Pensions for working pensioners: accrual, indexation
Those who are currently working are only raised upon recalculation, which is carried out once a year from the beginning of August. Other increments in the form of indexation, as is the case for non-working pensioners, are not provided for by law. Indexation for these citizens was canceled, or rather, frozen back in 2016. The State Duma has more than once made proposals for its renewal. But so far this issue has not been resolved. At the same time, the entire amount of indexation for a pensioner will be taken into account after dismissal, when he officially becomes a non-working citizen.
This year, the increase in pensions in August was carried out by means of the accumulated (previously they were not taken into account). Thus, the points that have been accumulated as a result of working 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 they earned during their work have already been calculated. On the other hand, their pensions are being raised through indexations carried out annually. So, at the beginning of 2019, its size will be on average 1 thousand rubles.
The reasons for the moratorium and where it is indicated
How the funded part of pensions is formed, established and paid is stated in the law on insurance pensions No. 400-FZ.
The reason that the retirees was canceled is the difficult financial situation of the state. In this case, it becomes necessary to save budget funds. However, this restriction does not apply to state pensions, including social pensions.
Recalculation in 2018
For 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 taken into account in full when assigning payments. The peculiarities of this recalculation are as follows.
The increase is determined on an individual basis on the basis of accumulated pension coefficients (in short - IPC), not previously accounted for. Therefore, the amount of the additional payment directly depends on the level of official earnings for the last working year.
There are certain restrictions on the increase. More detailed information will be presented below. When recalculating, one IPK is taken in the amount established for the period of registration of the pension payment. This calculation is done due to the fact that indexation for working pensioners in 2018 has not yet been introduced.
It turns out that the amount of the surcharge after the August recalculation also depends on the date the payments were made: the later this happened, the higher the increase. At the same time, as of 2018, the maximum amount of the additional payment is only 244.47 rubles.
Pension indexation
The moratorium on indexing 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, as well as the cost of the PKI, in contrast to the pensions of non-working pensioners. Because of this, apart from the increase in August, pensions for working pensioners will remain practically unchanged. Which cannot but cause discontent among people.
Attempts by the State Duma deputies to return the indexation to working pensioners in their previous form have not yet led to a positive result. And whether they will be crowned with success at all is unknown. On June 27, 2018, Anton Siluanov spoke at a meeting of the Federation Council with a message that the indexation of pensions in 2018 for working pensioners will not be carried out. To date, it has been decided to extend the moratorium until at least 2020.
The government considers this decision to be fair for the following reasons:
- The incomes of these pensioners are 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, the growth of wages amounted to 9%. Thus, according to the Government, the rate of increase in the income of citizens who continue to work is significantly higher than the income of non-working pensioners, whose payments are indexed by approximately 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 confident that there is no need to restore indexation at the moment, since it is necessary to take care of ensuring an increase in the income of the entire population, and working pensioners already have growing incomes. At least, this is evidenced by the data of the state statistics service.
Lump sum instead of indexation
Pensioners expected that the failed indexation could be compensated for through a lump sum payment, as was the case in the past. So, in 2017, five thousand rubles were paid. to all retirees. However, no one can count on this payment this year.
Latest news from the State Duma
The bills that the deputies have repeatedly tried to submit to the State Duma for hearing include the following:
- The Communist Party faction introduced draft law No. 294971-7 in October 2017, where it was proposed to restore the increase in pensions to working pensioners in the form of indexations from 01.02.2018.
- Deputies of the "Fair Russia" party proposed their bill in December last year No. 340074-7, and they wanted not only to cancel the indexation, but also to pay citizens all the lost money.
- Almost the same project (under No. 362896-7) was introduced by representatives of the Liberal Democratic Party, proposing to cancel the current moratorium from 01.07.2018.
Consideration of all the initiatives of the deputies was postponed for an indefinite period, and a negative review was made about them in the State Duma administration. This was argued as follows:
- The recalculation of pensions for working pensioners will require financial expenses that were not initially budgeted.
- They will violate the outlined system of development of pension payments, where indexation is supposed only for pensioners who have left their labor activity.
- Social justice will somehow be violated due to the infringement of the rights of citizens currently receiving pensions.
Recalculation after dismissal
All indexations that were passed to working pensioners due to the "freeze" will be considered upon dismissal. From the beginning of the year, Law No. 134-FZ of July 1, 2017 entered into force. According to the latter, the increase for working pensioners in 2018 by means of recalculation is carried out from the first day of the next month after the end of the work activity.
A citizen does not need to personally contact the FIU for this. Regarding hired workers, the corresponding reports are submitted to the FIU every month. All the information you need is there. Data on the termination of the activities of lawyers, individual entrepreneurs and other self-employed citizens 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 due for this period will also be taken into account in the calculation. The delay of three months is usually due to the following technical features.
- Reporting arrives at the FIU by the 15th. Therefore, the retired employee will be listed as working for some time.
- After the receipt of the relevant information, the employee of the Pension Fund will carry out the recalculation for another whole month (in this case, the issue of accounting for missed indexations is being resolved).
- The pension will be paid in a larger amount starting from the next month after the relevant decision in the Pension Fund.
Is retirement profitable
In practice, working retirees have both advantages and disadvantages. The main advantage lies in the growth of the insurance experience, which, in turn, has a positive effect on the size of the future pension. In addition, work activity allows a pensioner to significantly increase his income through his salary.
However, the size of the pension is negatively affected by the lack of indexation, for example, for several years. This is especially unpleasant when inflation is high.
Non-working 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 PFR. Thus, these citizens continue to form pension rights, and along with their seniority, their pension grows.
Contributions are not made for non-working pensioners. However, despite the fact that there is no salary, these citizens especially need support from the state. Therefore, they continue to be indexed.
Experience
The length of service is accounted for by means of a personalized accounting system for the respective rights. It is considered a pension fund to all persons who are registered in the GPO. Based on the information received from the employer, the following information is generated on the personal account:
- About the place and conditions of work.
- The periods of activity during which the insurance period is.
- The amount of contributions.
- Length of service.
- The number of retirement points.
The insurance experience includes other periods of life, which include the following:
- Leave to care for the baby until he reaches one and a half years.
- Caring for a disabled person of the first group (a child or an old man over 80 years old).
- Military service (but not by contract, but by conscription).
At the same time, it should be borne in mind that this time will affect the recalculation of working pensioners only if it was preceded by some period in which the citizen worked.
As of 2018, in order to retire by old age, a citizen must have accumulated at least nine years of insurance experience.
Calculation of the amount of payment
The size of the pension for working pensioners 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 of payment establishment;
- FV - fixed payment.
Pension points
- SP2 - the amount of the pension after the recalculation.
- SP1 is the initial amount of the pension.
- SPK - the value of the retirement point at the time of recalculation.
As of 2018, the SPK is equal to 81 rubles. 49 kopecks. However, the number of points is limited by the following factors:
- 3 - for those who have not accumulated savings;
- 1,875 - for those who pay contributions to the funded part of the pension.
Minimum pension
Since the beginning of this year, the size of the fixed pension has been indexed by 3.7%. As a result, the value was RUB 4,982.9. 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 amendments, it does not matter for a pensioner when to go on a well-deserved rest, since the missed indexation to working pensioners is returned upon dismissal. At the same time, due to the continuation of work, the insurance experience increases, as well as pension points. Therefore, the longer a citizen works, the greater the amount of his pension he will receive. Although in practice this does not always become advisable. For example, if the allowance increases by 100 rubles, then there is no particular sense in official labor activity. Therefore, on this issue, each pensioner must make an independent decision based on the calculations in each specific case.
Privileges
Working retirees can count on a range of different benefits. For example, in the field of labor relations, they have the opportunity to:
- Quit any day at will, without notifying the manager 2 weeks in advance.
- 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.
The tax benefits for working retirees are the same as for non-working people and are as follows:
- Exemption of payments from personal income tax.
- Receiving a deduction for the purchase of housing, payment for medical services and other things.
- Property tax exemption.
- Regional relief for transport and land taxes.
Benefits of a medical nature include the opportunity to undergo free medical examination, as well as receive a flu vaccine.
Social indulgences are established at the regional level, therefore they are somewhat different. But mainly these include the right to free travel on public transport, as well as a discount on utilities. However, travel to and from the resting place is not provided to working pensioners - residents of the Far North and equivalent territories (in contrast to non-working pensioners).
Military pensioners who continue to work have the right to count on additional payments in the form of:
- Exemptions from transport and land taxes.
- Priority employment in civilian specialization.
- Arrangement of children and grandchildren in educational institutions on an extraordinary basis.
Conclusion
Currently, the question of indexing remains open. Therefore, citizens have no choice but to find ways to solve the problem on their own. And some working pensioners, especially those receiving a small amount of payment, find a way out of the situation with a moratorium on indexation in the fact that they quit their jobs specifically for this. Then the Pension Fund indexes. After that, they are again employed in the same place. According to the law, the indexed pensions for working pensioners in 2018, as well as at other times, do not return to the original size of payments.