The softening parameters of the pension reform is not envisaged by calculations of the government, said the Deputy head of Ministry Andrey Pudov. The lowering of the bar to raising the age of retirement would provide the promised increase in pensions
Photo: Anatoly Zhdanov / Kommersant
Possible mitigation options of raising the retirement age will increase the pension by 1 thousand annually, i.e. will not achieve the announced growth parameters of pensions in the future, said Deputy Minister of labor and social protection Andrey Pudov, the correspondent of RBC.
“The options increase the size of pensions, which we have raised, namely the possibility of increase in pensions in excess of inflation actually doubled in 2019, which is generated on the basis of those approaches that are right now in the bill,” said Pounds. He said that maintaining the current approach in 2019 is expected to increase average pensions for pensioners from 14.4% to 15.4 thousand thousand.
“We did not put in the options of increasing the pensions of other approaches related to size changes of the age,” — said Deputy Minister of labor and social protection. “Changing approaches to age means only one thing [in this case] is changing and the amount of increase of the pension,” he added.
Five scenarios: how will the reform of the retirement age
The government has proposed to increase the retirement age to 65 years for men by 2028 and to 63 for women in 2034, a bill the state Duma is now discussing. The transition period of the pension reform will take ten years for men and 16 for women (it will affect men born in 1959 and younger and women born in 1964 or younger).
The government’s proposed options to increase the retirement age, according to the calculations of the authorities, will increase on average by about 1 thousand rubles per year. By 2024, the average pension in Russia is expected to increase to 20 thousand rubles, said first Vice Premier, Finance Minister Anton Siluanov the TV channel “Russia 1”.
Earlier, the leader of Federation of independent trade unions of Russia Mikhail Shmakov was proposed to mitigate the parameters of the reform, raising the retirement age for women not for eight years, and five. According to Shmakov, the unions “in General oppose this bill because it does not take into account many aspects, there is no coherent rationale that it will give to each pensioner”. A draft pension reform was discussed at the meeting of the Russian tripartite Commission on regulation socially-labour relations (RTK).
Positive feedback on pension reform to the state Duma sent 61 region
In mid-June, the newspaper “Vedomosti” reported with reference to sources in the Kremlin collect coming from the regions information about the reaction of the population to raise the retirement age, which will then be used to mitigate the negative, including possibly through a mitigation of the parameters of reform.
Among the options to mitigate the sources called the possible reduction in the marginal level, which is expected to raise the retirement age, or the lengthening of the transition period.