A profitable resolution to the indexation of worker’s pensions

The State Duma decided not to support the indexation of pensions for working pensioners. The Committee on Labor and Social Policy recommended rejecting the relevant bills proposed by the deputies of the Communist Party of the Russian Federation, “Fair Russia” and the Liberal Democratic Party. The annual indexation of pensions was carried out in Russia until 2016. Currently, pensions are indexed only for non-working pensioners.

Working pensioners are forced to continue working due to extremely low pensions, the amount of which is often not enough to somehow make ends meet. The authorities are trying to save money in all sorts of ways. The money accumulated for the funded part of pensions was used to plug holes in the Pension Fund, then the indexation of pensions for some pensioners was canceled. Furthermore, an increase in the retirement age was introduced. At the same time, the government announces that this is being done for the sake of citizens themselves (working pensioners), to increase pensions for others.

Such actions of the authorities are not the result of some misunderstandings or miscalculations, they are the result of a deliberate policy aimed at curtailing social guarantees. Social security requires spending from the budget, which is replenished through taxes. However, the growing contradictions between Russian capitalists and their foreign “partners” require an increase in spending on weapons.

In addition, the development of the crisis reduced tax revenues to the budget. Therefore, the authorities have two options for action: the introduction of a progressive tax or the reduction of social spending. Since the introduction of a progressive tax is contrary to the interests of business, which the authorities are supposed to protect. The path was chosen, once again, aims to reduce social security costs.

 

 

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