Retirees who have worked or live in the North are entitled to a higher pension. Having a northern employment record also allows for early retirement, while living in harsh climatic conditions entitles retirees to social welfare. 5.6 million retirees today have been assigned higher pensions with northern entitlements.
Retirees who have worked for 15 years in Far North receive a supplement amounting to 50% of the fixed payment to the insurance pension. Following the adjustment in January, that supplement grew to RUB 4,800/month. Those who used to work in localities equated to the Far North receive a supplement amounting to 30% of the fixed payment (RUB 3,200). In both cases, the total insurance work duration needed to qualify for the benefit is at least 20 years for women and 25 years for men. Importantly, the pension supplement is paid even if its recipient moves out of the northern regions.
Retirees who live in the northern regions are also entitled to a higher pension. In that case, its fixed portion is increased by the amount of the regional coefficient, which, in turn, varies from region to region: from 1.15 in Karelia to 2 in Chukotka and certain districts of the Far East. If a retiree moves outside the northern territory, the entitlement to the increased fixed payout terminates.
Worth noting that if a retiree is entitled to increased payouts simultaneously for living in the North and for a completed northern work duration, the supplement is assigned based on one, more advantageous, reason.
Working and living in the North provide other benefits as well. For instance, it is the right to retire 5 years earlier than the general retirement age: starting at age 59 for men and age 54 for women. Residents of the North are also entitled to refunds for their travel expensed to and from a vacation spot. The benefit is provided to non-working retirees biennially. In addition, retirees can apply to the Social Fund for compensation of expenses related to moving to a new place of residence outside the Far North and localities equated to it.