The minimum pension in Russia – the principle of calculation of old age, disability and breadwinner

The content of the article

• What is the minimum pension?
• Calculation principle
• Old age
• By disability
• With the loss of a breadwinner
• Who gets the minimum retirement pension
• The size of the minimum pension in Russia
• In Moscow
• In outskirts of Moscow
• In St. Petersburg
• In the regions
• Minimum pension for working retirees
• Minimum pension for non-working pensioners
• Minimum pension increase

If you think about retirement at a young age, then the amount of benefits may be larger. In any case, every citizen of Russia with the onset of old age is guaranteed a minimum pension, regardless of how much work experience is and what is his average salary. Such a social payment will not be as large as the pension of civil servants, but it will also provide for the necessities of life..

What is the minimum pension?

There is no legislative definition of the term minimum pension in Russia. A legal concept very close in meaning will be the “subsistence minimum of a pensioner” (PMP), which consists of a set of products, things and services that a person needs every month to maintain his existence. The size of the pension (and additional payments) may be lower than the subsistence level – then for the person an additional payment is established, bringing the amount to the prescribed amount.

The pensioner’s subsistence minimum is used in determining the amount of benefits and is annually established by the law on the federal budget for the corresponding year. The value of PMP for 2019 is determined by the Law of December 19, 2016 No. 415-ФЗ and on average in Russia is 8540 rubles. PMP varies depending on the region of residence and is annually indexed taking into account inflation and the level of consumer prices.

Calculation principle

The basic amount of payments (without any allowances and regional surcharges), which are guaranteed to be paid to a person, is close to the concept of social pension. The most common case is old-age payments, which are assigned if a person has reached retirement age but does not have the necessary insurance experience. There are other categories of citizens who are charged the minimum pension in Russia – they will all be discussed in more detail below..

Old age

An indispensable condition for calculating the insurance payment is the presence of the required work experience and points. Payments of this type are made directly from the state budget, while the funded part of the insurance pension is financed from the pension fund. In 2019, the minimum old-age pension defined by law is 5,034.25 rubles and, since it is below the subsistence level, is supplemented by social allowances.

By disability

The purpose of this type of social payments requires a citizen to undergo a medical and social examination, which, having determined deviations in the state of health, appoints a disability group. In accordance with pension legislation, the following categories are distinguished:

• disabled people 1, 2, 3 groups;
• disabled since childhood;
• disabled children.

In many cases, the group provided by the examination is established for a period of 1-2 years and requires re-examination, but sometimes (for example, for persons with disabilities from childhood) can be given indefinitely. Pension payments depend on the category assigned – the smallest they are for people with disabilities in 3 groups (4,279.14 rubles), and children with disabilities have a maximum size (12,082.06 rubles.).

With the loss of a breadwinner

This social allowance is intended for minors who have lost at least one of their parents (in the case of full-time studies, the allowable age is extended to 23 years). There are a number of conditions under which a pension is not accrued or ceases to be issued, for example, when a full-time student is employed. The payment in the event of the loss of one parent will be the same as the minimum old-age pension – 5,034.25 rubles, if the child is deprived of both parents (or he was raised by a single mother) – the amount will be twice as much.

Who gets the minimum retirement pension

In 2019, to receive a state insurance pension, you must have 8 years of experience and at least 11.4 pension points – these are the minimum conditions and they will increase every year. If a person has insufficient indicators for calculating insurance benefits, then he is entitled to a minimum old-age pension. In this case, the minimum wage will be a good analogue, below which the employer cannot pay. This type of social benefits is paid:

• Women upon reaching 60, men – 65.
• Representatives of the small peoples of the North (for women age 50, for men 55 years), provided that they live in a certain territory and engage in native crafts, hunting, and reindeer husbandry.

The size of the minimum pension in Russia

It’s more correct to consider the size of the living wage instead of the minimum pension payments, because it’s more correct to talk about the whole amount that a pensioner receives (taking into account the increase, preferential payments, etc.), and not about individual terms. The size of the PMP is planned and annually set by the government (the regional cost of living may vary significantly depending on the republic or region). You can find the dynamics of changes in the living wage of a pensioner in recent years in the table:

In Moscow

Against the background of a decrease in the Russian indicator of the minimum subsistence level, the size of the PHC for residents of the capital in 2019 increased by 133 rubles and amounted to 11 561 rubles. This indicator applies to Moscow pensioners who have been registered at the place of residence in Moscow for less than 10 years. For those who have this period longer, pension payments are accrued with a Moscow allowance so that the total amount corresponds to the city social standard. In 2019, this is 14 500 rubles.

In outskirts of Moscow

When comparing, the difference in pension payments between a Muscovite and a resident of the Moscow Region will be very significant – the second, taking into account the allowances, will receive 9,161 rubles in 2019 (21% less). This value of the regional living wage of a pensioner is established by the Law of the Moscow Region No. 126/2016-OZ and its size is 211 rubles more than in the previous year.

In St. Petersburg

If we compare the indicators of living wages of a pensioner for residents of St. Petersburg and the region, the difference will not be as large as in the case of Muscovites. According to regional legislation (Laws No. 699-113 of December 13, 2016 and November 15, 2016 No. 85-OZ), the social payment here is 8 540 rubles for St. Petersburgers and 8 503 rubles. for regional residents.

In the regions

If you look at the entire list of primary health care in Russia, you can immediately notice a big difference in the indicators for different regions (for example, for the Ivanovo region in 2019 it is 7977 rubles, and for Yakutia – 13 807 rubles). The rules for accrual of allowances are determined by local legislative acts taking into account the possibilities of regional budgets – this explains the gap between the size of the PHC in different regions. The smallest living wage for pensioners in the Kursk region is 7,460 rubles, the largest – for those living in Chukotka – 19,000 rubles.

Minimum pension for working retirees

Legislation is allowed to receive pension payments and continue to work, increasing their income. This is possible if a person receives one of the following pensions:

• Old-age insurance (labor pension) – for this you need to have working experience and reach a certain age.
• Insurance or social disability – in addition to the IEC conclusion, in the first case, seniority is required.
• State security for certain categories (military, officials), continuing to work.

A working pensioner has labor benefits (for example, he does not need to work 2 weeks for dismissal), pension coefficients continue to accumulate and insurance contributions are transferred. At the same time, there are a number of restrictions for him, for example, he cannot:

• receive compensation for travel to the place of treatment and back;
• expect surcharges if the pension is less than PMP;
• count on pension indexation.

Minimum pension for non-working pensioners

If a person has no seniority, he can apply for a minimum (social) pension. If you have a working biography, pension payments are calculated according to the formula PS = PS + FC x SB, where:

• PS – the total pension amount that a person receives in his hands;
• Private equity – a fixed part (in 2019 – 4,805.11 rubles);
• KB – the number of accumulated pension points;
• SB – the cost of one point (78.58 rubles).

Minimum pension increase

Every year at the same time in Russia there is an increase in pensions due to indexation. The purpose of this process is to increase pension payments by certain percentages to protect against inflation. In this regard, the following activities can be noted:

• On February 1, 2019, insurance pension payments were indexed and increased by 5.8%.
• On April 1, 2019, the size of social pensions was changed due to new indicators of the pensioner’s subsistence minimum.
• At the beginning of 2019, pensioners were paid a lump sum payment of 5,000 rubles. Formally, this is not an increase in pension payments, but refers to the improvement of their income and living standards.