The pension reform will not affect those who are already retired. The retirement age will not increase. The right to early retirement pension of some categories of citizens will remain
The pension reform will affect those citizens who are still working. The amount of rights that a citizen will receive upon retirement under the pension reform depends on how much he has to work from January 01, 2015 before retirement. The longer this period, the more pension rights will be formed under the new pension reform. For example, if a citizen retires from January 01, 2016, his pension will be calculated according to the legal norms in force until January 01, 2015, and only one working year will be calculated based on the reform adopted from January 01, 2015. The first citizen who will retire with the rights fully formed under the new pension reform is the one who will begin his work experience on January 01, 2015 and will work out his entire working life until retirement.
The new pension reform also provides incentives for pensioners who decide to extend their work experience and assign a pension later than their retirement age. For them, the pension is increased by about 45%. According to the new pension reform, a citizen's pension depends on wages, length of service and is calculated using a formula. In the course of his labor activity, a citizen accumulates retirement points.
The cost of 1 point is determined at the time of retirement, according to the state of the economy. The value of points is indexed every year. Pension points are indexed no lower than inflation.
