The indexation of insurance pensions in 2022 at a level not lower than actual inflation will require additional funding in the amount of 150-200 billion rubles, experts calculated at the request of Izvestia. From January 1, pensions will be indexed by 5.9% laid down in the budget, and after amendments to the legislation, pensioners can be compensated for the difference with inflation, the State Duma suggested.
At a big press conference in December, President Vladimir Putin reiterated that the government should index insurance pensions above inflation in 2022. It is expected that by the end of 2021 it will be 8%, which is twice the target, he said. According to the latest data from Rosstat, annual inflation has already reached 8.22%. At the same time, the adopted law on the budget of the Pension Fund provides for the indexation of pensions by only 5.9%.
According to Izvestia’s calculations, the additional costs next year will amount to at least 154 billion, based on inflation of 8.22%. The correctness of the calculation method was confirmed by experts from Moscow State University and ACRA.
Dmitry Kulikov, director of the group of sovereign ratings and macroeconomic analysis at ACRA, estimated the need for additional appropriations at 150-160 billion rubles, and the chief economist of Expert RA, Anton Tabakh, at 150-170 billion. And these are the most conservative estimates. With an inflation rate of 8.5%, additional funding should be at least 212.7 billion, according to Alexander Osin, an analyst at the Freedom Finance Department of Trade Operations on the Russian stock market. These figures do not apply to military pensions.
As Yaroslav Nilov, the head of the State Duma Committee on Labor, Social Policy and Veterans Affairs, explained to Izvestia, there are various options for increasing the level of pension provision, but the most logical of them is the retroactive compensation mechanism. From January, pensions will be indexed by 5.9%, as provided by law and laid down in the budget. Then the law on insurance pensions will need to be adjusted, on the basis of which the index will be brought to the level of actual inflation with mandatory compensation for the lost part, the parliamentarian suggested.
Read more in the exclusive material from Izvestia:
Hour of additional payments: indexing pensions to the inflation rate will require another 150-200 billion
Source: IZ
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
