Recently in the Russian upper echelons of power, discussions have once again begun on raising the bar for retirement age. The interest in this topic in society is always increased, since it is relevant, especially for those whose age can be called pre-retirement. Some argue that the law on raising the retirement age is inevitable, otherwise the country will experience economic collapse. Most adhere to the opposite point of view: raising the retirement age to receive an old-age pension is not a panacea at all, there are other ways to improve finances.
Ministry of Finance point of view
The retirement age should be increased as soon as possible, and perhaps this will happen next year, according to the newspaper Vedomosti, according to a senior federal official. Estimated savings could range from six hundred and twenty billion to one and a half trillion rubles. Will there be an increase in retirement age?
“And this is not just a request of the Ministry of Finance,” the source said, “the proposal to raise the retirement age from 2016 was not only discussed at the meetings, but was understood and supported by so many officials.”
Realities of today
Today, the Russian Pension Fund provides for a retirement pension in two parts: insurance and funded. The law on raising the retirement age has only affected officials, but in the same year, pension legislation in the other field has quietly changed: there will be no two parts of the pension, two independent ones.
This does not affect the formation of retirement benefits, since the two new pensions have no other meaning, except as part of the pension before the change. It is not very clear why such an innovation was started.
Insurance and funded pensions
An insurance pension is also calculated using an incredibly complex formula: the minimum basic amount guaranteed by the state is added to the benefits that have provided seniority and earnings. This money is given to pensioners only by the Pension Fund.
A funded pension is an individual account, that is, 6% of pension insurance contributions (of 16% recovered from each employee in the Pension Fund). These accumulations are invested by a management company or a nonprofit pension fund. There are several ways to get this money:
- One-time receipt.
- Part of the retirement pension, which is calculated by dividing all accumulations by the expected period of the remaining life.
- As urgent pension payments (calculation for at least ten years). This is an option for those who took part in the state co-financing program, accumulating part of the retirement pension, and for those who sent maternity capital to the funded part of the pension.
Social pension
An old-age social pension is granted to citizens who have not paid contributions to either the PVF or the illegal armed groups, and since 2015, the funded and insurance parts of the pension, since they have not officially worked anywhere.
But if they live up to the moment when they are to retire, the retirement age has already gone through the increase: women receive a social pension from 60 years old, and men from 65 if they are certainly not representatives of the dying peoples of the North, who can receive a social pension from 50 and 55 years old respectively. And working people have the right to retire from 55 years (women) and 60 years (men).
An increase in the retirement age of the military has not yet occurred, however, they, like the employees of the fire service, also receive a social pension. Its purpose in this case depends on the length of service, and not on age. By length of service, pensioners are still so young that they can work and gradually form the funded part.
There will be no increase in retirement age
Despite the requirements of financiers to save on pensions, raising the retirement age, this measure has not yet been applied. Pension legislation has undergone a reform that divided the single pension into funded and insurance, but still kept the retirement age for both pensions the same as it was before. Social pension also remained at a similar minimum age.
Legislation was left almost unchanged. The issue of raising the retirement age, however, is not completely closed. Citizens are encouraged to postpone their pension on a voluntary basis to other periods later. Also introduced restrictions on pension rights for minimum length of service, which are in no way related to age.
Goodwill for retirement
Under the new law, insurance pensions are increased for each year (the limit is 10 years) of non-receipt of a pension upon reaching retirement age. 12 months after receiving the right to pension provision, the pension begins to increase, first 1.7 times, then the multiplier grows, reaching a maximum after 120 months. Then it becomes equal to 2.32. In the same way, but in a slightly different proportion, the insurance part of the pension also increases. This means that registration of a pension 3 years later will increase its size by 24%.
Thus, the state answered the question of whether there will be an increase in the retirement age. It has already taken place, but on a voluntary basis. Obvious austerity measures were denied, but unobvious, of course, would work. Conditions seem favorable, people will respond.
At the end of July 2015, the retirement age was increased for officials whose pensions also change due to the monthly surcharge. If you add 24% to the already rather large sums, it comes to understanding that raising the retirement age is a very good thing.
Draft budget policy
In June, a government meeting was held, where they generally approved the project "The main directions of the budget policy for 2016 and the planning period 2017-2018." It says: the retirement age can be one and gradually increase, that is, men and women of Russia will go on a well-deserved rest at 63 years old.
An increase in the retirement age at the Ministry of Internal Affairs is also planned: the police will receive their first pension five years later. Thus, state budget expenditures will be significantly reduced. The government approved the bill, the State Duma is discussing.
This means that the length of service for retiring a police officer should be 25 years. A two-year transitional period is foreseen in order to adapt to new conditions. At the same time, personnel problems will be resolved in the Ministry of Internal Affairs, where for a long time there have been a shortage of qualified specialists. Why for this it became necessary to increase the retirement age - the bill is silent.
A bit of utopia or populism
After reaching the desired age, people will retire on time, but all other pensioners will receive money with an index of 4% instead of the prescribed 12%. The law on raising the retirement age has not yet been finalized, and the Communist Party puts forward a counter-project designed to significantly improve the financial situation of pensioners.
The Russian news agency "The Eve" offers an interview with a member of the Central Committee of the Communist Party, where a prominent communist complains about the "unproductive" minimum, stigmatizes the Ministry of Finance with its Reserve Fund, which strives to run dry from day to day, and a government that does not want to notice the realities of today.
So, the communists put forward their proposal. Not otherwise - in opposition to the government, for it is very sweet.The project provides for federal supplements to pensions up to 50% of the average salary in this region. In Moscow, for example, this figure goes over sixty thousand rubles; therefore, the pension should be thirty thousand.
Perfectly invented, of course! Let officials so far come to a consensus about raising the retirement age, and those who are not asked, that is, pensioners - present and future, can at least dream a little.
