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Russian Ministry of Finance Will Save Money on Pensioners Expense

Ministry offers to discontinue indexation of pensions and social payments for the nest 3 years.

23.Jun.15 11:02 AM
By Anna Nekrasova


Russian Ministry of Finance Will Save Money on Pensioners Expense
Russian Ministry of Finance representatives have offered new initiative during meeting with the Head of the Government dedicated to main aspects and parameters of the federal budget. They offer to save money on pensioners’ expense. It means that pensions and social payments will not be indexed within the following 3 years. It will make it possible for the government to save up to $50 billion.

According to available information this question is actively discussed and decision can be made during this week. Social bloc is against such measures and pension reductions ate the moment.

It is also known that the offer includes reduction of indexed pensions from 7% to 5.5% in 2016, from 6.3% to 4.5% in 2017 and from 5.1% to 4% in 2018. Such measures will make it possible or the government to save up to $10.2 billion in 2016 while in 2017 this rate can reach the mark of $17.5 billion. In 2018 this rate can be even over $20 billion.

Apart from reduction of pensions and other social payments Russian Ministry of Finance is also planning to cut down other indexed costs which include military pensions and one-time payments.

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