Pensions will be increased from August 1: who will receive an increase and how much?

Increasing pensions for working pensioners in 2020 - conclusions

The law is already in effect:

1. The increase will be received by non-working pensioners whose pension is below the subsistence level in the region. Those who are higher will not receive it, because they have already been paid an increase since January.
2. Pensioners with a small pension will have their accruals indexed from January 1 and will be paid this amount above the subsistence level. Additional payments will be made until July 1. Further payments will be based on indexation.
3. Previously, indexation was included in the monthly supplement and was invisible. Now it will always be paid separately.
4. The recalculation will be done automatically; you don’t need to formalize or write anything.
5. Indexation does not apply to working pensioners: they have their own conditions and other deadlines.

Share with those who want to know about changes in pensions. The article contains calculations and a table with the amount of indexation until 2024.

Some pensioners have pensions below the subsistence level. Even if a teacher has worked at a school for 25 years, his old-age pension may still not exceed 8,000 rubles. Although the cost of living in the region is 8,700 rubles. And there are pensions of even 6,000 rubles, while for an elderly person this is the only source of income.

Let’s say a teacher has an old-age pension of 8,000 rubles. It is indexed by 7.05% - the increase is 564 rubles. But the cost of living in the region is 8,700 rubles.

8000 R 564 R = 8564 R - this is the accrued pension taking into account indexation;

8700 R − 8564 R = 136 R is an additional payment up to the subsistence level.

Previously, pensions were indexed, and then they calculated how much they needed to pay in addition to the subsistence level.

Now pensions will be indexed as follows:

1. First, they will calculate the increase taking into account indexation.
2. The amount of the increase will be fixed.
3. Then they will calculate how much you need to pay extra to the minimum subsistence level, taking into account the previous pension amount, before the increase.
4. And only after that the fixed indexation amount will be added to the payment increased to the subsistence level. The increase will not reduce the additional payment to the minimum, but will increase the payment by the full amount.

8000 R × 7.05% = 564 R - increase during indexation;

8700 R - 8000 R = 700 R - additional payment up to the subsistence level;

8000 R 700 R 564 R = 9264 R - the final amount of the pension, taking into account indexation and additional payment.

Next year the state will again index pensions. It is already known that from 2020 old age payments will increase by another 6.6%. That is, the same teacher’s pension, taking into account this indexation, will be 9,129 rubles. And this will definitely be more than the subsistence level, even if it increases by 150 rubles.

8564 R × 6.6% = 565 R - increase taking into account indexation in 2020;

8850 R − 8564 R = 286 R - additional payment up to the increased cost of living;

8564 R 286 R 565 R = 9415 R - the total amount of payments taking into account indexation and additional payments in 2020.

In 2021, the 2020 pension will be indexed. But the amount paid in 2020 will be compared with the 2021 cost of living. And only then will they calculate the additional payment and add a new indexation to it.

Indexation of funded pensions of citizens of our country

Pensions will be indexed in August for those people who receive funded payments. Benefits for this category of persons will be increased quite significantly; they will increase by 9.13%. According to statistics, this figure is almost three times higher than last year’s inflation.

See also: What payments and benefits introduced due to coronavirus will no longer be paid on September 1: reduction in benefits for the unemployed

In our country today, about 80,000 citizens of retirement age are applying for a payment of this kind.

Financiers calculated the average figure for such a pension. It is equal to approximately 950 rubles. Citizens of our country participating in the co-financing program will increase their income by 7.99%. In total, 32,000 citizens apply for such a payment in Russia.

People will be able to receive this pension upon reaching a certain age, for women this is 55 years old, and for men 60.

The main thing about the recalculation of pensions from August 1

This applies only to those pensioners who worked or were individual entrepreneurs in 2018:

1. From August 1, the value of points accumulated in 2018 will be added to your pension.
2. For each point you will pay 87.24 rubles.
3. A maximum of 3 points will be taken into account when recalculating. If there is less accumulated, they will pay for the actual amount, if more - only for 3.
4. The maximum increase in pension from August 1 will be 261.72 rubles.
5. Working pensioners are not entitled to other indexations on a general basis. They are not given 1,000 rubles in January, as if they are unemployed.
6. If a pensioner resigns, he will receive indexation for all years of work.
7. If he gets a job again, the pension will not be reduced back, but they will stop indexing again.
8. The recalculation will happen automatically. Applications from pensioners are not required.

Share with those who are retired:

If you have fewer points accumulated on your personal account in 2020, then the additional payment amount will be less. For example, with a salary of 20,000 rubles, Nina Ivanovna will accumulate not 3, but 2 pension points. This means that her increase in pension will be 175 rubles. To accumulate 3 points or more, you need to receive approximately 30 thousand rubles per month before deduction of personal income tax.

With a salary of 50,000 rubles per month, you can accumulate 5 points over the course of a year, but only 3 of them will be paid for.

How to find out about pension supplements

You can clarify the specifics of accrual and calculation of pension payments for a specific pensioner in different ways:

• by personally visiting the Pension Fund;
• having learned the necessary information on the State Services portal;
• using your personal account on the Pension Fund website.

In the first case, you need to prepare an application. This document must contain:

• The name of the territorial branch of the Pension Fund to which the application is sent.
• Last name, first name, patronymic of the applicant, date and place of birth, passport details, registration address.
• A formulated request for information on a specific issue (for example, the amount of the premium when changing place of residence to another region or changing the disability group).
• Date of application, signature, surname and initials.

Using the government services portal and the Pension Fund website implies authorization in the Unified Identification and Authentication System (USIA). This process requires preliminary verification of passport data and is analogous to identification using documents. Verified users are given access to the electronic application form.

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When applying in person, the applicant must have with him:

• passport of a Russian citizen;
• certificate with the insurance number of an individual personal account;
• work record book (for those who are going to confirm certain aspects of their work history, for example, benefits when developing the necessary work experience in the regions of the Far North or length of service for civil servants and municipal employees);
• military ID (for men and women - to confirm length of service in the Armed Forces).

Personal visit to the territorial branch of the Pension Fund of Russia

Citizens should adhere to the following instructions:

1. Prepare an application. It must contain a question of interest to the applicant regarding the supplement to pension payments.
2. Personally visit the territorial office of the Pension Fund and submit the prepared document.
3. Wait for an answer. The law provides 10 days for consideration of such requests. The response from the Pension Fund will contain information of interest to the citizen, reflecting the current state of pension payments to the citizen. If you disagree with the current situation, the applicant can prepare a second appeal or appeal the decision through the court (for example, if the pension is calculated without taking into account the supplement to the basic part upon reaching 80 years of age).

Advantages of personal contact:

• the opportunity to ask additional questions if they arise when submitting an application;
• prompt correction of detected errors (or addition of new questions to the request).

Minuses:

• time spent getting to the Pension Fund and waiting for your turn;
• preparing an application in writing.

On the public services portal

In order to submit an application through this online resource, you must:

1. Log in to the website gosuslugi.ru. If you do not have an account in the Unified Identification and Logistics Authority, go through the registration process (confirmation of passport data can take up to 1 month, so it is better to do this in advance).
2. Log in to your personal account using the Unified Identification and Authentication System password.
3. Select the section “Establishing a pension”.
4. Depending on the content of the question that needs to be clarified by the Pension Fund, follow the link “Assignment” or “Recalculation”.
5. Fill out the form provided. Check the correctness of automatic filling of fields with data of documents, registration addresses and residence. If you find erroneous information there, make corrections manually.
6. At the end of the form, the applicant enters the address at which the territorial body of the Pension Fund serving him will be automatically determined, ticks the boxes indicating that he provides reliable information and asks to be informed after consideration of the application.
7. After clicking the “Send” button, the application is sent to the Pension Fund of the Russian Federation and is considered in the prescribed manner.

Advantages of submitting an application on the public services portal:

• convenience in obtaining information - you can find out everything without leaving your home;
• simplified application form - most of the information about the applicant is already contained in the Pension Fund system.

Minuses:

• You must have a computer and the ability to use a web interface;
• Registration with the Unified Identification and Logistics Authority (with confirmation of passport data) is required.

In your personal account on the Pension Fund website

Submitting an application through the Pension Fund website is technically similar to applying through the State Services portal. The applicant is required to:

1. Log in to your personal account on the website pfr.ru using the Unified Identification and Autonomous Authorization data.
2. Select the “Social Payments” section, then click the “Submit an Application” link and select a specific topic of application from the proposed options (for example, about receiving a set of social services in a monetized form).
3. Fill out the form provided, entering the required information and checking the required boxes. At the end, you need to confirm the accuracy of the information provided, ask for information after reviewing the application and click the send button.

The advantages of contacting the Pension Fund through the official website of this organization:

• the appeal can be prepared and submitted very quickly;
• Many fields with information about the applicant are filled in automatically.

Minuses:

• impossibility of submitting an application in the absence of registration in the Unified Automated Identification of Ukraine;
• sending data using a computer can be difficult for older people.

Who does this concern?

The increase in pensions from August 1 applies to pensioners who worked in 2020 and for whom the employer paid insurance premiums. And also those who receive a survivor’s pension for working pensioners. That is, the work and salary must be official: with deductions for compulsory insurance. If the work is unofficial or the employer contributed less than promised, then the bonus will be less or not at all.

The recalculation will not affect non-working pensioners.

Women for children

Non-working pensioners can apply for a recalculation of their pension based on length of service in connection with the replacement of periods of work with so-called “non-insurance periods”. This includes maternity leave to care for a child from birth until the child is 1.5 years old. Recalculation of pensions is beneficial for women who have had more than 2 children, had a short work history and low salary.

According to the law, for each year of maternity leave a certain number of pension points is awarded:

• for the first child – 1.8;
• for the second – 3.6;
• for the third - 5.4.

What about the rest of the president’s orders?

There are only two execution marks on our list so far. The law on mortgage holidays is under consideration. The State Duma has adopted a law on tax benefits for families with many children, but it has not yet been signed. There is nothing definite yet about the preferential rate for families with children and payments to families with many children; the deadlines for other instructions have not yet passed. We will tell you as soon as the instructions are actually carried out and it can be used on clear terms.

FAQ

Will payments to pensioners introduced due to the coronavirus pandemic be maintained in September?
Most federal benefit programs introduced due to the pandemic have ended. Therefore, previous payments are not retained. There is no information about additional programs yet.

Will payments be made to pensioners on the Day of the Elderly?

A one-time payment for the International Day of Older Persons, the amount of which is 700 rubles, will be made in those regions where regional authorities can allocate funds from the budget.

If a pensioner transfers his pension to a savings book, does he need to apply for a MIR card?

No, in this case it is not necessary to apply for a MIR card. You can also transfer your pension to a savings book and receive it at the bank.