Monotony And Stationarity Of Pension Functions And Their Violation In Pension’s Calculations Procedures Envisaged In The Legislation Of Russian Federation

Abstract

The article presents the mathematical formalization of the pension’s calculations procedures in the changing pension legislation of Russian Federation, which has been done for the first time. Mathematical formalization provided for examining pension’s calculation procedures as a function of earnings and working record, stationarity of pension functions being examined as well. Violations of monotony and stationarity of pension functions and violation of the monotony of transition from one pension function to another during pension reforms result in changing ratio of pension’s capacities of different groups of retired people. This fact is recognized by the people as unfair, which in turn destimulates economic activities. Several versions of monotone pension functions are developed as well as methods of incorporating previous pension calculation procedures into a new monotone pension function.