Russian politicians have been talking about the need to reform the social sphere for a long time. Deputies believe that it is time to review the retirement procedure and the mechanism for calculating payments, since they have long been outdated. What changes will happen in the lives of senior citizens? What should those who are just planning their retirement expect from the new pension reform? These questions are often asked on legal websites and forums by ordinary Russians, so let's look at the upcoming changes in more detail.

Changes in legislation

What to expect from pension reform in 2017? Russian pensioners will face a number of serious changes, which, first of all, will affect the increase in the amounts and procedure for calculating pensions.

With the onset of 2017, previously suspended legislative norms regarding indexation began to take effect pension provision. This will lead to a significant increase in the size of social and insurance pensions.

The coming year will bring the following changes:

• - The minimum length of service and the amount of pension coefficients that affect the assignment of old-age benefits will increase. Now, to receive funds under this type of pension, a citizen must have eight years insurance period and 11.4 pension points.
• - The retirement age and size will increase length of service for officials. After Federal Law No. 143 of May 23, 2016 comes into force on January 1, they will retire at the ages of 63 and 65, subject to at least 20 years of civil service experience. This requirement will be introduced gradually, and in 2017, to receive a pension, an official will need to reach 55.5 and 60.5 years of age, and minimum experience civil service must be 15.5 years.
• - For the self-employed population, the rate of insurance contribution to the Pension Fund will increase. This payment has fixed size, and depends on the minimum wage. Since the minimum salary in 2016 was increased to 7.5 thousand rubles, notaries, lawyers and other persons belonging to this category will need to transfer 23,400 rubles to the Russian Pension Fund in 2017.
• - The cost of living of a pensioner will change, which affects the eligibility for the federal social supplement. In this way, the state increases the amount of payment to the level of the established PMP in the region.

One-time assistance

Since in 2016 the state experienced a shortage budget funds, provisions relating to the indexation of pensions were suspended.

The federal law provides clarifications regarding the procedure for receiving payments:

1. To receive compensation, there is no need to contact the Pension Fund, since the payment will be calculated automatically.
2. Receipt of funds is carried out in accordance with the established schedule in the period from January 13 to January 28, 2017.

It should be noted that the law prohibits making deductions from this amount on the basis of court decisions and executive documents.

Carrying out indexing

Every year the state is forced to carry out indexation pension payments. This is due to inflation and rising prices for food and utility bills, which leads to a decrease in the purchasing power of pensioners. The principles of indexation and deadlines are established depending on the type of pension. The law sets the dates for the recalculation:

1. February 1 – for insurance pensions, which will be indexed to the inflation rate of the previous year, namely 5.4%;
2. April 1 – for social payments, which will change depending on the growth rate of the cost of living of citizens in 2016. Since the increase was only 116 rubles, the pension will increase by 1.5%.

The amounts are quite modest, but the government promises that payments to pensioners will be indexed in full.

Introduction of a new accumulation mechanism

Thanks to changes in the pension reform, Russian citizens will have the opportunity to accumulate future pension payments on a voluntary basis.

Its introduction will revive the accumulative component pension system. Participation in the program is voluntary. A person will be given the right to choose where to open a savings account. It could be:

• - non-state PF;
• - state banks;
• - commercial credit organizations.

The project provides that account data can be passed on by inheritance. A participant in the savings program will have the opportunity, if necessary, to withdraw part of the funds from the account, as, for example, mothers have the right to use part of it for urgent needs maternity capital.

The funded system has been used by many foreign countries for a long time. As practice shows, this is an excellent opportunity to independently shape your future, ensuring yourself a dignified old age.

Increasing old-age pensions for working and non-working pensioners

An increase in the amount of payments to non-working elderly citizens receiving an insurance (previously labor) pension will occur by indexing the cost of the pension coefficient and fixed payment.

As of April 1, 2017, the cost of the pension point was 78 rubles and 58 kopecks (instead of 78.28 rubles, as previously stated), and the value of the fixed payment was 4805.11 rubles. As a result, the pension amount will be indexed by 5.8%. Thus, the amount of payment for a non-working citizen receiving an insurance pension from April 1, 2017 increased by 0.38%.

According to statistics, the number of working pensioners in 2016 was 36% of the total. It is believed that if a person continues to work, then his income is significantly higher than that of those who live on only one pension. As a result, in 2016, Federal Law No. 385 was adopted, which abolishes the indexation of payments for this category of citizens until they stop working.

The budget does not provide for indexation until 2019, so there is no need to count toward increased payments to working senior citizens.

Payments to military pensioners

In accordance with current legislation, payments to military pensioners are calculated taking into account the amount of monetary allowance, which must increase annually by 2 percent or more.

If on February 1, 2016, the amount of allowance was 69.45%, then for the same period in 2017 it was 72.23%, which led to an increase in the amount of payments.

Many military personnel monitoring changes in legislation. I was interested in the question of whether military pensioners can count on receiving a one-time payment financial assistance in the amount of 5 thousand rubles. Initially, only persons whose pensions were calculated by the Russian Pension Fund could apply for this additional payment. However, the law was changed to allow former military personnel to receive payment under a separate delivery schedule.

The additional payment will be made by the same body from which the citizen receives the pension. The law allows that military personnel may be assigned a second insurance pension. In this case, he will receive 5 thousand rubles from the territorial Pension Fund.

The state of the crisis, which continues for the third year, gives rise to various thoughts about default, economic collapse and even devaluation of the state currency. According to rumors, everyone will have to go through another wave in this crisis. As a result, you should not renounce the introduction of new monetary units into circulation. With all the forecasts from economists, the time has come to find out whether there will only be another fluctuation with the corresponding symbols on the charts. There is no way to find out about the deadlines with changes.

Behavior of people in the regions

There is a bad economic trend in the Urals Federal District. Depositors no longer want to save their savings in bank accounts, so they terminate their contracts using alternative methods of storing money. All this is carried out even if any deposit is insured by the state. Apparently, people no longer have trust, especially when remembering the time of the collapse of the union.

It is very likely that the 2017 monetary reform will not take place in the Russian Federation. So no one should create panic or excitement. Although there are many rumors among readers regarding behavior in high financial circles. We are talking about the Central Bank implementing a change in money. So far, it is certain that the country will see the appearance of new banknotes in the future. The value of paper banknotes is determined by 2 thousand rubles and 200 rubles. For some financial organizations, it is known that they will either introduce a new monetary unit similar to the situation in the 90s of the last century, or simply change the banknote. It is not yet clear how credible people's opinions are. After all, no one has genuine sources or at least visual confirmation of the stated information.

Country monetary events

Every time the national currency is replaced, the country is faced with the announcement of the resignation of the head of state or the revision of all participants in the cabinet. Undoubtedly, in times of crisis, such behavior is primarily undesirable for the bureaucratic layer. But so that not only senior managers, but also ordinary people It was convenient and economically safe to experience a lot of all kinds of changes; it was enough to approve the gradual introduction of innovations into the system. It is still questionable whether monetary reform is expected in Russia in 2017 or whether there is no need to worry about it.
You should not withdraw accumulated funds from the accounts of banking institutions because in the old days, residents were already faced with one remarkable reform, called Pavlovskaya. Then, when changing money in the country, people had to say goodbye to mattresses and jars of home canning. No one would want history to repeat itself right now. Although, in fact, not everyone has money on hand.

There is a way out of any situation

Deputies are holding meetings, the reason for which was financial state problems. Alternatively, you can use a single currency for several countries. It can be provided to all members of the EAEU, together with the SCO. Together with Russia, residents of Belarus, China, Kazakhstan, Armenia, Tajikistan, and Kyrgyzstan could use the new banknotes. The lustiest online incest porn is a mom and son sex video that is waiting for your attention. mom and son porn https://incestik.org/mama-i-syn, where incest between son and mother is the main theme of the videos. Drunk and sleeping Russian mothers seduce their sons and then have group sex with all their friends. A sea of ​​lust and debauchery is guaranteed for you on Incest!

Expert opinion Vitaly Sorokin

Through monetary reform, all ills of the country's economy can be cured in one go. Anyone who no longer has faith in wooden currency becomes a victim of unscrupulous citizens speculating on it. There is no reason for investors to make injections during a period of unstable ruble. The way to reorganize money circulation will be the way to end the chaos. At the same time, changes in monetary policy are needed. Indeed, at present, refinancing is 10.5%. This is enough to not provide the opportunity to develop your business, because the profit level barely reaches 10%.

The rebalancing of the national currency based on oil prices will help prevent the worsening of the situation with the subsequent application of monetary reform. The reference point for the ruble should be national assets in the form of resources, the production of which is carried out by domestic and imported enterprises in Russia. That's all that is interesting about the monetary reform in Russia in 2017 last news for which in Lately are appearing more and more often. Only with successful practice with your own regional currency will you be able to achieve success. Being in an alliance with the countries of the SCO and the EAEU, a bright future for the ruble afloat in the global financial ocean with a fair wind in the eastern waters is guaranteed.

Serious changes are coming to the country next year. In times of crisis, it is necessary to optimize all social standards, as well as reform the work of important departments. The government is drawing a clear line along which changes will take place and they will affect almost the entire population of the country. The popularity of the solutions is in doubt, however, to raise the standard of living, certain sacrifices must be made, but this does not mean that the state will not help those in need. Not at all, everything is being done precisely to equalize the social situation. The restructuring will affect military personnel, the judicial system, Rospotrebnadzor and. Improving the work of all departments is one of the key tasks for the authorities. Also, reform in the pension system has been long overdue. Let’s find out in more detail what we can expect and what reforms will take place in 2017.

Pension reform in 2017

The start of last year was marked by important events for people who are close to the retirement age. The Duma has spoken more than once about changes related to well-deserved rest after work. For a long time, officials submitted laws, but many did not dare to pass them. However, there is absolute confidence in the mandatory reform of the pension system, but it is not clear how to do this, given that the election campaign will start soon and increasing the qualifications for pensioners is a very unpopular idea. The state did not want to take risks, but it is obvious that innovation cannot be avoided next year.

On this moment Some facts are known about the latest news about the pension reform in 2017, namely the increase in the age of pensioners. The head of state reassured, saying that they will not increase the age this year, but the plans definitely include carrying out this reform. At the moment, an increase in the pension qualification by one year for women and two for men is being discussed. However, there are those in the Duma who believe that this is extremely small and it is necessary to increase retirement by as much as five years, explaining that the budget will be filled with as much as one hundred and fifty billion rubles from such an innovation.

Based on the crisis, it is obvious that the state needs to save, and the more, the better. Indexing the pension, its funded part and reducing the volume of social payments are still unknown issues for next year. The people's representatives themselves were decided last year that their pension next year will be fourteen thousand rubles. At the moment, women retire after work at fifty-five, and men at sixty. A separate group of people retirement age payments are due according to calculated coefficients based on years of working activity:

• last year the coefficient was five and a half, which is exactly six working years;
• this year the number was raised to nine points, and this is already seven years at work;
• next year the figures will rise to almost eleven and a half, which will be eight years.

People who do not have proof of their work experience in the prescribed form will receive payments in the minimum amount subject to age restrictions.

The retirement age will gradually begin to increase starting in 2017.

Reform of the Ministry of Internal Affairs in 2017

Changes next year will also affect the structure of the Ministry of Internal Affairs. Plans to reduce staff by a certain amount. Which one is not yet known, but the innovation has been planned for a long time by the government and there is no going back. The number of employees who will be laid off will be about one hundred and ten thousand people. The idea was proposed by the Ministry of Finance, believing that the treasury would be filled thanks to such reforms. Considering the financial situation in the country, since last year the police have been allocated one hundred billion rubles less than the amount that was allocated for all previous periods.

According to the words of the above officials, the reform of the Ministry of Internal Affairs in 2017 will affect ten percent of employees, which is equal to a figure of about a million people. At the same time, many in the Duma do not share such opinions, because the number of workers in internal organs decreased significantly already five years ago. In total, thirty-five percent of people in police uniform had to be fired, another ten percent of cuts and the number will be extremely negative for the structure. The state does not take into account the fact that the crisis situation has caused a large influx of crime, and if the number of employees is further reduced, one may be faced with a huge increase in criminal activity. The innovation will not apply to employees in Crimea, Chukotka and the Yamalo-German region.

In 2017, it is planned to reduce about 100 thousand employees of the Ministry of Internal Affairs

The reform will not affect people from the lower hierarchy of the police, that is, in theory, district police officers and patrol officers should not be fired. Experts believe that in exchange for reductions, it is possible to stop recruiting young staff after the retirement of older employees and thus it will be possible to level out the situation without depriving people of their jobs. The head of the Ministry of Internal Affairs clarified that the reform will be considered in view of the situation in each district of the country separately, pointing out that the crime level will be taken into account primarily when approaching the innovation. The very idea of ​​reducing employees in the bodies sowed a “flurry” of indignation among the heads of many structural organizations. A point of view emerged that such measures would undermine the economic and structural system, due to the inability of the state to protect it. For example, the number of employees in security departments will be reduced by forty-three thousand people. This number of personnel guards two hundred and sixty-two points, and in total there are over three and a half thousand of them.

The heads of law enforcement agencies made promises that the problem would be solved through optimization, but when exactly they did not make it clear. Let us note that according to the reform, the number of Ministry of Internal Affairs officers this year is one million one hundred seventy-two people, namely:

• there are 835,825 people working in the Ministry of Internal Affairs;
• civil servants 5,123 people;
• the remaining groups account for 162,224 men in uniform.

In any case, the government faces a difficult task in optimizing the composition of such an important body and needs to take into account a large number of factors.

Rospotrebnadzor reform in 2017

A decisive reform of Rospotrebnadzor will begin in 2017. Since the period 2008-2016, the amount of control of authorized structures over businessmen has decreased fourfold. This year, the number of visits compared to last year has decreased by thirty percent, while sixty-three and a half thousand audits have already been canceled; according to experts, such a risky approach will help entrepreneurs save close to a trillion rubles.

The department stated that the audit format will be aimed at the most suspicious enterprises. The reduction of administrative restrictions is also taken as a basis. Over the past year, there have been many complaints about the department’s untargeted actions against entrepreneurs. At the moment, the number of audits has not specifically decreased and now a risky approach to proceedings is just emerging, most of which will be aimed at businesses with a high share of risk, and especially trade relations. Rostpotrebnadzor has already reduced its audit visits and removed forty-eight percent of enterprises from the list of potentially dangerous ones. Currently, one hundred and thirty types of control activities take place and two million inspection visits are carried out every year.

Since April of this year, reforms have been approved that will also affect small businesses. Now government agencies are working on the electoral system, regarding audits next year. It is planned to reduce departments and merge them into one unit based on the method of functioning. This approach will help reduce expenses by twenty percent relative to revisions. The departments' task will be to check only the most important elements.

Businessmen have long dreamed of restructuring audit visits, and the authorities are encouraging their desire. The head of state issued a bill banning inspections of small businesses for three years. Namely, audits not related to the tax or administrative system. However, those who have not received fines within three years and the prohibition does not apply to control outside the plan. The departments also gave instructions to reduce administrative, law enforcement and other types of harassment of business, which will improve the situation for businessmen and create opportunities for investing capital in the country. A lenient attitude towards business is a very important method of government policy.

There are a number of other initiatives. A law is planned on only one form of punishment for a businessman for the first regulatory offense. Also, there are opinions not to resort to the criminal code if an entrepreneur commits a violation of the law for the first time, but after reimbursing all funds. The reform of Gosspotrebnadzor in 2017 is intended to restore the trust of businessmen in government departments.

Judicial reform in 2017

The FSSP is expected to be reformed next year. The Ministry of Justice plans to fire those workers who are not certified specialists in economic and legal specialties. Twenty-five percent of all workers may be subject to these measures. According to estimates in the regions, the number of bailiffs does not exceed three hundred. The FSSP is worried that the innovation will prevent employees from doing their work efficiently.

Reform is an idea personally from the Head of State. The law will slightly change the essence of the previous legislative norm. Innovation number one will be the appointment of bailiffs to the rank of civil servants. They will have the entire package of benefits, but only to those who have the appropriate education. Workers who do not meet the requirements are threatened with layoffs or transfer to the status of assistants. The Ministry of Justice expresses the point of view that these positions will be filled by students until they finish their studies, and in the future they can count on the position of executive bailiff. This will help increase the reputation of the position, which will affect the prestige of the profession. Lawyers who were fired as a result of the reform of the Ministry of Internal Affairs will have another chance to get a job.

In 2017, bailiffs without specialized education will be laid off

There is an opinion in the State Duma that the reform will not bring results. Assistants receive a small salary compared to all other structures, which will entail a large turnover of personnel at the level of eighty percent; bailiffs also cannot boast of a large salary, so cuts are not the best way to reform the system. First, it is necessary to increase official authority by raising wages and improving working conditions. Again, there are statements that the Head of State did not give orders to dismiss employees of the Ministry of Internal Affairs and the FSSP, but simply gave instructions to reduce the expenditure side of the budget, and the departments decided to simply begin the process of reduction.

Starting next year, bailiffs will be allowed to take part of the funds they seized. This money will be spent on rewards for those employees of the court system who professionally fulfilled their obligations. The bill is under development.

Now bailiffs have the ability to manage the rights of motorists. The bailiff has the right to take them away from those who are heavily in debt, and without legal proceedings, already on the basis of a one-on-one conversation. Then it’s up to the traffic police, who take away the rights until the debtor repays all the funds. Judicial reform in 2017 involves increasing the power of the FSSP. For those who do not pay, the bailiffs may revoke access to some services, such as handing over a license or the ability to register a car.

Thus, we examined the most large-scale reforms for the coming year, dealing with the issues of what awaits pensioners, law enforcement officers, businessmen and employees of the judicial system.

As a result, the Law “On Amendments to Some legislative acts Ukraine regarding the increase in pensions,” having gone through a long journey of approvals, clarifications, and adjustments, was adopted by deputies of the Verkhovna Rada of Ukraine on October 3, 2017. This article outlines the main theses, changes and principles for calculating pensions for different categories citizens in the light of new legislative innovations. What their essence is will be discussed below.

Today, plans to change the pension system are becoming a reality. Thanks to the adopted Law, the procedure for modernizing pensions began in October last year, which will be followed by other norms prescribed in the document. The adoption of this important document is a serious step towards reforming the pension system and the social security sector as a whole.

The population of Ukraine, in particular, pensioners and those who are about to cross the border of retirement age, are trying to understand what to expect from the pension reform, what is the essence of the changes, what are the state’s plans in this regard and in what time frame should innovations be expected. This article will help you understand the complexities of pension reforms, which contains information from official sources, the opinions of analysts and answers to the most “hot” questions.

What is the essence of pension reform in Ukraine

So, in 2017, the first stage of pension reform started in Ukraine, which was repeatedly announced both at the government level and in the media. Earlier versions of the pension reform turned out to be unviable; despite all their ambitions, they did not bring the expected increase in the level of pensions and did not guarantee a secure old age for Ukrainian citizens.

New steps towards reform were the result of Ukraine’s partnership with the IMF (International Monetary Fund), with which a Memorandum of Cooperation was concluded. In accordance with the adopted document, the Government of Ukraine must take a number of significant steps to reform the pension system, developing the appropriate legislative framework and preparing conditions for administration. As is known, pension provision is an indicator of the well-being of society and the economic stability of the state.

It was these conditions that contributed to the development and adoption of amendments to the Law on Pensions, for which the people’s representatives voted on October 3, 2017.

In the sphere of social policy, the state is obliged to take care of its citizens who have reached old age or have lost the ability to continue labor activity. This concern should consist of regular payment of pensions, the amount of which provides for the basic needs of the elderly. We’ll talk about how things really are a little later, but for now let’s move on to the essence of the pension reform.

The reform consists of introducing a three-level pension provision, which to this day consists of a solidarity system and a funded pension. If the first part of the pension system at least works in the country, then funded pensions practically remain an unrealized sector.

The Government of Ukraine plans to launch a joint pension mechanism in combination with voluntary pension insurance, which should become an integral part of the entire pension system in the country:

• solidarity system
• general accumulative
• voluntary non-state funded

Pension reform news

The plans of the Cabinet of Ministers and relevant ministries include reducing the PFC deficit, which amounts to more than UAH 145 billion. This gap between revenue and expenditure is covered by funds from the State Budget of Ukraine.

The average size of pensions will increase and this will also lead to an increase in the expenditure side of the PFU budget. Thus, with increased expenditures, the reduction in the pension fund deficit can be perceived as a significant step to correct the situation in pension provision.

Article 26 of the Law of Ukraine “On General State Pension Insurance”, in accordance with the adopted amendments, now regulates the retirement age of 60 years with at least 15 years of insurance experience (see table).

Women born in 1961 and older who have the required number of years of insurance experience have the right to early retirement.

If an insured person aged 63 years after January 1, 2018 does not have an insurance period, but has one for the previous period, then the pension is assigned according to this scheme.

At the age of 65, persons who have, as of January 1, 2019, the number of years of insurance experience indicated in the table below, can retire.

Starting from October 1, 2017, pensions are being significantly modernized, and working pensioners are given the right to receive pensions in full. Amendments to the Law cancel the previously adopted ban on the payment of pensions to working pensioners until December 31, 2017. Since October 1 last year, pensioners, including military pensioners, have received pensions and salaries in full.

What is the point of modernizing pensions:

• A single indicator of the average salary used when assigning a pension at the level of 3764.4 UAH
• The cost of the insurance period indicator is 1%
• The insurance period for women is 30 years, for men - 35 years.
• On transition period for new pensions, the cost of a year of insurance experience will remain 1.35%.
• In 2018, when calculating pensions, the cost of a year of service will be used at 1%.
• To improve the calculation of pensions, it is planned to automatically recalculate them.

If the insured person has 30 years of experience (women) and 35 years (men), then a pension is provided at the subsistence level. Pensions will be indexed annually: in 2019-2020 - by decision of the Cabinet of Ministers of Ukraine, starting in 2021 - taking into account the consumer price index.

The maximum monthly insurance payment should not exceed 10 living wages for able-bodied citizens. The same norm is provided for insurance payments to persons who have lost their breadwinner.

Special pensions are canceled for:

• Civil servants
• Scientific figures
• Local government officials
• Prosecutors
• Deputies
• Journalists

Pensions that were assigned in more than early dates, remain the same. If there is insufficient insurance experience, it is possible to “purchase” it with a coefficient of 2 - up to 12 months and with a coefficient of 1.5 - up to 24 months.

Amendments to the Pension Law also provide for a number of mechanisms for improving pension accruals and payments. This also applies to the possibility of automatic recalculation without contacting the Pension Fund, and simplification of verification of salary documents and other procedural issues.

Types of pensions

Pensions are divided into four types:

• upon reaching a certain age
• upon receipt of disability
• in case of loss (absence) of a breadwinner
• military pensions

Pensions assigned upon reaching a certain age will be administered by the Pension Fund; the Fund will accumulate funds and pay pensions.

Disability pensions will be paid by the Fund social insurance. Survivor pensions will also be financed by the Social Insurance Fund of Ukraine.

Long service pensions will remain only for military personnel with at least 25 years of service. The length of service will be fixed, but contributions paid from the wage fund will be transferred in double amount. According to the Minister of Social Policy, pension payments to military personnel under 60 years of age will be made at the expense of the State Budget, and for those over 60 years of age - at the expense of the Pension Fund.

In connection with the increase in the retirement age in Ukraine, it is worth noting that in our country, even after raising the retirement age, this indicator remains one of the lowest in Europe. For example, in a number of countries the retirement age is 60-65 years for both men and women, and in Sweden there is discussion about raising the retirement age to 75 years.

Of course, it is not entirely correct to compare the social security of a fairly prosperous Sweden and Ukraine, which is just building its national economy. But the gradual transition to European social and living standards is a necessary condition development of our society at a new qualitative level.

Goals of pension reform

Pension reform, in addition to the fact that it is conditioned by the requirements of the Memorandum with the IMF, it carries a mechanism for the progressive development of social security in Ukraine. Experts agree that pension reform will bring a number of positive results, namely:

• Ensures reliability and stability of pension payments
• Optimizes the mechanism for managing funds received by the financial institution
• Encourages Ukrainians to refuse salaries in envelopes in order to secure an old-age pension with their contributions
• Increases citizens' awareness of caring about their future
• It will increase the standard of living of pensioners, which is the most important goal of pension reform.

Taking care of your pension

One of the goals of reform is to develop in every citizen a sense of responsibility for their future. Shifting responsibility to the state, hoping that it will take care of a person in old age, is somewhat irresponsible. Unfortunately, our state is not yet able to provide decent financial support for older people.

In a country where the economy has been undermined by military operations in the east of the country, as well as oligarchic and political strife, it is, to put it mildly, unreasonable to abdicate responsibility for one’s own well-being. In the words of a classic, “saving drowning people is the work of the drowning people themselves.” This idea is indirectly contained in the third component of the pension system - voluntary pension insurance.

For reference: today there are 12 million pensioners in Ukraine, who account for 10 million working citizens. Contributions in the form of unified social contribution, which is withheld from the wage fund, are a source of revenue for the PFU budget. It becomes obvious that leaving the “shadow” of wage payments will help increase the volume of revenues to the financial institutions.

Last year, the size of the single social contribution was significantly reduced. The government hoped in this way to eliminate the pension fund budget deficit by increasing the influx of funding. Unfortunately, this did not happen, and the PFU budget deficit increased even more.

Pension reform: retirement table

It is expected that reforming the pension system will bring stability and increased pensions to pensioners.

Pension reform for working pensioners

For working citizens, the pension system will bring a clear understanding of what to expect when reaching retirement age, at what age it will occur, depending on the year of birth. Pension reform will also enable working citizens to actively participate in voluntary pension insurance in order to prepare for retirement and ensure a prosperous old age.

On the part of the state, workers who are considered as potential pensioners should expect further steps to implement pension reform, improve the administration of financial flows and encourage employers to make regular contributions to the pension fund.

The authorities have been talking about the need to make significant changes in the Russian pension system for a long time. The Ministries of Finance and Economic Development are preparing specific proposals, including raising the retirement age. In turn, the Minister of Finance assured that this year all effective proposals will be finalized and submitted. Everything will be ready for the pension reform in 2017.

Changes on all fronts

Judging by the latest data, the upcoming reform in the pension system in 2017 will incorporate a number of measures proposed today:

• expansion of savings opportunities;
• creation of a guarantee reserve;
• the age limit for retirement may be raised;
• conditions for civil servants will change.

Perhaps government authorities will not limit themselves to this. Today we know exactly which issues will be considered first, which ones second, and which ones still need to be finalized.

Savings mechanism

A new mechanism may become operational in 2017, allowing future pension payments to be voluntarily accumulated. For these purposes, it will still be possible to transfer money to PF and bank accounts. Presumably, the mechanism will be introduced by the end of 2017 - beginning of 2018. This was announced by the head of the Ministry of Finance, Anton Siluanov.

Back in April, new opportunities for Russians to save pensions were only considered theoretically possible. Namely, the circulation of funds through non-state pension funds or special accounts in leading Russian banks was discussed. The proposal is currently being developed in detail and will soon be submitted for discussion to the Government of the Russian Federation. Specific ways to organize savings will be described. The Ministry of Finance is working on the project together with the Central Bank of Russia.

The essence of the proposal boils down to providing working citizens with new opportunities to independently increase their pension security. If the employee does not care about increasing his pension, the level of income in old age will be the same as today - at the level of 12-13 thousand rubles.

Speaking about specific decisions, Siluanov provided several clarifications.

• Firstly, he promised that the proposal would revive the funded component of the Russian pension system. Every citizen will be able to gradually master the new savings mechanism.
• Secondly, participation in the program will remain voluntary.
• Thirdly, special accounts can be opened in non-state pension funds, and in state banks, and in commercial credit institutions. It is understood that the investments will be “absolutely reliable” (the minister assured).
• Fourthly, deferred cash accounts will even be inherited.
• And, fifthly, it will be possible to withdraw money from the account, but within reasonable limits. For example, today young people withdraw 20 thousand from maternity capital for urgent needs. For example, for medicines and payment for medical services. To withdraw the maximum allowable amount, the future pensioner must reach a considerable level of savings.

So, judging by what Siluanov said, the pension reform in 2017 in Russia will be partly embodied in changing the existing savings mechanism. If the project is approved, the previously made decision to freeze the funded part for 1 year will be cancelled.

Guaranteed accruals

The decision to introduce guaranteed pension savings was made by the President of Russia at the end of last year: the corresponding law was signed, which in 2017 will become one of the grounds for carrying out global pension reform.

At the moment, a 2-tier system is already being created in the country to guarantee the rights of the insured person. The first level is the formation of a reserve for paying the mandatory part of the pension. But the changes will not end there: it is also planned to form a kind of “nationwide guarantee fund.” Its formation will be entrusted to responsible persons participating in the compulsory pension system. The funds set aside will come from several places: the first source is designated as non-state pension funds Russia, the second – the RF Pension Fund itself. The Deposit Insurance Agency will control the frequency and amount of contributions. He will also be responsible for organizing compensation payments.

The effect of the reform will not be limited only to innovations in its accumulative element and in the guarantee part. Recent news indicates many other upcoming changes.

Raising the threshold

Supporters of new ideas propose to significantly increase the retirement age. Their opponents are not clear about the benefits of such a drastic measure. But the majority of government officials came to a consensus: it is necessary to raise the threshold, only how best to do this and exactly how much to raise the limit permissible for continuing work. Some propose introducing changes gradually, adding one year to the retirement age every year, others put forward a proposal to make a sharp shock transition.

That’s all for now that is said in the latest news in this part of the 2017 pension reform coming to Russia.

Changes for certain categories of citizens

It is already becoming obvious that the retirement procedure for civil servants (including officials) will change. Last year, a special commission approved a corresponding bill. Today it has become a “stumbling block” for heated debates in the Government. And it is the first reason for changes in the pension system.

Experts say that no one has any doubts about the entry into force of this law. Officials will be able to hold their positions longer. They will receive a bonus of 55% for 5 years worked above the new retirement age and 77% for 10 years.

The legislative framework

As with the introduction of innovations, changes in the pension system should first of all be reflected in the current legislation. Innovations adopted by the State Duma of the Russian Federation and approved by the President of Russia will be included in the Federal Law on labor pensions No. 173 and about state provision №166.

The new reform of pension payments in Russia in 2017 will bring with it quite a few global changes for which the majority of citizens of our country are not ready. We can only hope for a smooth transition to harsh realities and a quick transition to positive changes.