Increase in Social Pension in 2020 Latest News

Law on increasing social pensions in 2020

A social pension is a regular payment that accrues to people who, for certain reasons, cannot confirm their work experience, or it is not enough to calculate insurance payments due to age.

The “social” pension begins to be paid 5 years later than the insurance one and depends on the subsistence level established at the regional or federal levels. The age for receiving social pension will be gradually increased as a result of the pension reform that started last year. In addition to the elderly, this type of payment is also received by disabled people, children who have lost their breadwinner, as well as minors whose both parents are unknown.

The social pension begins to be paid 5 years later than the insurance pension and depends on the subsistence level

According to Article 25 of Federal Law No. 166 of 2001, which establishes the procedure for indexing pensions, social payments must increase annually. At the same time, the premium coefficient is set by the Government of the Russian Federation, taking into account the growth rate of the cost of living, which has accelerated significantly over the past year. Such jumps will undoubtedly affect the social security payments of the country's citizens. Last year they were indexed by only 2%. In 2020, these figures reached 2.9%.

Who is entitled to

The increase from April 1, 2020 will affect all recipients of social pensions (insurance pensions also increase annually, but at the beginning of the year).

In particular, the following will receive an increase:

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• men over 70 years of age or women over 65 years of age, if previously they could not apply for an insurance pension (insufficient experience or a small individual pension coefficient);
• representatives of small peoples of the Far North of Russia, if at the time of payment they continue to live in the Far North and their age is over 50 and 55 years (women and men, respectively);
• people with disabilities whose incapacity to work has been established by a medical and social examination (indexation of social pensions for disabled people in 2020 applies to all categories: 1st, 2nd, 3rd groups, disabled people since childhood, disabled children);
• minor children whose parents have died or one of their parents has died;
• citizens who have lost their breadwinner under the age of 23, while they are completing a full-time educational program in an institution that is licensed and has passed state accreditation;
• children whose parents are unknown.

When will pension payments be increased and by how much?

Social payments are indexed on April 1 of each year according to a certain coefficient, which is not a constant value and changes annually. The indexation percentage is affected by a jump in the growth of the minimum amount required for a pensioner’s subsistence level over the past year.

In 2020, payments will be indexed by 6.1%, which is 3.1% higher than last year’s inflation. The size of the coefficient was established by Decree of the Government of the Russian Federation No. 270 dated March 13 of this year. Previously, it was assumed that the size of the premium in 2020 would be at least 7%. At the same time, the coefficient for insurance pensions is at the level of 6.6%, and their average size has increased to 15,000 rubles.

Due to indexation, the average amount of social payments in the country will be:

1. Pensioners – 9,878 rubles.
2. Disabled children – 14,500 rubles.
3. For minors who have lost their breadwinner – 10,057 rubles.

The pension will increase by even less than 600 rubles, but will correspond to the minimum established in the country. Thus, every pensioner in Russia will receive a state subsidy above the established threshold in the subject in which he lives. This is also due to the new recalculation procedure, according to which the payment first “reaches” the required minimum due to allowances and only after that is indexed. Until 2019, the procedure was performed in the reverse order: first recalculation, then calculation of the premium. This tactic led to the fact that the average amount of payments did not change, since as the basic accruals increased, the amount of the bonus decreased.

Currently, the required minimum at the federal level is 9,002 rubles.

However, the numbers may differ depending on the region of residence, since it is the local government that determines the lower threshold. If previously in the constituent entities of the Russian Federation the established minimum was in most cases inferior to the federal level, now a reverse trend can be observed.

Social pensions will increase by 2% from April 1, 2020

Social pensions are planned to increase from April 1, 2020 not only at the federal level, but also at the regional level. Local authorities have the right to set their own surcharges for vulnerable sections of the population. They are different in different localities of the country, so the amounts of social pensions differ significantly. Thus, in the Leningrad region, payments to this category of Russians average 8,672 rubles, in the Voronezh region – 9,567 rubles, in the Murmansk region – 12,497 rubles.

Social pensions are provided to citizens belonging to the vulnerable stratum. They also include disabled people, orphans and children left with only one parent. There are approximately 4 million such people in Russia. According to the Ministry of Labor, the planned funds in the budget for increasing pensions, including social ones, amount to 9 billion rubles. For all categories of social pensioners, payments will increase by the same percentage.

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Who is entitled to an increase and who will be left without additional payments to social pensions

Social pensions will be indexed for non-working pensioners, disabled people, as well as minor citizens who have lost their breadwinner or those whose both parents are unknown. In addition, on August 1, social payments for persons on state support will also be indexed. The bonuses will also affect the pensions of World War II veterans and members of their families.

The increase will affect more than 3.8 million citizens, 2.1 million of whom are pensioners with insufficient work experience or no work experience at all. Despite such large numbers, the group of the population receiving social pensions is the smallest of all the others.

21.7 billion rubles were allocated for indexation, which, according to the Government, will not affect the country’s economy in any way, even taking into account the current crisis.

Indexation will affect all social payments to non-working citizens who have reached the age to receive a social pension. The recalculation procedure will not be affected by the size of payments before it begins. The procedure is in no way tied to the initial amount of the pension. It is influenced solely by the rate of change of the “minimum” established in each specific region.

After the procedure for calculating bonuses for pensions that do not reach the minimum level has been changed, the body of payments will increase annually. Now, first the amount is brought to the minimum, and only then it is indexed, which will have a positive impact on the financial situation of pensioners and their purchasing power. Thus, indexation will affect everyone, not counting working pensioners.

What is social pension?

Social pension benefit (SP) is a cash payment paid by the state monthly to citizens who have reached the age of a pensioner, who have become disabled or who have lost their breadwinner, as well as to pilots and astronauts who have retired due to length of service. The joint venture is established in accordance with the rules and conditions approved by Federal Law No. 166 of December 15, 2001.

clause 1, art. apply to receive SP 4 Federal Law No. 166:

• people recognized as disabled - representatives of small ethnic groups of the North aged 51.5 (women) and 61.5 (men) years, disabled people, population aged 61.5 (women) and 66.5 (men) years, and persons who have lost breadwinner;
• citizens belonging to the category of cosmonauts or test flight personnel;
• people who are victims of a man-made or radiation disaster;
• persons who received the badge “Resident of besieged Leningrad”;
• citizens who took an active part in the Great Patriotic War;
• people serving in the armed forces of the Russian state;
• civil servants of federal government institutions (GSFGU), as well as members of their families (clause 2, article 4, Federal Law No. 166).

The main condition for the appointment is that the applicant for a pension belongs to the category of citizens “Disabled Persons” and permanent residence within the Russian Federation.

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The procedure for registering a joint venture is specified in clause 1, art. 22, Federal Law No. 166. To register a joint venture, you should contact the district office of the MFC or the Pension Fund at any time after the rights to this type of pension benefit arise. submit an application and the required package of documentation (passport and papers confirming your right to it) to the Pension Fund or MFC Employees of the Pension Fund (MFC) will review the provided documentation within ten days and make a decision on the appointment of a joint venture. The PF staff will notify the applicant for the joint venture about the decision.

How to calculate the pension amount?

The pension is set in fixed amount (FV) depending on the category of persons to whom the benefit is assigned. The dimensions of a fixed value and methods for determining it are established in Art. 14-18, part III of Federal Law No. 166.

The amount of SP for military personnel (who have become disabled due to a military injury) is established in the following amounts:

• disabled people of group 1 – 16961.16 rubles (300% x 5653.72);
• disabled people of group 2 – 14134.3 rubles (250% x 5653.72);
• disabled people of group 3 – 9894.01 rubles (175% x 5653.72).

The social pension for disability of a WWII veteran is set in the following amount:

• disabled people of group 1 – 14134.3 rubles (250% x 5653.72);
• disabled people of group 2 – 11,307.44 rubles (200% x 5,653.72);
• disabled people of group 3 – 8480.58 rubles (150% x 5653.72).

The amount of fixed payments for other categories of citizens is established in a similar way. For persons affected by a man-made disaster, the method of installing the PV is specified in Art. 17 No. 166-FZ ( 7067.15 rubles or 14134.3 rubles depending on disability or living in a contaminated area), for a retired cosmonaut - art. 17.1 No. 166-FZ, for a retired pilot - Art. 17.2, for disabled people - Art. 18.

Indexation of social pension in 2020

Will there be an increase in the social pension in 2020? According to the latest news, the increase will be carried out through annual indexing, which is provided for in paragraph 3, Art. 25 Federal Law No. 166.

According to the mentioned law, indexing will be carried out from April 1 of this year. At the same time, the level of increase in the cost of living for people who have reached retirement age will be taken into account (this indicator is most important when indexing SP).

The indexation coefficient of the joint venture is established by the Government. Indexation of the social pension in 2020 will be 7%.

The size of pensions after the annual increase will be:

• for old age - 5653.72 rubles.
• for the deprivation of one breadwinner - 5653.72 rubles, for both - 11307.47 rubles.
• for disability groups 1, 2 and 3, respectively - 4805.7 rubles, 5653.72 rubles. and 11307.47 rubles .
• for disabled children - 13,568.77 rubles .

The average social pension in 2020 will be 9,925.35 rubles .

Example on indexation of social pension

In May 2020, Marina, at the age of 14, was injured. After passing a special medical examination, she was recognized as disabled. She, as a disabled child, according to paragraphs. 2, clause 1, art. 18 Federal Law No. 166, a monthly social pension benefit is established.

From April 1, 2020, the next planned indexation of the joint venture was carried out with an approved coefficient of 7% . As a result, Marina's joint venture increased. After indexing her pension, Marina began to receive 13,568.77 rubles .

Conclusion

To summarize the article, several key points should be highlighted:

1. Calculation, assignment, indexing of joint ventures occurs in accordance with the norms, formulas and rules approved by Law No. 166-FZ. The same law specifies the categories of people who have the right to apply for this type of pension payment.
2. The main condition giving the right to apply for the appointment of a joint venture is permanent residence in the Russian Federation and belonging to the category “Disabled Persons”.
3. To register a joint venture, you should contact the MFC or a branch of the Pension Fund.
4. SP is assigned only in a fixed amount.
5. Social pensions are indexed annually. In 2020, indexing is planned from April 1.
6. As of April 1, 2020, an indexation coefficient of 7% will be used.

When to expect the next indexing

Over a long period, social payments are indexed annually at the same time - August 1. At this stage, amendments that would postpone the start date of the process were not adopted. The date of recalculation of insurance payments to non-working pensioners, which were indexed by 6.6% on January 1 of this year, will also remain unchanged. Various monthly allowances for WWII veterans, disabled people and other financially vulnerable citizens of the country are recalculated from February 1 of each year. In 2020, these payments were indexed by more than 3%.

At the Federal Assembly held not so long ago, the current President of the Russian Federation V.V. Putin proposed enshrining the state’s obligation to annually recalculate insurance and other types of pensions for unemployed pensioners in the Constitution of the Russian Federation. This proposal was made to ensure that this procedure could not be circumvented, despite the current economic and foreign policy risks. If the corresponding amendments are approved, the right to index payments will be enshrined in the main legal document of Russia, which means that the Government will have no loopholes for ignoring it.

Social pension amount

Minimum income depends on the PM indicator. For senior citizens it rose by 2.4 percentage points. The amount of federal contributions amounted to 5.3 thousand rubles.

In addition, indexation is carried out in relation to additional payments and preferences for certain segments of the population. At the same time, people who did not receive an increase in April will be able to count on it in May of this year. As for specific numbers, they look like this:

• 4.3% - social payments from the Pension Fund of the Russian Federation, including the amount of EDV, NSU (for federal beneficiaries);
• 6.3% for military pensioners. It is worth noting that initially it was planned to index deductions for military personnel by 4.3%, however, in the process of discussing and postponing the event until the fall, it was decided to increase the allowances.

The amounts of subsidies depending on the grounds for assignment in 2020 are as follows: