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Friday, October 28, 2016

The Pension Fund has had an unscheduled “hole”

The chamber said the increase in the deficit of the Pension Fund (PFR), due to the need of pension supplements, raising them to subsistence level. Budgeted funds for FIU it was over and the Fund need new transfers from the Federal budget.

photo: Gennady Cherkasov

On the whole the year payments were scheduled to 43.9 billion rubles, RBC, citing data from the audit chamber (SP). However, in 7 months of 2016 had to spend 11 billion more: 55,2 billion. By the end of the year, according to the calculations of the SP, the original amount may be exceeded by half.

The auditors warned that the need of surcharges will lead to a situation in which the government abandoned the indexation of pensions to inflation, leaving only an increase of 4%. The living wage has risen and pensions have remained virtually unchanged. Russia’s average subsistence minimum increased from approximately 7.2 thousand to 8,8 thousand roubles.

Read why “Assistance” funded pensions of Russians.

In this case, the FIU hope supplements to pensions will be able to provide at the expense of redistribution of means of the Fund, however, the government this opinion does not comment.

We will remind that earlier it became known about the seizure of the citizens of funded pensions and in the next, 2017, the proceeds from them will be directed to cover the deficit of the PRF. In addition, the indexation of pensions this year was replaced by a one-time payment of 5 thousand rubles for the New year, which, however, will be much less than the amount which the pensioners would have received under full indexation.

The promise of renewal in 2017 does not account for the percentage by which the pension was not indexed in the current year.


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