Age pensions- these are regular cash payments from the Social Protection Fund, assigned to citizens who have reached the retirement age specified by law, subject to the presence of work experience, the minimum amount of which is also determined by law. The amount of the old-age retirement pension depends on the size of past earnings.
The following distinctive features of the old-age pension in the Republic of Belarus should be highlighted:
- it is assigned upon reaching the age specified by law:
- assigned to persons who have a sufficiently long history of socially useful activities;
- The old-age pension is granted for life, regardless of the state of working ability.
Thus, an old-age pension is not only compensation for the expected decrease in the ability to work, but also a well-deserved rest.
The right of citizens to pension provision, including old age, is guaranteed by Article 1 of the Law of the Republic of Belarus “On Pension Provision”. At the same time, Article 5 of this Law states that the right to a labor pension is given to citizens from whose income during the period of their working activity deductions were made for state social insurance for at least 5 years.
Persons of retirement age who are not entitled to a labor pension are assigned a social pension under conditions specified by law. This provision is contained in Articles 5 and 72 of the Law “On Pensions”.
The source of payment of labor old-age pensions is the Social Protection Fund. Social pensions are paid directly from the republican budget.
From January 1, 2017, by Decree of the President of the Republic of Belarus dated April 11, 2016 No. 137 “On improving pension provision,” the generally established retirement age will be increased annually by 6 months until men reach 63 years of age and women 58 years of age.
Let us recall that previously, according to Article 11 of this Law, the following had the right to receive old-age pensions on a general basis:
- men who have reached 60 years of age and have a work experience of at least 25 years;
- women, respectively - 55 years old, with at least 20 years of experience.
The assignment of an old-age retirement pension is preceded by the process of calculating its size based on the total length of work experience and special moments of its calculation; calculating the amount of earnings to determine the amount of the pension.
Issues of accrual as a percentage of previous earnings are regulated by Article 56 of the Law. The procedure for collecting and verifying information about earnings and other payments included in the calculation is according to Articles 57 and 58. The procedure for recording information about length of service and the nuances of its calculation are defined in Articles 51 - 54 of the Law.
According to reviews from citizens who have already gone through the procedure for calculating and assigning a pension, this process is quite well established, the application of legislative norms has been explained and worked out. The most common problem is errors when submitting information to the Social Security Fund by employers, especially in the Soviet and early post-Soviet years and obtaining information about work experience and earnings from other states of the former USSR.
To clarify the current situation in the described area, you can consider the statistical data of the Minsk City Executive Committee for 2017-2019, in Belarusian rubles:
|
Labor pensions |
from 1.08-31.10.2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
|
Average size of all types of pensions |
381,17 | 381,80 | 405,05 | 432,27 | ||||||
|
Minimum age pension |
||||||||||
|
Minimum old-age pension (25% of the average subsistence budget per capita) |
53,55 | 54,23 | 56,01 | 57,73 | 57,96 | |||||
|
additional payments in the amount of 20% of the average salary |
162,48 | 162,48 | 173,04 | 185,15 | 185,15 | |||||
After the launch of pension reform in Ukraine, neighboring countries began to think about the need to learn from experience. The Russian government also announced an increase in the retirement age and the size of pensions. Each country carries out reforms in its own way, and pensioners are left to consider who will have more payments.
Ukraine – European pensions
The slogan is good, but in reality the picture with payments to old people is not rosy. Ukrainians can apply for a pension based on age, in connection with disability or the loss of a breadwinner; there is an additional category of pensions related to the characteristics of work or profession.
Since January of this year, new rules for issuing benefits to citizens who are on well-deserved rest or continue to work have been launched in Ukraine. Let us remind you that not only the age threshold for Ukrainians is increasing, but also the amount of work experience.
The Pension Fund of Ukraine has tariff schedules with age restrictions, features for calculating length of service, and daunting formulas that are not so easy for an ordinary working person to understand. Everything for the people.
The average pension of a Ukrainian citizen in 2018 is 2,480 hryvnia, which corresponds to $94.3 (at the official exchange rate on the day the article was written). This does not mean that all pensioners receive this amount, since the minimum pension at the beginning of the year was 1,452 hryvnia or $55.21. So it turns out that someone’s pension cannot even be called a social benefit, but deputies and judges receive a pension in the amount of 16,000 hryvnia (600 dollars, this is where Europe is felt in the wallet).
Pension payments across regions are heterogeneous; in the Kyiv region, the average pension varies between $100, and in the Rivne or Ternopil regions it barely exceeds $56.
What about the neighbor?
Russia itself is not happy with the pension reform: strikes, consideration of bills, criticism of trade unions, but where can you go when there is a catastrophic lack of money.
Starting from 2019, the retirement age is planned to be raised, and the revision of length of service is not far away. Gradually, Russia will also reach the age of 65 years for men and 63 years for women, but for now the same parameters remain: 60 and 55.
In the Russian Federation there are pensions for old age (insurance), social (for people without experience), disability, military, and professions. In addition, due to the large territory in Russia, there are also benefits by region.
According to the Pension Fund of the Russian Federation, in 2018 the average pension throughout the country increased to 14,100 rubles ($222.85), and the minimum, that is, social benefit, does not exceed $140.
Moscow pensioners live richest of all, on 17,500 rubles ($276.59), while old people from the Ryazan, Saratov, and Bryansk regions live modestly on an allowance of 8,000 rubles ($126).
What about your little brother?
In Belarus, since 2017, the government was forced to begin pension reform; the age at which citizens can retire is gradually increasing, so men must work until they are 63 years old, and women until they are 58 years old.
Pensions in Belarus are different: assigned (according to profession, early), by age, social, for disability, in case of loss of a breadwinner. Official statistics state that the average pension for citizens of all categories is 340 Belarusian rubles or 171 dollars. Dry numbers are far from reality, as the situation with pensions in Ukraine and Russia shows.
Belarusian elderly people receive old-age pensions unequally; the richest can be called the residents of Minsk, whose pension is 338 Belarusian rubles or $169.87; residents of other regions receive a little less: from 310 Belarusian rubles ($160). Social payments in the country are also not uniform: from $87.75 to $109.26. As we can see, the picture of territorial differentiation of pensions in Belarus is not much different.
All three East Slavic countries are far from European tariffs, where the average pension reaches $2,800 (Denmark). But we shouldn’t lose hope, perhaps in the near future we will get out of crises, disputes, squabbles and live in retirement, traveling, but for now our pensioners should hope for a July increase in pension payments.
Pension- monetary support paid to a person upon reaching a certain (retirement) age, as well as for length of service, in the event of loss of ability to work, the onset of disability (for disabled citizens) and on other grounds. Payment of pensions can be made from state funds, funds of organizations, and in certain cases, at the expense of individuals.
The system of individual accounts, using which a working person finances his future pension from his own contributions, is not widespread in Belarus. In fact, funds for pension payments are taken from workers' current contributions.
In the Republic of Belarus, the following have rights to state pension provision in cases specified by law:
- citizens of the Republic of Belarus and other persons living on its territory;
- citizens of Belarus living outside its borders, in accordance with international treaties between the Republic of Belarus and the country of residence of the pensioner.
It is customary in the legislation of Belarus to distinguish between labor and social pensions.
The workforce includes:
- long service pensions;
- pensions for special services to the state.
| from 01.11 | from 01.12 | from 1.05. | from 1.08 | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Average amount of assigned monthly pensions |
363,90 | 381,56 | 381,17 | 381,80 | 405,05 | 432,27 |
Social pensions are assigned without additional conditions to persons who are unable to earn their own living.
Persons who, during the period of working activity, were subject to state social insurance in the Social Protection Fund of the Republic of Belarus (FSZN) for at least 5 years are entitled to an old-age labor pension.
Some groups of the population are granted pensions on special, preferential terms, for example:
- war invalids;
- mothers of military personnel who died during military service;
- mothers of many children;
- dwarfs and midgets;
- disabled since childhood.
Old-age pensions are granted for life, regardless of ability to work.
Disability pensions can be established by decision of a medical commission, either for life or for a certain period until a new re-examination for health status and restoration of working capacity.
As a rule, the assignment of a pension is preceded by an appeal to the relevant territorial bodies for labor, employment and social protection of the population. When considering the application, the existence of grounds for assigning a pension is checked and its amount is calculated.
Pension provision under this Law is carried out by district (city) departments (departments) for labor, employment and social protection.
The sources of funds for paying pensions are the Social Protection Fund and directly.
Labor pensions are paid from the Social Security Fund. When an additional pension is assigned for work under special conditions or for length of service, funds for their payment are allocated from professional insurance funds. When assigning a disability pension, the source of payments is funds from compulsory accident insurance. Social pensions are paid from the republican budget.
The amount of the old-age pension must be at least 55% of the average monthly earnings of a pensioner, but not less than the minimum pension amount approved by law.
Calculation of other types of pensions and additional payments to them is carried out in accordance with the Law of the Republic of Belarus “On Pension Security”.
The size and rules for calculating pensions and additional payments to them in Belarus are centrally regulated by law. In connection with the changes, in order to improve the financial situation of pensioners, on February 1, May 1, August 1 and December 1, minimum and social pensions were recalculated, as well as some aspects of calculating old-age labor pensions.
Labor pensions in Belarus in 2018 increased from August 1 and May 1. As a result of recalculation from November 1, 2018, the size of labor pensions increased by 5.3 percent.
From May 1, 2019, labor pensions are recalculated based on the average salary of employees for calculating pensions, applied since November 2018, indexed by 6.5 percent - 865.21 rubles.
In the current 2019 year, the amount of accrued pensions will depend on the growth of employee wages and the financial capabilities of the Social Security Fund.Also, an increase in pensions is expected in connection with changes in the BPM.
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Pensions paid to citizens of the Republic of Belarus are divided into several categories. Their size is determined by various factors - the total length of work experience, the pensioner’s ability to work, etc. The legislation also provides for the so-called minimum pension- a payment that is guaranteed to be received by a person who has worked for a certain number of years.
How is the minimum pension in the Republic of Belarus calculated?
The basis is the BPM (subsistence budget) - a variable economic value that is calculated individually for different segments of the population. The minimum age pension is calculated in the amount 25% of the maximum BPM size for the last 2 quarters.
But for the disability pension in our republic, a different calculation mechanism is used.
- Disabled people of the 1st and 2nd groups receive payments in the amount of 100% of the minimum age pension.
- Disabled citizens of the third group are guaranteed to receive a pension, the amount of which is already 50% of the average age.
- A pension is separately stipulated for heroine mothers with any degree of disability. This category of citizens is paid 100% of the minimum pension assigned by age.
An important nuance: in order to receive a minimum old-age pension, you must have a minimum work experience. Currently it is 15 years. Moreover, throughout all these years, the employee must pay the required insurance contributions to the republican budget. If the minimum length of service for a pension is insufficient (i.e. less than 15 years), then the employee will receive a social pension. It is also calculated based on the BPM for different categories of pensioners.
Minimum pension in Belarus in 2016-2017
In 2016-2017, pensions in the country were indexed several times. All types of pensions increased, including minimum ones. In particular, the minimum age pension in January 2016 was 392 thousand non-denominated rubles. After several increases, in January 2017, this type of pension increased to 43.8 denominated rubles. The amount, frankly speaking, is small, but it is determined in full accordance with the current legislation of Belarus.
In 2018, the minimum pension was increased 4 times.
Information on how pensions have changed in the Republic of Belarus over recent years can be found in the table below.
Change in minimum pension from 2015 to 2019
| Labor pension | Incl. 25% of the cost of living budget | Incl. with additional payment for 20 years of work experience for women, 25 for men (in the amount of 20% of the average salary) |
| Feb-Apr 2019 | 53,55 | 216,03 |
| Nov. 2018 - Jan 2019 | 53,55 | 216,03 |
| Aug.-Oct.2018 | 53,42 | 207,43 |
| May-July 2018 | 51,65 | 191,03 |
| Feb-Apr 2018 | 49,83 | 181,94 |
| Nov. 2017-Jan. 2018 | 49,45 | 181,56 |
| Aug.-Oct. 2017 | 49,39 | 174,61 |
| May - July 2017 | 45,96 | 171,18 |
| Feb. - Apr. 2017 | 45,03 | 170,25 |
| Dec. 2016 - Jan 2017 | 43,88 | 169,10 |
| Aug.-Nov. 2016 | 43,88 | 162,57 |
| July 2016* | 42,49 | 161,18 |
| May-June 2016 | 424 860 | 1 611 800 |
| March-April 2016 | 410 000 | 1 596 940 |
| Feb. 2016 | 397 830 | 1 584 770 |
| Sep. 2015 - Jan 2016 | 392 280 | 1 579 220 |
| Aug. 2015 | 392 283 | 1 517 350 |
What will be the minimum pension in 2019?
The last time pensions in Belarus were increased was on November 1, 2018. As of January 1, 2019, the average old-age pension in the country is 216.03 rubles, the minimum old-age pension is 53 rubles 55 kopecks.
How will the size of pension payments change in the future? This depends on the following factors:
- the size of the subsistence level budget, its indexation;
- inflation rates;
- the general state of the Belarusian economy.
But based on the experience of past years, we can say that pensions in the Republic of Belarus are usually increased at least 2 times a year. This usually occurs in March-April and October-November. Therefore, there is every reason to believe that in 2019 the government will look for opportunities to again index pensions, including minimum ones, according to this scenario.
Economist. More than 15 years of experience in finance. Date: November 11, 2018. Reading time 7 min.
Since 2017, a consistent increase in the retirement age has begun in the Republic of Belarus. Today, men from 61 years of age and women from 56 years of age have the right to a pension. Pension reform will not solve the problem if the distributive nature of the system for providing for the elderly remains in the Republic of Belarus
One of the most important components of the social protection system of the population of the Republic of Belarus is pension provision. Every disabled citizen of Belarus has the right to payments from the state. Their size depends on the place and length of work, the position held. Let's talk about what kind of pension is in Belarus, to whom and in what order it is calculated, at what age a citizen has the right to retire.
The pension system in Belarus operates on a distribution basis. The principle of its operation is that contributions from workers go towards paying pensions.
The Republic of Belarus pays pensions to its citizens and foreign nationals permanently residing here. It also applies to citizens of Belarus living in countries with which the Republic of Belarus has concluded international treaties.
Tab. 1. Pension payments assigned in the Republic of Belarus
Those who are unable to earn a living on their own can count on a social pension.
Retirement age in Belarus
The definition of a Belarusian pensioner is exactly the same as in any other country in the world - this is a person who has reached the retirement age established by law and who is entitled to payments from the state. Until recently, the old age pension was assigned:
- 60-year-old men with 25 years of work experience;
- 55 year old women with 20 years of experience.
Starting in 2017, the legislator decided that the retirement age in Belarus should gradually increase. In 2018, it reached 61 years for men and 56 years for women. In 2019, men will receive a pension at 62.5 years, and women at 57.5 years.
At the same time, they will need 16.5 years of insurance experience in 2018, and 17 years in 2019.
Completion of the reform is expected in 2020. By this time, retirement age will be 58 for women and 63 for men.
This measure was forced. The population is aging, the birth rate is falling, and the average age of Belarusians is growing. As a result, one worker must support one non-worker. From the point of view of economists, such a relationship is fatal.
How is the Federal Social Security Fund formed?
The mechanism is as follows: monthly payroll tax is paid to the Social Protection Fund for each working citizen:
- 34% from the employer;
- 1% of the employee.
These funds are used to provide pension payments and various benefits. The distribution system works - there are no accumulations of pension contributions, everything goes to payments to current citizens of retirement age.
Amount of pension payments by country
At the end of 2017, a pensioner in Belarus received an average benefit from the state in the amount of 314 Belarusian rubles. Minsk pensioners received the most - 316 rubles, and old people from the Brest region received the least - 299 rubles. Since the beginning of this year, the average monthly payment has increased by 15.8% and amounted to 363.9 rubles.
The average amount of the assigned old-age pension was 374.8 rubles in August 2018, which is 3% higher than the national average.
Tab. 2. Change in the average size of assigned pensions in Belarus in 2017–2018. (Belarusian rubles)
| Average amount of assigned monthly pensions | According to the age | |||
| 2017 | 2018 | 2017 | 2018 | |
| January | 297,0 | 314,3 | 305,8 | 323,1 |
| February | 297,7 | 314,8 | 306,1 | 323,2 |
| March | 297,7 | 314,8 | 306,1 | 323,2 |
| April | 297,7 | 314,8 | 306,1 | 323,2 |
| May | 298,0 | 331,2 | 306,1 | 340,5 |
| June | 298,0 | 331,2 | 306,1 | 340,5 |
| July | 298,0 | 331,2 | 306,1 | 340,5 |
| August | 300,3 | 363,9 | 308,2 | 374,8 |
| September | 300,3 | 308,2 | ||
| October | 300,3 | 308,2 | ||
| November | 314,7 | 323,5 | ||
| December | 314,3 | 323,1 | ||
Source: Ministry of Labor and Social Protection of the Republic of Belarus
The minimum consumer budget for pensioners from November 1, 2018 is set by the Ministry of Labor and Social Protection at the level of 349 Belarusian rubles. Pension payments to the elderly are barely enough to cover the basic necessities.
Unlike an old-age pension, which is assigned for life upon reaching retirement age, a disability benefit can be established for a specific period, for the extension of which you will have to undergo re-examination.
Minimum guarantees
The legislation of Belarus regulates the amount of pensions and additional payments to them, as well as the procedure for calculating payments.
Labor pension
In 2018, it is calculated from earnings for the last 24 years in a row, not exceeding the actual length of service.
The minimum size for it is set:
- by age - 25% of the highest subsistence level approved over the last two quarters;
- in case of loss of a breadwinner – 100%, for orphans – 200%;
- for disability: groups I and II - 100%, for group III - 50%, heroine mothers (regardless of disability group) - 100% of the minimum age pension;
- long service pensions – 100%.
For those whose labor pensions are minimal, the state pays an additional 20% of average earnings in the Republic of Belarus.
The old-age pension must exceed the minimum for pension payments approved by law and not be lower than 55% of the average monthly earnings of a pensioner.
Social pension
This is a type of benefit calculated from the maximum subsistence level for the last 2 quarters in the amounts:
- 110% - disabled people of group I, including disabled people since childhood;
- 95% – disabled people from childhood, group II;
- 85% – to disabled people of group II (excluding disabled people since childhood), children with the loss of a breadwinner for each child;
- 75% – disabled people of group III, including disabled people since childhood;
- 50% - men over 65, women over 60;
- 80% - disabled children of the first degree of health loss, 85% - second degree, 95% - third degree, 110% - fourth degree.
Recalculations
The Government of Belarus intends to maintain pension provision at a certain level. For this purpose, pension recalculations are carried out periodically. Reasons:
- increase in average monthly wages – at least once a year;
- change in the cost of living.
Registration procedure
A pension is not automatically assigned to anyone. A citizen of the Republic of Belarus should submit a corresponding application to the labor, employment and social protection authorities.
The employer prepares and provides all documents for its employees. The unemployed must do everything himself.
The set of documents will depend on the type of pension payments. But for any of them, an original and a copy of the work book and a salary certificate are required. You will also need an identity document: a passport of a citizen of the Republic of Belarus or a national passport and a residence permit for a foreign citizen.
This is a list of basic documents. If necessary, others must be submitted: military ID, documents confirming education, birth certificates of children, etc. The full list can be obtained from the social security authority at your place of residence.
All the above documents (originals) are attached to the application. After review, their owner will receive all the papers back.
Results and prospects of pension reform
The past two years have brought their results. True, the population did not feel them. The size of pension benefits and the standard of living of older people have not changed significantly. But the labor market felt the consequences. Thanks to those who are now recognized as able-bodied (they already have a job and are unlikely to leave it), the prospects for career growth in their home countries are “closed” for young professionals. We will have to forget about updating personnel in the national economy of Belarus for ten years.
The retirement age is being raised in all European countries. It was also raised in the Republic of Belarus. But by keeping pensioners on the market, it is necessary to create new jobs and provide more opportunities for small and medium-sized businesses. Will this help save the economy from “pension” overload and at the same time provide everyone with a decent old age?
“Increasing the age cannot completely eradicate the problem. The pension system really needs to be changed. It is advisable to switch to a mixed system - solidary plus funded" (Valery Borodenya, deputy of the House of Representatives of the National Assembly of the Republic of Belarus)
In addition, they significantly exceed the level of payments in Belarus.
Now in Belarus, payments to pensioners are provided by contributions from workers and employers to the Social Security Fund. The measures taken by the government of the republic will not solve the problem of the deficit of the Social Security Fund. Today the share of citizens of retirement age is 25%; by 2050 it will increase and reach 35%.