Old-age pension in 2018 – minimum size, indexation

The content of the article

• Types of pensions in Russia
• How old-age pension is calculated
• Who is eligible for old-age insurance pensions?
• Terms of receipt
• How to make out
• Where to go
• What documents are needed
• Terms of appointment
• The amount of a fixed payment to an insurance pension
• 2018 old-age pension increase
• Minimum size
• What to do if the pension is below the subsistence level
• Will there be indexing for working retirees

Having reached a certain age, Russian citizens are entitled to state pension payments. An old-age pension in 2018, except for the retirement age (60 years for men and 55 for women), requires seniority and other conditions established by law. For our country, this is the most common type of pension provision..

Types of pensions in Russia

In the Russian Federation there are several types of pensions, which are divided according to the conditions of appointment. According to Federal Law No. 166 of December 15, 2001, a pension may be:

• Old-age insurance (otherwise called labor) – to receive it, you must reach retirement age, have at least a minimum insurance experience and the required number of points.
• Social – payments of this type are assigned in case of loss of the bread-winner, to persons with disabilities or to persons who have lived to old age, but who do not have the necessary length of service.
• State – such collateral is intended to compensate for lost income for certain categories of citizens (for example, those who suffered from radiation, military pensioners or test pilots). This type of accrual depends on a number of conditions – the absence of another form of income, the availability of seniority, etc..

How old-age pension is calculated

In accordance with the pension legislation (and this is the federal law No. 400-ФЗ “On insurance pensions” dated December 28, 2013, which entered into force on January 1, 2015), the procedure for calculating old-age social benefits implies the fulfillment of several conditions. These are conditions such as:

• Achievement of retirement age (55 and 60 years for women / men).
• Required experience. This indicator is increasing annually, and for 2018 is 9 years..
• Availability of the required amount of pension points. For 2018, this amount is 13.8 points.

Those who want to apply for an old-age pension in 2018 must be aware that when calculating the insurance period, only the time of official employment is taken into account (that is, when the employer made transfers for the pension fund). Unofficial work or freelance without an employment record does not affect the length of service, therefore, those who seek to receive social benefits from the state when going on a well-deserved vacation need to get official work.

Who is eligible for old-age insurance pensions?

Legislation clearly defines individuals who can receive retirement benefits. These people can be divided into the following categories:

1. Citizens of Russia: women not younger than 55, men – 60 years old, with a fixed length of insurance.
2. Citizens of Russia who are in the civil service: – from January 1, 2017, an increasing coefficient is introduced – annually the retirement age for this category will increase by six months (with a “ceiling” of 63 and 65 for women / men). For this category, the old-age pension in 2018 is intended for women over 56 years old, for men – 61 years old.
3. Citizens of Russia who have been working in the northern territories (and equivalent areas) for at least 15 years: women no younger than 50, men 55 years old.
4. Foreign citizens: women not younger than 60, men – 65 years old, with a Russian work experience of at least 15 years.

For calculating payments, the Pension Fund has special formulas that take into account age, seniority and other indicators. At the same time, it is important that the period of study at a higher educational institution or military service also applies to seniority. Work in harmful conditions implies an early date of going on a well-deserved rest (as a rule, the amount of payments in this case will be larger).

Terms of receipt

The minimum length of service and the individual coefficient of a pensioner (IPC) are not constant values ​​- until 2025 they will increase annually. Therefore, the requirements for retirement old age will change every year. The table shows this dynamics according to the Law on Insurance Pensions:

How to make out

Making payments implies a certain sequence of actions. Step by step it looks like this – you need:

1. Collect the necessary documentation confirming the length of service and benefits.
2. Prepare an application for the FIU and submit with a package of documents.
3. If necessary, provide the required documentation..
4. Learn about the positive decision and start receiving retirement benefits.

Where to go

An application for receipt of payments is submitted to the local branch of the Pension Fund of Russia (PFR). Another option is to do this through the Multifunctional Center (MFC). In this case, the payee may:

• apply in person;
• use the services of a legal representative;
• fill out an application in electronic form on the website of the FIU;
• send a document by mail;
• do it with the help of the employer.

Citizens of Russia traveling abroad must apply directly to the FIU (Moscow, 4 Shabolovka St.). In all cases, the date of appeal will be the day when the application was accepted (letter sent), and if the document is prepared in electronic form – the time of submission via the Internet. It must be borne in mind that it is not necessary to prepare and file an application earlier than a month before the retirement date.

What documents are needed

In addition to the application, it is necessary to submit a number of documents confirming that the applicant is entitled to an old-age pension in 2018. The package of documents should include:

• passport of a Russian citizen (or residence permit – for foreigners);
• compulsory pension insurance document (SNILS);
• work book and other documents confirming the length of service and its duration;
• data on average monthly earnings for the last 5 years;
• supporting documents in the presence of additional circumstances (for example, early retirement for employees in the Far North).

Terms of appointment

An application submitted to the FIU is considered within ten business days from the date of filing or sending by mail, while 3 months are given for the preparation of a package of documents. If this deadline is not met, the filing time shall be considered the day the last document was submitted. Payments are assigned from the time of the application, but not earlier than the required age. However, if an employee leaves his job and prepares an application within 30 days, payments can be assigned earlier than the day of application and a pension is awarded from the next day after completion of work.

Pension payments are made every month. At the same time, the recipient himself can choose a delivery method convenient for him. In addition to the recipient himself, a pension can be issued to a trustee – this requires a power of attorney and annual confirmation of the registration of a pensioner at the place of receipt.

Existing methods of delivering pension payments provide an opportunity for the recipient to choose the option suitable for him (by notifying the FIU by personal appeal or by logging in to your account on the website). These are options such as:

• With the help of the Russian Post – with home delivery or receipt at the post office. Upon delivery to your home, a schedule is set and the end date of the delivery period is determined – it will be different for different post offices, so you need to clarify it in advance. If pension payments are not claimed for six months, then they are suspended until the circumstances are clarified..
• Through a bank – directly at the branch or with a transfer to a plastic card. Money is transferred without commission, on the day of receipt of funds from the Pension Fund, and you can withdraw it from the card at any time. From 1.07.2017, for pension payments, banks issue exclusively plastic cards of the national payment system Mir.
• By means of an organization engaged in the delivery of pension payments – a complete list of these organizations is on the website of the FIU. The procedure for receiving the same as using Russian Post – at the office of the company or with home delivery.

The amount of a fixed payment to an insurance pension

As of the end of 2018, the fixed pension payment is 4,805.11 rubles, which are accrued every month. This amount can be increased if the pensioner is included in the preferential list – then, depending on the category, the size of the surcharge will be 6246.64-21622.99 rubles. The table lists the categories of citizens who have the right to a monthly fixed payment:

2018 old-age pension increase

Pensioners belong to the category of socially unprotected disabled citizens (only a few continue to work, having gone on a well-deserved rest), therefore they are very susceptible to changes in consumer prices. In order for the paid pension to correspond to the inflation rate, an adjustment is made annually to the size of payments (indexation). With the growth of inflation, the insurance pension will also increase within the limits of the established indexation and taking into account the cost of IPC. So, from 1.02.2018, old-age pensions and fixed payments will become 5.8% more.

Minimum size

The value of the minimum old-age pension is directly related to the subsistence minimum of the pensioner (PMP), which is established annually by the Government of Russia (for example, for 2018 the PMP is 8 540 rubles). At the same time, different regions may have their own allowances from the budgets of local levels, so PFP-2017 for Moscow is 11 561 rubles, for the Moscow Region – 9161 rubles, and for Yakutia – 13 907 rubles.

What to do if the pension is below the subsistence level

In some regions, the minimum old-age pension in 2018 is less than the living wage of a pensioner – for example, we can cite Ivanovo (7977 p.) And Kursk (7460 p.) Regions. Looking at the list of PHC by regions of Russia, the difference in the size of pension accruals is very noticeable, but this does not mean that pensioners in these subjects of the federation are forced to endure hardships, as it may seem at first.

In a situation where regional payments are lower than the federal primary health care allowance, a pension is established for pensioners to compensate for this difference, based on additional laws adopted by regional authorities. The smallest amount that will be paid to a Russian old-age pensioner in 2018 will be 8 540 rubles – in pure form or with increments, if necessary.

Will there be indexing for working retirees

In 2018, an innovative technology will be applied for the procedure for indexing pension accruals. Initially, the funds for indexation were budgeted, and the percentage increase obviously had to exceed inflation. This allows you to calculate your old-age pension in 2018 without relying on statistical calculations and to increase pension payments by 3.7 percent as of January 1, 2018, and not from 1.02, as it was before. The average value of pension-2017 is 13 557 rubles, from 2018 it will increase to 14 045 rubles. – that means the average increase will be 488 rubles.