The law on pension indexing for working pensioners is expected not to be passed

2021-03-13

Out of money

The head of the “Just Russia” faction in the State Duma, Sergei Mironov, said that the State Duma deputies would not enact legislation on the pension indexing for working pensioners. According to Mironov, most of the deputies are not even going to vote, and the bill will definitely fail.

Earlier, the deputy from the Communist Party of the Russian Federation, Valery Rashkin, said that the Pension Fund is currently facing a financial gap. Therefore, the authorities may raise the retirement age again next year.

The Government’s policy is to avoid indexing retirement benefits for working pensioners. That, on the one hand, will make the working people suffer losses, and, on the other hand, the Pension fund itself will lose a part of its contributions. It is quite obvious, that elderly pensioners go to work not just so to earn some big money but to simply make ends meet because their hand-to-mouth pension is not enough to survive. The lack of pension indexing will naturally lead to losses. That is why many retirees are looking for an off-the-books job and get paid “under the table”. As a result, there is a decrease in payments to the Pension fund. In the short term, the decision to overturn the indexation of pensions makes it possible to solve minor problems and plug up the equity leaks in the Pension fund, but in the long run, on the contrary, it comes with new challenges and brings even more serious problems.

However, the authorities do not really care about what is going to happen in the long term. Probably, an attempt is being made to gradually dismantle the pension system in Russia at all. Therefore, it is important for the authorities to poke the holes here and now and not to worry about the future. The gradual increase in the retirement age is part of the program to phase out the general pension system. Apparently, the entire plan is being implemented gradually, so as not to trigger any social upheaval. We remember what the news of the increase in the retirement age in 2018 resulted in – the massive protests, which could only be ended through deception, use of force by the police, and political trickery. And the rating of the authorities then collapsed so that it still could not improve any better. It is clear what the news about the complete abolition of pensions would lead to.

The working people really have two choices here. The first choice is to try to survive on their own, trying to save money for a decent old age. But in this case, they are running the risk of ending up with nothing at all, since no one is safe from the crisis, any kind of scam, or other ways to lose money in the world we live in today. Therefore, you are very likely to find yourself having no money in old age. The second choice is to fight for your economic rights. This way requires, to some extent, more efforts and the success achieved will be of a more long-term nature. The struggle of workers in the late 19th and early 20th centuries led to a radical improvement in life, to the introduction of an 8-hour working day, guaranteed sick leave, paid vacation, and retirement pension benefits. These achievements have been lasting for the lives of several generations and all of them still continue to be used nowadays.

Drawing on the expertise and the results of struggle in the past, it becomes clear that by no means can we deal with the current situation.