Funded pensions will be indexed by 17.3% from August 1
Starting from August 1, the Social Fund of Russia will conduct an annual recalculation of funded pensions, as a result of which payments will increase by 17.3%. This was announced on July 12 by Igor Balynin, Associate Professor of the Department of Public Finance at the Finance Faculty of the Financial University under the Government of Russia.
"This year, according to the Social Fund of Russia, the increase in funded pensions will be carried out by 17.3%, which is more than three times higher than the inflation rate. By the end of last year, it was 5.6%," Balynin said in an interview with RIA Novosti.
The expert clarified that the recalculation will take place automatically — pensioners will not need to submit any applications. According to him, pension savings can be issued in the form of a funded pension, an urgent pension payment or a lump sum payment. The choice of the option depends on the conditions for the formation of funds and the chosen order of receipt.
The right to payments, Balynin explained, arises upon reaching the retirement age set at the 2018 level: 55 years for women and 60 years for men. He also recalled that pension savings are formed from contributions from employers who paid them for employees before 2014, voluntary transfers from citizens under the state co-financing program, maternity capital and investment income.
On July 9, Balynin reminded that retired citizens of the Russian Federation, who have dependents in their care, can count on an additional payment to an insurance pension in excess of 3 thousand rubles. As he explained, the persons for whom a supplement can be given include all minor children, full-time students under the age of 23, and children of any age if they become disabled before the age of 18.
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