Pensions for Crimeans: how will they be counted and when?

More than a third of the population of the Crimean peninsula are citizens of old age, so that the indexation of pensions in the Crimea, the recalculation of the order and amount of cash payments and other issues related to this topic are perceived by the population quite sharply. The FIU timely informs residents of all changes, but this news is surrounded by a lot of rumors and conjectures.

Pensions in Crimea after reunification with Russia

At the end of March 2014, the inhabitants of the Crimea for the first time began to receive financial security in rubles. Pensions for Crimeans (as they will be recounted, was determined by the Government of the Russian Federation, part of which became the Republic of Crimea and the city of federal significance Sevastopol) were recalculated from hryvnia to rubles at an increased ratio. In addition, from April to July inclusive, pensions doubled.

In numerical terms, the average monthly payment in the spring of 2014 was only five thousand six hundred rubles. After the final increase, the average payments to pensioners amounted to eleven thousand two hundred rubles. In Sevastopol, average pensions for Crimeans (as they will be recounted later, it was already clear) amounted to twelve thousand four hundred rubles.

At the same time, the inhabitants of the Crimea were given the opportunity to become participants in the mandatory pension insurance system and receive an individual savings account, which indicates the active integration of the republic into the legislative space of the Russian Federation.

Retirement benefits in 2015

Already in 2015, pensions for the Crimeans were more outlined. How will they be recalculated according to the new legislation? Since the entry of the Republic of Crimea into the legislative space of the Russian Federation, pensions have been accrued according to general rules. At that time, many thought that cash payments would decrease significantly, but in reality there were no grounds for concern.

The amount of payments received by pensioners on a monthly basis by the end of 2014 was called the "saved pension". If the recalculation, according to Russian legislation, cash payments were becoming less, the pensioner continued to pay the "saved amount". It is this amount that a person will receive until, with the next indexation, the payout size does not equal or exceed the saved one. In the future, the pension will be in accordance with the generally established procedure.

Pension support "on the Russian model"

In the Russian Federation, pensions are accrued differently than in Ukraine. In connection with this fact, there are many not fully clarified points regarding pension for Crimeans. How will they be recalculated, and what changes are expected by the inhabitants of the peninsula?

In the Russian Federation, the state pays three types of monetary security for old age and other reasons for the termination of employment:

• State pensions;
• Insurance;
• Accumulative.

In addition, there is a voluntary pension, the formation of which the citizen is engaged alone or with the involvement of non-governmental organizations.

The insurance pension compensates the pensioner for the salary that he received before the completion of work. The accumulative payment consists of funds that have been accumulated at the expense of mandatory (made mandatory by employers) and voluntary (contributed by the citizen himself before retirement) contributions.

The pension for state support is only for certain categories of citizens. Such payments compensate for the wages that the pensioner received before the completion of work, as well as the damage to health. State pensions are received by former civil servants (with experience not less than fifteen years), cosmonauts, servicemen and flight test personnel (at a service of at least twenty-five years for males and twenty for women).

All citizens residing on the peninsula can receive a state pension (if there are grounds for receiving this kind of payment), insurance (it is calculated by default, since the Crimeans did not have the opportunity to form an individual funded pension before reunification with Russia) and mixed. A mixed pension (part consists of insurance, part of the accumulated by the citizen voluntarily after the completion of work) have the opportunity to formalize pensioners who were born in 1967 and earlier.

In addition to directly pensions, some categories of citizens can receive additional collateral:

• Monthly financial payment;
• A set of social services, which is included in the monthly additional payment;
• Additional material security, which is monthly.

Russian formula for calculating pensions

But how will they calculate the pension for the Crimeans? Since the beginning of 2015, insurance payments to Crimean pensioners are calculated by the following formula:

SP = IPC x SIPK + FV, where:

• SP - insurance pension.
• PKI is the sum of pension points (points are awarded for each year of work, taking into account wages and other factors: military service, the need for caring for the elderly, the duration of parental leave, and so on).
• SIPK - the cost of one point (established at the state level, periodically indexed).
• FV - a fixed (guaranteed) payment to a citizen (established by the government).

What will be the size of pensions in Crimea in 2017

In the current year, pensions in the Crimea (the size of payments, by the way, already exceeds the average in Russia) will be accrued on the pension formula, according to Russian legislation. Insurance payments and allowances for pensions are subject to indexation, so that the monetary security of pensioners will increase. For 2017, an additional (in addition to the main) indexation is planned: insurance pensions will generally increase by 5.8%, social pensions - by 2.6%. Recalculation of pension to Crimeans will be made according to the same scheme as to other residents of the Russian Federation.