The government will change the formula for calculating pensions

The government intends to change the formula for calculating insurance pensions, Vedomosti write with reference to two federal officials and participating in the discussion of the expert’s issue. It can be about the abolition of a point pension formula.

Details

• The government’s work plan approved by the ministers on Thursday until 2024 (the software document that Vladimir Putin instructed to approve after the “May Decree” ), including the development of the pension system. In particular, the authorities want to improve "the main parameters of the distribution component of the pension system, taking into account demographic and economic conditions."
• We are talking about the abolition of a point pension formula that has been currently in force since 2015, says one of the interlocutors of Vedomosti. However, the other two argue that there was no discussion of the cancellation of the point formula - so far it is only clear that the calculation of pensions should be improved.
• The point formula contains an imbalance, says one of the sources of the newspaper: the pension score is indexed by the level of inflation - in the long run, this leads to an overestimation of pension obligations, the formula itself is incomprehensible and too much depends on the salary - an employee of the budget sphere with low salaries is “doomed” for a low pension.

Context

• Now the right to insurance pension is received by a person who has reached retirement age, who has accumulated a certain work experience and earned the required number of individual pension points. When assigning a pension, the accumulated points are transferred to rubles, their “cost” determines and annually indexes the state, and a fixed payment is added to this.
• As of 2018, one pension score is 81.49 rubles, a fixed payment is 4982.9 rubles. The right to an insurance pension is received by a person who has accumulated nine years of work experience and earned 13.8 pension points. By 2025, the requirements will increase to 15 years and 30 points, respectively. You can read details about the system for calculating the insurance pension here .

Source: PFR

• In June, Deputy Prime Minister Tatyana Golikova spoke about the government plans to abandon the point of the pension system. According to her, this is a difficult decision that "will have to make."

When entering the point formula in 2015, experts opposed its complexity, but in the end, people figured out and got used to this calculation, Tatyana Omelchuk, senior researcher at NIFIA OF NEFIA, told Vedomosti. According to her, changes in the calculation of pensions will only provoke an additional distrust of the pension system. However, in June, Golikova said on the air of Russia 24 that the point formula did not work, and pensions were never indexed on its basis.

Artem Gubenko