VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
ARCHIVE OF THE OFFICIAL SITE
OF THE 2008-2012 PRIME MINISTER
OF THE RUSSIAN FEDERATION
VLADIMIR PUTIN
Transcript of the beginning of the meeting:
Vladimir Putin: Mr Drozdov, on January 1 we began the first stage of pension reform, which essentially entails the so-called valorisation, or adjustment, of pensions for those citizens who earned them during the Soviet era. Moreover, now a pensioner's pension cannot be below the subsistence level, no matter where he or she lives.
In this context we must resolve another important problem. Together with the regions, we must establish a mechanism for providing additional social payments to bring pensions up to the subsistence level wherever necessary. My question is simple: how have you started this work, and how is this work going now?
Anton Drozdov: Mr Putin, the Pension Fund has carried out necessary measures to implement federal laws increasing pensions. Current law provides for these two measures. The Pension Fund has valorised pensions for 35 million people.
In accordance with the law, these people's pensions have been increased depending on their terms of service during the Soviet era. The insurance component of pensions was increased by 1% for every year of service before 1991, and by 10% for every year from 1991 to 2001. The average increase across the country was 1,100 per pensioner, although the exact number is different for every pensioner, and depends both on the service record and the insurance component, which is based on individual remuneration.
During the valorisation of pensions, additional information was collected on the terms of service of 11.5 million pensioners. This was done by default, and as early as December 28 the funds were transferred to banks, the post service and other organisations that deliver pensions so that pensioners could receive them in January, as usual. Those pensioners who previously received pensions in the first three days of January could get them before December 28. This applies to about 9 million people, or 24% of pensioners in 72 regions.
If pensioners bring us documents this year showing that their service records are longer, their pensions will be recalculated retroactively after January 1. We can do this by law.
The second measure boils down to additional social payments. They have also been fixed. We worked together with the regions on this. A subsistence level was established for every region. In 65 regions this level was below the national average, and pensioners receive federal social payments there. In 18 regions this level is above the national average, and pensioners are paid extra by the regions.
Vladimir Putin: How well coordinated is our work with the regions in this respect? Particularly in regions where the regional governments must pay up to the federal level on their own?
Anton Drozdov: We have signed agreements for sharing information electronically with all regions. The federal registry has been merged with regional ones for the first time, and we have since shared information with them several times. As a result of the latest exchange of information, we found out that more than five million people are eligible for additional social payments. They were also granted these payments by default. They have received, or will receive by February 1, a notice about how much exactly they will receive in additional social payments. This applies to every pensioner.
These funds were also transferred together with the pension money for January, and pensioners were able to receive them through banks, post offices or other delivery organisations on December 28.
Vladimir Putin: This applies to all pensioners, those who live in the regions where we will pay from the federal budget to meet pensioners' subsistence level, and those living in regions where the subsistence level is higher than in Russia on average, where such payments will be made at the expense of regional budgets.
Anton Drozdov: The only difference is that the Pension Fund uses the registers provided by regional governments to pay the extra social payments from the federal budget. If the subsistence level is higher, then the extra payments come out of the regional budget. We share information with the regions, although federal budget officials corroborate this information.
As a result, some 29 billion roubles from the federal budget and 8 billion roubles from the regional budgets will be allotted this year for extra payments.
We will review these databases with regional authorities every month this year, since pensioners' benefits may vary over the course of the year.
This is why we share information on this issue with regional governments on a monthly basis. In addition, we share information with law-enforcement agencies, including the Ministries of Defence and Interior. They also receive extra benefits, although these are not very large.
In addition, we launched an information campaign last year to explain to people the details and options of the new legislation. We use all media opportunities, and have improved customer service - which is now available every day - and stepped up mobile customer service, which operates in remote locations. We also have hot lines.
We will continue this work this year. If people have any questions, they can turn to us, and we will sort out these issues and do everything that is necessary.
As a result, we have resolved the issue of ensuring that, after January 1, 2010, pensions cannot be lower than the subsistence levels for all pensioners.
Second, thanks to this increase and the valorisation, the ratio of subsistence levels to pensions will reach 1.6 in 2010, as opposed to 1.25 last year.
This year the Pension Fund sees its objective as providing these extra payments, as well as all federal benefits, without any setbacks. In April, we will index the insurance component of pension by 6.3%, and index the social pension by 15.9% and monthly bonuses by 10%.
Vladimir Putin: Higher pensions are bound to be welcomed by all recipients, pensioners above all. However, as you and I have agreed, this work should be carried out smoothly. Not a single person should be left out in the cold. To achieve this, we must streamline the performance of the pension system and teamwork with the regional governments, so that there are no setbacks on this account either.
Anton Drozdov: Pension Fund officials will do their best to fulfil your directives, ensure that pensions are paid without interruption this year and make certain that the system works well and according to schedule.
Vladimir Putin: And naturally we must be ready for indexation this year, since the overall increase will be about 46%.
Anton Drozdov: 46.1%.
Vladimir Putin: Exactly, 46.1%. Which is why we must accumulate necessary funds in time to meet the plan's deadline.
Anton Drozdov: There is one more issue, which regards bureaucracy. We have taken all the necessary steps to introduce a new procedure for processing insurance premiums on February 15. We are ready for this, and will address this issue.
Vladimir Putin: Good.
