So what is pension indexation? By this concept is meant a periodic increase in size. social benefits in accordance with the consumer price index for certain goods. Not only pensions are subject to recounting, but also minimum wages, scholarships, etc.
How often are such events held?
There is a corresponding law on the indexation of pensions and other incomes of the population. According to him, this procedure represents a mechanism for their increase, which allows one way or another to compensate for the cost of key consumer goods and services. Payments of this nature have been increasing since the first day of the month following the one in which the fresh basic cost index was officially published. For example, if this happened in April, the indexation of pensions will occur from June 1.
It should be added that there is no single date and system for the regular increase in social payments. Therefore, often interested parties turn to relevant structures with the question of whether there will be a pension indexation after the next rise in the consumer basket. Although in some cases the authorities declare one or another number when payments will be increased to a certain level.
Pension provision in our country
In Russia, pensions are divided into two categories depending on the source of income:
- labor;
- for state purposes.
The key source in the first case is funds from compulsory insurance, and in the second - the federal budget.
There are also other types of pensions, which are established at the level of the constituent entities of the Federation and are paid from their budgets. In addition, a person can receive non-state payments, which are financed through voluntary insurance organized by large commercial structures.
Periodically, their sizes are reviewed in connection with the increase in the cost of basic goods and services.
What incomes are taken into account?
What is pension indexation in terms of what exactly falls under the increase? When it is reviewed sizes:
- payments taking into account allowances;
- additional funds;
- co-payments for social assistance.
The revision of the size of social benefits is affected by previous increases, the date of the decision, as well as the status of the citizen receiving them. So indexing pensions for working pensioners will not be the same as for persons who receive it by disability, military ID and other parameters. We will return to this issue a little later in more detail. Below we look at what pension indexations are in terms of volume.
Immediate payout increase
According to the profile ministry, pensions in Russia have been increasing since April 2016 by four percent. The government also said that other social benefits are expected to increase. In particular, we are talking about payments assigned in the presence of disability, loss of breadwinner or old age. Indexing Predicted military pensions and its other species. Raising the level of benefits also depends on the group of disability and other circumstances.
So, from April 1, the average pension in the country will be 8562 rubles, and its increase will be about 250 rubles. Children with disabilities will receive approximately 450 rubles more, families who have lost a breadwinner - 367, respectively. The participants of the Great Patriotic War will not stand aside either. Their pension will increase by an average of 1 thousand.But what to expect for others? Will indexation of pensions to working pensioners or other categories? Let's find out more.
Features of recalculations - 2016
What is pension indexation in practice? The current increase in social benefits has its own nuances. So, since February, the insurance part has been indexed by 4 percent, before that the pension was recalculated according to actual inflation. All this applies to those citizens who have previously received a pension.
Depending on the financial results of the year, a decision may be made on additional increases.
But the indexation of pensions for working retirees in 2016 is not provided, which is likely to be very disappointing. It is also worth noting that the funded part of payments this year for citizens younger than 1967 will again be frozen.
Many are also interested in the indexation of military pensions, so it will be four percent, provided that the citizen applying for their receipt does not work. If he still has a legitimate source of income, then he will not receive the recalculation. However, like other working pensioners.
Social Security Budget Expenditures
Many of the measures taken cannot be called popular, but the government explains this by the need for savings, which, in their opinion, will amount to about 1 trillion rubles.
Of these, 560 billion will be withheld from indexing new pensions, and 340 will be frozen as part of the funded payments. And the savings on increasing the size of social wages for working citizens will be as much as 100 billion rubles.
Along with all this, the question of the possible increase in retirement age will also be discussed by members of the government and the line ministry.
Pension freeze
The Pension Fund of the Russian Federation decided to freeze savings this year. Moreover, this measure is not the first time practiced. In 2014, through such a decision, the budget saved as much as 244 billion rubles. And if it had not been adopted, it would have to cover the lack of the necessary funds in the Pension Fund. And last year, freezing social benefits saved over 300 billion.
It so happened that now such a measure is again relevant. Some representatives of the structure raised the issue of abolishing the funded part of the pension, however, there are no official statements on this subject yet. According to forecasts of representatives of the Ministry of Finance, in 2016, savings on this item of expenditure will amount to about 342 billion rubles.
It should be recalled that under the current legislation of Russia, each employer is obliged to transfer 22 percent of his salary to the Pension Fund for each employee. The funds received are divided in two, 16 percent goes to the insurance part of future social benefits, and the rest to the funded part, respectively.
It is only natural that many cannot understand where their savings will now go and whether the Pension Fund will save them at all. And the authorities recommend that this part of social security be deducted to citizens on their own, so it is expected that after reaching a certain age they will be able to receive more payments from the state.
So, we have told what pension indexation is and by what principle it is carried out. You also learned what interested citizens can count on this year and how social benefits are calculated.
