Topilin: the growth of pensions after a change in legislation would be unprecedented in the history of the Russian Federation

ECONOMY

MOSCOW, July 19. /Basereporter.com/. The estimated bill changes the pension system, the growth of payments will be unprecedented in the history of Russia, said on Thursday Minister of labor and social protection Maxim Topilin.

“Let me remind you that the projected inflation for 2018 will amount to just over 3%, this means that indexation, real indexation of pensions will happen and it will mean that pensions will be indexed rate is more than twice higher than inflation. This has never happened before in the history of Russia”, – said Topilin in the report on first reading by the state Duma a bill on amendments to the pension system.

He recalled that the adoption of the document will allow starting in 2019 to provide “pension increases to pensioners on the average on 1 thousand rubles, annual average 12 thousand roubles a year”. “When I say average, this is very important because specific increase each retiree will meet his pension, and will be proportional to growth,” the Minister added.

The first reading involves consideration only of the concept document. Once approved, the large-scale discussion of the initiative will continue, proposals for revision of the draft law will be collected and subsequently recorded in the form of amendments to the second reading.

Changes in the pension system will lead to higher income pensioners, also said Topilin. “All proceeds from raising the retirement age are exclusively for the pensions of non-working pensioners. My colleagues and Committee prepare a draft Federal law on the Federal budget for the year 2019 and the budget of the Pension Fund to 2019-2021 years. Of course, in this process, all of these figures are visible, they are visible in the parameters in the projections, they can see and not to say that the numbers some do not. They are all there,” – said Topilin.

Earlier, the head of the accounts chamber Alexey Kudrin in a letter to the Chairman of the Duma Committee on labor, social policy and veterans ‘ Affairs Yaroslav Nilov noted that the materials for this bill “does not contain estimates of how the relationship between raising the retirement age and create the conditions for annual indexation of pensions above inflation, including the conditions under which the Russian pension system will be considered balanced and long-term financially sustainable”.

“We propose that for the future to balance and ensure the insurance character of the pension system. Most importantly, we want not only to preserve the level of pensions… but we want to increase like never in our history did not increase the size of pensions to non-working pensioners,” – said Topilin.

The bill

A bill to amend the pension system, in particular, provides for a gradual increase in age of retirement to 65 years for men (by 2028) and up to 63 years for women (to 2034). Currently the retirement age for men and women is 60 and 55 years respectively.

According to the proposal of the government, increasing the retirement age will be phased in from 2019 and will not affect current retirees.

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