Working pensioners will return 200 billion the government plans to resume indexation of payments

Working pensioners will resume indexation of payments. According to Deputy Minister of economic development Oleg Fomichev, the question is now being discussed in the Department. Informed about the need to study it said Prime Minister Dmitry Medvedev, speaking in the Duma with the annual report. This question is very ambitious and extremely difficult. In Russia there are 9.6 million older people who continue to work. For the indexation of their payments necessary 200 billion rubles. Meanwhile, the budget for the third year a deficit budget and the government barely find funds to pensioners.

photo: Natalia Muslinkina

As pointed out by Dmitry Medvedev, because of the crisis, the government “had to take not very popular and difficult decision to change the indexation”. The fact is that pensions must be increased annually at the inflation rate of the previous year. However, the difficult economic situation has forced officials to abandon the full indexation of benefits: in 2016 it was only 4% with inflation at 12.9% a year earlier. Moreover, this measure affected only pensioners. Those who decided to continue to work — were left without indexation even at 4%.

However, later the government decided to sweeten the elderly the pill is the second indexation was replaced by a lump-sum payment in 5 thousand rubles, that people handed out in January 2017. Moreover, these funds were received as working and non-working pensioners.

However, in 2017 the government returned to the indexation of pensions according to the law. In February, the payments increased for inflation in 2016 and 5.4%. The government has allocated 706 billion. Thus, the average size of pensions of unemployed Russians was 13 855 rubles. But workers pensioners again left with nothing.

The question of how to pay them back the indexing of benefits was raised by the deputies on 19 April in a speech of Dmitry Medvedev in the state Duma. As noted by the first Deputy Chairman of the Duma Committee on education Oleg Smolin, due to the abolition of indexation, workers and elderly Russians were forced to quit work, with negative impact on social well-being of millions of families.

Answering a question of MP Prime Minister admitted that “the situation remains complicated” and promised to return to this subject. Literally two days later confirmed the words of Medvedev, Deputy economic development Minister Oleg Fomichev. “It worked out. It’s simple, we need to consider how many will require a budget, and the government to decide,” the official said on the sidelines of the Krasnoyarsk economic forum.

Indeed, the question of indexation of pensions depends in the budget deficit. A hole in the Treasury at the end of the first quarter of 2017 is 274 billion (1.4% of GDP). Therefore, as stressed by Medvedev in the first place, the authorities “are guided by the indexation for those who are not able to work”. “I think it’s a fair approach. If a person is able to work, but he has a slightly different financial status,” — said the Prime Minister.

According to the head of the Pension Fund of Russia (PFR)Anton Drozdov, for the indexation of payments to working pensioners will require 200 billion rubles. Moreover, according to the official, the FIU in order to consider full indexation has not yet been reported. A need for it, according to experts, are long overdue. “Money from people is becoming less and costs are rising. Reduction of indexation in such conditions and the lives of people is not easy, and the economy slows down,” — said the first Deputy Director of the Institute of contemporary economy Anton Antropov.

Meanwhile, the return of indexation of workers to pensioners could support nearly 10 million people. And that 6.5% of the total population. But where to get the necessary additional 200 billion rubles? “Even with the current indexation reduced the budget of the Pension Fund drawn up with a deficit of nearly 182 billion. That is, this measure will increase the deficit more than twice”, — the expert continues.

Now FIU has two main sources of replenishment of the budget – own revenue from the fees with working people and transfers from the Federal budget. For example, to improve collection of contributions to the pension Fund possibly pulling business from the “shadow”. But this is a long process, it could take several years. Therefore not suitable for financing indexation this year. “But try to get money from the Federal budget there is a chance. But this requires a volitional decision of the top leadership of the country. In particular, should abandon the policy of pathological hoarding. Furthermore, it should mitigate the fiscal rule, which is now surplus to go to purchase foreign currency and not to Finance current needs,” says Antropov.

Read a material “the MAYOR thought about the indexation of pensions to working pensioners”