Authorities deprived military retirees the promised money

Authorities deprived military retirees the promised money

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More than 2.5 million military retirees will not receive a lump sum of 5 thousand rubles., although their pensions were also nodeindexperpage in 2016, as civil. In 2017, the pensions of military plan to increase only 4%

Military retirees are not subject to the act a lump sum payment in 5 thousand rubles, which the authorities decided to replace the second indexation of pensions in 2016, the payment is charged only to recipients of pensions from the Pension Fund, said in the bill that the state Duma considered in the first reading and preparing for the second. Military retirees receive benefits not from FIU, and their law enforcement agencies — Ministry of defense, MVD, FSB, etc., follows from the law on pension provision of military, their families and persons equated to them. Thus, the number of recipients of lump sum payments is eliminated more than 2.5 million people — the Ministry of Finance in the explanatory note to the draft three-year budget estimated 2.58 million, the number of recipients of military pensions in 2017, when pensioners should be assessed a lump sum payment.

A bill for a lump sum payment prepared by the Ministry’s press service has confirmed that military retirees will not apply. It initially was just to support the retirees pensions as at 31 December 2016 shall pay to the Pension Fund, explained RBC in the press-service of the Ministry, referring to the Prime Minister Dmitry Medvedev about this. On 14 September, on the eve of elections to the state Duma, Medvedev really said that, the payoff is provided to all recipients of pensions from the pension Fund. That because of the peculiarities of the wording of the law does not become subject to a significant number of military retirees nor the Prime Minister nor the speaker in the Duma, representatives of the government attention is not focused.

The reasons for the exclusion of military pensioners from entitlement to lump sum Ministry of labour RBC explained. The press service of the defense Ministry, which pays pensions to the majority of military retirees, did not comment on the situation with the payment.

Payment will be only those of retired military, who after military service earned the civil pension from the Pension Fund, says RBC Federal official. In addition, the payment will rely on military pensioners, which is the military pension chose insurance (civil), said another Federal official. The right choice of pensions to the military pensioners of the law about their pension provision. Data on the number of military retirees who choose civilian pensions, the interlocutors RBC do not have.

In return — nothing

Civil pensioners should receive a lump sum payment of 5 thousand. in the beginning of 2017. This payment to the government offset the incomplete indexation of pensions in 2016 — 4% instead of the law of 12.9% (inflation of the previous year). Retired military were also nodeindexperpage in 2016 — they are, as military and civilian pensions, February 1 allowances have increased by only 4%. This is despite the fact that the incumbent may decree No. 604, published by President Vladimir Putin in 2012 and prescribes to increase military pensions by 2% above inflation.

In Putin’s decree did not specify what kind of inflation you need to consider when increase in military pensions — actual for the previous year or the forecast for the next year, but four percent is therefore not consistent with either one. The 2016 budget laid forecasted inflation at 6.4%. In 2013-2014, the military pensions are indexed twice a year — 1 January and 1 October, but in 2016, the second increase since 1 October has not been confirmed RBC press service of the defense Ministry: “In 2016, indexation of military pensions effective 1 February.”

Indexation of military pensions will not be later this year, follows from the draft government amendments to the 2016 budget, which the Duma is preparing to the second reading. The amendments provide for increased funding for the article on military pensions less than 2% (about 13 billion rubles.), but this is due to the increase during the year in the number of pensioners in the interior Ministry and the FSB, stated in the explanatory note to the draft amendments. Once per year, instead of two, military pension index in 2015 — from 1 October to 7.5%.The increase also was lower than any forecast of inflation for 2015 (12.2 per cent, according to the budget law), nor an actual for 2014 (11.4 per cent).

The draft budget 2017 provides increased funding for the article on military pensions by 2.3% from 646,7 billion rubles in 2016 to 661,8 billion rubles military pension in 2017 will again be indexed by 4%, to be prepared by the Ministry of Finance of the bill, which the government submitted to the state Duma on Friday along with a draft budget for 2017-2019. The bill calls for an increase from 69,45 to 72,23% (i.e. 4%) in the proportion of monetary allowances (salary) military, which by law their pension is calculated.

Civil pensioners pension index more by actual inflation in 2016, which is expected to be at 5.8 percent.

Four percent indexation of military pensions corresponds to the level of the inflation target for 2017, but does not account for the requirement of the may decree of Putin about the need to annually increase military pensions by 2% above inflation. Accordingly, the requirement of this decree will not be executed for the third consecutive year.

The press service of the Ministry of Finance and the Ministry of defense did not answer the question RBC, whether military retirees compensated nudeinterracial pensions. “The size and timing of the indexation of military pensions established in legislative bodies during the adoption of the Federal law on the Federal budget for corresponding fiscal year. Indexation of military pensions in 2017 will be made in accordance with the government of the Russian Federation decisions”, — said the press service of the defense Ministry at the request of RBC.

The average size of military pensions in Russia after increasing in early 2017 will amount to 21.3 thousand RUB in a month, follows from the calculations of the Ministry of Finance (256 thousand RUB per year on average per recipient). It is much more than the average civilian retirement, which in August 2016 amounted to RUB 12.4 thousand (data of Rosstat, no more recent data).

According to the law on pension provision of military, their pensions should be reviewed annually simultaneously with the indexation of money allowances (salaries) of the military. Pensions must rise by the same amount, which are indexed to wage war, said one of the interlocutors RBC. However, military salaries, increased considerably in 2012, have not been increased since 2013 legislation, which prescribes annually to index these salaries, all the while frozen.

As a result, since 2013 retired military increase only by the annual increase in the share of cash allowances, which take into account in the calculation of military pensions. By law, the share of allowances should grow annually by 2% (taking into account the forecast of inflation for the next year the increase could be more) until it reaches 100%. This provision has been frozen for two years, and the Ministry of Finance proposes to extend the freeze until January 1, 2018, follows from the bill introduced Friday in the state Duma. In 2015, the Ministry of Finance has proposed to freeze and the position of the may decree of Putin about the need to annually increase military pensions by 2% above inflation. The decree did not change, but 2015 is not executed.

Military retirees are not the only category excluded from entitlement to the lump sum in 5 thousand RUB, the company Informed RBC reported that under this act are not subject to Russian pensioners, who live abroad. The pension Fund pays benefits to nearly 300 thousand of these pensioners. This decision was taken by the authorities consciously decided to support pensioners who live in Russia as of 31 December 2016, as they have suffered from rising domestic prices, confirmed at the meeting of the Duma Committee on labor, Deputy Minister Dmitry Peskov.