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Indexation of pensions for working pensioners: statement by Vladimir Putin at SPIEF 2024

Date: July 13, 2024 Time: 19:48:20

This decision was expected. According to the Russian Social Fund, as of January 1, 2024, 7.87 million pensioners worked in Russia. Many of them continue to work after they retire due to small pensions, which can be difficult to live on given increasing inflation. And if for non-working pensioners the same inflation was taken into account each year and indexation was carried out, then for non-working pensioners there was no such benefit. Fair? Hardly.

Vladimir Putin’s statement at SPIEF 2024

Thus, Vladimir Putin, in a meeting with the Governor of Saint Petersburg, Alexander Beglov, during the Saint Petersburg Economic Forum, in response to the corresponding proposal of his interlocutor, gave the go-ahead.

– I agree with you, we must make this decision. Maybe I’ll say it right now on the forum,” he said.

Vladimir Putin gave the green light to the indexation of pensions for working retirees.

Photo: Yulia PYKHALOVA. Go to Photobank KP

And then he emphasized that this is one of the priorities of our social policy:

– We need to support people and ensure the social justice we constantly talk about.

Subsequently, the Head of State ordered to ensure the adoption of the necessary bill during the spring session of the State Duma by August 4.

“Indexation of pensions of working pensioners will begin on February 1, 2025 and will then be annual,” Putin announced.

Employment and career expert Harry Muradyan is confident that this measure is necessary. After all, indexation is the right of any pensioner, regardless of her employment.

“A working retiree pays insurance premiums and is obliged to receive an indexation of his pension,” says the human resources expert. – In addition, given the shortage of labor in the Russian market, this will have a positive impact on the dynamics of filling vacancies. There are catastrophically few workers, and we ourselves created this shortage and limited the labor market by not increasing the pensions of working retirees in the same way as those of non-working ones. The pension of a working retiree should be no different. After all, in the end the pensioner either does not go out to work, although he can still do so, so as not to lose indexation, or he constitutes a shadow employment workforce in the market.

How have pensions been increased so far?

The pensions of working retirees ceased to be indexed to annual inflation since 2016. But the length of service of employees of retirement age increased and pension points were accumulated. And once a year, on August 1, the Social Fund adjusted the amount of their pensions taking into account the additional points they accumulated. But with a limitation: an amount that does not exceed the value of 3 points per year could be added to the current pension. In 2024, this amount will be 133.05 rubles. This means that the maximum increase for working pensioners from August 1 cannot exceed 399.15 rubles. And some will have even less, it all depends on the salary level.

Starting in 2025, apparently, the indexation of the pensions of working retirees will be the same as that of those who do not work: by the inflation percentage. And the payment will be greater than an increase of 3 pension points.

Now in Russia pensions are indexed annually in two categories. As a rule, from January 1, insurance pensions increase in accordance with the inflation rate (this year by 7.5%), they are received by those who have accumulated experience and reached retirement age. And as of April 1, social pensions are also adjusted (they are assigned for disability, old age, loss of breadwinner and paid to orphans).

* This website provides news content gathered from various internet sources. It is crucial to understand that we are not responsible for the accuracy, completeness, or reliability of the information presented Read More

Puck Henry
Puck Henry
Puck Henry is an editor for ePrimefeed covering all types of news.
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