time established by the agreement!

In any unforeseen situation, if you need money before the end of the deposit, you can always get it. But, alas, almost no interest.

— at an interest rate of 0.01% per annum

- when claiming a deposit during the first 6 months of the main (extended) term - based on an interest rate of 0.01% per annum;

- when claiming a deposit after 6 months of the main (extended) term - based on 2/3 of the interest rate established by Sberbank for this type of deposit on the date of opening (extension) of the deposit

In case of early termination of the deposit, interest is recalculated without taking into account the monthly capitalization of interest.

This is one of the most profitable deposits in Sovcombank today! It can be replenished with amounts starting from 1000 rubles. But there is no provision for spending money from the account. The main feature of this deposit is the high rate for terms of 2, 6 and 12 months.

Let us tell you in more detail about the interest rates and conditions for pensioners opening each of these individual deposits with VTB Bank of Moscow.

This deposit for individuals has an increased profitability. Replenishment and expense transactions without loss of profitability are not provided.

Conditions

☐ Minimum amount: 100,000 rubles / 3,000 US dollars or Euros (30,000 rubles / 500 dollars or euros when opening online);☐ Term: from 3 months to 5 years can be selected up to the day;☒ Additional fees: not provided ;☒ Expense transactions are not provided;☑ Interest accrual: monthly with capitalization or payment to the account;

Interest rates

(nominal rate / including interest capitalization)

Duration, months	Interest rate
3-6 m.	4,65% / 4,67%
6-13 m.	5,30% / 5,36%
13-18 m.	5,30% / 5,44%
18-24 m.	5,30% / 5,50%
24-36 m.	5,15% / 5,41%
36-61 m.	5,05% / 5,44%

0.5% when spending from Multicard in the amount from 5,000 to 15,000 rubles; 1.0% when spending from Multicard in the amount from 15,000 to 75,000 rubles; 1.5% when spending from Multicard in the amount of 75,000 rubles or more.

7.00% per annum in rubles.

Duration, months	Interest rate
3-6 m.	0,30% / 0,30%
6-13 m.	0,80% / 0,80%
13-18 m.	1,10% / 1,11%
18-24 m.	1,10% / 1,11%
24-36 m.	0,90% / 0,91%
36-61 m.	0,75% / 0,76%

Deposit "Reliable"

What will it be like from May 2020?

From May 26, all unemployed Russians whose pension accruals are below the subsistence level will have their pensions recalculated in a new way.

According to the approved recalculation mechanism, from May 26, 2019, the amount of pension payments will first have to be brought to the level of the subsistence minimum established for a specific region, and only then indexed.

Thanks to this approach, the increase in pension will be quite noticeable.

Let us perform the calculation for the previously considered resident of the Moscow region using a new scheme. The initial amount of a citizen’s pension is 8,000 rubles, which means he is entitled to an additional payment of 1,908 rubles up to PMP = 9,908 rubles. And this value will be indexed by 7.05% and the payment, taking into account indexation, will be 10,606.5 rubles.

Recalculation will be performed for all months starting from January 1, 2019!

Latest news on the recalculation of pensions for non-working pensioners

Immediately after the President’s speech to the Federal Assembly, First Deputy Chairman of the Government Siluanov gave his explanation on the issue. He promised to set a time frame for the recalculation under the new scheme, saying that the process would begin on March 1, 2019 .

More on the Topic: Pension by groups - 1,2,3 groups, size

Further, at a Government meeting on February 28, Prime Minister Dmitry Medvedev said that the recalculation of pensions for non-working pensioners in 2019 can be expected before July 1 . According to him, the bill should have been considered during the convening of the spring session of the State Duma.

The latest news on the bill is as follows. It was reviewed and approved by the Government and was submitted for discussion to the State Duma Council. The first reading ended on March 12, the second reading on March 19, and the third reading on March 21, the draft was approved. To enter into force, the text must also be approved by the Federation Council. It is planned that it will be received before March 27.

When all the recalculated amounts will be paid, it will be possible to say for sure only after the final adoption of the Law. All available documents suggest that by July 1, all funds will be provided to recipients.

How will the size of pensions change?

It is not difficult to calculate that, taking into account the difference between the new and old calculation options for 5 months of 2020, a certain pensioner discussed in this article will receive an additional amount equal to approximately 3,492 rubles.

Important! The new norm will increase the income only of those pensioners who previously received an additional payment before PMP.

The amount of payments to pensioners whose incomes before indexation were above the subsistence level will not increase in May 2020.

The average for the Russian Federation is 8,846 rubles, which means that the average increase will be just over 623.6 rubles.

You can calculate the exact amount of indexation according to the new rules if you know the cost of living in your region.

New indexing rules in 2020

On V. Putin’s instructions, in 2020 the indexation scheme for minimum pensions and the procedure for calculating social supplements . Now pensions will be increased above the subsistence level. In order to understand the difference between the indexing order according to the old and new rules, let’s consider the indexing scheme using specific examples.

For example, a pensioner in 2020 was assigned an insurance pension in the amount of 7,500 rubles, but in fact he received the amount of the regional PMP - 8,500 rubles.

Indexing according to the old rules. As a result of indexation, his pension provision was increased to 8,028.75 rubles. (that is, at 528.75), while social. the surcharge decreased from 1000 to 471.25 rubles. But in fact, the size of the payment to the pensioner has not changed - he still receives 8,500.
Indexation according to new rules (in connection with V. Putin’s message). The pension will be indexed to 8028.75 rubles, and the amount of social benefits. surcharges will not be changed. That is, the amount of the pension according to the new rules will be 8028.75 + 1000 = 9028.75 rubles. Since the underpaid amounts will also be compensated, the pensioner will be paid an additional 2,115 rubles. (what he did not receive in January-April). The pensioner will receive the newly calculated payment and compensation for the first months in May 2020.

In the same way, each pensioner will be able to calculate what the new amount of his pension payment will be and what additional payment he will receive for the first months of the year. In addition, the recalculation concerns the unified social pension, which was indexed by 4.3% in February, and social pensions, which were increased by 2% in April.

It is worth noting that the recalculation of pensions in connection with Putin’s message applies only to those pensioners who were assigned social supplements up to the pensioner’s subsistence level. For those whose pension provision was greater than the PMP, nothing will be recalculated, since their payments were indexed correctly.

Alfa-Bank savings accounts: interest 2020

Elderly people today can open any deposits of individuals of Rosselkhozbank in rubles, US dollars with favorable rates and conditions, and we will begin our review with special pension deposits.
1. Rosselkhozbank contribution “Pension income”

This deposit is opened only upon presentation of a pension certificate. Its main distinguishing feature is the possibility of replenishment. Additional contributions are accepted throughout the entire term. That's a plus. But expense transactions with the same interest rate are not allowed. This is a clear minus.

Of course, if you suddenly need all your savings, then you can terminate the agreement with the bank early at any time and withdraw the money. But it is advisable to do this only as a last resort. After all, if the deposit is withdrawn ahead of schedule, interest is paid at the “On Demand” rate.

So, take the money after the deadline. And if you forget to do this, the deposit agreement will be automatically extended for the same period.

By the way, if you have a deposit of 50,000 rubles or more, you will be given a free card with the tariff plan “Amur Tiger - card for deposit”.

Conditions

Duration – 395, 540 and 730 days
Amount – from 500 to 2 million rubles.
Deposit replenishment is provided.
Expense transactions with the same interest rate are not provided.
Payment of interest monthly: to the account or capitalization

Interest rate of the “Pension income” deposit

395 days	540 days	730 days
6,35%	6,40%	6,50%

It should be noted right away that depositors have the opportunity to increase their income if they use the Sovcombank Halva card.

Conditions for increasing the rate when paying with the Halva card

Today, special favorable conditions for deposits apply to owners of the Halva card. To increase the rate by 1%, they need to fulfill several conditions:

1. made at least 5 purchases during the reporting period;
2. the total amount of purchases from 10,000 rubles for the reporting month (own or borrowed funds);
3. transactions in any stores are taken into account, including those not included in the list of partners;
4. there is no overdue debt on the Halva card;
5. deposit period over 3 months.

KNOW: The increased interest rate applies only to deposit amounts up to RUB 1,500,000.

Let's take a closer look at the interest rates and terms of deposits for individuals in force in the merged bank in 2020. The page also contains a calculator that will help calculate profitability.

Deposit "Reliable"

This is a deposit of individuals with an increased rate and the possibility of interest capitalization. Opens in rubles both in offices and in mobile and Internet banking.

See the conditions and interest rates of deposits for individuals at Alfa-Bank today. Here, TOP-RF.ru correspondents have collected the percentages that can be obtained without signing up for a package of services in 2020.

Alfa-Bank Pobeda deposit

This deposit has the highest percentage among bank deposits and allows the client to receive maximum income. It opens in rubles, dollars or euros. At the same time, the investor himself can choose what to do with the accrued interest - withdraw it or capitalize it. The disadvantage of a deposit is the inability to replenish the account and withdraw money without losing interest.

Conditions

☑ Amount – from 10,000 rubles. / 500 $ / 500 €
☑ Deposit term – from 92 days to 3 years
☑ Replenishment - not provided
☑ Partial withdrawal - not provided
☑ Interest capitalization is provided. Interest is calculated monthly and added to the deposit amount (capitalized). Thus, the deposit amount increases, and interest is accrued on the increased amount.
☑ In case of early termination of the deposit, interest is accrued at a rate of 0.005% per annum.

Interest rates

The profitability of the deposit depends on the term and amount of invested funds. This comparative table shows the rates for the Pobeda deposit today, which a client can receive without the Alfa-Bank service package. The yield is indicated taking into account the capitalization of interest.

in rubles

Term / Amount	from 10,000 to 299,999	from 300,000 to 999,999	from 1 million to 5 million
92 days	5,53%	5,63%	5,73%
184 days	5,56%	5,67%	5,77%
276 days	5,71%	5,81%	5,91%
1 year	6,38%	6,49%	6,59%
550 days	6,59%	6,7%	6,81%
2 years	6,81%	6,92%	7,03%
3 years	7,16%	7,28%	7,4%

Savings accounts can be a significant addition to the deposits of Alfa-Bank individuals. Using them to store savings is very convenient, since you can top up your account and withdraw money at any time. They are opened in rubles and foreign currencies: dollars and euros. In addition, the interest rate on savings accounts in Alfa-Bank today is quite high.

Savings "Alpha Account"

The longer the money is in this account, the higher the interest. Increased interest rates are provided for Alfa-Bank clients with the Package and holders of Premium or BlackEdition cards. For others, it’s basic income.

Advantages

— Currency: rubles, US dollars, euros
— Duration: indefinitely;
— Deposits and withdrawals without loss of interest;
— Management online and by phone;
— Monthly interest accrual;
— Chat with a bank employee.

Interest rate

In rubles

1 month	3 months	6 months	12 months
4%	5%	5,5%	7%

In dollars

1 month	3 months	6 months	12 months
0,1%	0,5%	1%	1,75%

In Euro

1 month	3 months	6 months	12 months
0,01%	0,01%	0,01%	0,01%

In 2020, old-age pensions increased again only for non-working pensioners. It was known in advance that payments for those elderly Russians who continue to work after retirement will not increase.

Pensions for working pensioners have been frozen since 2020 - the same year that Russian pensioners will remember as the most difficult in recent years. Inflation in 2020 was quite decent, and pensions should have increased by at least the 12.9% by which the ruble depreciated a year earlier.

Meanwhile, the government then only had money for a 4 percent increase in pensions at the beginning of the year. The Cabinet of Ministers promised to find funds for another increase in the fall, but the money was never found.

Working pensioners did not receive even this four percent then, and those elderly Russians who have been working in retirement since 2015 or even earlier still receive a pension at the 2020 level. All the indexations that took place in the country after that did not affect them.

The usual practice of indexing old-age pensions in Russia looks like this:

in January, Rosstat publishes statistics on inflation in the country for the previous year,
in February pensions increase by this inflation rate.

Before the start of 2020, the government found enough funds in the budget for old-age pensions to increase by 3.7%. It was clear in advance that this was higher than inflation in 2020, so the indexation was carried out not in February, but a month earlier, in January. At the same time, Rosstat confirmed that official inflation in Russia at the end of last year was 2.5%. Pensions grew slightly faster.

According to the Russian Pension Fund, the average old-age pension in the country after the January recalculation amounted to 14,151 rubles.

READ MORE: Child care benefit up to 1.5 years in 2020 Consultant Plus

This topic is quite complex; it is connected with plans to raise the retirement age in Russia in principle.

The state, planning to raise the retirement age, also focuses its propaganda on the fact that this will increase pensions for existing pensioners. The average increase is said to be one thousand rubles per month.

The preliminary percentage of pension indexation at the beginning of 2019 has also been announced - 7%. This is also obviously higher than inflation in 2020 (expected to be no higher than 4%).

Whether it will be possible to recalculate pensions for pensioners at the beginning of 2019 by this seven percent depends on the success of the idea of raising the retirement age in Russia. If the bill is basically adopted in the form in which it was submitted to the Duma, such indexation will most likely happen. If the unpopularity of the idea of raising the retirement age in Russian society, as well as the activity of people, force the authorities to make some kind of compromise (for example, delay the reform), apparently, pensions will increase by a smaller percentage.

Duration, months	Interest rate
3-6 m.	4,35% / 4,37%
6-13 m.	4,90% / 4,95%
13-18 m.	4,80% / 4,92%
18-24 m.	4,80% / 4,97%
24-36 m.	4,65% / 4,86%
36-61 m.	4,45% / 4,75%

Duration, months	Interest rate
6-13 m.	4,00 / 4,03 %
13-18 m.	4,00 / 4,08 %
18-24 m.	4,00 / 4,12 %
24-36 m.	3,95 / 4,10 %
36-61 m.	2,50 / 2,59 %