A bill to abolish the indexation of pensions to working pensioners adopted in the first reading

MOSCOW, November 13. The state Duma adopted in the first reading the bill according to which pensions for working pensioners from January 2016 will not be indexed.

The bill was introduced by the government of the Russian Federation. “The principle of indexation will operate in relation (only) to those retirees who left the work. Is norm continuous, not temporary action. Changed the main law on insurance pensions”, – said earlier to journalists by the Deputy Minister of labour Andrei Pudov, revealing the essence of the initiative.

At the same time, as noted in the explanatory Memorandum, the bill proposes to suspend until January 1, 2017 certain provisions that determine the order of indexing of social pensions, the procedure for the annual increase and the establishment of cost of one pension coefficient, the indexation of fixed payments to insurance pensions and the annual adjustment (increase) of the amount of insurance pension. “The suspension of these norms is connected with the adopted government decision on the indexation of pensions in a smaller size (4%),” reads the note.

The initiative sets the coefficient of indexation of social pensions from 1 April 2016 in the amount of 1.04. Thus the average size of social pension will increase to 333 rubles and will total 8 646 roubles. As explained Poods, “indexing from 1 April 2016 social pensions by 4% will increase the pension level more than 9 million pensioners, of which 3.1 million recipients of social pensions”. According to him, insurance pensions will be increased from 1 February 2016. “The cost of pension rate of 74 rubles 27 kopecks, the fixed payment will be increased to 4558 rubles. Accordingly, the average size of the insurance pension will increase by 490 rubles and will amount 12603 ruble”, – he added.

Meanwhile, earlier the head of the Duma Committee on labor Olga batalina expressed the need to include in the bill a provision that a second indexation of pensions in 2016.

“We are laying for the second reading the norm of the second indexing so that the indexing of 4% was perceived by all of us today only as the first stage,” she said. “And a norm that grants the right (second indexing) to the government, we turn in for the mandatory requirement of the government. This would mean that in the second half of 2016 will be held the second indexing” – said batalina.