What does it mean to freeze pension savings for a year? What threatens the freezing of pension savings?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Retirement savings allow citizens to influence their incomes, and the economy to receive investment resources. For two years in a row they succumbed to temporary "conservation". The moratorium was extended to 2016. Read more about what it means to “freeze pension savings” and how it threatens the country's economy and population, read on.

Reform data

From the income of employed persons, 22% is transferred monthly to insurance funds. Of these, 6% is directed to the formation of savings, and the rest - for retirement. At the request of citizens, the entire amount can be used to form a pension.

In persons who were born before 1967, savings are also formed from voluntary contributions, maternity capital. For working citizens, all contributions go to the formation of a pension. Persons born after 1966 could independently choose the distribution of contributions. Thenreform has changed. For the third year in a row, all deductions from employed citizens are directed to the formation of a pension, not savings.

Deficit coverage

There are two ways to patch up budget holes. The first is to reduce social obligations and index payments by 4.5%. This option will not pull the budget, despite the fact that the actual inflation rate is 11.9%. The second is to reduce current social obligations, index future ones by 7%, and also impose a temporary moratorium. What does it mean to freeze pension savings?

Backstory

Extension of the freeze on pension savings is discussed in the government whenever the issue of budget execution is raised. For the first time, such a decision was made in 2013. When they began to ask questions about what it meant to “freeze pension savings for the year 2014,” the government explained that this was a temporary measure aimed at checking the NPF. Then they said that in 12 months the moratorium would be lifted. But it didn't. In 2015, the funds were directed to anti-crisis measures, or rather, to the Crimea. In addition, the audit did not have time to complete in a year. In the spring, they began to think about the dangers of freezing pension savings for the third year in a row, and decided to lift the moratorium. But it failed again.

What is the essence of freezing pension savings

Moratorium lasts one year. Savings are a guarantee of the long-term sustainability of the entire system. By imposing restrictions on them, the government is trying to patch upholes in the budget. What does it mean to “freeze pension savings”? Contrary to popular belief, this measure does not mean the abolition of savings. According to the Ministry of Finance, in 2016 it is necessary to cut expenses by 576 billion rubles. or find an additional source of funding. Then it will be possible to meet the planned deficit of 3% of GDP. Otherwise, in 2017-2018. state reserves will be sharply depleted. How to understand this?

Freezing pension savings is so far the only option for financing the state budget. Governments have to cut hard on spending when it comes to spending. Due to the protracted five-year deficit, there are not so many ways to balance the budget. As one of the options, an increase in the tax burden on oil companies is being considered. Such a measure should help transfer funds from developed sectors to new projects.

Other options for solving the problem were also considered, for example, increasing the severance tax, reducing the indexation of pensions to 4%, refusing to pay old-age social benefits to working pensioners whose annual income exceeds 1 million rubles. On the state defense order, it was possible to save 223 billion rubles out of the planned ones. only a couple dozen. It is good that while the issue of raising the retirement age is not discussed.

In theory, there is a version that the funds can also be used to finance projects of state-owned companies, to help restart the economy. In practice, this option is not implemented. The funds are used to patch up holes in the state budget.

Double Strike

Half of 1,7 trillion rubles NPF funds were invested in corporate bonds. In 2015, 200 billion rubles were directed to the economy. savings. Freezing will only make matters worse.

The impact will be double if savings are directed towards spending rather than financing the deficit. The 2016 budget provides for a sharp increase in borrowings (from RUB 30 billion to RUB 500 billion). The state is a more attractive borrower for banks. This infringes on the interests of companies that would like to take loans for development. Incomes of the population will continue to decline, and the pension will not be indexed to the level of actual inflation in the next three years. It turns out a vicious circle.

What else threatens the freezing of pension savings for citizens? Slowdown of the country's economic development, loss of confidence in the pension institution. It is not known which of these options is worse.

Benefits

Having de alt with what it means to "freeze pension savings", we turn to the question of what it will give. According to the plans of the Ministry of Finance, in 2016 this measure will finance the budget for 344 billion rubles. over the next 3 years (until 2018 inclusive) by reducing the PFR transfer. But what exactly the savings will be used for is not specified.

Results achieved

During the first moratorium in 2014, savings were used to pay current pensions. It was also planned that part of it would be replenishedanti-crisis reserve. In fact, the funds were directed to support the Crimea.

In 2015, the transfer from the federal budget to the Pension Fund will amount to 2 trillion rubles. (30% of pension costs). It has grown twice. At the beginning of the year, 285 billion rubles. was aimed at indexing pensions to the level of actual inflation, which turned out to be very high due to the currency crisis, and at compensating for shortfalls in contributions. In autumn, another 124 billion rubles were required. for the same purposes: due to “sagging” earnings, contributions practically do not increase.

Freezing is not the final way out

The crisis of the pension system is getting worse from year to year. In 2014, the deficit of 6 billion was covered by almost half (2.4 trillion rubles). Indexing will require even more funds. They are not in the budget. Therefore, reverse measures can be taken - increasing the retirement age, reducing payments, stimulating late retirement on a well-deserved vacation, etc. By freezing savings, the state does not receive "live" money, but simply reduces the number of current IOUs. If the government decides to reduce payments (guarantees), the level of confidence in the pension system among citizens will decrease. This will quickly affect labor productivity and production growth rates. Therefore, this measure provokes protests even in the government.

Plans for 2016

Indexation of social pensions is carried out taking into account the projected inflation rate of 6.6%. A more significant increase in payments is impossible due to the unstable demographic situation:the number of able-bodied persons is declining, while the number of pensioners is growing.

The average amount of payments in 2016 will be 13.2 thousand rubles. After the introduction of the reform in 2014, the length of service includes such periods as caring for a child, the disabled, serving in the army. With the new scheme, you can get a surcharge of 500-700 rubles. Employed elderly people whose annual income exceeds 83 thousand rubles will be deprived of payments, but will retain all benefits. The pension for the disabled is calculated based on the group, as well as UDV (monthly cash payments). From January 2016, it will be indexed by 10%. The increase in payments will be: I gr. - 900 rubles, II gr. - 500 rubles, III gr. – 400 RUB

Since 2012, military pensions have been increasing regardless of the economic situation. Growth of 7.5% is planned for 2016. At the same time, the 2% surcharge will be canceled, payments will be made for the length of service. There is another innovation. If, after the service, military pensioners go to work for a "citizen", then the accrual will be carried out according to the usual length of service, without allowances.