Pension reform: version of Kudrin

The Chamber of Accounts submitted its response to the bill on raising the retirement age. The Office approved the concept of reform, but stated the need to finalize some of the provisions of the project.
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According to the BBC Russian Service, which got acquainted with the recall of the Accounts Chamber signed by its head Alexei Kudrin, the audit department did not find in the bill "calculations determining the relationship between raising the retirement age and creating conditions for the annual indexation of pensions above inflation."
In addition, the document does not indicate under what conditions the Russian pension system will be considered balanced and financially stable in the long term. In addition, there is no forecast in the bill about how the number of pension recipients will change, which, in turn, does not allow us to estimate how the number of pensioners will change given the planned measures to increase life expectancy.
"In addition, the main purpose of the bill is to increase the pension provision of citizens. At the same time, the bill does not contain a mechanism for increasing the size of pensions above inflation, which, in the opinion of the Accounts Chamber, can be improved when it is considered by the State Duma in the second reading," Accounting Chamber.
The head of the Accounts Chamber is a longtime supporter of the idea of ​​raising the retirement age. Even before joining the joint venture, being the head of the Center for Strategic Research, he proposed his own version of the concept of pension reform, similar to the one that the government is now implementing. The only difference between the projects was the timing of the reform: Kudrin proposed stretching the increase until 2034 for both men and women.
Recall that in mid-June, Alexei Kudrin declared that the pension reform was overdue in the country. He called the decision itself “profitable for citizens”, since raising the retirement age would also increase the size of pensions. In particular, he declared a 30% increase: “That is, every retiree will live a third better as a result of raising the retirement age.In general, raising the retirement age is in favor of pensioners. "
The first reading of the bill on pension reform will be held in the State Duma on July 19. The day before, on July 17, the relevant committee on social policy recommended the lower house to adopt it. In addition to it, the bill was supported by committees on health protection and on regional policy and problems of the North and the Far East.
In the draft conclusion to the draft law, the relevant committee noted that the government should develop a comprehensive program of measures to promote employment and protect labor rights of citizens of pre-retirement age, as well as to prevent the growth of youth unemployment. In particular, parliamentarians propose to ensure the payment of unemployment benefits at a level not lower than the subsistence minimum of the working-age population, RBC reports.
According to the provisions of the current draft of the bill, the retirement age in Russia will be raised gradually from next year. The transition to the new system will be completed in 2034. The retirement age for men will increase by five years, to 65 years, for women by eight years, to 63.Now these figures are 60 and 55 years respectively.
In the past few weeks, the discussion of the bill took place in the regions of Russia. Most of the subjects of the federation sent positive reviews to the document. Among the 13 regions with the highest estimates of support for raising the retirement age, experts call Altai, Karelia, Mari El, Mordovia, Chuvashia, Altai and Primorsky Krai, Arkhangelsk, Kaliningrad, Kirov, Leningrad, Saratov and Tomsk regions. At the same time, it turned out that at least 12 regions did not publicly support the pension reform. These are Dagestan, Chechnya, Yakutia, Kamchatka Territory, Vladimir, Irkutsk, Kemerovo, Omsk, Oryol, Yaroslavl Regions, Moscow, the Jewish Autonomous Region. Comment on their decisions in the regions did not.
Vitaly Purichi, an associate professor of the department of regional economics at Altai State University, gives his assessment of the pension reform: “The need for pension reform is due to a change in the demographic structure in which the elderly population takes an increasing share. This increases the burden on the pension system.There is a need to reduce costs. On the other hand, the solution to the problem may be the growth of system revenues, which may arise if the incomes of the economically active population increase, social payments increase, subject to the success of the tax authorities. <...> Another option is to change the tax system by introducing a progressive scale. But in this case, the least difficult way is chosen - simply to exclude a part of the population from recipients of pension payments.
Savings will be sensitive, but short-lived. The elderly population in the labor market was not distinguished by high incomes, so payments to the system almost did not increase. <...> Belief in the fact that pensioners' incomes will increase, as Kudrin and the government are talking about, is not great. A nominal increase in pensions will inevitably entail a rise in prices for essential goods, not only pensioners, but all groups of not very well-to-do citizens will suffer from inflation. And it is simply ridiculous to expect that medicine and social services will improve, which will allow residents of the country to remain productive in their work for longer.
There is not a single positive example of social reforms; there is no reason to expect success from a new one. <...> The need is currently in completely different tools. An increase in the retirement age is possible only under the condition that people in the age can compensate for the loss of pension funds by productive labor, that they will benefit by remaining active workers. All other options are flawed not only for people, but also for the budget, and for the country. "
Larisa Shakhovskaya, Doctor of Economics, Professor of the Department of World Economy and Economic Theory, Volgograd State Technical University, shares her opinion on the need for reform and the position of the Accounts Chamber and personally Kudrin: the lives of Russians, but also changes in the internal development environment in which the Russian economy found itself in the era of globalization. <...>
The extension of working age will really allow to increase the size of pensions of non-working pensioners by increasing the number of pension contributions from workers.At the same time, those who are already retired, but still working, do not lose their pensions and continue to receive them. <...>
I don’t think that the Accounts Chamber should deal with pension reform: this is not one of its functional duties, therefore all proposals of its head, Mr. Kudrin, should and can only be of a private nature. As for the revision of the law on pension reform, it, of course, should be finalized both by representatives of the Russian government (Ministry of Economic Development, Ministry of Finance), and representatives of the legislative power, both at the state level and at the regional level. Of course, trade unions should be involved in the discussion of pension reform as representatives of workers.
Moreover, taking into account the rapidly changing external and internal environment of our activity, the pension reform must constantly be adjusted to reflect these changes. <...>
All these and other constantly emerging issues require their decision at the legislative level, therefore, the refinement of the new pension reform even after its adoption is a constant process, the goal of which is to reduce the level of poverty in our country. "
Well, something like this.
The full version of the material with detailed comments of experts can be read here.
Agenda, trends, opinions, exclusive. Informally on the Telegram-channel "Davydov.Indeks".

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