The content of the article
- Who are working pensioners
- Act on Working Retirees
- Are working pensioners paid a pension
- How is a pension paid?
- How to recalculate
- Indexation of retirement pensions
- Pension news for working retirees today
- Will indexing
- How much will working pensioners lose in 2018
- Will pension be canceled for working pensioners
- Will there be 13 payouts per year or an additional 5 thousand rubles for the New Year
- How to increase your pension
Older people consciously refuse a well-deserved rest and are forced to go to work in order to provide themselves with necessary products, medicines, and livelihoods. The question of increasing benefits to all working pensioners has been raised repeatedly in 2018, but State Duma deputies cannot come to a common denominator. Therefore, it is interesting to know whether there will be indexation starting next January, what retirement age employees can expect, and how much their average incomes will increase..
Who are working pensioners
This category includes citizens who have reached retirement age, but continue to work. They receive both a salary in the company where they are employed and payments from the budget, which does not contradict the current legislation of the state. Tax deductions and insurance contributions are deducted from the salaries of working people of retirement age, which lead to an increase in the amount of pension savings and the annual recalculation of pensions.
Among working citizens receiving compensation from the state include:
- disabled people;
- persons who are entitled to lengthy labor compensation;
- citizens who have lost the breadwinner;
- citizens who have reached retirement age;
- persons engaged in entrepreneurial activity and working under contracts.
All of the above persons are entitled to rely on the protection and support of the state. If we talk about retirement age, then in Russia it has remained unchanged for many years. Women retire at the age of 60, men at 65. The service allowance is received by the military, astronauts, civil servants, testers, pilots, medical workers who have worked for the state for more than 20 – 25 years.
Act on Working Retirees
This document regulates the procedure for calculating compensation for those people who continue to work upon reaching retirement age. It has many pros and cons. Basic norms of the law:
- accrual of supplements to state payments for worked experience after applying for a pension is not expected (according to the government, this is an inefficient use of budget funds);
- a new concept of scoring has been formed, tariffs are largely dependent on this aspect, so the state tries to stimulate the desire of citizens to work after the retirement age has come (if a person has the right to receive a pension, but does not apply for it, then the legislation takes into account his seniority and increases the amount pension payments of 85% or more);
- the minimum working experience for calculating pension payments is currently 6 years, but in 2025 it will be increased to 15 years, otherwise the allowance will not be accrued;
- working pensioners with the right to state payments are forced to either vacate a place of employment for the young generation or refuse a pension, in which case they will receive wages and additional allowances for future compensation from the country.
According to the state, the abolition of compensations to working citizens entitled to state benefits will help to reduce the budget deficit at times and increase the size of future state benefits to the maximum limit. That is, in 2018, citizens who continue to work to achieve retirement age will not receive any allowances, since the recalculation system for them has been canceled. Pension indexation for working retirees is not planned in 2018.
Are working pensioners paid a pension
The Russian government in a crisis, unstable economy, high inflation, a sharp change in the exchange rate of the foreign currency against the ruble, rising prices, is constantly reviewing the pension system. Working citizens of retirement age, as before, receive both wages and compensation from the state, consisting of a fixed payment, the amount of which is 3935 rubles, and insurance compensation, its value depends on the number of points and length of service.
In 2018, a pension increase will be made to everyone who receives payments below the subsistence level of a region whose salary is below 18,000 rubles. In addition, such citizens can count on recalculation. It is produced on request. In 2018, the state will refuse premiums to those persons whose total salary for the year will amount to more than 1 million rubles. Today, the average minimum pension is 8803 rubles.
How is a pension paid?
After processing the remuneration from the state, the procedure for receiving it is as follows:
- the amount due to the person in the planned month is calculated taking into account the documents of the filed case, including the statements of the person;
- Pension Fund documents are compiled on the amounts accrued in a certain month for a particular citizen;
- accrued compensation is sent to the account of the organization that is engaged in its delivery;
- documents of the RF PF are sent to the institution delivering state compensation;
- the accrued amount is delivered directly to the citizen.
A person can receive money in several ways:
- by delivery at the cash desk of the organization that delivers pensions;
- by transfer at home;
- by crediting a certain amount of money to a specific citizen’s account with a bank or credit institution.
Payments are delivered by federal postal service organizations, the territorial authority of the Pension Fund of the Russian Federation, banks and other financial organizations. They receive payment for their services in the form of a certain percentage of the pension delivered by the recipients. The activities of organizations that deliver payments to working retirees are regulated by current legislation.
How to recalculate
To be sure that the PF was not mistaken when calculating and recounting state compensation, working pensioners are required to know the calculation formula. Before the amendments to the law, it was simple, now complicated, since it requires taking into account the level of salary, living wage, length of service, etc., therefore, it has become more difficult to calculate the amount of state benefit.
A constant review of payments is carried out if a person receives additional income from which contributions are made to the Pension Fund, this applies to state compensations paid for disability and old age. There are two ways to recalculate:
- unauthorized (carried out once a year by the Pension Fund, it involves adjusting payments automatically in the direction of increase or decrease);
- application form (carried out upon an application that a citizen submits to the FIU at the place of residence no earlier than one year after accrual of compensation for disability or old age, the document assumes the cancellation of automatic recalculation).
Pensions in 2018 are recounted in such conditions:
- upon reaching the age of 80;
- when changing the disability group;
- when changing the number of dependents;
- if the child who received the survivor’s pension loses the second breadwinner;
- if a citizen has acquired additional work experience.
Based on the new pension project and another procedure for calculating old-age pension payments, the Duma deputies proposed to cancel the recalculation of compensation for pensioners who work. But the right to recalculate for citizens who continue to work has been preserved. After regular appeals and disputes, the government decided to take into account insurance premiums for working pensioners, but with corresponding restrictions.
Indexation of retirement pensions
After a person who continues to work after the retirement age leaves for a well-deserved rest, he will immediately receive an actual recalculation of state compensation. If the employer timely submits data to the FIU, the payment is made within three or more months after the date of dismissal in this order:
- on condition of leaving the place of employment in July, in August, the Pension Fund receives reports that indicate that the person is still registered as working;
- in September, the data reflecting the data according to which the person is no longer employed;
- in October, the Pension Fund decides to index this citizen the amount of a fixed payment and insurance pension;
- in November, the PF begins to recalculate payments.
Compensation for the three months during which indexation was carried out is not paid. If a person is employed again, the allowance paid will not be reduced, but will remain at the level of a new allocation. The return of funds that are accrued during indexation after dismissal in the event of subsequent employment is not provided. That is, the calculated allowance will not be deducted. Subsequent dismissal of working retirees from their jobs entails the renewal of the right to indexation.
Pension news for working retirees today
Pensions in the Russian Federation are changed three times a year, in February insurance payments are increased, in April social benefits are indexed, and in August, additional payments are calculated for people who continue to work. That is, the next increase in pensions for working pensioners in 2018 should be from August 1, but there will be no recalculation in order to save the state budget and reduce its deficit.
Government payments are constantly recounted taking into account the level of inflation for both non-working pensioners and those who continue to work. Pension to working pensioners from January 1, 2018 will not be indexed. Citizens can count on its recalculation only after they quit and go on a well-deserved rest. This also applies to low-income working pensioners. The government is forced to reject all attempts to return indexation due to the difficult economic situation in the country. When improvements come, the issue will be reviewed.
How much will working pensioners lose in 2018
According to official figures, this year it is planned to increase government compensation for non-working persons of retirement age by 3.7%. If today the average pension is 13,657 rubles, then in 2018 it will increase by 400 rubles. Working pensioners will not receive any allowances, but their losses will be insignificant. They will be able to accumulate points that will allow them to increase their compensation in the future several times. In 2018, it is planned to increase the monetary value of one point to 81.49 rubles. Points are calculated in proportion to salary.
Will pension be canceled for working pensioners
Deputies paid much attention to this issue. After the next debate, a decision was made according to which the abolition of pensions for working pensioners was not expected. Even those citizens whose salaries per year exceed 83 thousand rubles will receive monetary compensation. The only limitation is the abolition of indexing. But if you calculate the difference between payments to unemployed people and citizens who refused to go on a well-deserved rest, then it is insignificant.
Will there be 13 payouts per year or an additional 5 thousand rubles for the New Year
From January 1, 2018, a bill will come into force, according to which working pensioners will receive a one-time benefit. Its size will be 5 thousand rubles. The payment will be realized in a non-soliciting manner. All citizens will be able to receive it from January 9 to January 27 on the day they receive the monthly allowance. Compensation will be paid according to a special schedule. If, for objective reasons, a person cannot receive it in the specified period, it will be issued later.
How to increase your pension
There are such ways to increase the size of the pension:
- get additional insurance experience;
- refuse state compensation for a certain time;
- submit updated salary inquiries.
Regardless of which of the described methods is chosen, in order to receive a recalculation of the pension payment, a person will need to contact the PF at the place of residence, write a statement, attach the relevant documents. If the application is submitted before the 15th day of the current reporting month, the payment will be recounted from the 1st day of this month, if after the 15th day – from the 1st day of the next reporting month.