Pensions for working retirees are currently increased only with recalculation, which is carried out once a year since the beginning of August. Other increases in the form of indexation, as is the case for non-working pensioners, are not provided by law. Indexing for these citizens was canceled, or rather, frozen back in 2016. The State Duma has repeatedly made proposals for its resumption. But so far this issue has not been resolved. At the same time, the entire amount of indexation to the pensioner will be taken into account after dismissal, when he officially becomes a non-working citizen.
This year, the pension increase in August was carried out through the accumulated pension points (earlier they were not taken into account). Thus, the points accumulated as a result of labor activity in the previous year should be taken into account.
Non-working pensioners are not recalculated in August, because when assigning payments, all the points that they earned during their work were already calculated. But they have increased pensions through indexations conducted annually. So, at the beginning of 2019, its size will average 1 thousand rubles.
The reasons for the moratorium and where it is indicated
About how the funded part of pensions is formed, established and paid, is stated in the Law on Insurance Pensions No. 400-.
The reason that indexation of pensions for working retirees has been canceled is the difficult financial situation of the state. In this case, there is a need to save budget funds. However, for state, including social pensions, this restriction does not apply.
Recalculation in 2018
To carry out the annual recalculation carried out in August, working pensioners do not need to submit a special application. The increase is established for all insurance pensions, if these contributions were not fully taken into account when assigning payments. Features of this allocation are as follows.
The increase is determined on an individual basis on the basis of accumulated pension coefficients (in short - IPC), not previously considered. Therefore, the size of the surcharge directly depends on the level of official earnings for the last working year.
There are certain restrictions on the increase. More details will be described below. When recalculating one IPK is taken in the amount established for the period of registration of the pension payment. Such a calculation is made in view of the fact that indexation for working retirees in 2018 is still not introduced.
It turns out that the size of the surcharge after the August allocation also depends on the payment processing date: the later it happened, the higher the increase. At the same time, as of 2018, the maximum surcharge is only 244.47 rubles.
Pension indexation
A moratorium on indexation was introduced in 2016 by Law No. 385-FZ of December 29, 2015. In view of this, the fixed insurance payment of pensions is not indexed, nor is the value of the IPC, in contrast to the pensions of non-working pensioners. Because of this, in addition to the increase in August, pensions for working pensioners will remain virtually unchanged. What can not but cause discontent among people.
Attempts by deputies of the State Duma to return indexation in the old form to working pensioners have not yet led to a positive result. And whether they will succeed at all is unknown. On June 27, 2018, Anton Siluanov made a statement at a meeting of the Federation Council that there would be no indexation of pensions for working pensioners in 2018. To date, the moratorium has decided to extend at least until 2020.
The government considers this decision to be fair for the following reasons:
- The income of these pensioners is growing due to the increase in wages, as the country's economy is gradually recovering from the crisis. So, for six to seven months of 2018, wage growth amounted to 9%. Thus, according to the Government, the rate of increase in income of citizens who continue to work is significantly higher than the income of non-working pensioners, whose payments are indexed by about 3-4% per year.
- Indexation missed during the period of employment will be taken into account when calculating the pension upon dismissal.
Thus, the Cabinet of Ministers of the Russian Federation is sure that it is not necessary to restore indexation at the moment, since it is necessary to take care of ensuring an increase in the incomes of the entire population, and working pensioners already have growing incomes. At least this is evidenced by data from the state statistics service.
One-time payout instead of indexing
Pensioners expected that failed indexation could be offset by a lump sum payment, as it was before. So, in 2017, five thousand rubles were paid. to all pensioners. However, this year no one can count on this payment.
Latest news from the State Duma
The bills that deputies have repeatedly tried to submit to the State Duma for a hearing include the following:
- The Communist Party faction, draft law No. 294971-7 was introduced in October 2017, where it was proposed to restore the increase in pensions to working pensioners in the form of indexations from 02/01/2018.
- The deputies of the Just Russia party proposed their bill No. 340074-7 in December last year, and they wanted not only to cancel indexation, but also to pay citizens all the lost money.
- Almost the same project (under No. 362896-7) was introduced by representatives of the LDPR, proposing to cancel the current moratorium on 07/01/2018.
The consideration of all the initiatives of the deputies was postponed for an indefinite period, and a negative review was made about them in the administration of the State Duma. This was argued as follows:
- Recalculation of pensions for working retirees will require financial expenses that were not originally budgeted.
- They will violate the outlined system of development of pension payments, where indexation is supposed only to pensioners who have left their labor activity.
- Social justice will somehow be violated due to the violation of the rights of citizens currently receiving pensions.
Recalculation after dismissal
All indexations that were skipped to working retirees in connection with the “freeze” will be considered upon dismissal. From the beginning of the year, Law No. 134- dated July 1, 2017 entered into force. According to the latter, the increase in working pensioners in 2018 through recalculation is carried out from the first day of the next month after the end of work.
For this, a citizen does not need to personally contact the FIU. For hired workers, relevant reports are received by the FIU every month. There are all the necessary information. On the termination of the activities of lawyers, entrepreneurs and other self-employed citizens, the data comes from the tax service.
But in practice, the increased amount of pension payments will be paid only 3 months after dismissal from work. At the same time, payments laid out for this period will also be taken into account in the calculation. A delay of three months is usually associated with the following technical features.
- Reporting arrives at the FIU by the 15th. Therefore, the resigned employee will be considered working for some time.
- After the relevant information is received, the employee of the Pension Fund will recalculate for another whole month (in this case, the issue of accounting for missed indexations is resolved).
- A pension will be paid in a larger amount starting from the next month after the corresponding decision in the FIU.
Is retirement profitable
In practice, working retirees have both advantages and disadvantages. The main advantage lies in the growth of insurance experience, which, in turn, has a positive effect on the size of the future pension. In addition, labor activity allows the pensioner to significantly increase income through wages.
However, the absence of indexation negatively affects the size of the pension, for example, for several years. This is especially unpleasant with a large increase in inflation.
Inactive and working for the system
The main difference between these two categories of citizens is that working pensioners continue to make insurance contributions to the FIU. Thus, these citizens continue to form pension rights, and along with their experience, their pension increases.
Contributions for non-working pensioners are not made. However, despite the fact that there is no salary, these citizens especially need support from the state. Therefore, they continue to do indexing.
Experience
Seniority is taken into account through a system of personified accounting of relevant rights. It is considered by the Pension Fund to all persons who are registered in the OPS. Based on the information received from the employer, the following information is generated on the personal account:
- About the place and working conditions.
- The periods of activity during which the insurance period is.
- The amount of contributions.
- Duration of experience.
- The number of retirement points.
Other periods of life are included in the insurance record, which include the following:
- Holidays to care for the baby until they reach one and a half years.
- Caring for a disabled person of the first group (a child or an old man over 80).
- Military service (but not by contract, but by draft).
At the same time, it must be borne in mind that this time will affect the recalculation of working pensioners only if it was preceded by some period during which the citizen worked.
As of 2018, in order to retire by age, a citizen must have earned at least nine years of insurance experience.
Payout calculation
The size of the pension for working retirees depends on many factors, which include the following:
- The amount of contributions.
- Length of service.
- PKI size.
The calculation formula will then be as follows: SP = IPK * SPK + FV, where:
- SPK is the cost of 1 coefficient at the time the payment is established;
- FV - fixed payment.
Retirement points
To calculate the increased pension for working pensioners in 2018, taking into account the accumulated pension points for the previous year, the formula is applied: SP2 = SP1 + (IPK * SPK), where:
- SP2 - the amount of the pension after recalculation.
- SP1 - the initial amount of the pension.
- SPK - the value of the pension point at the time of recalculation.
As of 2018, the SEC is 81 rubles. 49 kopecks However, the score is limited by the following factors:
- 3 - for those whose accumulations have not formed;
- 1,875 - for those who pay contributions to the funded part of the pension.
Minimum pension
Since the beginning of this year, the amount of fixed pension has been indexed by 3.7%. As a result, the value amounted to 4,982.9 rubles. By simple calculations, the minimum pension is obtained: 81.49 * 13.8 + 4 9892.9 = 6 107.46 rubles.
When to Retire
According to the adopted changes, it does not matter for a pensioner when to go on a well-deserved rest, since the missed indexation for working pensioners is returned upon dismissal. At the same time, due to the continuation of work, the insurance period, as well as pension points, is increasing. Therefore, the longer a citizen works, the greater the amount of pension will be received. Although in practice this does not always become appropriate. For example, if the allowance increases by 100 rubles, then there is no special meaning in official labor activity. Therefore, on this issue, each pensioner must make an independent decision based on the calculations in each case.
Privileges
Working retirees can rely on a number of different benefits. For example, in the field of labor relations, they have the opportunity:
- Resign any day at will, without informing the head in advance of 2 weeks.
- Terminate the employment contract on a general basis.
- Get extra days off without pay.
- Improve your qualifications through the services provided by the employment service.
Tax benefits for working retirees are of the same nature as for non-working, and are as follows:
- Exemption from personal income tax payments.
- Receiving a deduction for the purchase of housing, payment of medical services and other things.
- Property tax exemption.
- Regional exemptions for transport and land tax.
The benefits of a medical nature include the possibility of undergoing a free medical examination, as well as receiving a flu vaccine.
Social reliefs are set at the regional level, so they are somewhat different. But basically they include the right to free use of public transport, as well as a discount on utilities. However, travel to the resting place and back to working pensioners - residents of the Far North and equivalent territories is not provided (unlike non-working pensioners).
Military pensioners who continue to work, are entitled to rely on additional payments in the form of:
- Exemptions from transport and land tax.
- Devices for work on civil specialization in an extraordinary order.
- Devices of children, as well as grandchildren in educational institutions in an extraordinary order.
Conclusion
Currently, the issue of indexation remains open. Therefore, citizens have no choice but to find ways to solve the problem on their own. And some working pensioners, especially those who receive a small amount of payment, find a way out of the situation with a moratorium on indexation in that they are specifically dismissed from their jobs. Then the Pension Fund indexes. After that, they are again employed in the same place. According to the law, indexed pensions for working pensioners in 2018, as at other times, will not be returned to the original size of payments.