The indexation of pensions for working pensioners in 2022 will take place, despite the fact that in March 2021, a bill to increase benefits to people who continue to work after reaching retirement age was rejected. So will there be indexing?
Will the indexation of pensions be returned to working pensioners in 2022
The indexation coefficient in 2016 was 98.6. The amount seems to be small, but subject to an annual increase and a large number of pensioners, the country's budget annually spent huge sums on this expenditure item.
In 2016, the indexing of old-age benefits for working people was canceled in order to save the budget. However, representatives of the Fair Country party were the first to notice the negative consequences of the undertaken reform:
- the financial position of elderly people who continue to perform labor functions has fallen sharply;
- the purchasing power of citizens has decreased, which negatively affected the country's economy;
- many older people chose to leave their jobs.
In addition, if we turn to the regulatory framework of the Russian Federation, then in the current legislation one can find provisions stating that annual allowances to social benefits of elderly workers are mandatory, because they are due to inflation.
Today, statistics show that the lack of indexation violates the rights and interests of 10 million working pensioners. In this regard, S. Mironov openly asked the State Duma a question: "Will the indexation of pensions for working citizens of the Russian Federation be resumed?"
The Russian government assures that in the near future the indexation of social benefits to pensioners will be returned. The corresponding law has already been signed and published by the lower house of the State Duma.
Why the pension was not indexed
In 2015, the last indexation of social benefits to working pensioners took place, after which the systematic increase in the amount of benefits was suspended. So, in the period from 2016 to the present, there were no proportional increases in pension.
The abolition of indexation was a forced measure: an imbalance had formed in the country's budget, so the authorities were looking for ways out of the difficult financial situation. After the freezing of regular increases in pensions, it was possible to restore the financial balance rather quickly. According to statistics from the Ministry of Finance, the 2015 reform saved 3 trillion rubles annually, so the country's budget again became surplus. However, the authorities were in no hurry to resume the indexation of social benefits.
The Russian government planned to return indexing in 2020, but either the global financial crisis prevented it from doing so, or the covid pandemic.
How much money is needed for indexing
To resume supplements to old-age benefits for people who continue to go to work, you need to spend 400 billion - 1 trillion rubles annually. A wide range of monetary amounts is due to the categories of financing that will be determined by the RF Ministry of Finance.
Indexation of pensions for working pensioners in 2022: when and how much
Those who follow the latest news know that back in January 2021, the decision to unfreeze the premiums was not approved, although it was already talked about.
However, in the spring of 2021, the State Duma decided to resume additional payments for working elderly people from 01/01/2022. Until this date, the Government will start looking for sources of funds for the implementation of the task. Due to the fact that the pandemic is not over yet, it is possible that the timing of the start of payments will shift again. But V.V. Putin says that there will certainly be payments.The President also emphasizes that working people who have reached retirement age will receive additional payments to their pension for the entire period of the freeze. At the same time, starting from 2022, the payout ratio will increase for both working pensioners and non-working elderly people.
Which working pensioners are eligible for benefits?
Working seniors are eligible for a supplement to social monthly payments. However, in 2016, additional financial incentives for working pensioners were suspended indefinitely. The State Duma, realizing that lifting the indexation freeze regime will require colossal financial costs, is discussing possible options for resuming additional payments to working people who have reached retirement age:
- Equalize the calculated coefficients for the calculation of social benefits supplements for working and non-working pensioners.
- The introduction of additional payments to those citizens who work in the Far North and equated settlements, receiving insurance benefits.
- To carry out indexing of benefits for persons in whose care are incapacitated citizens and minor children.
- To make an additional payment to the pension of elderly parents, whose children receive higher and secondary special education, being full-time students.
- Establish a higher indexation coefficient for disabled people. For this, it is proposed to multiply the usual coefficient by 3.
- Establish an increased indexation coefficient only for those pensioners whose wages during official employment are lower than the average wages in a particular region. The rest of the working elderly people will receive the same allowance as non-working pensioners.
- Not to pay additional payments to working pensioners for the period from 2016 to 2021.
- Resume payments from 2022, and the debt accumulated over the period from 2016 to 2021 to compensate each pensioner after his dismissal from office and retirement.
- Establish a new procedure for obtaining the right to indexation: upon reaching the age of 70.
- Return payments gradually. The first priority is to restore indexation to people who are entitled to insurance benefits.
Today it is difficult to say what decision will be taken by the authorities. It all depends on the social, political and economic situation in the country. The final decision on the date of cancellation of the freeze and the amount of indexation will be made on the basis of the Russian budget.
The indexation of pensions for working pensioners in 2022 is an important social measure, because the pandemic has negatively affected the incomes of many citizens of the Russian Federation. The issue of freezing is constantly raised in the media. The President of the Russian Federation treats working pensioners with understanding and respect, therefore, all the amounts due to this category of citizens will be paid by the state.
