How are benefits for labor veterans monetized? Monetization of benefits - what is it and who is eligible for this right? Pros and cons.

Monetization of benefits – allowing to replace benefits for pensioners with cash payments. In this article, we have discussed in detail how to do the right thing, what benefits you can refuse in favor of money, and what amounts you can count on. Read about it all below.

The reform, which involves replacing social benefits with cash payments, was carried out to resolve the issue of compensation for official categories of benefit recipients, who before this time had “accumulated” more than half of the country’s population. The monetization of benefits was supposed to restore losses in the federal budget that resulted from the mandatory provision of compensation.

The concept of “monetization of benefits” and its implementation led to mass strikes in all cities of Russia. Everything was based on the fact that in a short time certain privileges began to be “taken away” from people in the preferential category, but at the same time a monetary supplement was provided that could be used to cover the gap in their own budget.

The procedure was carried out after the conclusion that almost all beneficiaries cannot use the provided preferential services in full. For example, funds are allocated for a disabled person of the first group to visit a sanatorium-resort treatment, but the recipient cannot take advantage of such an opportunity.

Now you can submit a waiver of benefits of this nature and receive monetary compensation for it.

Federal Law No. 122 on the monetization of benefits regulates the entire procedure. The general list of laws regulating the issue should also include Federal Law No. 178 of 2015, which contains the entire list of services that preferential categories can refuse - for example, drug provision or free travel on public transport. An application for waiver must be submitted before October 1 of the current year. The application will come into force from January next year.

What benefits can you give up in favor of money?

The laws provide for cash payments for:

• drug provision;
• Spa treatment;
• free travel on public transport.

In individual cases, you can receive payments to pay for utilities.

In accordance with the presented list, the following actions are possible:

• refusal of benefits for medicines;
• refusal to receive free medicines and treatment in public medical institutions;
• refusal to provide funds for travel.

You can refuse only one preferential service, partially or completely.

Categories of beneficiaries

Monetization of benefits is provided only for certain categories of citizens. The following persons are entitled to receive cash replacement:

• disabled people;
• pensioners;
• large families;
• labor veterans;
• single mothers;
• combat veterans;
• disabled children.

Amount of monetary compensation

Monetization of benefits entails mandatory annual re-indexation of cash payments. For 2020, the replacement of in-kind benefits with monetary compensation is provided in the following amounts:

• 833 rubles 79 kopecks. – amount to pay for medicines;
• 128 rubles 99 kopecks. – payments for benefits regarding sanatorium treatment;
• 119 rubles 75 kopecks. – to pay for travel on suburban railway transport and city vehicles.

In accordance with this, it is planned to pay 1082 rubles 53 kopecks monthly. The amounts are for 2020, the main provisions have not been replaced.

How to issue a waiver of benefits

Monetization of benefits requires mandatory signing of a waiver of provision of “conditional” compensation. Only an official refusal of benefits entails the provision of a sum of money in addition to the existing pension and subsidies. To take advantage of cash compensation, you must complete the following steps:

1. Write an application to the Pension Fund, indicating the name of the recipient’s organization, as well as your own data. Include a request to refuse the selected compensation.
2. The application for waiver must be submitted before October 1 of the current year. Submitted applications are made annually in order to receive compensation in cash equivalent from January of the following year.
3. If necessary, you can return benefits until October 31 - that is, within a month. To receive a refund, you must also submit an application for refusal of monetization.

There is no need to take any additional monetization steps. The submitted application is reviewed by regional civil servants who verify the accuracy of the submitted information about the applicant.

To receive compensation, you must submit the following list of documents:

• original and copy of the passport of a citizen of the Russian Federation;
• original and copy of pension certificate;
• a certificate proving the applicant’s rights to use benefits;
• application - they often issue a ready-made form; the Pension Fund employees themselves can also fill out the form.

Depending on the situation, additional documents may be required. For example, if a waiver of benefits is processed by a representative of a child with a disability, you must additionally submit the original and a copy of the birth certificate.

Pros and cons of monetizing benefits

The innovation led to massive disputes with innocent people. Thus, when free travel was abolished, representatives of preferential categories began to argue with conductors who had nothing to do with the actions of the Government of the country.

Other disadvantages include the following:

• disputes and discontent of citizens - regular changes lead to mass protests with rallies near the administrations of settlements;
• the need for an annual visit to the Pension Fund with the obligatory submission of an application for refusal;
• insufficient compensation received to cover the necessary purchase of services.

Often, beneficiaries complain about the fact that the monetization of benefits in the form of a lump sum compensation received cannot cover the expenses that occurred in the current month. But with a careful calculation of the money spent, beneficiaries are left with an insignificant profit.

For example, pensioners and other categories of the population are unable to receive preferential funds as a result of the development of the disease - they have to spend their own money. Benefits in the form of payment for medicines cannot be refused if there are chronic diseases with a likelihood of exacerbation.

Let's consider the benefits that monetization of benefits entails:

• if it is not possible to live on one pension, you can receive monetary compensation for services that beneficiaries cannot fully use;
• the compensation received is spent on individual needs, and does not “settle in the pockets” of the Government due to lack of demand;
• Residents of villages who cannot use public transport within their locality are now receiving significant assistance.

It is almost impossible to answer the question whether the monetization procedure is useful for citizens. In this case, everything is individual. For example, a single mother has the opportunity to receive preferential medications for a child who is sick a maximum of once a year. By refusing them, she can receive monthly monetary compensation, which will be used to buy something the child needs.

Vulnerable and especially deserved citizens of Russia are entitled to a wide range of government benefits. But it often happens that the beneficiary is not able to take advantage of the granted privilege due to limited mobility or living in a remote locality. In such cases, the monetization of benefits becomes relevant, making it possible to replace social services with monetary compensation.

Monetization Law

Monetization of benefits is a procedure that involves the abandonment of benefits in kind in favor of an equivalent amount of money. It was introduced during the socio-economic reform of 2004. At that time, it became clear that the system of benefits inherited from the USSR was an excessive burden on the federal budget. The situation was also complicated by the presence of a large number of problems associated with the preferential system:

1. corruption, due to which privileges were not enjoyed by real beneficiaries, but by persons who bought their status;
2. theft of budget funds - for example, a shadow business was actively developing in the sale of government medicines, which never reached the citizens who needed them;
3. losses of municipal transport (a large number of beneficiaries, including those who received their rights illegally, led to the fact that almost half of the tickets were not paid for);
4. injustice towards village residents who are deprived of the opportunity to exercise their right to benefits due to the lack of necessary infrastructure.

To correct the current situation, Law No. 122-FZ was adopted on August 22, 2004, popularly known as the “monetization law.” The official title of the document consists of 55 words and is practically not used in everyday life.

The law made the following significant changes to the existing procedure at that time.

1. Beneficiaries were divided into federal and regional. Accordingly, assistance was provided to them from the budget to which they were assigned. Thus, privileges for labor veterans and pensioners have now begun to be established by regional authorities, which in fact has led to their loss of most of the social benefits.
2. A number of federal benefits were replaced by monetary compensation.
3. The regions were given a choice of how to provide benefits – in kind or in cash. But when accepting the second option, subjects were provided with subsidies in the amount of 40% of the total budget for the payment of compensation.

Society reacted negatively to the introduction of such measures, which resulted in a series of protests throughout the country. The situation was aggravated by the fact that in the first years of monetization, the beneficiary was not given a choice between in-kind and cash forms of receiving government assistance. Benefits were required to be replaced by monetary compensation. More than 13 years have passed since then, and the attitude towards monetization has changed for the better, as many beneficiaries have appreciated the advantages of this method of receiving government support.

List of benefits subject to monetization

Monetization is subject to benefits from the so-called set of social services (hereinafter referred to as NSS), provided for by Law No. 178-FZ of July 17, 1999 “On State. social assistance."

Article 6.2 of the law establishes the following composition of the NSO.

1. Providing free medications and products with a doctor’s prescription. Disabled children are additionally entitled to specialized therapeutic nutrition.
2. Providing free vouchers to health resorts.
3. Preferential travel to the place of treatment on suburban railway and international transport in both directions.

Disabled minors, as well as persons with 1st group of disability within the framework of the National Social Institution, receive additional vouchers to the sanatorium and payment for travel in both directions for an accompanying person.

Who has the right to monetize benefits?

Federal recipients of NSOs are guaranteed to refuse the social package in favor of money. Their list is fixed in Art. 6.1 of Law No. 178-FZ and is represented by the following categories of citizens:

• war invalids;
• participants of the Second World War;
• participants in military operations in Afghanistan, Chechnya and other foreign countries;
• Leningrad siege survivors;
• persons with experience working at military installations during the Second World War;
• citizens who served in the military during the Second World War, but did not participate in hostilities;
• family members of deceased participants of the Second World War and other hostilities;
• disabled people, including minors.

Regional beneficiaries have the opportunity to replace privileges with monetary compensation depending on the policy of local authorities. Most constituent entities of the Russian Federation have adopted a mixed scheme, in which only certain types of benefits can be monetized. Most often, monetary compensation is awarded for the right to free use of local public transport.

The lists of regional beneficiaries may vary, but, as a rule, they include:

• labor veterans;
• orphans;
• large families;
• pensioners;
• persons affected by radiation;
• low-income citizens;
• doctors and teachers from rural areas.

Regional beneficiaries are not always given the right to choose between in-kind and cash forms of government assistance. For example, for labor veterans, a number of benefits have been replaced by a fixed cash payment.

Registration of monetary compensation

To refuse in-kind assistance in favor of cash payments, federal beneficiaries must visit the Pension Fund office at their place of residence. In addition to the application, you must submit:

• passport;
• a document confirming the right to NSU (certificate of disability, veteran's certificate, etc.);
• a certificate from the Pension Fund of Russia confirming the right to benefits (if it was received previously).

The application must describe in detail which services of the social package you are refusing.

If you wish, you can retain some of the benefits and refuse those that are not necessary. For example, if the medications you need are not on the federal list, you can submit a waiver of benefits for medications, but retain the right to sanatorium treatment and compensation for travel to a vacation spot.

An application for payment starting next year must be submitted before October 1 of the current year. That is, it will no longer be possible to start receiving compensation in 2020; it can only be issued for 2020. This strict approach to meeting deadlines is explained by the fact that in the 4th quarter the budget for payments for the next year is laid, and its size depends on the number of citizens who refused benefits. If you are late in filing your application, your next opportunity to monetize your benefits will be almost a year later.

You can also send documents to the Pension Fund through the multifunctional center. Persons who are unable to personally visit government agencies can submit an application through a legal representative for whom a notarized power of attorney has been issued.

Payment amount

Cash compensation to NSOs is subject to indexation from February 1 of each year. Its latest value was established by Government Decree No. 74 of January 26, 2018 and is 1075.19 rubles. The payment includes:

• 828.14 rubles for medicines;
• 128.11 rubles for vouchers to a sanatorium;
• 118.94 rubles for travel compensation to vacation spots.

Federal beneficiaries are paid monthly along with the EDV. If any benefits were retained, the payment is reduced by the amount corresponding to them.

The amounts of regional compensation are established by the authorities of the constituent entities of the Russian Federation. For example, pensioners in the Moscow region are paid 1,000 rubles once a year as compensation for travel to the capital. In many regions, a fixed payment is provided for travel on public transport, the amount of which varies between 400-700 rubles. You can find out about local benefits and compensation from the territorial social authorities. protection.

How to replace benefits with cash payments to pensioners?

Reaching retirement age is not the basis for assigning payments at the federal level. A pensioner can receive compensation for preferential medications, vouchers to a sanatorium and travel only if there are additional factors that give the right to use the NSO (disability, participation in hostilities, etc.).

Certain categories of pensioners may also qualify for compensation for housing and communal services. This type of benefit is monetized throughout the country. The procedure for paying compensation is as follows: the recipient of the benefit pays for utilities in full, after which the state returns 50% of the payment made to his bank account. In 2020, such payments are provided to disabled people, labor veterans, participants of the Second World War and other military campaigns, Chernobyl survivors and citizens with state awards.

Pensioners who do not have additional preferential grounds can only count on compensation for major repairs:

• after 70 years – in the amount of 50%;
• after 80 years – in the amount of 100%.

At the level of constituent entities of the Russian Federation, pensioners with the title of labor veteran are paid a monthly compensation, the national average amount of which is 600 rubles. The composition of additional payments may vary depending on the region. This may include compensation for travel on public transport, telephone services, etc.

The law on the monetization of benefits at one time caused a storm of protest from beneficiaries, but today many voluntarily refuse in-kind assistance in favor of cash payments. These are rural residents, people who do not need medicine, as well as those who cannot travel for health reasons. It is more profitable for such citizens to receive compensation, albeit in a very modest amount, than to maintain a benefit that they still do not have the opportunity to use.

Monetization of benefits

Monetization of benefits(Also cancellation of benefits) - the replacement of in-kind benefits with monetary compensation, carried out by the Russian government in 2005 and which led to mass protests by pensioners in the country.

This reform is usually associated with the names of the Minister of Health and Social Development M. Yu. Zurabov and Deputy Prime Minister of Russia A. D. Zhukov.

Government justification for monetization of benefits

Speaking about monetization in healthcare, it is too early to draw conclusions. Since individual registration of patients, for the most part, occurs using paper files, nurses have significantly increased work in the form of additional reporting on preferential medications, which, in turn, negatively affects labor productivity, which is reflected in a deterioration in the quality of patient care. At the same time, the situation promises to improve for the better, due to the transition to automated patient registration systems.

Notes

Links

• Federal Law of August 22, 2004 No. 122-FZ “On Amendments to Legislative Acts of the Russian Federation and Recognizing Certain Legislative Acts of the Russian Federation as Invalid in Connection with the Adoption of Federal Laws “On Amendments and Additions to the Federal Law “On General Principles of Organization of Legislative (representative) and executive bodies of state power of the constituent entities of the Russian Federation" and "On the general principles of the organization of local self-government in the Russian Federation"
• Kara-Murza S. G.. Monetization of benefits - activation of the “mine of discontent”

Federal and regional laws establish a certain list of social support measures for labor veterans, designed to improve their living conditions. The specific list of social assistance measures provided varies depending on the region of residence of the privileged category of citizens, therefore, to obtain accurate information, it is necessary to seek advice from the social protection authorities. Let's find out what social support for labor veterans is in 2020.

How to obtain the title of labor veteran

In order to qualify for any benefits, you must first prove that you belong to a preferential category of citizens, in this case, labor veterans. To do this, you need to become the owner of the title of veteran of labor, which is awarded to those who have worked for many years. During the USSR period, such citizens were awarded a medal, which served as a memorial sign, but did not give the right to receive any special preferences.

Today, on the contrary, many social assistance measures have been established. A number of benefits are established at the federal level, and local authorities also establish certain preferences at the regional level.

• Recipients of benefits may be citizens belonging to one of the following categories of persons:
• citizens who began working during the Great Patriotic War before turning 18 years of age;
• holders of honorary titles of the USSR or the Russian Federation with work experience that is sufficient to calculate an old-age or long-service pension;
• women who have worked for a total of 35 years;
• citizens previously recognized as labor veterans.

The Government has special units responsible for protecting the rights of veterans, and in 2017 the list of social assistance measures may be expanded. In certain constituent entities of the Russian Federation that have sufficient funds in the regional budget, labor veterans are provided with targeted assistance.

What social support for labor veterans is provided at the federal level?

Federal preferences for labor veterans are assigned before retirement age, and regional ones - simultaneously with retirement. This is due to the fact that in most cases the title of labor veteran is assigned along with the status of a pensioner.

At the federal level, the following measures of social support for labor veterans have been established:

• free medical care and free expensive medical examinations;
• discount on utility bills in the amount of 50% of their cost;
• free public transport ticket;
• production of dentures and dental prosthetics without paying for the work of a dental technician;
• provision of annual paid leave of 30 days at any convenient time without taking into account the vacation schedule.

What social support for labor veterans is provided at the regional level?

The list of benefits is established within the constituent entity of the Russian Federation by the regional authorities and is valid exclusively on its territory. The laws defining the list of benefits, in turn, are approved depending on the state of the local budget. For example, let’s take the capital of Russia - here labor veterans have the right to apply for the following preferences:

• a free ticket for travel by rail (if it is necessary to travel to the place of treatment and if there are medical indications for undergoing medical procedures);
• free voucher to sanatorium-resort institutions;
• compensation for half the cost of telephone operator services;
• monthly payments of about 250 rubles (the amount increases during indexation);
• free public transport ticket (the benefit may be canceled in the near future);
• a discount on utility bills in the amount of half the cost of utilities (for consumption within social norms).

In St. Petersburg, labor veterans receiving a pension can count on:

• supplements to pension payments;
• discount on utility bills.

Supplements to pensions for labor veterans

Some allowances depend on the level of the cost of living in the region - labor veterans should be guided by the cost of living provided for pensioners.

In many constituent entities of the Russian Federation, bonuses to pension payments have been established for labor veterans, which are provided in the following form:

• as additional indexation of pensions, carried out twice a year;
• as a bonus in the form of monetization of benefits;
• as a fixed bonus amount (for pensioners whose pension payments do not reach the regional subsistence level).

Tax benefits for labor veterans

Benefits for labor veterans are also outlined in the Tax Code - by law they are exempt from paying the following taxes:

• property;
• PFDL from pension accruals and additional payments to pensions, amounts of financial support from a former employer up to 4,000 rubles, compensation for treatment in a sanatorium-resort institution.

In some constituent entities of the Russian Federation, labor veterans also do not pay land and transport taxes. A requirement has been established regarding transport tax - it is permitted not to pay it in relation to only one vehicle.

At the federal level, a rule has been established according to which periods for calculating property tax deductions are transferred to previous periods. The deduction is calculated based on information about the veteran’s earnings for the past 3 years.

How the benefits of labor veterans are monetized

We mentioned above that you can increase your pension by monetizing benefits - let’s look at this issue in more detail. The fact is that social measures to support pensioners, such as transport tickets and vouchers to a sanatorium, are not needed by all recipients of pension payments, and they do not use them. In this regard, a law was adopted, which is still in effect today and involves the voluntary renunciation of unnecessary benefits in favor of the monetary equivalent of their value.

Pensioners have the right to monetize the following federal benefits:

• discounted medications;
• vouchers to sanatoriums and resorts;
• train ticket to the place of treatment.

Even if a labor veteran refuses to provide him with the benefits listed above and chooses an additional payment to his pension, he will retain a 50% discount on utility bills.

After this law came into force, the following positive aspects were noted:

1. Labor veterans who have been prescribed scarce medications can buy them on their own without waiting in line to receive subsidized medications.
2. Owners of transport companies receive cash for travel tickets instead of deductions from the budget that have been expected for a long time.

Legislative acts on the topic

Common mistakes

Error: The veteran of labor believes that the law on the monetization of benefits implies the automatic deprivation of pensioners of previously provided preferences.