A senior lecturer in the Department of Human Resource Management at a major Russian university explains why raising the pension coefficient matters for specific groups of Russian citizens. This commentary comes from an expert closely associated with the Russian Federation’s Chamber of Commerce and Industry and is cited by the news agency responsible for reporting on labor and social policy developments.
The expert notes that the pension coefficient plays a crucial role for both working retirees and those applying for a pension for the first time. It serves as a key determinant of the insurance portion of the pension after retirement, reflecting the relationship between earned points and the fixed cost that forms part of the pension calculation. In 2023 the coefficient was set at 133.05 rubles, a figure approved by the Federation Council as part of the year’s pension framework.
To illustrate the practical impact, the expert explains that a person who filed for a pension in 2023 and accumulated ten points would receive a pension around 1,237.6 rubles. If the same point count were earned in 2024, the pension would be approximately 1,330.5 rubles. This demonstrates how modest changes in points, coupled with the annual adjustment of the point’s cost, can noticeably affect monthly pension amounts over time.
Since August, the system has been indexing working retirees’ pensions annually by up to three retirement points. The value of each point is tied to the year in which the pension was issued and is adjusted in line with inflation. In addition, the government factors the pension coefficient into the indexing calculations so that individuals who already receive pensions can see of the indexing reflect the broader policy environment and cost-of-living changes.
In related coverage, authorities have emphasized the importance of understanding how the points accumulate and how indexing interacts with the pension coefficient. The ongoing process aims to ensure that pensions remain aligned with economic conditions while recognizing the dedicated work of retirees who continue to contribute to the labor market. Analysts highlight that transparency about the calculation framework helps citizens plan for retirement with greater confidence and clarity.
Earlier reports included a separate incident involving a retiree in Kazan who was involved in a criminal matter unrelated to pension policy. The case drew attention to the range of personal circumstances that can intersect with public policy but did not affect the established pension calculation rules or indexing practices.