Putin instructed to Finance pension changes

© RIA Novosti / Michael Clientgenerated in Photobacterium of the Russian Federation Vladimir Putin. Archival photoPutin instructed to Finance pension changes© RIA Novosti / Michael Clientgenerated the image Bank

President Vladimir Putin meeting with Cabinet members said that the budget does not receive any income from changes in the pension system and instructed the government to find the funds for made by the head of state amendments.

Putin noted that, when planning for pension changes the government came from the fact that within a few years there will be positive financial results from these activities. «But after the adoption of the presidential amendments, it became clear that there will be no income from these events to change the pension system, but on the contrary, the government will have to orfinancial the President’s proposed amendments — to what extent?» he asked a question to the Deputy Prime Minister Anton Siluanov.

Siluanov in response to the announced plans of the Ministry of Finance to increase transfers to the Pension Fund. The amount of these additional funds for the first time will be about 100 billion rubles, and in General, the introduction of presidential amendments will require more than 500 billion rubles in the next six years.

Pensions above inflation target

Prime Minister of Russia Dmitry Medvedev earlier said that will be sent to the funds received as a result of taken measures to change the pension system.

«One of our goals is the increase of pensions above inflation, that is also a national goal,» Medvedev said at a government meeting.

Earlier Siluanov said that the government is planning the indexation of pensions in 2019, 7 percent, that is, they will grow in real terms even with inflation above forecasts.

The goal is to improve the pension system

The budget deficit of the Pension Fund (RPF) will increase, if you do not take any measures to improve the pension system, while pensions will grow at much lower rates, not higher inflation, said earlier RIA Novosti the Chairman of the Board of the FIU Anton Drozdov.

«If you do not take any measures to improve the pension system, transfer of pensions will inevitably grow, so will increase the budget deficit of the Pension Fund. While pensions will grow at much lower rates, not higher inflation, and their purchasing power will constantly decrease,» he said.

The state Duma on September 27 approved the third and final reading a bill to change the retirement age, taking into account all of the presidential amendments.

In late August, Vladimir Putin has taken initiatives, which will allow to mitigate the decisions.

In particular, it is planned that women will retire at 60 years instead of the previously proposed 63-H. Also mothers with many children will be able to retire early also will remain unchanged conditions of appointment of pensions for the indigenous peoples of the North.

In addition, unemployment benefits for those approaching retirement age increase, and for the dismissal before the pension is entered responsibility.

Now the standard age of retirement in Russia is 60 and 55 years for men and women respectively prescribed by law the retirement age established in the 1930-ies. The question of raising the retirement age has been discussed for quite some time. The need for this is caused by growing life expectancy and the inability to provide a decent pension in circumstances when the number of employees in the country decreases, while the number of pensioners, by contrast, is growing. Today, in most countries the retirement age is 60-65 years.

Putin instructed to Finance pension changes© RIA Novosti, Integratiebeleid in photosangelina Vladimir Putin to change pension legislation