Up to 60 instead of 63 – and the more power can “sweeten” the pension reform

The discussion of pension reform by the end of summer has passed the stage of finding ways to mitigate the negative effects of raising the retirement age. According to the TV channel RTVi, Russian President Vladimir Putin during a regional trip in the last week of August is going to announce on the mitigation of future changes. “Pravmir” gathered the most popular suggestions for changes to the pension reforms.

Photo: VK/Orthodoxy in Tatarstan

  • Oleg Shein: Why all Russia has to work a hundred super-rich families?
  • What’s wrong with raising the retirement age in Russia
  • Pension reform: people do not explain anything and hit with a brick on the head
  • “Will, will fulfill” – how the regions reacted to the increase in the retirement age

Raising the retirement age for women to 60 and not 63 years

– Women should be given freedom to take care of health. We have a saying about a burning house and a horse, but still we have to take care of them.

Yunus-Bek Yevkurov, head of Ingushetia

This is the only significant change in parameters of the pension reform in 2018, which, apparently, is ready to go to the Russian authorities. Speaking at a parliamentary public hearing on August 21, Minister of labour and social protection Maxim Topilin once again sounded the main thesis of the Federal government: alternatives to raising the retirement age there, and the authorities do not intend to abandon this measure. In July, Finance Minister Anton Siluanov said that his Ministry will not “bargain” in the parameters of controversial reforms.

Speaker of the state Duma Vyacheslav Volodin at a meeting with voters in Saratov in mid-August, has formulated this idea even easier – if not to raise the retirement age, the state pension in Russia may disappear altogether.

– We have a pension system the state has a deficit, it that’s the hole, and due to the budget filling. We will have on state pensions or not, it is also a question, because the budget became scarce, – gave his words a local Agency “Free news”.

The initiative to revise the new retirement age for women at hearings in the state Duma was expressed by the Secretary of the Russian Public chamber Valery Fadeev.

– 63 – the age of retirement for women. Of course, it’s too much obvious. And in all the regions where we had hearings, colleagues oppose. It is very insulting, I think, a sharp increase in the retirement age for women, ‘ he said, speaking before the deputies.

The proposal to raise the retirement age for women at eight (from 55 to 63 years) and five (to 60) years were kept in one of the alternative reform scenarios, developed by the Ministry of Finance in the spring of 2018. For this option in the summer was supported by the representatives of several regional legislative councils (in the Kaluga, Murmansk and Rostov oblasts, Altai and Khakassia) and the head of Ingushetia, Yunus-Bek Yevkurov. Another “female” version of easing unpopular measure to consider when calculating seniority, the time that mothers spend on bearing and raising children.

The increase of transition reforms

– We are the middle generation in the grave drive. How will they live longer if we make them work more? People live longer if they rest.

Vladimir Zhirinovsky, head of LDPR faction in the State Duma

The government’s proposal includes raising the retirement age according to the scheme “year over year”. Men born in 1959 and women born in 1964 will retire in 2020 (and not in 2019 as it would be without reform), in 2022 the time to go on vacation will come for men born in 1960 and women born in 1966 (for which the retirement age will be 62 years and 57 years, respectively). Thus in 2021 (and in all odd years to complete the reform) retirement anybody will not go. So the retirement age will increase until 2028 for men and 2034 for women.

Secretary of the Public chamber Valery Fadeev has suggested to increase the transition period doubled according to the scheme “year two”. According to him, this will give the people who will be most affected by reforms – those whose pension age will come within the next decade – the time to prepare for life in new conditions.

– Experience shows that this way, year after year – this has not happened in any country. It’s too fast. Let’s do it more slowly – for two years. What’s the hurry? The President said that we have five to seven years is, the financial condition of the country is normal, we have time. Why do we drive? Why offend people, to fit people to change their plans? he said at hearings in the state Duma.

With a similar initiative in mid-July was made by the Russian popular front. “Change” the retirement age according to the proposal of the social worker, should occur every two and every three years: men and women will be able to retire at 61 and 56 years, not only in 2020 but also in 2021. A “blank” year without seniors will be 2022 (and beyond – 2025, 2028 and so on). Completed increase for men in 2033, and for women in 2041 (i.e., five and seven years later than the current scheme).

The government then opposed the extension of the period of the transition period – according to Deputy Minister of labour and social protection Andrei Pudova, in this case, you will not be able to increase pension of 1000 rubles a year. It is the growth of pensions of the Russian authorities to justify the necessity of raising the retirement age.

The provision of benefits upon reaching the “old” retirement age

In different countries people are paid for their labor in retirement adequate income, the share of pension contributions cost of pensions in the national economy is about 17%, and we have 8 per cent. Therefore, the European employee may, at his retirement around the world, and our employees around the world on his pension, perhaps, can only go.

Oleg Shein, Deputy of the State Duma from party “Fair Russia”

“United Russia”, which became the main driving force in the promotion and adoption of a bill to raise the retirement age decided in its proposals to mitigate the reforms to bet on the benefits for those who would become pensioners in the pre-reform rules. The initiatives the party announced in late August.

So, women 55 and men 60 years to retain the tax benefits, the right to receive compensations for payment of communal services, public transport, purchasing of medicines and other social benefits. In addition, the United Russia party has offered to pay the pension from the “old” retirement age. Another proposal of the ruling party – to enter additional paid leave and provide free medical examinations for the “pretensioner”.

Most likely, these offers President Vladimir Putin will build on the “softening” of the reforms. They do not affect the basic parameters of raising the retirement age (the term output at rest and the length of the transition period) and thus look like the material support of older persons, allowing the government and her party to save face.

Another initiative of United Russia does not apply state: Secretary of the General Council of party Andrey Turchak has proposed for regional level consultations, which could be voluntarily establish additional benefits for pensioners and pretensioners.

However, attempts of United Russia to soften reform, not yet able to prevent disagreements within the party. The faction “United Russia” in the state Duma condemned the position of Deputy Natalia Polonskaya, voted against a bill to raise the retirement age in the first reading. But unanimity in regard to the disputed bill not everyone liked the party members.

– Among the deputies who voted unanimously for pension reform, a lot of very wealthy people, and they don’t understand how and what lives of ordinary people. In the Communist party, where I was his student years, democracy was more than “United Russia”. Subordinate to party meetings could dare to criticize the authorities, it listened to them. And now all who disagree with the policy of the party is being criticized – the same Polonskaya, for example. If all should Express the same opinion, then why be in the party? – outraged former Deputy of the Voronezh regional Duma Vyacheslav Astankov, wrote a statement of withdrawal from the “United Russia” from-for its positions on pension reform.

The abolition of pension privileges of deputies

 – What is the government? These are the people who need to arrange your people happiness here on Earth in his temporal life. Just go and withdraw money from the afflicted people is, sorry, not Christian.

Archpriest Dimitry Smirnov, Chairman of the Synodal Department for cooperation with Armed forces and law enforcement agencies

Another initiative of “United Russia” aims to show solidarity enacting MPs and future retirees. Andrey Turchak has proposed to cancel all preferences for state Duma deputies and Federation Council members.

However, without additional revenues, the deputies can count on a pension that exceeds the income of ordinary pensioners. According to “Vedomosti”, with the average monthly pension in Russia at 13.3 thousand rubles, spent five years the MP could count on a minimum pension of 46.6 thousand rubles, and the MP with a decade of experience – by 63.6 thousand.

Member of the state Duma Commission on the ethics of Raisa Karmazin invited colleagues to go further and to abolish the retirement allowances of officials of the Federal government. These measures, however, in all cases, are only symbolic and are unlikely to seriously alter the situation of the Pension Fund.

The rejection of raising the retirement age

– Call, send telegrams, letters. Say you are there in the Duma just gone crazy with their government? One person told me that the law as four hours on June 22.

Nikolay Haritonov, the Deputy of the State Duma from the Communist party

Against raising the retirement age, in principle, made all three Duma opposition factions, the extra-parliamentary opposition, trade unions. The Communist party, followed by other parties, announced the beginning of procedure of a referendum. Since the beginning of August, the CEC registered several questions for the popular vote:

  • Do you agree that the laws of the Russian Federation on pension provision as at 1 July 2018, the age, the achievement of which gives the right to the appointment of insurance old-age pension (for men – 60, women – 55 years), must not be increased?
  • Do you support that the established legislation of the Russian Federation on pension provision as at 1 July 2018, the age at which there is a right to a retirement pension cannot be increased?
  • For you to the age established by the legislation of the Russian Federation on pension provision as at 1 July 2018, at which there is a right to pension for old age, not changed?
  • For you to established by the legislation of the Russian Federation on pension provision as at 1 July 2018, the age at which citizens of the Russian Federation have the right to pensions for old age, not increased?
  • You are for a ban on the increase in established by the legislation of the Russian Federation on pension provision as at 1 July 2018, the age at which there is a right to pension for old age?

The abundance of options questions for voting and the complicated bureaucratic procedure of the referendum hampered coordination of opponents of pension reform. None of the initiative group, including the Communists, now can’t complete the paperwork until the end alone.

Unlikely to announce the abolition of the pension innovations and the head of state. Commenting on the reform, Mr Putin said that the authorities in any case “have to take some decisions”, and opportunities to maintain the pension system in its current form, in his opinion, will last only for ten years.


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