The possibility of transferring retirement points from children to parents complicates the budget planning process. It is therefore important to provide a time frame within which children can declare such intentions: this should be done in advance. This opinion was expressed by Igor Balynin, Candidate of Economic Sciences, Associate Professor of the Department of Public Finance at the Faculty of Finance of the Financial University of the Government of the Russian Federation, in an interview with socialbites.ca. He also suggested a one-time transfer of points to parents.
“Article 38 of the Constitution of the Russian Federation states the obligation of children to care for their parents, so if a pension has already been allocated or there are enough pension points to pay for it, it seems to me more logical to support parents directly, rather than through an intermediary. In this case, as far as I understand, the establishment of the Russian Social Fund is desired. 1-2 pension points per year are of course not enough: one pension point in the ruble equivalent is 133.05 rubles,” said the economist.
He considered it more logical to create the possibility of a one-time transfer of accumulated points from the child’s account to the parent’s account if there is not enough money to allocate the old-age insurance pension. The expert called on people to remember that the old-age pension is a payment within the framework of compulsory social insurance. Accordingly, one of the features of the insurance financing mechanism is to encourage the insured to work.
Therefore, the economist considered it important to introduce additional fair restrictions on one-time transfer: for example, more than 50-100% of points already accumulated by the parent (and if you follow the issue of accounting for large families), this limit can be set for each child, and not cumulatively and children’s compliance with the minimum insurance period conditions. According to Balynin, then a mechanism will be created to support citizens who do not have enough retirement points because they are actually low-paid.
The State Duma has developed a bill that would allow Russians to transfer their pension points to parents who do not qualify for a pension. It will be possible to transfer a maximum of two retirement points per year. MPs are confident that this will increase the pensions of the older generation and improve their living standards.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.