How does pension reform change Russia?

How does pension reform change Russia?

The law on amendments to the pension legislation signed by Russian President Vladimir Putin yesterday was posted on the official web portal of legal information. 

On October 3, the Russian Federation Council had voted for endorsing the changes in the national pension system that envision an increase in retirement age and also criminal proceedings for unjustified dismissal of soon-to-retire employees. The pension age is to be increased to 65 years from 60 years for men and to 60 years from 55 years for women.

On July 19, the State Duma passed the pension system bill in the first reading. Initially, the document, which was suggested in mid-June by the government, provided a gradual increase in the retirement age of up to 65 years for men and up to 63 years for women. It was said that the age hike is necessary because rising life expectancy in Russia could exhaust pension resources if the eligibility age remains the same.

But the Russian president announced plans to amend government-backed legislation. He proposed reducing the pension age increase for women to 60 and allowing early retirement for mothers of three or more children, among other measures. 

Men will have the right to receive old-age social pensions upon turning 70 years old and women, upon turning 65. Until now, men turning 65 and women turning 60 could receive this type of pensions.

In addition, the bill enables men who have an employment record of 42 years and women with an employment record of 37 years to retire before they reach the official retirement age.

Another amendment says that mothers are allowed to retire earlier if they have more than three children.

The bill reaffirms the current norms for getting funded pensions. Women have an opportunity to request them upon turning 55 years old and men, upon turning 60. It also stipulates that citizens who have worked more than 30 years in agriculture will receive additional support.

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