Make it before October 1: millions of Russians can increase their pensions

In the coming week, millions of Russians will have to make a choice – a set of social services or money. We are talking about approximately 15 million of our compatriots – all those who are entitled to social benefits at the federal level. Until October 1, 2023, they have the right to submit an application to the Social Fund of Russia (SFR) to monetize their benefits. In this case, from the beginning of next year, instead of the benefits that were abandoned, they will receive their cash equivalent – which could increase their singing by almost one and a half thousand rubles.

This opportunity is given to pensioners who are entitled to a set of social services (NSS) every year – to refuse it, and in return receive monthly monetary compensation. In order to make such a choice consciously, you first need to understand what NSO is and who receives it.

The set of social services includes medicines, specialized food and medical products according to doctor’s prescriptions, sanatorium treatment, free bus or train travel to the sanatorium and back.

Pensioners with disability group I and children with disabilities receive vouchers and double free travel – for them and an accompanying person.

And here it is appropriate to recall that an ordinary pensioner who receives an old-age pension is not entitled to NSS. These services are only for federal beneficiaries, which include pensioners with any disability group;

combat veterans; participants of the Great Patriotic War and concentration camp prisoners; citizens affected by radiation at the Chernobyl nuclear power plant and the Semipalatinsk test site, as well as pensioners equivalent to them.

NSS can be received in kind or in cash. If they refuse in-kind assistance, the recipients’ pension will increase due to an increase in the monthly cash payment (MCB).

The size of the NSO in 2023 is 1,469.74 rubles. This is the maximum that a pensioner with benefits can additionally receive in 2024 if he or she renounces the NSU before October 1 of this year. This is what this amount consists of:

– Medicines and medical products according to a doctor’s prescription – 1,132.03 rubles.

– Vouchers to the sanatorium – 175.12 rubles.

– Free travel on suburban railway transport, as well as on intercity transport to the place of treatment and back – 162.59 rubles.

So, when submitting an application to the Financial Markets Service, you can refuse the NSO either completely or partially.

The value of the NSO is reviewed once a year. The next indexation is scheduled for February 1, 2024. However, you should not expect a sharp increase in the monetary equivalent of the set of social services: practice shows that the amount changes by somewhere between 50-150 rubles annually.

An application for waiver of NSO until September 31 inclusive can be submitted either in person at a branch of the Social Fund or at the MFC, or through the “State Services” portal on the Internet. An application for a pensioner can also be submitted by his representative or guardian, but in this case a power of attorney or other documents confirming his authority will be required.

So is it beneficial for pensioners to give up NSO and monetize benefits? There is no universal answer to this question; it all depends on the specific life situation, health and financial situation of the particular elderly person receiving benefits. In order to make the choice easier for those who wish, MK turned to experts on social issues for advice.

Mark Goikhman, analyst at Capital Skills Financial Academy:

““Everyone chooses for himself,” is a line from the poet Yuri Levitansky. Such an individual choice must be made by those who receive EDV – a set monthly cash payment. Its part is the NSO, a set of social services. Its cost is deducted from the EDV. It includes benefits for medicines, sanatorium treatment, free travel on commuter rail and intercity transport to and from the place of treatment.

If the NSO is not so important for a particular person, he can refuse it and receive the equivalent in money. You don’t have to take the entire NSO or individual services from it. Accordingly, the amount of EDV will change. But you need to have time to submit the corresponding application directly to the pension service or through the MFC before October 1. It is enough to submit this application for choice once; you do not need to confirm your decision annually. It will remain in effect until the citizen changes his choice and submits another application.”

Andrey Loboda, economist, director of communications at BitRiver:

“When choosing benefits in kind or monetizing them, it is important to calculate everything correctly and see what the consequences of refusing benefits will be and how often you use them. As a rule, maintaining federal benefits is much more profitable for pensioners, but only if they really need them. But if a person has benefits, but, roughly speaking, puts them on the table and does not use them in life, then it makes sense to apply for cash payments. Surely someone simply does not need these benefits at the present time. And an amount of almost one and a half thousand a month will definitely not be too much for most elderly people. But the most important thing here is that the state gives pensioners the right to choose and time to make this choice.”