Monitoring of the Federal Legislation dated 17.02.2005

Federal Law No. 4-FZ of February 15, 2005 on the Execution of the Budget of the Social Insurance Fund of the Russian Federation for the Year 2003

Endorses the report of execution of the budget of the Social Insurance Fund for the year 2003 with incomes amounting to Rbl 137,249.8 million and expenses amounting to Rbl 136,161.4 million, the surplus of incomes over expenses being Rbl 1,088.4 million.

The Federal Law is entered into force from the day of its official publication.

Federal Law No. 3-FZ of February 14, 2005 on the Amendments to the Federal Law on the Labour Pensions in the Russian Federation Pursuant to the Introduction of the Basic Parts of the Labour Pensions and the Procedure of Indexing of the Basic and the Insured Parts of the Labour Pension in 2005

The amendments envisage beside the indexing of the basic and the insured parts of the labour pensions also such method of increasing of pensions as a stepwise increase of the basic part of the labour pension to the cost of living.

From March 1, 2005, there will be a one-time increase of the amounts of the basic part of the labour pensions of all types (old-age, disability, lost-breadwinner pensions). The amount of the basic part of the labour old-age pension is increased two times and is fixed in the amount of Rbl 900 per month. Simultaneously, the amounts of the basic parts of the all other types of the labour pensions are increased proportionally.

The particulars of indexing of the pensions in 2005 are specified. The indexing of the basic and the insured parts of the labour pensions, as well as the additional increase of the amount of the insured part of the labour pensions, will be made from August 1, 2005, with coefficients of indexing (increase) being defined by the Government of the Russian Federation.

The Federal Law is entered into force from March 1, 2005.

Order of the Government of the Russian Federation No. 73 of February 14, 2005 on the Financial Support in 2005 of Expenditure Obligations of the Russian Federation Pertaining to the Monthly Monetary Compensation Paid out in Redemption of the Damage to the Health of Citizens Pursuant to the Radiation Exposure because of the Chernobyl Disaster or Carrying out Works to Eliminate the Consequences of the Disaster at the Chernobyl Nuclear Power Station

Specifies the procedure of implementation in 2005 of expenses pertaining to the monthly monetary compensations paid out in redemption of the damage to the health of citizens pursuant to the radiation exposure because of the Chernobyl disaster or carrying out works to eliminate the consequences of the disaster at the Chernobyl Nuclear Power Station where the decisions are taken by the bodies of social protection of the population of the subjects of the Russian Federation.

The Decision is entered into force from January 1, 2005.

Letter of the Social Insurance Fund of the Russian Federation No. 02-18/07-1243 of February 15, 2005

Explains that the disability period is defined in the calendar days, with the allowance being handed out for the actually wasted working days (hours) during the disability period envisaged in the working schedule. Therefore, the coverage at the expense of the employer applies to the working days (hours) envisaged in the working schedule and wasted by the employee because of the disease (injury) falling on the first two calendar days of the disability.

Reports that the procedure of drawing up of the reverse side of the disability sheet after the changing of the procedure of financing of the temporary disability allowances did not change.

Insurance contributions for obligatory social insurance against industrial accidents and occupational diseases for the amount of the temporary disability allowance because of the disease or injury do not accrue.

The amount of the allowance covered by the employer for the first two days of the disability is exempted from the uniform social tax.

Letter of the Federal Tax Service No. ShS-6-09/5 of January 13, 2005 on the Interim Methodology Recommendations

Explains the issues of application of Chapter 25.3 "State Duty" of the Tax Code of the Russian Federation entered into force from January 1, 2005, provides individual comparisons with the earlier available procedure of payment of the state duty. Emphasises that from January 1, 2005, the state duty is not collected at the state registration of a legal entity because of the liquidation in cases of bankruptcy proceedings. If a natural person terminates his activities as an independent entrepreneur, the state duty is not collected either.