Russian Pension Fund sums up results of 2018 transfers
The Russian Pension Fund has summed up results of pension savings’ transfer to private pension funds and management companies in 2018.
State pensions grow 2% on April 1
State pensions, including social pensions, grew 2% on April 1, 2019, consistent with the increase of the pensioner’s subsistence minimum in 2018. The raise applied to almost 4 million pensioners, including 3.2 million recipients of social pensions.
Russians, who have no permanent residence address, have their pensions assigned to actual place of residence
Russian citizens, who have no permanent residence address, can have their social pension assigned to the actual place of residence, consistent with the amendments to the state pension assignment regulations that took effect in March. Social pension applicants can certify their residence in Russia with a statement personally filed with the PFR or documents issued by social service institutions, correctional institutions, or educational institutions where the person is registered with.
PFR personal account section’s audience grows to 11 mln in 2018
The personal account section of the Russian Pension Fund’s website had a series of useful updates last year. Thirteen new options opened to provide nine types of public services. Most options are electronic applications for PFR payments.
Auction held to deposit pension savings into banks
Applications for placing pension savings into bank deposits have been processed at the St. Petersburg Currency Exchange. The application of one credit institution for 15.4 billion rubles, i.e. the entire auctioned amount, was accepted. Pension savings were placed into bank deposits for a period of 109 days at an annual rate of 7.87%.
Families continue to receive monthly payments from maternity capital
In 2019, the maternity capital program continues to offer new areas of support to families with children instituted last year. One of these areas is the monthly payments for a second child born or adopted by families with a low income after January 1, 2018.
Auction held to deposit pension savings into banks
Applications for placing pension savings into bank deposits have been processed at the Moscow Exchange. The application of one credit institution for 500 million rubles, i.e. the entire auctioned amount, was accepted. Pension savings were placed into bank deposits for a period of 45 days at an annual rate of 7.7%. The volume of applications more than twice exceeded the auctioned sum.
Auction to be held at Moscow Exchange to deposit pension savings into banks
Some 86,000 pensioners trained under Internet ABC program in 2018
Indexation of pensions to be based on pensioner’s subsistence minimum
Consistent with the proposal made by Russian President Vladimir Putin in his annual address to the Federal Assembly on February 20, the indexation of pensions and monthly benefits will be based on the pensioner’s substance minimum. This means that the indexation will apply not to the current amount of pensions and monthly social benefits, but to the overall payments to pensioners, which are increased to the amount of the regional pensioner’s subsistence minimum with the supplementary social benefit.
The current rules require that the indexation disregards the pensioner’s substance minimum. So, every indexation increases the amount of pension and proportionately reduces the supplementary social benefit, which keeps the pension at the subsistence minimum. As a result, payments received by some pensioners do not increase after the indexation.
The proposed amendments will first increase total payments to the pensioner to the subsistence minimum and provide the indexation of pension afterwards. Pensioners will receive the indexation in addition to the regional pensioner’s subsistence minimum, and the overall payments to pensioners will exceeded the pensioner’s subsistence minimum as a result of indexation of pensions and monthly social benefits of the current year.