Transferred to the budget: the Finance Ministry wants to change the funding payments to the pension

© RIA Novosti / Andrey to Illiterate in photobacteria the Pension Fund of Russia. Archival photoTransferred to the budget: the Finance Ministry wants to change the funding payments to the pension© RIA Novosti / Andrey to Illiterate the image Bank

The Finance Ministry proposes to Finance a fixed payment to the pension from the Federal budget, now the responsibility is on the Pension Fund, the newspaper «Vedomosti». According to officials, this will not affect people, but will reduce budget transfers to the pension Fund.

What is the fixed payment to the pension

The pension reform law, which established two types of labor pensions and insurance and savings, entered into force in 2015. Then to calculate the insurance part introduced the concept of «retirement score» which is calculated for each year based on salary level, length of service and age of retirement.

Now to get more insurance pension must be at least eight years of service and retirement of 11.4 points. Federal law provides for the annual increase in these indicators up to 30 points and 15 years of service by 2024.

The fixed payment is a part of the amount of pension provision that is set by the state and does not depend on the amount of the contributions paid. The size of the payment depends on the type assigned to the pension and the pensioner’s category and is indexed annually depending on inflation.

After indexing February 1, 2017, the base payout amount (get it people who have reached retirement age) is 4805,11 of the ruble. This figure may increase or decrease depending depending on the category of pensioners by type of pension and the presence of dependents.

A fixed pay can be considered analogous to a fixed basic amount of the pension, which was in force before the pension reform.

What does the Ministry of Finance

The Ministry of Finance proposes to transfer the funding of the fixed part of the pension from the Pension Fund in the Federal budget. Thus officials hope to ensure the preservation of pension rights of citizens in the contribution rate reduction from 30 to 22 percent, which is part of the tax maneuver (it also includes raising VAT to 22 percent).

According to «Vedomosti», against the idea of a tax maneuver stands the social block of the government: the new rules could hurt the funding of the Pension Fund, and most importantly — to reduce the pension rights of citizens.

According to the law on budget of the Pension Fund in 2017 contributions of citizens will amount to 4.3 trillion rubles, while the insurance payment of pensions is required of 6.4 trillion: the missing 2.1 trillion is planned to cover the expense of the Federal budget. The Finance Ministry has estimated that the maneuver «22 22» will increase the transfer of another 1.4 trillion rubles.

Source of «sheets» in the financial-economic bloc is sure that the transfer of a fixed payment to the care budget will not violate insurance principles, but would reduce budget transfers to the Pension Fund of 2.3 trillion to 1.2 trillion rubles.

The newspaper notes that the initiative of the Ministry of Finance will be discussed Monday at a meeting with Prime Minister Dmitry Medvedev.

The experts

Head of the Analytical service of the Association of private pension funds Eugene Basbanes said that the initiative of the Ministry of Finance is little that will change.

«FIU has long fought for something in order to absolve themselves of the obligation to pay those parts of the pensions made by the government out of the insurance principles,» — said the expert Agency «Prime».

According to him, the logic of these attempts wishes are clear and are based on the impermanence of the decisions of the state.

«We see that the government, for example, sometimes the index payment, sometimes no,» — he stressed.

Basbanes added that result from the proposed changes will be zero, since the difference in fact lies only in the fact that instead of transfers to the Pension Fund, the state will pay pensions directly.

The National Association of pension funds (NAPF) believes that in recent years the country has tended to decrease insurance principles in the pension system.

«The increase of insurance contributions to the pension Fund reduces the insurance principle of pension system. Accordingly, the design of the pension system is under a big question,» — said «Prime» the representative of the Association.

In the NAPF noted that in some countries pensions are paid directly from the budget, but then the question arises, why do we need a management layer, which in Russia is the Pension Fund.

The Association believes that the government needs to determine the type of the pension system and not to change so often the rules of the game.

«Either we have the part of the pension insurance, insurance or solidarity, or she’s different, then you have to decide what is», — concluded the representative of the NAPF.