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Pension provision in Russia is the central topic of news. The reform, which began several years ago, is regularly amended. Pensioners are one of the least protected categories of the population. The cash payments assigned to them are negatively affected by the increase in the cost of social medicines, goods, services (medical, utilities).

To offset this, the government introduced annual income indexation. Today there is talk about its complete replacement with a lump sum payment. Will there be a lump sum payment to pensioners in January 2018?

Problems with pension indexation

The economic situation that was observed in Russia in 2016 forced the country’s government to freeze the indexation of allowances for those pensioners who, after entering their well-deserved retirement, continued official work. The insurance part of the pension was raised by 4%, while the inflation index was 12.9%. It was planned to increase the incomes of pensioners to protect them from depreciation.

However, under the influence of the economic situation, a decision was made to pay a lump sum payment in the first half of 2017. Its amount was 5,000 rubles.

Over the course of several years, trade union leaders made numerous attempts to convince the government and achieve the return of bonuses for. Before the adoption of the budget for 2018-2020, expert opinions were often heard in the press that indexation would be returned. However, Finance Minister Anton Siluanov, speaking in the State Duma, assured that the norm adopted in 2016 will not be canceled.

The one-time payment to pensioners is 5,000 rubles

Who is entitled to payments in the amount of 5,000 rubles

The concept of a one-time payment was enshrined in the Federal Law adopted by the State Duma on November 11, 2016 and approved by the Federation Council. According to the text of the document, the right to receive additional payment arises for all citizens of the Russian Federation who, as of December 31, 2016, have the official status of pensioners.

The draft of this Federal Law did not mention persons who retired from military service. However, after the changes were made, the document extended to military pensioners.

The list of persons who may qualify for a one-time payment is as follows:

• receiving insurance pensions;

These are citizens who are insured in the Compulsory Insurance Policy system and for whom the employer has made contributions to the Pension Fund throughout the entire period of their working activity.

It is known that the right to receive an insurance pension arises in the event of an insured event - loss of a breadwinner, old age, etc.

• receiving pensions under state pension provision;

Persons who apply for this type of payment include citizens who have lost their ability to work; flight test crew members, astronauts, government officials; victims of the Chernobyl accident, military personnel.

One-time payment to pensioners

What can non-working and working pensioners expect in 2018?

The economic situation in Russia continues to remain unstable. Therefore, the question of whether a lump sum payment will be paid to pensioners in January 2018 is relevant.

Statistics show that in March of this year, the population's real income increased by 8%. Economists were not pleased with this news, since the increase was not driven by an increase in pensions, but by the payment of a one-time benefit in the amount of 5,000 rubles. Information from Rosstat confirms the artificiality of income growth.

The department's April report noted that real income of the population decreased by 7.6% when compared with figures for the same period in 2016.

Payment to pensioners in 2018

Realistically assessing the capabilities of the federal budget, the answer to the question of whether there will be a lump sum payment to pensioners in January 2018 will be negative. Economists say the budget deficit by the end of the year is about 3%, industry is in decline, causing tax revenues to fall by 2.7%. In addition, the reserve fund has been almost completely used up, and the volume of the National Welfare Fund in a difficult economic situation will last no more than two years.

However, according to experts, the government is unlikely to refuse the lump sum payment, since the country will hold presidential elections in March next year. The voices of nearly 40,000 retirees are vital. The government will be forced to resort to all possible economic tricks in order to pay pensioners 5,000 rubles. It is possible that the relevant structures will be given an order to turn on the printing press and introduce additional money supply into circulation.

Experts also add that in 2018, the practice of 2017 will be continued in order to save budget funds. Namely, the refusal to pay benefits to those pensioners who live outside the Russian Federation. Today it is not known for sure whether a one-time payment of 5,000 rubles will be paid to such pensioners in 2018.

The question of a lump sum payment remains open

However, the probability of failure is high. Focusing on the unstable economic situation in Russia, the government will most likely refuse assistance to pension recipients living outside the Russian Federation. The main argument is this – the standard of living, which in most European countries is much higher.

It is not known when the lump sum payment will be issued to pensioners in 2018. This is expected to happen before the election race begins. Experts do not make any predictions as to whether the practice of assigning a lump sum payment will continue after 2018. Much depends on the election results and the economic situation in the country. Artificially increasing the money supply takes too long and is extremely dangerous for the economy, as it can lead to a sharp rise in inflation.

Disabled people have been and will remain the least protected social group. Now, according to statistical data, their number in Russia is about 10% of the total population. This is not so much compared to other countries, but our mortality rate is much higher.

They decided to abandon the one-time indexation in January 2018, since it turned out to be unprofitable for pensioners at the end of 2017. But due to the fact that there is a serious shortage of funds in the Pension Fund, a one-time payment will still have to be made. Subsidies will be made at the end of 2018, as compensation for the increase in pensions that was not carried out in full in 2018.

Pensioners are really waiting for the transfer of 5 thousand rubles, as in 2017. However, for them this is the last opportunity to get the required indexation. On the other hand, for the Government this is also a real way out of the current situation, when, due to the unstable financial situation, it is not possible to index pensions in full. Thus, a lump sum payment is just compensation. However, not everyone will be able to get it.

Only a few categories of pensioners can apply for a payment of 5 thousand rubles:

• pensioners who receive payments under government support programs;
• old age pensioners;
• families who have lost their breadwinner;
• people with disabilities;
• military pensioners.

Working pensioners have the right to choose which compensation they will receive - wages or pension.

The list of those who cannot qualify for payment was established by law. The reasons why the categories of such persons were identified are quite extensive.

First of all, pensioners who do not permanently reside outside the Russian Federation will not receive support. The government decided that this category does not need additional money.

The payment amount at the end of 2018 will be exactly 5 thousand rubles. The amount will not change depending on the type of pension, size or other factors. The amount of state support was established after summing up the general indexation for all pensioners in Russia. Thus, 5 thousand rubles is the arithmetic average.

Will there be a one-time payment to pensioners by the end of the year?

It is expected that in 2018 pensioners will receive subsidies from the state. This topic is widely discussed in the media, but Dmitry Medvedev commented on the situation only recently. It is reported that the indexation of pensions will be planned. Its level will indicate by what percentage the pensions of Russian citizens will be raised in 2018. It is expected that indexation will be equal to the inflation rate for 2017.

At the beginning of 2017, all pensioners, without exception, were happy with a payment of 5,000 rubles. Since the New Year is approaching for citizens receiving pensions, it will be interesting whether a similar lump sum payment to pensioners will be made in January 2018.

The one-time payment to pensioners was of a compensatory nature. This means the following. The state has undertaken to index social benefits due to rising inflation. But given the unstable financial situation of the country in previous years, it was decided not to provide benefits. Having increased the level of pensioners' maintenance twice in 2016, the authorities lost funds for indexation.

The funds covering the depreciation of state maintenance are taken from the funded pension, one of its parts. Since many citizens made a choice not in favor of the Russian pension fund and preferred to transfer their pension savings to commercial organizations, this created a cash deficit in the state budget.

Then it was decided to make a one-time payment, which was compensation for the unfulfilled promise of indexation.

In pursuance of this decision, it was adopted Law “On one-time payment to pensioners”, according to which material assistance was provided to all types of this category of beneficiaries, including payments. In addition to them, additional funding was provided:

• Disabled people;
• Families who have lost their breadwinner;
• Non-working pensioners;
• Military in reserve.

The one-time financial assistance did not apply only to those who, receiving a Russian pension, permanently reside abroad.

The size of the payment was taken from the calculation of the indexation amount of the average pension for the year, so the monetary compensation of 5,000 rubles for some types of pensioners was more than the amount that would be due to them if the state fulfilled its promises in full.

Will there be a payment in 2018?

On the Pension Fund website you can see whether pensioners should expect a payment of 5,000 rubles in 2018. Today, there is a stabilization of the situation with financing payments to pensioners. For 2018–2019, the budget includes an increase in spending on pensions by 279 billion rubles.

During the first half of the year, the authorities planned to carry out indexation of pensions in full, namely:

1. For unemployed citizens - in the first quarter;
2. For workers and those receiving social benefits - in the second quarter.

Since indexation replacement is not required, a lump sum compensation payment will not be made in 2018.

To avoid confusion, the concepts of a one-time payment that compensates for the lack of indexation and a one-time payment from a funded pension should be differentiated.

One-time compensation payment	One-time benefit from funded pension
Used once	Possibility to use from the moment of retirement at any time (no more than 1 in 5 years - with partial payment)
Applies to all pensioners (except for those living outside the Russian Federation)	Valid only in relation to a specific citizen who has retired due to old age and meets the conditions established by current legislation
Clearly defined size	The size is indicated by the applicant, determined at the discretion of the Pension Fund employees
Paid along with the next monthly payment, without the participation of the recipient	Mandatory application procedure for obtaining

About indexation of pensions in 2018

The one-time benefit paid to pensioners in 2018 is a measure that allows increasing the income of privileged categories of citizens in connection with the suspension of the accrual of allowances taking into account indexation. The Russian government was forced to take such measures to save budget funds. Such a replacement was justified from an economic point of view, but at present the budget deficit is not the same as two years earlier, and the state is striving to fulfill its obligations to beneficiaries. The replacement payment is beneficial to recipients of low pensions ( less than 12,400 rubles) and then only in a period of 1 year. It is not added to the monthly amount paid, and therefore is not indexed in the future.

According to the latest news disseminated by the Pension Fund, starting from January 1, it is planned to index the current level of pensions by an amount exceeding the predicted inflation rate:

• Labor – 3.7%;
• Social – 4.1%.

At the beginning of 2018, pension benefits should undergo the following changes:

1. The fixed amount will increase to 4982.9 rubles;
2. The pension score will increase to 81.49 rubles, which means indexation of insurance pensions.

In addition to the above-mentioned increases in pensions, you shouldn’t expect anything else in the first half of the year, since the Pension Fund bears expenses not only for the maintenance of pensioners, but also for the implementation of government programs.

Is there any other way to get some of my pension savings?

Current legislation provides for the only possible way to receive all the funds provided for the pension support of a citizen. Federal Law No. 360-FZ “On the procedure for financing payments from pension savings” stipulates what the lump sum payment should be to pensioners.

This type of funded pension payment is due to a certain part of pensioners who:

1. Are recipients of an insurance pension due to the death of the breadwinner or disability;
2. They are not granted the privilege of state support upon reaching the age specified by law due to an insufficient period of work and an insurance coefficient of less than 30;
3. They have the right to become recipients of an old-age pension (in some cases even ahead of schedule), but the funded pension (if assigned) will be equal to or less than 5% of the value = insurance pension + fixed payment;
4. Participate in and receive money;
5. Deductions were received into the account of the funded part of the pension from 2002-2004 (they stopped in 2005);
6. We have accumulated funds, but the collection process is now suspended.

Those who are deprived of this privilege are:

• for whom a monthly funded pension has already been established;
• who have already used it and have not yet passed the five-year period from the date of receipt.

The minimum amount paid is 5,000 rubles. The final decision on the issuance and amount of part of the savings is made by employees of the Pension Fund, with the calculation of savings for the entire period of work and the employer making contributions to the individual personal account of the employee who has retired.

The PF procedure is as follows:

1. Checking the compulsory insurance contract if the applicant applied to a non-state PF;
2. Checking the circumstances of receiving a pension or survivor's benefit, calculating length of service and points;
3. Review of documents to determine the possibility of assigning pension benefits and its amount;
4. Review of personal account data and calculation of possible payment;
5. Making a reasoned decision on issuance or refusal.

The main thing is to comply with the declarative nature of the appeal. The deadline for making a decision is 30 calendar days.