Indexation of pensions for retired pensioners
Due to the adoption of a new pension reform in 2015, older people are worried about how pensions for working pensioners will be indexed after dismissal. Anti-crisis government measures affected all pensioners, but it was working citizens who suffered the most.
How is indexing done?
Indexation - an increase in the amount of payments, taking into account market prices and the inflation rate. In Russia, pension indexation was carried out twice a year:
- in February;
- in April.
The instability of the world economy and the new system of calculating pensions led the government to the need to change the usual system of recalculations. It was decided to reduce the percentage by which payments are indexed and to suspend inflation compensation for those senior citizens who continue to work in any way.
Is it profitable for a pensioner to work from a financial point of view?
The right to continue working for citizens of retirement age is guaranteed by the legislation of the Russian Federation. And no one can legally deprive a person of work. But for the time being, working senior citizens will not receive an annual allowance that compensates for the inflation that has occurred over the year.
Important! This measure has been taken until 2019.
But the pension reform is still at the development stage and it is not yet possible to talk about what final form it will take. At the moment, working pensioners cannot count on an increase in pensions by a percentage of the inflation coefficient.
But on the other hand, each year worked brings the following benefits:
- additional insurance contributions to the FIU;
- increase in overall experience;
- growth in pension savings.
Although, on the one hand, pensioners who have not left their jobs will have to lose part of their funds, having lost indexation, but on the other hand, in addition to receiving both pensions and salaries in the present, they also increase their future income. The Pension Fund annually in August recalculates pension payments to working citizens, taking into account the contributions received from the employer over the past year.
Attention! If you quit, and after all the missed indexation is returned, get a job again, then the amount of payments will remain increased.
What can a pensioner expect after dismissal?
Thanks to the new reporting system, pensioners no longer need to run to the pension fund after leaving work to report a change in their status. Organizations themselves are required to submit monthly lists of all workers to the FIU. And when there are no retired pensioners in them, the PFR will automatically transfer them to the category of unemployed.
Many older workers are worried about whether indexation will be returned to working retirees in the near future after they leave. This point is clearly spelled out in the law - the indexation of pensions after dismissal is carried out automatically and in full for the years preceding the dismissal.
The pension paid after the termination of official employment will be indexed as follows:
- The employee quits (falls under the reduction).
- The organization in the month following the month of dismissal submits information about employees to the FIU.
- The FIU fixes that the pensioner is no longer listed among the workers.
- In the month following the month of submission of this information, the payment is recalculated for the amount of all missed indexations and other possible increases.
- The next month, the retired person receives an increased pension.
The person himself can no longer influence the recalculation process. His entry into the pension fund, until the information is submitted by the former employer, will not have official force to make changes to the procedure for recalculating payments.
Important! The employee who left on the first day of the month will be considered as working in this month.
An example of pension indexation
Working citizens are interested in the question, from what month, according to the law, is the pension indexed after the dismissal of a pensioner? Federal Law 385-FZ fully regulates all issues of the indexing procedure. The easiest way to understand how a pension is indexed is with a real example:
- Citizen Petrova I.V. resigned from Raketa LLC on March 3, 2017.
- Until April 10, 2018, Rocket LLC submitted information for March and Petrova I.V. in this data was still displayed as working.
- Until May 10, 2018, Raketa LLC submits information in which Petrov is absent among the workers.
- The FIU, taking into account this information, will make a decision in June to increase Petrova's pension payment by a percentage of all missed indexations.
- In July, citizen Petrova I.V. will begin to receive pension payments, taking into account all indexations, which she was deprived of while she was a worker.
Thus, leaving in March, the increased payment will begin to receive from July.
Nuance! For the months that have passed after the dismissal, until the long-awaited increase is received, compensation for the increase is not made.
Who is responsible for late payments?
To receive a pension with all the missed increases, a retired pensioner does not start right away anyway. But what to do if even 3-4 months after leaving work, the payment still comes without extra charges? The following error options are possible:
- The employer did not exclude the resigned employee from the lists submitted to the FIU.
- The FIU did not include the required indexation within the prescribed period.
- The person terminated the employment contract at the beginning of the month and did not consider that he would be on the PFR lists among the unemployed later.
Each employee can independently control whether information is correctly submitted to the FIU. After all, the employer must provide copies to all employees. If the data is submitted incorrectly, the employer will be fined. But, neither for the mistakes of employers, nor for possible delays in the FIU, compensation to pensioners is not provided for by law. So it is in the interests of the citizens themselves to control this process. In case of delay in recalculation, contact the FIU for clarification.