Government spending on payments to pensioners will increase almost threefold

Photo: Vladimir Smirnov/TASS

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The number of poor pensioners in Russia in 2017 will exceed 4 million and will continue to grow. By 2019, payments the budget they will spend 117 billion roubles — almost three times more than planned in 2016, learned RBC

State spending on payments to pensioners up to the subsistence minimum by 2019 reached 117 billion rubles were 2.7-fold higher compared to the expenses provided for the current budget in 2016. The number of people in need additional payments of pensioners by 2019 will increase 1.7 times, calculated by RBC based on the data provided by the Pension Fund. Data about state spending on payments to pensioners in the coming three years is given in the feasibility study to the bill of the Ministry of labor about keeping in 2017 pensions for poor pensioners at the level of 2016 (there RBC).

Surcharges from the state, get pensioners whose benefits are less certain authorities of the subsistence minimum of a pensioner. If the subsistence minimum in the region where he lives retired, is less than or equal to the national average, Federal pensioner receives a pension Supplement (it pays to the Pension Fund). If the level established in the region above the subsistence level of the Russian pensioner to the regional minimum pay of local authorities. Copayments were introduced in Russia in 2010 year for combating poverty among pensioners. The leadership of the Ministry of labor has repeatedly stressed that because of these additional payments in Russia formally, there are no more seniors living below the poverty line.

Surcharges against poverty

Budget the cost of Federal pension supplements increased dramatically during 2016, previously reported to RBC. The pension Fund is already by mid-year, spent all foreseen in its budget for these purposes RUB 43.9 bln By the end of 2016, spending on pension payments reached 104 billion rubles, according to the materials of the Ministry of labor. Thus, during the year, the spending budget for additional payments to pensioners will increase by 2.4 times compared to the initial plan. Compared to 2015, when Federal payments took a total of 42.1 billion rubles., an increase of almost 2.5 times.

The rapid growth of spending on additional payments to low-income seniors during the 2016 Pension Fund, in particular, explaining the sharp increase in the number of pensioners in need of such surcharges. For 2016 the number of pensioners whose pension is inferior to the cost of living continued to increase — by the end of the year the number of recipients of payments will amount to 3.99 million people, expects a Pension Fund.

Pension Fund named two reasons for the sharp increase in the number of needy in the payments retirees: growth of 22.9% only nationwide subsistence minimum of a pensioner (from 7161 RUB in 2015 to 8803 RUB in 2016, the regional minimum subsistence level for the same period increased by 25%) and the increase from 67 to 71 the number of regions that have fallen from the regional to the Federal Supplement to pensioners (this transition occurs, if the regional authorities establish a living wage no higher than nationwide). The chamber among the causes of added lower indexation of pensions in 2016 — they have been indexed only 4%, even though the law should grow by the rate of inflation in 2015, which was 12.9%. The second indexation of pensions, which is not ruled out of power in 2016 will not replace retirees at the beginning of 2017 will receive a lump sum of 5 thousand rubles; in addition, next year they promised full indexation of their allowances for inflation in 2016.

4 million in need

In 2017, the Russian subsistence level (calculated on the basis of the consumer basket and statistical data about the level of prices) is to be reduced to 8.6 thousand rubles, follows from the draft Federal budget for 2017-2019. This is the first decline since 2010, which is the source TASS explained “miscalculation” last fall. But the budget expenses payments to low-income seniors will continue to grow, although not as rapidly as in this year, follows from materials of the Ministry of labor: in 2017 for these purposes is planned to spend 110,6 billion rubles, in 2018 — an increase of 113.6 bn in 2019 — 117 billion.

The expected increase in spending on payments to low-income pensioners in 2017 due, in particular, the intention of the authorities to maintain the value of payments to pensioners at the level of 2016, follows from the explanation of the Pension Fund at the request of RBC. Planning authorities nationwide decline in the subsistence level would entail a reduction of payments to pensions and, accordingly, reduction of the minimum pensions. The labour Ministry has proposed to keep minimum pensions at their current level, estimated that to implement the idea, you will need 2.5 billion rubles on 20 October, the initiative was approved by the government, the message on the website of the Cabinet of Ministers. A bill not yet introduced.

But in 2018 and 2019, the subsistence minimum of a pensioner will continue to increase, expects the Pension Fund, referring to the forecast of Ministry of economic development. Accordingly, will increase Federal payments to pensioners, said RBC representative of the Fund. In addition, will continue to grow and the number of pensioners in need of pension supplements, expects the Pension Fund: in 2017 for the first time, their number will exceed 4 million people (of 4.03 million), and by 2019 will reach 4.15 million people — grew 1.7 times in comparison with December 2015.

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