Retirees in Belarus will be able to significantly increase their pension amount by retiring later

March 19, Minsk /BELTA/. Pensioners in Belarus will be able to significantly increase their pension amount by retiring later. The corresponding decree No. 136 "On Measures to Improve Pension Provision for Citizens" was signed by the President of Belarus on March 18, BELTA was informed by the press service of the head of state. The document stipulates that if a person continues to work without receiving a state old-age pension after acquiring the right to it, the pension amount will progressively increase: for the first year - by 6% of the earnings used to calculate the pension; for two years, the increase will be 14% (an increase of 8% for the second year of work is added to the 6% increase for the first year); for three years - 24% (14% for the first two years plus 10% for the third year); for four years - 36% (24% for three years plus 12% for the fourth year); for the fifth and each subsequent year, the pension amount is to be increased by 14% of the earnings, which are also added to the percentage increases established for the preceding period (for 5 years - 50%, for 6 years - 64%). In accordance with the previously applicable legislation, an increase in the old-age pension amount for working after reaching the generally established retirement age without receiving a pension was provided for at a rate of 1% of the earnings used to calculate the pension for every 2 full months of such work. For example, if a woman with 37 years of service retired at the age of 55, her pension would amount to Br1401 thousand. If she had applied for a pension 5 years after reaching retirement age, her pension would have increased by Br642 thousand, or by 45.8%, and would have amounted to Br2043 thousand under the previously applicable norm. Under the new norms, her pension for a deferred retirement of 5 years will increase by Br1031 thousand, or by 73.6%, and will be Br2433 thousand. In addition, in accordance with the decree, payments for already acquired rights to an increased pension amount for deferred retirement will increase. The decree also provides for the inclusion of periods of activity for which mandatory insurance contributions to the fund were not paid, but which were included in the work record, when calculating earnings for a labor pension. In accordance with the legislation, periods of other activities during which contributions are not paid (military service, full-time education, childcare, care for group I disabled persons and elderly people aged 80 and over) are included in the length of service on par with work for which contributions are paid when calculating a pension. When determining earnings, such periods are omitted. Given that each year of service is assessed in percentage of earnings when calculating pensions, and earnings vary for everyone, periods of the same nature have different values in the pension. The decree establishes a uniform value for all periods without contributions when assigning a pension and includes such periods in the calculation of earnings. As explained by the press service, the establishment of a more significant additional payment for deferred pension application, the unification of the value of periods without contributions, and their inclusion in the calculation of earnings will collectively contribute to reducing the influx of pensioners and increasing the efficiency of state expenditures. These norms will apply to current workers who are still forming their pension rights. -0-