Insurance pensions of over 31.4 million non-working pensioners grew by 5.4% in Russia on February 1, 2017, consistent with the 2016 growth of consumer prices.* The value of individual pension coefficient (pension point), based on which insurance pensions are assigned, currently stands at 78.28 rubles (74.27 rubles prior to February 1, 2017). In addition to the insurance pension, the fixed benefit also grew by 5.4% to 4,805.11 rubles.
Hence, all types of pensions paid by the Russian Pension Fund – insurance pensions, old-age pensions, disability pensions and survivor (loss of breadwinner) pensions of non-working pensioners - grew by 5.4% in February. Working pensioners will be entitled to the larger pensions upon the end of their employment.
An average old-age pension will reach 13,620 rubles in 2017, 467 rubles more than in 2016. The pension will exceed the pensioner’s subsistence minimum by approximately 60%.
The 2017 budget of the Russian Pension Fund allots nearly 230 billion rubles for increasing insurance pensions on February 1. The total allocations for insurance pensions from the 2017 budget of the Russian Pension Fund will amount to 6.4 trillion rubles.
As to further growth of pensions in 2017, social pensions will be increased on April 1 with due account for the increase of the pensioner’s subsistence minimum in Russia last year. Insurance pensions of working pensioners will be traditionally reviewed in August.
Alongside the increase of insurance pensions, the monthly social benefit – the most common social benefit in Russia – grew by 5.4% on February 1. At present, the Russian Pension Fund provides this benefit to 15.6 million federal benefit holders; the Russian Pension Fund’s budget allots 450.9 billion rubles for paying all types of increased monthly social benefits.
The value of a social service package is also increased by 5.4%. By law, it may be provided either in kind or in cash. The cash equivalent of the social service package grew to monthly 1,048.97 rubles on February 1. The package includes medicines, medical devices and medical foods in the amount of 807.94 rubles, health resort services in the amount of 124.99 rubles, and commuter or inter-city transportation to and from a health resort in the amount of 116.04 rubles.