The Russian government and the presidential administration are considering increasing the minimum seniority entitling to old age pension, as an alternative to raising the retirement age. It is reported by family-owned Demyan Kudryavtsev, the newspaper “Vedomosti”.
The newspaper’s sources said that the sharp increase in the retirement age did not receive a positive response from the Russian society, and will not give immediate desired effect for the state budget.
The increase in experience, in turn, prostimulirujte people to work longer and to leave the grey sector salary in order to receive a higher pension insurance. It should bring additional revenues to the Pension Fund, and also to give the Russian economy recovery, said the interlocutors of “Vedomosti”.
One source told the newspaper that a sharp increase in the minimum length of service should not wait, in fact, it will delay pension reform, and raising the retirement age in the future is inevitable. Another interviewee thinks otherwise — he pointed out that the increase in seniority for accrual of pension can be replaced by raising the retirement age.
The newspaper’s sources did not indicate how much may increase the rate of minimum work experience. “Vedomosti” remind that now men in Russia retire at 60, women at 55.
To be eligible for insurance old-age pension in 2017, you must have at least eight years of insurance, pension and 11.4 points. Pension legislation provides for a gradual increase in the minimum number of pension points up to 30 and the minimum insurance period to 15 years — by 2025.
12 September, “Vedomosti” reported that the Ministry of economic development in the updated macroeconomic forecast for 2018 to 2020 expects a decline in the value of pensions in real terms: in 2018, 0.7 per cent in 2019-2020 — by 0.6 percent, due to the cancellation of indexation of pensions to working pensioners.
On the same day the Pension Fund of Russia said that the average amount of insurance old-age pension in 2018 could rise to 14 045 rubles, compared with 13 657 rubles in the current year. While the Fund in its calculation uses the data of the already-adopted budget for 2017-2019, and not updated in 2018-2020.