Indexation 4.1%: labor Minister spoke about the rise of social pensions

© RIA Novosti / Alexander Krauledat in motobanquistas pensions. Archival photoIndexation 4.1%: labor Minister spoke about the rise of social pensions© RIA Novosti / Alexander Krajevima the image Bank

Social pensions will be raised by 4.1 per cent from 1 April 2018, said the Minister of labour and social protection Maxim Topilin.

The social pension is paid to disabled citizens — it is prescribed disability in case of loss of breadwinner and old age. Social pensions are indexed annually from 1 April, depending on how much increased subsistence level.

Insurance pension

Insurance pension next year will index higher than the inflation rate — 3.7 percent, said Topilin.

In addition, indexing will be carried out from 1 January, while other social payments will be indexed from 1 February and on the actual inflation rate. According to forecasts of Ministry of economic development, at the end of the year the figure will be 3.2 percent.

«Due to the fact that we have changed the forecast 3.2 per cent inflation will be this year, in this regard, the decision to index pensions by 3.7 percent from January 1 next year, not from 1 February,» the Minister said. He explained that the term indexing changed in order to provide a greater increase in real pensions in 2018.

According to Topilin, the bill approved by the government, later it will be submitted to the Duma.

Insurance pension derived from employer contributions to the Pension Fund. On a pension to eligible citizens who are registered in the system of mandatory pension insurance.As reported, Finance Minister Anton Siluanov, pensions to working pensioners in 2018 will not be indexed.

«By working pensioners we have provided for preservation of the regime, which acted this year: that is, we do not provide any indexation,» — said the Minister of Finance.

The law on the abolition of the indexation of pensions to working pensioners has been operating in Russia since January of 2016. In the state Duma and the Federation Council have repeatedly raised the issue of the return of indexation of pensions to working pensioners with low wages, but a positive decision on this issue was not accepted.

Pensions will grow

Pensions pensioners from 2018 to 2029 will increase by 11 percent, said the head of the FIU Anton Drozdov.

«In General, there will be further growth of 11 percent for pensioners and provides for the reduction of the dependence of the Fund on budget size from 150 to 200 billion rubles,» — said Drozdov.

He also said that for pensioners, whose pensions below the subsistence minimum by region, provided by a social Supplement. The surcharge is set so that the total material support of pensioners was below the subsistence minimum for pensioners, established in the region as at 31 December of the previous year.

The head of the FIU noted that the subsistence minimum of a pensioner in 2018 does not reach the subsistence minimum in 2016, so for those who have a social Supplement was at high level, it is at this level and remain.