In 2020, military pensioners will receive an increase in pensions planned by the Government on October 1. Payments to the military will be increased by indexing the amount of pay for military personnel and persons equivalent to them by the amount of forecast inflation. According to preliminary data, the indexation will be 3 percent; this is precisely the value indicated in the draft federal law on the budget for 2020, which is currently being considered in the State Duma.

Decisions on any additional increases for military retirees not accepted yet.

  • The draft law did not provide for budgetary funds for an additional increase of 2% above inflation. Although in 2019 such an increase was ensured by adjusting the reduction coefficient to the amount of monetary allowance.
  • There are also no plans to change the reduction factor in 2020. The government has already developed and submitted to the Duma a bill to “freeze” the coefficient for 2020. That is, even through such a change they do not plan to provide an additional increase.

It is worth noting that the scheme for increasing military pensions in 2020 may still be adjusted. The State Duma Committee on Defense has already prepared an opinion on the draft law on the federal budget for 2020. In it, the Committee indicated the current “under-indexation” of military pensions and proposed change the promotion order in 2020.

Let us recall that in 2019 there were also no plans to make additional increases for the military, but later such a decision was made on behalf of President V. Putin. An increase of 2% above inflation was achieved by adjusting the reduction factor. It is possible that the same pattern could be repeated for military pensions in 2020.

When and by how much will military pensions increase in 2020?

From October 1, 2020, salaries for military positions and ranks will be indexed to the forecast inflation rate. The federal budget for 2020 provides funds for indexing monetary allowances by 3%. In connection with the increase in wages for military personnel and persons equivalent to them, military pensions will also be increased from October 1 by 3%.

Certain categories of military pensioners will receive a small increase in 2020. This applies to:

  • Citizens receiving a second pension through the Pension Fund (old-age insurance). They will receive an increase in January as a result of indexation of the size of the civil pension by 6.6%.
  • Citizens who are assigned pension supplements: for dependents, as disabled people due to a military injury, or as pensioners over 80 years of age. The increase will occur in April due to indexation of the calculated pension amount, from which the amount of additional payments is determined, by 7%.

Infographics: when and by how much will military pensions be increased in 2020

No more increases are planned for military retirees for 2020. The draft budget did not provide funds for either additional indexation by 2% above the inflation forecast, or for adjusting the reduction coefficient.

Increase in pensions for military pensioners from October 1, 2020

According to bill No. 802503-7 “On the federal budget for 2020”, from October 1, the salaries of military personnel and law enforcement officers (employees of the Ministry of Internal Affairs, the Ministry of Emergency Situations, the Federal Penitentiary Service, the National Guard, and so on) will be increased by 3%. In connection with this increase, military pensions will be recalculated, calculated from the amount of monetary allowance. To provide military personnel and law enforcement officers with an increase in pensions in 2020, the budget will additionally provide 113.5 billion rubles.

The State Duma Defense Committee, in turn, noted that the planned indexation of 3% will not be able to compensate for the level of estimated inflation. Since indexation will not be carried out from the beginning of the year, but only from October 1, the actual increase will be only 0.75%.

Note that the indexation percentage specified in the draft law was determined taking into account the forecast of the Ministry of Economic Development regarding the inflation rate in 2020. Closer to the date of the planned increase, the coefficient may change; its final value will be approved by Government Resolution.

Indexation of military pensions by 2% above inflation

Decree of the President of the Russian Federation No. 604 dated May 7, 2012 establishes that pensions of military pensioners should grow annually at a rate of 2% higher than inflation. Indexation corresponding to price increases in 2020 is scheduled for October 1 (the increase will be 3%). But funds have not yet been provided for an additional increase of 2%.

The State Duma Committee on Defense in its conclusion to the draft Federal Law on the Federal Budget for 2020 noted that for a full increase in military pensions need to index by 5%, and not by 3%, as budgeted.

Let us recall that an additional increase for the military in 2019 was provided by changing the reduction coefficient to the value of the DD. This decision was then made in connection with the instructions of President V. Putin. It is likely that the situation will repeat in 2020, and the decision on an additional increase will be made a little later by order of the President.

Will the reduction coefficient for military pensioners be increased in 2020?

The Government does not plan to increase, or even completely cancel, the reduction coefficient for military pensioners in 2020. The last time the coefficient was adjusted was on October 1, 2019 - it was increased from 0.7223 to 0.7368. It is in this value that they want to use the coefficient when calculating pensions and throughout 2020. The Government has already developed a corresponding bill and submitted it to the State Duma for consideration. On November 19, its third (final) reading took place.

  • Bill No. 802513-7 provides that from January 1, 2020, when calculating military pensions, only 73.68% of the amount of monetary allowance military personnel and persons equivalent to them.
  • The date for the next adjustment of the reduction factor is not specified in the draft law. However, in the explanatory note to it it is noted that the coefficient of 0.7368 will apply until January 1, 2021, that is, the next change will take place only in 2021.

Increasing the second pension for military pensioners in 2020 from January 1

From January 1, 2020, changes will occur only for those military pensioners who have received a second (civilian) pension. This is old-age insurance, which can be obtained if you have developed sufficient experience in civilian life.

The increase in such payments will take the form of indexation by 6.6% from January 1, 2020 It will only touch non-working pensioners— those who are not officially employed and do not make contributions to pension insurance.

  • The second payment for military pensioners is calculated as the value of accumulated pension points over the years of work in the civilian profession. The cost of one such point will be increased in January 2020. Its price will increase from 87.24 to 93 rubles.
  • For example, if a pensioner has 50 pension points, then in 2019 his pension is equal to 4,362 rubles, and in 2020 it will increase to 4,650 rubles.

Please note that there will be no increase in long-service pensions for military personnel and persons equivalent to them in January 2020. Increasing the size of this type pension provision scheduled only for October 1 (preliminarily at 3%).

For some military pensioners, the pension amount will change in April 2020. The increase will affect citizens receiving various types of allowances, calculated relative to the estimated pension amount (RRP). This is social Security for old age (Clause 1 Part 1 Article 18 of Law No. 166-FZ of December 15, 2001), the value of which is annually indexed by the state from April 1.

In connection with the indexation of the RRP, the amounts of allowances for military pensioners will also be recalculated. The increase will take place on April 1, 2020 and, according to preliminary data, will be 7%. The exact value of the indexation coefficient will be known closer to the date of the increase (approximately March 2020).

The increase will affect the following types of pension supplements:

  1. Upon reaching 80 years of age;
  2. With disability of the first group;
  3. If there are disabled family members (dependents);
  4. As combat veterans;
  5. As participants of the Second World War who do not have disabilities;
  6. As disabled people due to military trauma when women reach 55 years of age, and men - 60.

The legislator regularly makes appropriate changes and amendments to existing legal acts. Next year no exception. According to the latest information, military pensions are expected to increase in 2016.

Of course, military personnel who have already retired and those who are just about to retire are concerned about what changes are expected in the near future. The government decided to increase the size of payments. It should be noted that indexation will not be carried out in full. The reason is the economic recession.

If we focus on the provisions legislative framework, then every year the government is obliged to increase the size of pension payments at the rate of inflation. It is not possible to fulfill this obligation in 2016, since these actions will lead to a significant increase in the budget deficit.

For several months we have been looking for possible ways to solve the current situation. Now we can safely say that military pensions in Russia in 2016, adjusted for latest news will be indexed by 4%. This will happen in February. The indexation percentage of payments is 3 times less than inflation in the country.

It is also possible that another increase will occur during the year. But we can talk about this for sure only after the situation with the pace of development of the Russian economy is clear.

Most recently, military pensioners had their pensions indexed by 7.5%. This happened in October of this year. The solution to this issue was not without the participation of Vladimir Putin, who stated that it was necessary to find funds to increase payments. The task was solved, and military pensioners received indexation of their pensions. Unfortunately, it is not possible to find funds for a larger increase in the new year. So military pensioners can only be content with the recent increase and hope for better changes in the country’s economic situation. This is only possible after GDP growth. In this case, financial support social sphere can be carried out in full. Let us recall that before the crisis, it was planned to carry out indexation by 20%.

It was previously assumed that in 2016 the increase in military pensions would be suspended. However, now another decision has been made that there will still be an increase, but not a high one. At the same time, the insurance part of the surcharge that is due to the military pension for those citizens who were in a civilian labor relationship will be reduced.

In the new year, it was decided not to index the salaries of those military pensioners who continue to work in certain structural units. This applies to work in the Government, the State Department, the Ministry of Foreign Affairs and the Ministry of Defense. Similar innovations are expected for correctional officers, police officers, security forces, and firefighters.

Currently medium size serviceman's pension exceeds intermediate level pension payments to civil pensioners. However, both categories of citizens can only wait and hope that the country’s economy will take off and the increases in their payments will be much higher.

It was planned to increase pensions before the crisis by about 20%. And if this happens, then we can say with confidence that there are big positive changes in this particular part of the social policy of our country. But, given the budget deficit, the Ministry of Finance is increasingly talking about pension reform reducing government costs to replenish the pension fund. This did not spare military pensioners either.

Federal Law No. 397-FZ was signed in 2014 on December 1 by the presidents of Russia. Article 1, which is temporarily due until the beginning of 2016, suspends the operation of the second part of Article 43 of Law No. 4468-1. According to this article, the monetary allowance of military personnel for calculating pensions was calculated by adding the codes for position and military rank, plus a bonus for length of service. Thus, you can see that as soon as two years have passed since the introduction of the new procedure for calculating pensions, there will be changes themselves. If we talk about this decision in simple language, then such a law physically removes the decision on the annual 2% indexation of military pensions.

The government's reasoning for this step is very straightforward. Namely, there is a lack in the Russian budget of the required amount of funds for stated goals. In a way, this decision is a continuation of Federal Law of the Russian Federation No. 309 adopted in 2011, which introduces the notorious coefficient that lowers pensions by 0.54 and promises an annual 2% indexation of pensions.

In addition to everything written above, there is a certain probability that a new bill will be adopted in the near future, which provides for some crossing of the insurance part of the pension for former military personnel. So, what is its essence? In the event that a former military man, when his military service ends, officially found employment and continued his work activity at any civilian facility. And in addition to the fact that he will receive a military pension, he will also be given an insurance supplement.

Today there is a discussion in the State Duma about introducing a resolution to reduce this type of insurance payment. But it is worth noting that this document deals only with that category of former military personnel who have an insurance pension. The majority of them are former military personnel who do not receive any additional insurance benefits other than a military pension. Pensions will not become smaller. As noted above, it is also planned to index pensions for military pensioners; it was planned for 2016.

In 2015, the projected inflation rate was approximately 16%. And if we take such data into account, we can conclude that in 2016 military pension should be increased by 7.5% plus taking into account the inflation rate.

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All categories of military personnel, as well as their widows, are entitled to a military pension in the event of the death of a spouse in the performance of their official duties.

When assigning this type of pension, there is virtually no such generally accepted concept as retirement age. The main condition for assigning this pension option is that the citizen has twenty years of service in any military structures. If this condition is met, you can retire from military service at any age.

The type of pension payments we are considering can be divided into several options:

  • upon reaching the established length of service;
  • in the presence of an officially established disability;
  • In the event of the death of a serviceman, the pension is paid to members of his family.

On behalf of the Ministry of Finance, we often hear statements about the need to improve the standard of living of former military personnel through periodic indexation of the pensions paid to them. And we must admit that in recent years social status military pensioner has been steadily increasing.

What will the pension amount be in 2016?

Before the crisis, it was planned to increase the size of the military pension by about 20%. If this happens, then we can confidently say that there are big positive changes in this particular part of the social policy of our state.

However, in connection with the budget deficit, the Ministry of Finance began to talk more and more insistently about pension reform and reducing government costs for filling pension funds. This did not bypass military pensioners either.

12/01/2014 by the President of the Russian Federation V.V. Putin. Federal Law No. 397-FZ was signed. Article 1, which temporarily until the beginning of 2016, suspends the second part of Article 43 of Law No. 4468-1, according to which the monetary allowance of military personnel for calculating pensions was calculated by adding salaries by position and military rank, taking into account the bonus for length of service.

Thus, literally two years after the introduction of the new procedure for calculating pensions, it changes. If you explain this decision in simple language, then this law actually cancels the decision on the annual 2% indexation of military pensions.

The Government's motivation for this step is quite straightforward. Namely, the absence in the country’s budget required quantity funds for these purposes. This decision is a kind of continuation of Federal Law of the Russian Federation No. 309 adopted in 2011, introducing the notorious pension reduction coefficient of 0.54 and promising an annual 2% indexation of pensions.

In addition to all of the above, there is a certain probability that a new bill will be adopted in the near future, providing for some reduction in the insurance part of the pension for former military personnel. What is its essence? In the event that a former military man upon graduation military service was officially employed and continued his work at any civilian facility, then in addition to the military pension he was also paid an insurance supplement.

Currently, the State Duma is discussing the proposed resolution to reduce this type of insurance payment. But it should be noted that this document deals only with that category of former military personnel who are recipients of an insurance pension. The pensions of the majority of former military personnel who do not receive any insurance supplement in addition to a military pension will not be reduced. Moreover, as noted above, it is planned to index pensions for military pensioners, which is planned for 2016.

The projected inflation rate in 2015 was about 16%. Taking into account these data, we can conclude that the military pension in 2016 should be increased by 7.5%, taking into account the level of inflation. True, certain adjustments to the size of the pension in one direction or another are possible. It is difficult to say exactly what numbers will be adjusted.

We can only say with confidence that the president of our country has given orders to the relevant ministries and departments to carry out indexation of pensions for pensioners from law enforcement agencies, including military pensioners. According to him, one of the priority tasks of the state is to increase the living standards of pensioners, taking into account the current economic situation.