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
"Our main goal now is to help those who have lost their relatives in the tragedy, and all those who have been affected. As you know, RusHydro has decided to pay 1 million roubles to the families whose relatives have died. This is a good decision, but it is not enough. Payments should also be made to the families of those whose relatives are missing. We know now what happened and why, and nobody must pretend that they don't know the reasons. Moreover, we should make additional payments, including to minors aged under 18. One-off payments, of 1 million roubles, will be made to the families whose members have died in the tragedy or are missing, and one-off payments will also be made to other victims."
"Allow me to recall that the federal budget has allocated a total of 64.7 billion roubles for this programme, out of which 8.9 billion roubles were transferred last year, and another 55.8 billion roubles will be provided for this year. I would like to emphasize this year's increase to 55.8 billion compared with last year's 8.9 billion despite the ongoing crisis. This is enough to fully resolve the problem."
"As we have pledged, by May 1, 2010 all war veterans requiring better housing conditions should be provided with flats. I would like to inform you that we have decided to improve considerably the terms of granting housing. Today, in calculating the funding, we proceed from the quota of 22 square meters per capita, whereas subsequently we will apply a higher standard - 36 square meters per capita."
"Starting January 1, 2010 the pension rights acquired before 2002 should be adjusted by an additional 10%, plus one percent of extra adjustment for every year of service during the Soviet period - until 1991. In this way, we will more justifiably appreciate the labor contributions of people during the Soviet time."
"If pensioners live in a region with a high cost of living and their pensions are below the subsistence level, they will receive special social payments."
"All in all, we are allocating an additional 600 billion rubles for social needs. The bulk of these funds are designed for the pension and other off-budget funds."
"Last year, pensions grew by 18.5% in real terms. This year, the nominal increase in labor pensions will be over 24%. As we declared, the average social pension will reach the pensioners' subsistence level."
"I believe it is impossible to delay the reform of the pension system and a tangible pension increase."
“The planned programme for the development of the pension system is our absolute priority. We must start implementing it in 2010, although we are already taking the required measures to create the conditions for its full-scale implementation.”
“As you know, starting on March 1, the basic part of a retirement pension has been increased by 8.7%, as we have promised. It will be adjusted once again before the end of this year and will grow by another 31.4% starting on December 1. I have already signed the Government's Resolution on increasing the insurance part of the pension by 17.5% starting on April 1 of this year. In August, it will grow by another 7.5%. Consequently, as we have planned, by the end of the year the average social pension will not be below the subsistence level.“
“The new version of the budget includes appropriations required for the implementation of these commitments. We won't save money on these items. On the contrary, we will increase budget subsidies to the Pension Fund by another substantial sum of 374 billion roubles.”
“I'd like to remind you that last September the Government determined the directions of the pension system's development, and compiled a list of major measures that are designed to guarantee its stability and effectiveness. These include a switch from the unified social tax to insurance contributions, revision of the pension rights of citizens who received them before 1991, and formation of a system of additional support for low-income pensioners, especially those who live in Siberia and the Russian Far East, where the subsistence level is below the average. Put together, these measures should gradually bring our pension system into line with international standards.”
“Monthly payments to war veterans and invalids will increase from April 1 not by 8.5% as planned, but by 13%. In addition, mother's capital and child allowances in 2009 will be increased not by 8.5% as planned, but by 13%. We can say categorically that this is also part of the anti-crisis package because this is our reaction to macroeconomic changes, to inflation.”
"We planned to index pensions on three occasions this year. Seeing that inflation could be higher than planned, we will index pensions four times. Towards the end of this year, by December 1, we must increase pensions by about 30% so that the social pension would be no lower than the pensioner's living standard. We will also continue our programme of support for accumulative part of pensions, and have the necessary funds budgeted for these purposes."
“It is important to help people pay off loans. All in all, 19,000 loans have been taken out in the region, including 4,500 in Novokuznetsk. Major companies have elaborated a whole package of measures to support employees who have taken loans and are losing part of their wages now. The people are being helped to repay them. We are working on this system at federal level. In fact, it has already started working through the Agency for Housing Mortgage Lending (AHML). We will intensify our efforts in this area. A total of 10 billion roubles have been allocated to the agency for this purpose. If need be, we will give it more money by the middle of the year.”
“We have decided that the state will add one rouble to each rouble a person contributes to his accumulation portion. We think this will be an incentive for increasing the accumulation part. Here the main thing is to preserve available jobs and increase wages so that a person is able and wants to increase his contribution.”
"The state cannot afford to keep the entire economy afloat out of its own purse. This is especially true of the export-oriented economy, whose partners are cutting imports. Such support would be a big blunder because we would not be able to cope with our social pledges, about which another colleague has asked, where both pensions and wages are concerned. The money would be squandered to no effect."
"We have not given up earlier announced construction programmes. Work on the Housing Programme is underway. Relevant allocations amounted to 75 billion rouble, if I am not mistaken. We have cut it by 15 billion but are adding another 40 billion out of the Housing and Public Utilities Fund, which we earlier intended to use up in 2010-2011. It's forty billion, just think! We are also working to extend government contracts with the Defence Ministry and for population groups whose accommodation is the duty of the state. We will do it all. As for extra measures, they demand further study."
"What do we need to fight unemployment? We should support industry, so we will do our best to go on with the basic programmes we have. As we discuss the budget, we will get back to federal target programmes and the Investment Fund, among other themes, because the best thing to do is not to cut employment in development-oriented spheres and siphon people into public works with picks and shovels."
"At the same time, we have to acknowledge that we cannot do anything effective in certain fields-the steel industry, for instance. I have quoted it as an example before. We largely oriented it on exports. Now, the foreign market has shrunken, and there is redundant supply. As for the Reserve Fund, it cannot cope with such an amount. It does us no good to pile up plate slabs until they reach the sky. The external markets have shrunken or even closed. Other countries, too, have to cut production and employment along with it. In this situation, it is up to us to give people in their plight a helping hand."
“The ratification of the European Social Charter will certainly make a difference. It will provide additional guarantees for Russians and will encourage our domestic social standards to follow the best international practices. This is very important.”
“We planned to upgrade pensions three times this year: the basic pension was planned to go up by 8.7% starting March 1, the insurance part of the pension by 15.2% starting April 1, and now we'll have to increase it by 17.5%, and starting December 1, 2009 by 26.5% or, if necessary, by 30%.”
“The Yaroslavl region offers an example of a diversified programme. 3.500 people are to be sent for retraining. Several hundred people can move to a new place where they will live and have temporary employment, but they will be entitled to benefits. And another 22,000 people will be sent to a place of temporary work, where temporary jobs will be created for them.”
“If inflation is higher, the increase may be by about 30%, but we should look together at the real state of affairs and raise it by as much as is necessary so that the average size of the social pension is not less than the living minimum of a pensioner. This is the challenge facing us, and we must meet it.”
“Essential amendments to the Tax Code and some other laws entered into force on January 1. <…> First, the tax credit on estate purchase and construction has increased to two million roubles. This law is retroactive, so families who bought housing in 2008 may also benefit from it. Second, maternity capital spending on mortgage payments has been authorised since the second child's birth, while we had previously planned to appoint the start since the child is three years old. <…> Third, children's grants have risen by 8.5%. Last but not least, we have exempted from taxes the greatest possible amount of employers' expenditures on personnel training, health care and housing.”
“The Government points out other opportunities to the public. Persons entitled to grants and soft taxation are welcome to use their benefits, while employers should retain corporate social programmes whenever possible and so not merely help their employees in these lean years but also to invest in the future by creating a basis for post-crisis development.”
“Tax inspections, the Pension Fund and other state agencies, in their turn, should be as quick as possible with considering relevant applications and help the population in every way.”
“Let me remind you that we have increased monthly unemployment benefits to 4,900 roubles, channelled additional 50 billion roubles into the employment service to provide volunteer public works for the unemployed if necessary. The list of such works could be extended, too, but it is extremely important that the schemes really reach the target companies and people - in short, that they work.”
“Employment services must thoroughly analyse employers' layoff plans, so that they don't lay off more workers than is necessary. I am aware of this problem, and I want you to focus on it.”
“Moreover, an additional 50 billion roubles have been reserved in next year's budget to conduct active policy in the labor market. All these funds will be transferred to the regions through the channels that you are already familiar with, but they are designed to fund concrete programmes to create jobs and organise public works. These programmes should be drafted with the active participation of local authorities by February 1 of next year.”
“To support people who are facing problems with jobs, we have raised the maximum unemployment benefits to 4,900 roubles per month and provided for a number of measures to help families who find it difficult to meet mortgage payments. I will also add that people who have lost jobs or had their wages considerably reduced because of layoffs will be allowed to delay interest payments on mortgages or the principal debt if the time has come to pay off loans.”
“You are aware that we have cut foreign labour immigration as a forced and temporary measure. We are reducing the original quota declared by the regions by half. Let me stress that this move is prompted by labour issues inside the Russian Federation. I hope you will understand the rationale behind the decision. At the end of the day we are all interested in a civilised labour migration policy.”
"We should protect the Russian personnel by cutting regional employment quotas for guest workers. It will be a temporary measure, considering Russia's long-term interest in workforce inflow. Today, however, we cannot offer foreigners as many jobs as before. This measure requires urgently drafting a relevant Government resolution."
"Whatever we do should concentrate on man. We must focus attention on helping honest workers who coped with their housing and other problems as best they could but are now in dire straits through no fault of theirs.”
"We would step up labour policies that would necessitate considerable allocations and demand target programmes. We should law away up to 50 billion roubles for the purpose. These, I stress, should be extra allocations apart from those already made to fund employment services in Russia's constituent entities. Such extra funding demands amending the law On Employment and the federal budget."
“The main thing is to ensure stable revenues for the pension system for the long term, which is why we plan to reform it. In 2010, we will reassess the pension rights of those Russian citizens who retired in the Soviet period. They will get a 10% increase plus a 1% increase per each working year since 1991.”
“In short, we will do our best, and I am confident that we will ensure sufficient pensions for those Russians who attain the retirement age in 2010. We will ensure that their pensions will be equivalent to 40% of the reference wage. This is fully in keeping with global and European standards as stipulated by the International Labour Organisation.”
“Prices and tariffs are growing too, but when I said pensions would grow 12% next year, I meant growth minus inflation. Of course, our pensions are not sufficient, they are small, but they are still growing faster than inflation. We will try to keep up the pace.”
“Therefore, we will take additional measures next year to raise pensions. They will be raised three times - the basic pension twice and the non-funded pension once. If inflation grows too fast, we will increase the non-funded pension twice. On the whole, we plan to raise pensions by approximately 34% next year.”
“I believe that the use of maternity capital in the amounts planned to begin on January 1, 2010 may be moved to early 2009 in view of the financial problems in the world and in this country, so as to allow the families and mothers to use this money to pay off their mortgages.”
“I believe people should react accordingly because, under current legislation, the mayors of municipal entities, including such cities as Nizhny Novgorod, are elected through universal suffrage by secret ballot. Such elections involve the populations of their territories. Municipal leaders would feel the people's reaction during subsequent elections, unless they respond to their concerns.”
“By the end of 2009, the average social pension should not be below the pensioners' subsistence level. In 2010, the average labour pension will grow by more than 50% compared with this year. This will be achieved through, among other things, a more reasonable attitude to the rights of those who worked and earned pensions in the Soviet period. After working for 30 years, those who begin building their pensions after 2010 may count on receiving no less than 40% of their salaries, from which deductions will be made. This is close to international standards.”
“I consider it necessary to increase from January 1, 2009 the maximum monthly unemployment benefit by 1,500 roubles, in addition to the 8.5% indexation of the benefit envisaged in the budget, which will result in a maximum monthly benefit of 4,900 roubles. We will watch the situation and introduce changes if necessary.”
"I'd like to refer to a draft law we must examine that will raise pensions. The law provides for a base pension increase starting from March 1 of next year by 8.7%, and from December 1 to 2,460 roubles a month, that is, by another 26.15%. All in all, we plan an increase of 37%."
"We are introducing insurance principles into the pension system and we are increasing the insurance premium to 26%. These insurance premiums will be deduced from wages under 415,000 roubles. All the people whose salaries are above that sum will not be entitled to insurance pensions. Those with salaries below that sum will have insurance pensions, those who have higher salaries will not. Why? The whole purpose is that we don't want to see people with smaller incomes pay for the pensions of people who earn big salaries. But the citizens with high salaries, 400,000 roubles plus, the figure subject to be adjusted every year, will be able to make additional savings towards their pensions voluntarily through the mechanism of the pension funds that has been created."
"Beginning from 2010 we have the following plans. First, all the pension rights acquired prior to 2002 will be raised by 10%. As someone who deals with these problems you surely know that the most vulnerable group of pensioners are the people who acquired their pension rights in the Soviet times. So everyone who earned his seniority before 1991 will have their pre-2002 pensions raised by 10% with an extra 1% added for every year of seniority. Those who will retire on pension since 2010 will get pensions amounting to 40% of their wages if they have a length of service of 30 years, and the 40% of the wage must fall on the period when insurance premiums were paid."
"We plan two increases of the basic part of the pension in 2009, in March and in early December. The basic part of the pension is to increase by 37.1% across the board. The ensured part of the pension will be raised by 15.5-16% as of April 1. Under the law, if inflation exceeds the target we will raise the ensured part again. So at the end of 2009 the social pension will not be less than the pensioner's living minimum."
"Another area of work is concerned with care for the older generation, or war veterans and pensioners. We have spent months, and, to be honest, even years, discussing a model of the pension scheme. The decisions we are going to make are hard ones, requiring considerable budget resources. They must have an effect in the shorter, medium and longer terms and even over a greater perspective, until 2050, to make the reform stand its ground and retain its integrity. We also need to solve the problem of re-calculating the Soviet-era work record of pensioners on a fairer basis in order to give them higher pensions, because most of them are unable to fend for themselves now. The proposal to index pensioner's rights acquired before 2002 by 10%, plus 1% for each year of the so-called Soviet-era work record appears to be optimal."
"From now on, returns on pension's savings must outpace inflation. I am referring to the interest-earning capacity of the money that is invested in pension funds. As a result, the average size of the labour pension in 2010 will almost double compared with the 2008 current level. Incidentally, the labour pension - an old-age pension - is to grow even further. By 2020, its average size will reach three times the pensioner's subsistence level."
"As a result, towards the end of 2009, the average social welfare pension ought not to be below the pensioner's subsistence level. From January 1, 2010, the pension rights acquired before 2002 will be indexed by an additional 10%, plus 1% in additional indexation for each year of work recorded before 1991. That is to say, we will begin addressing a problem which has been discussed so much. I mean an equitable estimate of people's work contribution during the Soviet period. Today, their pension levels are unacceptably low."
