Will the pension of a working pensioner be indexed in 2019 if the person continues to work?
For those retirees who do not want to leave their place of work, a small increase is expected in August. However, in order to receive this increase in pension in August 2021, the person must be in the status of a working pensioner in 2018. It doesn't matter whether it's for the whole year or a few months.
The August increase in pension for working pensioners is due to them due to the fact that the employer continues to make due contributions to the Pension Fund for them. Due to these contributions, the number of pension points in the pensioner’s piggy bank increases. This means that once a year a person has the right to recalculate his pension.
The law provides for a limit on the number of pension points that a working pensioner can accumulate in a year. That's three points.
In practice, this means that the maximum increase in pension for working pensioners in August 2021 will be less than 300 rubles. This amount will be received by those who worked throughout 2018, already being of retirement age. It is important that the salary is quite good. If a pensioner’s salary is low or he did not work as a pensioner for the whole of 2021, the additional payment will be much lower.
The amount of the pension increase in August 2021 is individual for each pensioner. But it is clear that we are talking about rather small money in any case.
What changes await those who are already receiving a pension in 2021?
By and large, there will be no changes; everything remains the same as it has been in recent years. Pensioners will not receive any additional benefits, but they will not take away those that they already have. Pensions will increase at the beginning of the year, but, with rare exceptions, they are always indexed annually.
However, the indexation of pensions in 2021 is somewhat different from previous ones. Campaigning for raising the retirement age, government members emphasized that such a measure would significantly increase pensions for those who had already reached retirement age.
At the same time, there was a constant emphasis on the fact that pensions would increase by 12 thousand rubles a year.
It’s difficult to say why officials talked specifically about an annual increase, but in monthly terms it’s an additional thousand rubles, which, it would seem, is not bad at all. However, this figure is quite crafty and all pensioners should not count on such an increase.
The state could have taken at least two routes in order to add this thousand rubles to pensions. The first way is to add a thousand to each pensioner. It's not that hard to do. For example, it was possible to increase the basic part of the pension from today’s five thousand rubles (almost) to six thousand.
The second way is to index pensions by a certain percentage, which on average would give such an increase. The state chose this solution.
From January 1, 2021, pensions in Russia will be indexed by 7.05%. It is believed that today the average pension in the country is 14.4 thousand rubles. After such indexing it will be 15.4 thousand. Thus, a thousand ruble increase is a rather ephemeral thing; such an amount will go to the average pensioner.
Photo: kremlin.ru
Unfortunately, a very large number of pensioners in the country (probably more than half) receive much less money. People live on 8-10 thousand rubles a month, and for them 7% indexation will mean, at best, an increase of 500-700 rubles. And those who already receive a good pension of 20-22 thousand rubles will receive all one and a half thousand additional rubles.
Recipients of minimum pensions will be in the worst position. There are many such people in the country - very often people could not confirm their work experience or earnings due to missing documents in the archives and for other reasons. As a result, today their pensions are below the subsistence level of a pensioner, and the state pays them up to this minimum. For many of these people, the January indexation will mean that their pension will increase slightly, but will remain below the subsistence level. The state will again add to them the value that was previously missing, and in essence the size of the payment will remain the same. which it was.
Indexation of pension for a working pensioner in 2021 upon dismissal
The law that exists today says that a working pensioner receives the right to “unfreeze” his pension immediately after leaving work.
Despite the fact that the annual indexation of payments passes by a working pensioner, the Pension Fund remembers them. A person’s individual account in the pension system takes into account what his pension should be, taking into account all missed indexations.
When leaving a job, a person becomes entitled to receive the amount specified for him in the pension system. This right arises immediately, but indexation occurs several months later.
This delay is due to the peculiarities of employers’ reporting to the Pension Fund. Organizations submit a report on working pensioners once a month. Therefore, if a pensioner worked at least one day in April, he will appear in the May report as an employee of the company. Only in June does the Pension Fund become aware of the dismissal of the pensioner in this example. Therefore, not earlier than July, or even August, the pensioner begins to receive an increased pension. The new amount takes into account all the indexations that took place in Russia over the years that the person worked as a pensioner.
Until 2021, there was no compensation for the months that passed from the moment of dismissal to recalculation. Now, when a pensioner first receives an increased pension, he receives compensation for the previous months. Thus, the state ensures his right to receive an “unfrozen” pension from the moment he leaves work.
The concept of a working pensioner and criteria for legal status
Many Russians, when they retire, still work. The motives are different - some do not want to live on a pension alone, others cannot imagine their life without work, movement and communication with people. For citizens who work in retirement, the legislation provides for many amendments.
On January 1, 2016, a law came into force that introduced changes to pension legislation. Thus, working pensioners have the right to receive pension insurance and a fixed payment, but are deprived of indexation.
For this reason, a separate rule has emerged to distinguish between the legal statuses of working and non-working pensioners. According to the law, all pensioners who work or conduct other activities are subject to compulsory pension insurance and belong to the category of working pensioners.
Full list of allowances for pensioners, disabled people and dependents in 2021
In particular:
- Citizens who carry out activities in accordance with an employment contract. This group includes heads of enterprises who are the only founders and members of organizations.
- Pensioners who provide themselves with work. Examples: individual entrepreneur, notary, lawyer, persons engaged in any private practice, but who have not registered an individual entrepreneur.
- Citizens who are members of farms.
- Persons working outside the Russian Federation, if insurance premiums are paid (unless otherwise provided by law).
- Clergymen.
- Citizens who carry out other activities or work outside the Russian Federation.
The fact of a pensioner's status is established on the basis of information from a personalized account.
How to find out what the pension of a working pensioner will be after dismissal - latest news from the Pension Fund of Russia
Representatives of the Russian Pension Fund explained the day before how a working pensioner can navigate the amount of his future payment. While continuing to work, any pensioner can find out what his pension will be if he leaves work.
There are two ways to do this:
- personal account on the Pension Fund website - if a pensioner has the opportunity to access the Internet and is registered on the State Services portal, he can check the amount of his pension after dismissal online,
- personal application to the Pension Fund branch - if there is no opportunity or desire to use the Internet, you can ask for the exact amount of the pension, taking into account missed indexations at the Pension Fund branch.
Since the information is already contained in the individual account, it can be obtained instantly. Special calculations are not needed for this.
It is important to understand that if a pensioner quits, starts receiving an increased pension, and then gets a job again, the increase will not be taken away from him. He will continue to receive an increased pension. True, now the new amount will be frozen until the next dismissal.
What options for canceling pensions for working pensioners were discussed
Among the proposals regarding pensions for working pensioners, several can be recalled.
Firstly, in 2021, the Ministry of Finance proposed to cancel pensions for those citizens who earn more than 500 thousand rubles annually (a little more than 41.5 thousand rubles per month). Then the proposal was adjusted and this amount was increased to a million rubles per year (83 thousand per month). The proposal was not accepted.
Secondly, the same Ministry of Finance proposed to deprive working pensioners of a fixed payment to their insurance pension (today it is almost five thousand rubles, by which the payment could be reduced). This idea also did not pass.
Particularly hot bureaucratic heads actually said that it would be nice not to pay pensions at all to people who earn extra money. But no one even bothered to discuss this seriously.
Photo: pixabay.com
Will working pensioners be paid pensions? The Pension Fund responds
Having noticed citizens' serious concerns about this, the Russian Pension Fund hastened to dispel rumors that working pensioners will be deprived of their pensions in 2021. Officials explained that pensioners should not make hasty decisions to stop working, since the payment of pensions for them will continue in the coming year.
The nature of the speculation about the abolition of pensions for working pensioners is unclear, since representatives of the Pension Fund of the Russian Federation stated that they had not reported any such changes.
The difference between the pension of a working and a non-working citizen
- What distinguishes working pensioners from non-working ones is that the latter's pensions are constantly indexed, while for the former, the law has introduced a ban on indexing pensions. Do not forget that branches of the Russian Pension Fund have the ability to constantly monitor whether a pensioner is officially employed or not, since these institutions are operators for employers to pay insurance premiums for their employees.
- Another difference is that non-working pensioners whose pension does not reach the minimum determined by the Pension Fund of the Russian Federation are additionally entitled to a social supplement, which working pensioners are deprived of.
