Change of pension under the law

According to information published on official sources, the government intends to launch a new pension reform, the most important steps and elements of which are just planned for the current year. Therefore, it is not surprising that the issue of changing pensions is one of the most discussed at the beginning of 2018.

The main goal of all the proposed changes is to achieve balance in the budget of the Russian Pension Fund. To date, it has been established that compensation for the lack of a fund is one of the main expenses of budget funds, as a result of this, it becomes more and more difficult for the state to carry out the required annual indexing every year.

So, then we will consider what changes in the size of the pension in 2018 to expect?

Pension system changes

The Ministry of Finance is convinced that the current system is unbalanced and does not bring the desired effect, accordingly, the risks for the state budget, which is already experiencing difficult times, are increasing. The launch of the new system, in turn, will provide an opportunity to significantly reduce the current budget dependence on structural income. So what changes in retirement are you expecting?

Pension threshold increase

What definitely cannot be avoided during the new pension reform is an increase in the retirement age. This figure in Russia is one of the lowest among all countries of the former Soviet Union, not to mention European countries and the United States. In these places, the minimum age for reaching a well-deserved rest starts from 65 years, depending on gender and some other factors. And in Norway, Germany and Iceland, the lowest threshold starts at 67 years old, in Denmark - 69.

According to representatives of the Ministry of Finance, this step is absolutely necessary. The issue has been discussed for a long time, but it was decided to postpone it for the period of the crisis, connected with the shaken economic situation. The authorities predict a full economic recovery in 2018, which will allow them to adjust the age threshold for going on well-deserved rest.

The reform, which is very atypical for Russia, will be carried out gradually, that is, the age threshold will not be increased immediately. The process will take place in several stages - they will add 6 months each year. As a result, the retirement period will be as follows:

1. It is planned to set the age threshold for women at around 63 years old.
2. For men - 65 years.

In addition, it is planned to increase the length of service, which is currently 7 years. The value will be increased to 20 years.

Cancellation of the funded part of the pension

The accumulation system today practically does not work. Previously, the employer paid to the Pension Fund 22% of wages, which were divided into 3 parts - 2 of them went to pay insurance premiums, and the last (the smallest) was funded. In 2014, the funded part was frozen until better times, that is, today all 22% goes to the insurance part. This year, with the launch of a new pension reform, the funded part should be finally canceled, and other opportunities will replace it. Read about what it will be and what changes in the pension to expect.

So, the following will be suggested:

1. A citizen will be able to draw up an individual pension capital (IPC), which he will be able to manage at his discretion.
2. The rate will become floating.

The second option will be appreciated by middle-income citizens, since middle-income citizens quite often discuss the possibility of transferring a larger amount to the Pension Fund. New changes in the pension in 2018 will make it possible to bring this step under the legislative framework.

Working pensioners

The Ministry of Finance holds the position that employed pensioners should not qualify for indexation of pensions by the state every year. They explain this by the fact that they already have an alternative source of income.

In addition, it is planned to review the categories of persons applying for premature retirement. For the most part, these are people working in malicious and insecure industries. According to a new initiative of the Ministry of Finance, it is precisely this category of workers that may be deprived of such a right. In addition, officials are calling for an increase in the required seniority for state employees, which include teachers, medical workers and some other categories of people.

Individual Retirement Capital (IPC)

So, will there be changes in the size of the pension in 2018? It is possible to increase the amount of charges due to the accumulation of equity. The Central Bank assures that personal pension capital is voluntary. Any employed citizen will have the right to decide whether to receive an exclusively government pension or to acquire the opportunity to accumulate additional funds. Of course, this opportunity is available only to those whose salary exceeds monthly expenses. Despite the fact that the decision to apply for an IPC will be free, accumulative funds will be transferred to non-profit and non-governmental financial organizations, which will open the way for a new pension reform. In addition, the authorities are confident that this service provides an opportunity to resolve the issue with future support for those who are just starting to work. The government thought about pension payments in the future - those that one way or another would need to be paid, not just now, but in the distant future.

Those who are already working must write a statement.

After the launch of the pension reform in 2015, the size of the insurance part of the pension depends on the indexation of the value of the pension coefficient:

1. Since February 1, 2017, the rate of one point was almost 79 rubles.
2. After indexing in January of this year, it increased to almost 82 rubles without a few cents.

There are likely to be changes in the age threshold after which a pension is accrued, however, this only affects non-state contributions. It will be fulfilled according to the percentage system that is familiar to us, that is, a certain percentage is paid to the investor of the alternative fund upon reaching the set desired age. The remainder of the deposit may be withdrawn or bequeathed.

Social pension in 2018

It must be remembered that the indexation of social pension contributions is carried out according to other rules than changes in the insurance pension - it rises not by the size of last year’s inflation, but by the level of price increase that occurs annually on April 1.

The head of the Ministry of Labor said that the rate of increase in prices will be approximately equal to the rate of general inflation, but may rise slightly higher: according to preliminary information, up to 4.1%. All types of social pension accruals, the size of which depends on the category of citizen, will be increased by the same value.

According to preliminary information, an increase in the amount of social security from April 1, 2018 will look like this:

1. Recent changes in old-age pensions (upon reaching the age of 60 and 65, and for those who belong to the small peoples of the North) - an increase from 5035 to 5241 rubles.

2. Disability pension:

• disabled children and the 1st group of disability since childhood - from 12 083 to 12 578 rubles;
• 1st group of disability and 2nd group of disabled people from an early age - from 10 069 to 10 482 rubles;
• Disability group 2 - from 5035 to 5241 rubles;
• 3rd group - from 4280 to 4455 rubles.

3. Change in survivor's pension:

• Children under 18 years of age or students of high school under 23 years of age who have lost two parents - from 10,069 to 10,482 rubles.
• The latest changes in the survivor's pension for children under the age of 18 and 23 who are undergoing full-time education and have lost one of their parents are increasing the amount from 5035 to 5241 rubles.

Retirement benefit increase

In addition, from April 1, there will be a change in the size of pensions for certain categories of persons:

1. Conscripted military personnel and members of their families.
2. Participants of the Great Patriotic War.
3. Citizens with the medal "Resident of the besieged Leningrad."
4. Affected by radiation and man-made accidents, as well as their families.
5. Employees of the flight testing personnel.
6. Astronauts.

Will a one-time payment be made in 2018

Not. This amount was accrued to citizens of retirement age in January 2017 instead of indexing for the previous year, which was not made in full. In 2018, there are no grounds for this payment, since, according to government statements, the indexation of pension accruals in 2017 and 2018 already exceeds inflation:

1. In 2017, a total of 5.8% (5.4% from February and 0.38% from April) with an inflation rate of 5.4%.
2. In 2018, by 3.7% with projected inflation not higher than 3.2%.

The increase in social payments to the FIU

In addition to the fixed amount of the pension, the state pays various compensations, benefits and other things to certain categories of people. These include:

1. Social supplement to a fixed amount.
2. Monthly additional charges.
3. All kinds of social services.
4. Additional financial support.
5. Compensation and surcharge every month for helping disabled relatives.
6. Funeral allowance.

All of the above payments to beneficiaries, which depend on inflation, will also be indexed (this will be done, despite the premature increase in pension from January) on actual inflation on February 1 (by approximately 3.2%), as required by law. These payments include:

1. The size of the allowance for burial will increase from 5563 to 5741 rubles.

2. The amount of the monthly cash payment will also be increased, its size depends on the category of pensioner.

3. The monetary equivalent of a set of social services due to indexation will increase from 1049 rubles to 1083:

• For drugs, medical devices, specialized medical nutrition products for children with disabilities - 834 rubles.
• Trips to sanatoriums and resorts for medical reasons - 129 rubles.
• Gratuitous travel on intercity / suburban / railway transport in both directions to the treatment point - 120 rubles.

Military pension

For this category of persons who, by the way, are subject to increased accruals under the law, indexing has not been carried out for several years. According to the State Duma, the action will not be carried out in the current 2018 year. A military pension is received for men and women who retire from the army, the Ministry of the Interior, the Ministry of Emergencies, the Federal Penitentiary Service and some other structures.

Charges to him are made in accordance with the Federal Law No. 4468/1 (Article 43), which was adopted in February 1993. The law is based on the rule that the size of a pension for a former military depends on the amount of monetary allowance (DD). This value is 54% and from year to year should increase in increments of 2% to a maximum level of 100%.

From the above it follows that the value of the level of support for retired military personnel is periodically increasing, let's see how the pension changes over the years:

1. From January 1, 2015, it was equal to 62.12% of the DD.
2. At the beginning of 2016, it rose to the level of 69.45%.
3. From February 2017 - up to 72.23%.
4. In 2018, this indicator remains unchanged, that is, the latest changes in pensions made last year remain unchanged.

Important! The exact amount of the payment directly depends on the level of monetary allowance for a certain position from which the military was transferred to the reserve.

Other changes in 2018

In addition to the innovations listed above, in 2018, the following annual changes in the labor pension are also waiting for citizens:

1. Starting January 1, the minimum threshold for calculating the insurance part of the pension payment will increase - from 13.8 pension points and 9 years of work experience.
2. The subsistence minimum in 2018 will amount to 8,703 rubles. This indicator is set in accordance with the Law on the Budget of the RF PF, and it directly depends on the cost of the consumer basket calculated for the elderly. In addition, it is worth considering the fact that the cost of living indicator in different subjects of the countries may differ, respectively, and the size of the social supplement, too.
3. The changes in the pension for civil servants are that the insurance part will be accrued after reaching the age threshold of 56 years for women and 61 years for men. An increase in the retirement age for this category of persons has been made since January 2017.
4. The amount of insurance contributions for compulsory pension insurance for self-employed citizens will be increased to 24 thousand 336 rubles. The reason was the increase in the minimum wage to 7800 rubles., Which occurred in July 2017.

How to independently calculate the amount of retirement benefit

In order to calculate the amount of future maintenance yourself, you need to go to the district office of the Pension Fund and request the following information there:

1. The amount of the fixed part of the pension for the current year.
2. The number of individual points.
3. The current value of one point.

The size of the future pension can be calculated using the following formula:

fixed part + number of points * for the cost of one point.

Substitute the indicators for 2017 and here is what we get as a result:

4805.11 + 73 points * 78.58 = 10 541.45 rubles.

The amount is rather modest, so it’s worth considering that the continuation of work will allow you to accumulate more points, and this will undoubtedly positively affect the future payment from the Pension Fund.

We examined the most important changes in the pension that will be implemented this year. For the reasons of experts, the pension restructuring, which starts in 2018, will not make any unimaginable changes in the current state of things. In many ways, innovations should give a good effect. Well, and whether this actually happens, we can only understand after a certain time. I want to believe that thanks to these innovations, the life of pensioners will indeed become easier.