2017 was marked by the introduction of amendments to the pension legislation . The corrections concerned, first of all, the size of payments and the order of their appointment for individual citizens. Next, we consider the new changes in pension legislation.
General information
The first changes in pension legislation in 2017 are related to suspended provisions related to the indexation of amounts. They began to act again. As the Prime Minister promised, the amount of social and insurance payments will be fully indexed.
There are amendments to the pension legislation for military personnel . Payments to these citizens will also be increased, but the exact magnitude of the increase is unknown.
On January 1, a law establishing an increase in the retirement age to 63 years for women and 65 for men entered into force. It was assumed that these changes in pension legislation will affect only officials. However, in connection with the presence of a budget deficit, the completion of which is extremely slow, the issue of raising the retirement age for other citizens is actively being discussed. This idea caused a wide resonance in society. The government, however, promises that vigorous action in this direction will not be undertaken until 2018.
Practice situation
Among the key changes in pension legislation since the beginning of 2017, the following can be noted:
- An increase in the minimum length of service.
- Increase in pension ratios. They are used to assign old-age pensions.
After the reform carried out in the country in 2015, the procedure for calculating the amounts has changed. Accordingly, pension contributions transferred to the insurance part began to be taken into account in the form of individual coefficients (points). When a citizen retires, they are transferred to rubles.
Seniority Requirements
As article 8 of Federal Law No. 400 establishes, when assigning a pension, a citizen must have at least 15 years of experience and 30 points.
These requirements, however, the Government decided to introduce gradually. So, the score from 6.6 will increase annually by 2.4. The required length of service will increase by one year also annually.
The situation with civil servants
On January 1, 2017, Federal Law No. 143 came into force. It significantly tightened the requirements for retirement age. As mentioned above, for women it will be equal to 63, for men - 65 years. At the same time, the length of public service should be at least 20 years.
These changes in pension legislation will be implemented gradually. For 2017, women must be 55.5 years old and men 60.5 years old to retire. Civil service experience should be 15.5 liters.
An increase in the age for reaching a well-deserved rest is associated with a constant increase in population growth and life expectancy of citizens. Currently, the average life expectancy is 72 years. If the economic situation in the future develops favorably, then this figure will increase even more.
Tariffs for self-employed persons
According to changes in the pension legislation , contributions under the pension insurance scheme (compulsory pension insurance) for self-employed citizens are deducted in a fixed amount. It is determined annually on the basis of the minimum wage.
Since July 2016, the minimum wage amounted to 7500 p. Accordingly, notaries, lawyers, other private practitioners, as well as individual entrepreneurs must transfer 23,400 rubles to the FIU. for 2017
The value of the living wage
The definition of this indicator is necessary for acquiring the right to receive social co-payment.
As noted by the Ministry of Economic Development, it is expected to reduce the cost of the consumer basket. Accordingly, the cost of living will also decrease. It, in turn, is closely related to the amount of pension provision. Social benefits are designed to bring the amount of the pension in accordance with the cost of living.
The law on the budget provided for the value of PM in the amount of 8540 p. Meanwhile, in the regions this indicator varies significantly depending on different conditions, including climatic ones.
It is worth saying that changes in pension legislation regarding the size of the subsistence minimum apply to citizens who began to receive a pension in 2017. For other persons, the payment will be the same (higher).
Lump sum payment
It was introduced due to the lack of sufficient budget funds for indexation. Some previously adopted provisions have been suspended. At the same time, the Government decided to conduct partial indexation of pensions - by 4%. Given the level of inflation, such a measure was insufficient. But there were no funds in the budget for recounting in full.
To compensate for the losses, the Government decided to make a fixed payment in the amount of 5 thousand rubles. This amount was due to all persons who are pensioners as of December 31, 2016.
The implementation of these changes in the legislation of the Pension Fund was not accompanied by any difficulties. The procedure for obtaining co-payments by citizens has been simplified. Pensioners did not have to apply to the FIU with a statement. Payments were made on schedule from January 13 to 28. Moreover, in some cases, the issue of compensation coincided with the receipt of a pension.
If the pension was not delivered home, a notification was sent to the pensioner, according to which payment could be received at the territorial post office.
Recent changes in pension legislation on indexation
Initially, it was found that social and pension payments by the FIU should increase every year due to a decrease in purchasing power due to higher inflation. The indexation procedure is established depending on the payment:
- 1.02 - insurance pensions increase by the inflation rate for the last year.
- 1.04 - increasing social pensions. Indexation depends on the rate of increase in the cost of living over the past year.
In 2016, indexation was carried out only by 4%, while the inflation rate for 2015 was 12.9%. However, at the end of 2016, the Government promised to restore the procedure for increasing payments. To implement the promise, the necessary funds were put into the draft budget.
Increase in old age pension
The labor (insurance) part of the payment is increased by indexing the value of one pension point and a fixed payment. As of February 1, 2016, the indicators were as follows:
- Pension coefficient - 74.27 rubles.
- The fixed payout is 4,558.93.
According to forecasts of the Ministry of Economic Development and the Ministry of Finance, the inflation rate was to be 5.8%. In this case, the index value of the IPC should be 1,058. But, according to the published data of the Federal State Statistics Service, the price index for 2016 amounted to 5.4%.
Considering the indicators, Maxim Topilin said that the increasing coefficient of the retirement score will be 1,054, the value of the IPC - 78.28 rubles, and the fixed payment - 4805.11 rubles.
In the law on the budget of the FIU, it was noted, however, that as of 01.04.2017, the cost of the point would be 78.58 rubles. Accordingly, a second indexation of pensions is needed. Together, the overall increase should be 5.8%. From April 1, as a result, the insurance pension was additionally increased by 0.38%. The size of the fixed payment remained the same - 4,805.11 rubles.
Changes in military pension legislation
News from the State Duma does not inspire particular hope for raising pensions for citizens who have completed their service. It is worth saying that the increase in security for these persons was not carried out properly for a long time.
The increase in pension is due to an increase in salary, a lower coefficient and indexation of the insurance part by last year’s inflation rate. This procedure applies to pensioners of the Ministry of Internal Affairs, the Ministry of Emergencies, the Federal Penitentiary Service and several other departments.
In article 43 of the Federal Law No. 4468-1, a reduction factor for DD (monetary allowance) is provided in the amount of 54%. It is used when calculating a pension and each code should increase by several percent until it reaches 100%. It was assumed that such a value would be established in 2035. Over the past 2 years, thus, this coefficient was equal to:
- From Jan 1 2015 - 62.12%.
- From Oct 1 2015 - 66.78%.
- From February 1, 2016 - 69.45%.
However, according to Anton Siluanov, the federal budget may not be able to withstand such an increase, therefore, the indexation issue needs to be addressed carefully. Nevertheless, in 2017, military pensions were still raised due to the coefficient, which reached 72.23%.