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President signs decree on indexation of basic and insurance parts of pensions

President of Kyrgyzstan Sadyr Japarov signed a decree on indexation of the basic and insurance parts of pensions. Presidential press service reported.

In order to ensure further support for the living standards of pensioners, the head of state instructed the Cabinet of Ministers to index the basic and insurance parts of pensions, fixed before October 1, in accordance with the law on state pension social insurance from October 1, 2021.

«In accordance with Article 7 of the law on state pension social insurance, the condition for indexing the insurance part of pensions is a growth of the average wage and the consumer price index for the calendar year preceding the indexation. According to the Social Fund, the indexation coefficient of the insurance part of pensions will be 1.08, but not less than 200 soms for pensions, the total size of which does not exceed 4,785.4 soms, and at least 500 soms for pensions, the total size of which is and exceeds 4,785.4 soms,» the statement says.

According to preliminary calculations of the Social Fund, the number of pensioners as of October 1 will be 715,500 people.

According to the National Statistical Committee, the average salary for 2020 amounted to 18,940 soms, or increased by 110 percent compared to the average salary for 2019. In this regard, it is proposed to index the basic part of pensions for an increase in average wages for the current year by 110 percent. At the same time, the basic part of pensions is indexed, if the total pension size is lower than the subsistence minimum of a pensioner for the previous year, which, according to the National Statistical Committee, is 4,785.4 soms.

According to the results of the upcoming indexation of the basic and insurance parts of pensions, the average size of a pension will be estimated at 6,248 soms, which is higher than the average pension at the time of the increase by 8 percent, or 455 soms.

The need for indexation of the basic part of pensions, the total amount of which is lower than the subsistence minimum of a pensioner for the previous year, will reach 154,300 soms from October 1, 2021 at the expense of the republican budget.

Expenses for increasing the insurance part of pensions from October 1 are provided in the budget of the Social Fund. The need will amount to 830.6 million soms at the expense of the Pension Fund.