Rus Articles Journal

Valorization. Growth of pension payments

According to the bills adopted in 2009 in the field of provision of pensions of citizens in Russia in January, 2010 is expected the mechanism of valorization of pensions becomes effective.

How to understand the term valorization ? Valorization represents revision of the pension rights which were acquired by citizens before input of pension reform, i.e. till January, 2002. What

of categories of the population will concern valorization of pensions in 2010? And it will concern all present pensioners and those Russians of efficient age who have any length of service till January, 2002, in process of achievement of a retirement age by them.

How valorization will be carried out? Each pensioner has a settlement pension capital - it is the total value of insurance and other receipts in a pension fund till January, 2002. On this base the insurance part of work pension also pays off. The offered reform will raise since January, 2010 the settlement pension capital for 10%. In addition, additional increase in the pension capital by 1% for the every year of an experience fulfilled during the period till 1991 is put.

What the aim is pursued by valorization of pensions in 2010? Till January, 2002 two factors - the general seniority and average monthly earnings which was defined or in the last two years, or for any five years of work were the basis for calculation of pension in the Russian Federation. Since January, 2002 essentially new system was introduced - now not the experience and earnings, but volume of insurance premiums which are transferred by the employer into individual personal account of the worker on hiring began to determine the size of the size of pension. Than the size of a salary is higher and the period of payments of insurance premiums is more long, the size of the settlement pension capital is more. And at once there was a contradiction. Those citizens who began the work after 2002 and whose pension rights define the insurance principles for the present did not reach a retirement age. The pension by new rules is actually charged that who has pension rights to a large extent or are completely created by old system, i.e. not insurance assignments, but average earnings and length of service. To restore justice in relation to all working till January, 2002 and valorization is carried out.

What average size of the expected increase to pension? The person, the more his length of service during the period till 2002 is more senior. Therefore, the increase to pension also has to be bigger. People are more senior than 80 years on average will increase the pension by 1700 rub, from 70 to 80 years - for 1600 rub, from 60 to 70 years - for 1300 rub and till 60 years - for 700 rub.

Valorization of pensions in 2010 is in fact an action of return of a debt to the senior generation for years of their work for the country benefit during the Soviet and Post-Soviet Perestroika period for which people so waited.