Indexation of pensions in Russia is higher than the rate of inflation. In other countries, “if this is not Africa”, there is no such indexation in the absence of the crisis. As reported by RIA “Novosti”, said the Minister of labour and social protection of Russia Maxim Topilin at a meeting of the Federation Council Committee on social policy.
The labor Minister said that inflation in Russia by the end of 2017, maybe even below 3.2% (projected rate). The indexation of pensions in 2018 will be 3.7%.
The difference between inflation and the indexation (0.5%) was quite noticeable for pensioners, said the Minister.
“But if inflation is 3.1 or 3.0% of – it will be a serious increase to pensions, pensioners… We may say that it is – to 3.2-3.7… Let’s still come from the following: when were the events of the past, we really didn’t like, when inflation was 12%, 13%. Everyone always said that in European countries, in developed countries inflation is low. Nowhere in the world, if not Africa and not some crisis, pensions are not indexed at 7%, nowhere. We want you and one and the other. When inflation was low, we began to think: what are we so low during retirement? We’re not low retirement index, we index them seriously higher than inflation,” – said Topilin.
The Minister acted in the Federation Council on Tuesday with a message about the directions of improvement of the legislation of the Russian Federation in the sphere of social policy during the autumn session of 2017.
According to the Minister, insurance pensions for unemployed pensioners will be indexed from 1 January 2018 3.7%. Previously, he also reported that indexation of social pensions in Russia from 1 April 2018 is projected to be 4.1%. Indexation of other social benefits will be held from 1 February to actual inflation, based on data from Rosstat, which will be announced after January 15.
One of the participants of the meeting of the Council, asked the Minister why pensions for working pensioners increased to a maximum of three points per year (about 200 rubles), regardless of how much money pays the employer. It’s not very fair, and it would be worthwhile to reconsider the order, said the Senator.
The Minister said that to change this order, only to accept some systemic solutions, “the Ministry thinks about it”.