Events

Russian President Vladimir Putin has signed a federal law aimed at balancing and providing long-term financial stability of the pension system. Modifications endorsed by the law set the universal retirement age at 65 years for men and 60 years for women. The raising of the retirement age will be gradual: it will begin on January 1, 2019, and last for ten years until 2028.

Initially, the modifications will apply to men born in 1959 and women born in 1964 who will celebrate their 60th and 55th birthdays, respectively, in 2019. Considering the rules of transition, they will qualify for retirement in the second half of 2019 or the first half of 2020 at an age of 60.5 and 55.5 years, respectively.

The higher retirement age will not apply to incumbent pensioners receiving insurance and state pensions. They will continue to receive the relevant pensions and social benefits consistent with their entitlements. Besides, the annual indexation will enlarge pensions of non-working pensioners much higher than the inflation rates in accordance with the Russian president’s Order No. 204 “On National Goals and Strategic Development Tasks of the Russian Federation in the Period Until 2024” dated May 7, 2018. An average indexation will amount to 1,000 rubles per month or 12,000 rubles per year.

Early retirement rights will remain in effect. Persons with harmful or dangerous working conditions will retire early, as they did before. The same applies to civil aviation pilots, test pilots, victims of radiation or man-made accidents, public transport drivers, mothers of five children, persons with impaired vision, parents and guardians of disabled persons, and some other categories of citizens. Disability pensions will be fully preserved. Disabled persons will be assigned a pension irrespective of age after the group of their disability is established.

Apart from preserving the existent early retirement benefits, there will be additional criteria for early retirements. Women who have a labor record of 37 years and men with a labor record of 42 years can retire two years earlier than others. Mothers of three children can retire three years earlier, and mothers of four children can retire four years earlier.

All federal benefits in effect as of December 31, 2018, will stay valid throughout the transition period. Same as before these benefits will be available to women older than 55, and men older than 60. The assignment of funded pensions and the payment of other types of pension savings will be made upon the achievement of the former retirement age.

The pre-retirement age will be increased from two to five years, and this period will provide additional guarantees for persons of the pre-retirement age. Same as before, they can retire two years before the universal retirement age if their employment proves impossible.

Non-working pensioners who live in the countryside and worked in agriculture for over 30 years will be receiving a 25% bonus to the fixed amount of the insurance pension starting January 1, 2019.

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