Recalculation of pensions for working pensioners in 2021

2024 Author: James Gerald | [email protected]. Last modified: 2023-12-17 14:00

In December last year, it was reported about the appeal of the Federation of Independent Trade Unions with the requirement to focus on this aspect of pension legislation. Find out if there will be a recalculation of pensions for working pensioners in 2021.

Immediate prospects

In 2021, changes came into effect, which led to an indexation of the base size of pension payments and the cost of NSOs, an increase in the amount of funds paid for each PKI earned. So, since January 1, the pensions of non-working pensioners who have received the right to insurance payments from the state have been indexed, thanks to the experience they earned and the number of PKI.

The size of the increase was known in advance, since it was determined for the next 3 years. What changes are planned:

1. From April 1, other types of pensions will increase slightly: state, survivor, disabled and social. The increase is planned at 2, 6%.
2. Indexation for military pensioners is scheduled for October 1. Despite all efforts, the Defense Committee in the State Duma was unable to either increase the size of the proposed indexing, or move it closer to the beginning of the year. The second path, which could lead to an increase in pensions - the abolition of the reduction coefficient - was rejected for lack of funds for such a measure.
3. The latest news on the recalculation of pensions for working pensioners in 2021 does not contain information on indexation. This is already a familiar reality over a 6-year period. The pensions of those who still continue to work to improve their financial situation will increase from August 1 by the cost of the PKI accrued for insurance contributions. But there cannot be more than three of them, and the value of the retirement point is calculated by the year of retirement.

As of today, there is no information about amendments to Law No. 385-F3 of December 29, 2015, according to which the freezing of indexing is canceled for people who continue to work after obtaining the right to a well-deserved rest.

However, a small annual addition awaits them at the end of the third quarter: a certain amount in rubles will be added to the monthly amount for the earned retirement points.

Why payments are not indexed

The law on freezing the annual indexation affected everyone who continues to work after reaching the required age, regardless of the reason (insufficient work experience for an insurance pension or financial situation and dependents, forcing them to earn additional money). The logic behind making such a decision seems clear: by not paying indexation to working pensioners, you can save money on compensation for the level of price increases for those who do not work.

According to the Ministry of Finance, for those who continue to work, their salaries are raised every year, in addition, they have at their disposal both an official salary and a pension, albeit not increased by the inflation rate. Non-working old people only have a pension, so it is more important for them to indexation, and this is done in the first place.

In 2020, a number of State Duma deputies again returned to the issue of recalculating pensions for working pensioners in 2021. The latest news reported that such an initiative has met with the approval of the Russian president.

The deputies gave the following arguments:

• according to the Constitution, every pensioner has the right to bring the level of pension in line with inflation;
• elderly people cannot count on a large salary, and work according to the will of the prevailing life circumstances;
• According to economists, the financial losses from the lack of indexation are higher than during its implementation: people who would pay taxes on income are forced to work without official registration, so as not to lose money.

Despite the support for the idea of canceling the 6-year freeze on the indexation of the FNP, HRC, individual deputies of the State Duma and even the president did not make a decision to recalculate pensions for working pensioners in 2021.

Further perspectives

According to the deputies who raised the issue of lifting the ban on the indexation of pensions for older people who continue to work, it will still be necessary to return to this issue in the coming year. This is forced by the amendment made to the main law of the country, which states that the Constitution guarantees an increase in pensions to all pensioners, regardless of their status and ability to work.

How soon this cancellation will be returned is unknown, so today those who are employed have only two prospects: a job and an annual increase in earned IPCs (limited to 3), retirement and recalculation promised by the state immediately after the Pension Fund was notified of dismissal from the workplace.

Interesting! Benefits and benefits for working pensioners in 2021

If you continue to work, then the average amount of the increase will be 200 rudders - not many can count on more. The already limited number of IPCs often comes out less, salaries are small, which means that insurance premiums may not even reach the prescribed limit. The fact that the IPC recalculation is scheduled for August makes it even less possible to offset the inflation rate.

The latest news hints at informed sources and deputies who swear by oath that the issue is almost at the completion stage, and indexation to working pensioners is literally just around the corner. But whether it will be in 2021 is still an open question.

Outcomes

The issue of increasing pensions for working pensioners has been repeatedly brought up for discussion in the State Duma of Russia, and there is hope that it will be resolved in a positive way. The need for an annual increase is fixed in the Constitution of the Russian Federation. The initiative is supported by the FNP, HRC, individual deputies of the State Duma and the President of Russia. So far, working pensioners are only entitled to an increase in August on the value of the IPK earned.