How the future insurance pension is formed. How will the new pension formula affect our retirement? Formation of only insurance pension

The insurance pension is formed from funds that enter the compulsory pension system in the form of contributions paid monthly by employers to the Pension Fund of the Russian Federation.

The total contribution amount is 22% of the employee’s salary, of which 16% goes to insurance pension(or 10% for insurance and 6% for savings, if it is formed), and 6% - so-called joint tariff, fees from which are intended for the payment of a fixed part, social benefits and for other purposes provided for by regulations of the legislation of the Russian Federation.

Legally, the collection of contributions to the budget of the Pension Fund is regulated by Federal Law dated July 24, 2009 N 212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund Russian Federation, Federal Compulsory Medical Insurance Fund", which sets mandatory procedure payment of contributions.

• The functions of monitoring the timeliness of transfer of insurance contributions to the Pension Fund, in accordance with the requirements of Article 3 of this law, rest with the territorial divisions of the Pension Fund.
• As for (Federal Law No. 167 of December 15, 2001), the contributions paid by employers go only to finance the insurance pension.

Direction of insurance contributions to the formation of an insurance pension

Insurance premiums are the basis of the Pension system of our country. Policyholders without fail are required to be registered with the territorial bodies of the Fund, ensure full and timely transfer of pension contributions to the Pension Fund budget, keep records of them and submit to the insurer all the necessary documents that are required when maintaining individual (personalized) records in (Federal Law No. 167).

produce and additional contributions to the Pension Fund, due to which early insurance pension workers whose working conditions are recognized as difficult or dangerous under current legislation.

Insurance contributions received by the Pension Fund are credited to the personal account of the insured persons, the number of which () is indicated on the pension certificate. Subsequently, the amount of these contributions will be taken into account when assigning pensions based on the requirements set out in Article 10 of Federal Law No. 167 of December 15, 2001.

Which is better: funded or insurance pension?

Formed from pension contributions, guaranteed by the state and will last annual increase on the level of inflation due to indexations, the procedure for which is established by Federal Law of December 15, 2001 N 166-FZ “On state pension provision in the Russian Federation”.

This is formed from the employer’s insurance premiums for its employee, and when assigned, the contributions are converted into points and multiplied by its cost, established by the state.

State not guaranteed and its profitability depends on the financial results of the investment activities of non-state pension funds and management companies, which may, as a result of their activities, suffer losses or go bankrupt.

• When deciding on the formation of a funded pension, you need to understand that this reduces the amount of contributions to the insurance, on which it will depend in the future. It is worth considering the increased risk that arises when investing in financial markets.
• The safety of the funded pension is guaranteed by the Law of the Russian Federation of December 28, 2013 N 422-FZ, in accordance with which a system for guaranteeing pension savings has been created, which, in the event of losses incurred as a result of their unsuccessful investment, guarantees the payment of savings, but without taking into account inflation.
• Another difference between a funded pension and an insurance pension is that it, and the insurance pension, goes into the PFR reserve.

Calculation of insurance pension in 2019

Since 2015, the insurance pension has consisted of a fixed payment and an insurance pension calculated in points. The calculation procedure is regulated by the requirements of Federal Law of December 28, 2013 N 400 “About insurance pensions”.

Most citizens started working in Soviet times and have earned their income before 2001. When calculating pension rights, all periods are taken into account labor activity and then they are converted into points.

Subsequently, all calculations are made exclusively in points and their conversion into rubles occurs only when a pension is assigned.

To convert pension capital that was formed before 2015 into points, the size of the insurance part of the pension as of December 31, 2014 is calculated (excluding the funded part and the base amount), divided by the value of the pension point, which on January 1, 2015 was 64.10 rubles ( in 2019 - 87.24 rubles).

Since 2015, the IPC (individual pension coefficient) has been calculated based on the amount of deductions transferred by the policyholder to the employee’s personal account during the year. In accordance with the requirements set out in Federal Law No. 385-FZ of December 29, 2015, contributions to funded pensions have been stopped until the end of 2019.

Pension calculation formula

Since 2015, the calculation formula has included new value- IPC (individual pension coefficient (point)) and now for or the following formula is applied:

SP = IPK x SPK x K + FV x K,

• FV- fixed payment (in 2019 - 5334.19 rubles);
• JV- insurance pension;
• PC- pension points (accumulated both before 2015 and later);
• SPK- the cost of one pension point (coefficient);
• TO– increasing coefficients when retiring later than expected (the coefficients for the pension fund and the insurance pension are different).

To calculate the payment, different formulas may be used depending on the category of the recipient.

To divide the amount of pension savings by the expected payment period - in 2019 252 months.

If a citizen applies for a pension a year later than he reaches retirement age, this will shorten the expected period by 12 months, which will increase the size of the funded pension.

The duration of the period is established by Article 17 of Federal Law No. 424-FZ of December 28, 2013 “About funded pension” and is determined based on statistics on the life expectancy of pensioners.

Assignment and payment of insurance pensions

The appointment and payment of SP is carried out when a citizen reaches 60 years for men and 55 for women with a work experience of at least 15 years (for 2024) and a minimum amount of pension points of 30 units in 2025 (taking into account the provisions of the transition period , set out in Article 35 of the Federal Law No. 400-FZ of December 28, 2013).

To assign an insurance pension, you must submit an application to the department Pension Fund or MFC, as well as through the employer’s personnel service, the “Personal Account” of the insured person on the Pension Fund website or mail. Depending on the type of insurance payment assigned, the list of documents will differ, but must have with you:

1. passport;
2. pension certificate;
3. work book;
4. Marriage certificate;
5. military ID (if available).

To assign a funded pension payment, you must have simultaneously and the right to an insurance pension and pension savings. You must submit your application to the organization through which. This could be a Pension Fund, a Non-State Pension Fund or a management company (MC). The package of documents and the appointment procedure are the same as when applying for an insurance pension.

Consideration of the application for the appointment of both insurance and funded pensions is carried out within 10 working days. The savings payment is made simultaneously with the insurance payment for the current month. At the same time, the pensioner has the right to choose the method of delivery of the pension.

Klara Moiseevna reaches retirement age in October 2018. In 2015, her pension rights were converted into points and amounted to 80 points. Between 2015 and October 2018, she earned another 8 points. Twice I was on maternity leave to care for a child under 1.5 years old. I received 1.8 points for the first and 3.6 points for the second.

Adding up all the pension points, we get the individual pension coefficient on the day the right to pension provision becomes available - 87.4 points.

In 2018, the fixed payment was 4,982.90 rubles, and the cost of the pension point was 81.49 rubles. At the same time, Klara Moiseevna has no legal grounds for using bonus increasing coefficients. In this case, the amount of her insurance pension will be:

4559 + 85.4 x 74.27 = 10,902 rubles.

Conclusion

Analysis of the activities of pension systems in other countries of the world shows that there is a gradual curtailment of state savings programs and expanding their insurance sector. Since the deduction of funds for or the conclusion of an agreement with a management company or non-state pension fund is voluntary, the decision on the advisability of such a step will be made by the future pensioner independently.

As for the new calculation algorithm, to conduct an approximate analysis of the size, factors that may influence its size and adequately assess its capabilities, you can use "pension calculator" on the PFR website.

Pension Fund specialists recommend seeking consultation as prescribed in advance, approximately six months before a citizen acquires pension rights. Due to the large number of errors and inaccuracies made when filling out work books by the personnel services of enterprises, the Fund’s specialists may require supporting certificates and make appropriate requests. The process of collecting additional information and waiting for responses to requests can be lengthy and labor-intensive.

Over the past ten years, Russian labor legislation has undergone several major reforms. Now the calculation of pensions has become a little more complicated, but at the same time much fairer.

How is the pension formed in 2017?

Before the latest bill came into force, the main thing that influenced the amount of deductions was length of service.

But, despite this, there were often cases when people with really great experience received some pennies. That is why the government decided to make changes to the existing system for calculating pensions.

The new calculation procedure led to some resonance among citizens. Not everyone was able to appreciate its fairness and effectiveness.

Despite this, the new project really better and more accurately corresponds to the contribution of each citizen to the development of the state.

In addition to the emergence of a new procedure for calculating pensions, citizens now have the opportunity to independently influence its size.

The new project will be able to slightly alleviate the plight of our citizens who, in an attempt to influence their pension, strive to gain maximum length of service.

According to the new procedure, there is a system according to which you can form a pension without officially working. Now, length of service has almost no effect on the size of your pension.

It would not be entirely correct to say that at the moment, length of service is completely irrelevant when calculating a pension.

Of course, there is a completely legal opportunity to buy the points and length of service necessary to calculate your pension from the Pension Fund.

But for each year worked, provided that the wage during this period was necessarily no less than the minimum wage established at that time in the country, points and length of service are calculated, which are used in the formula when calculating the pension.

In this regard, it is important to know how it is formed labor pension now, and how to influence the amount of pension payments.

What is a pension formed from today?

Until 2014, the pension as a percentage consisted of the following parts

Until January 1, 2014, citizens’ pensions were formed on the basis of employer contributions (in the amount of 22% of wages) to the pension fund and were formed from two parts:

1. cumulative;
2. insurance

The insurance pension was 16% and depended on length of service and salary. The money was almost immediately redirected to payments to today's pensioners.

At the same time, certain obligations were formed towards the citizen, on the basis of which in old age he would also be able to count on receiving a pension.

Citizens had the right to divide their pension into two parts or transfer it in full to form an insurance pension.

The funded part is calculated at 6%. It is formed on the pensioner’s individual account. A citizen has the right to choose how to use this part of the pension; he can:

• transfer it to the disposal of a non-state pension fund;
• management company;
• under the management of Vnesheconombank.

For persons born before 1966 inclusive, all 22% of pension contributions were transferred to the insurance part.

For women from 1957-1966 and men from 1953-1966, the funded pension was formed only in 2002 and amounted to only 2% of the salary. However, the citizen also had the right to dispose of it independently.

Starting from January 1, 2015, what was the funded part of the pension turned into an independent pension.

Those who chose to create savings were transferred completely to a funded pension without any additional changes.

Currently, the number of points shown in the table is calculated if care leave after the birth of a child was issued for a year. If it was issued for a year and a half, then for such leave with the first child 2.7 points will be awarded, with the second - 5.4 and with the third or fourth - 8.1.

Accruals for subsequent such vacations are not provided for by law. Moreover, this number of points and length of service will be counted for further accruals, provided that no other work activity was carried out at the same time.

If, when recalculating the pension at the request of the pensioner, it turns out that, taking into account the above, the final amount is calculated to be less, then the pension will be left the same without decreasing.

The period of caring for a disabled child is counted in the insurance period only if the person providing this care had work experience before this period and continued it (if necessary) after this child turns 18 years old.

By 2023, the retirement age for the majority of citizens of our country will be 60 or 65, depending on gender. For 2019, the cost of a pension point increased to 81.24 rubles, and the fixed part became 5334.19 rubles.

Now, if you defer your application for a pension for 10 years, it will be more than doubled.

From January 1, 2016, the savings of all persons who did not independently choose the manager of their savings automatically stopped forming. Now all contributions to the pension fund will be transferred to the insurance part of the pension.

At the same time, those individuals who transferred savings at least once under the management of a selected management company or non-state pension fund still have the opportunity to form a funded pension in the future.

Also, the right to make a choice about how the pension will be distributed remains with citizens who are just starting their career.

This right is retained by them for five years from the start of their working activity or until the age of 23.

Application to the Pension Fund for the formation of a funded pension

If a citizen decides to further form the funded part of the pension, then he needs to decide who exactly he can entrust to count it and form the management company or non-state pension fund. Next, he must contact the pension fund with a corresponding application to select a company or transfer the calculation and formation of the pension to a non-state pension fund.

There are the following ways to contact the Pension Fund:

1. through the MFC or independently.
2. send the package necessary documents by courier service or through the post office. You must first have your signature certified by a notary. If this citizen is currently located abroad of the Russian state, then assure the responsible consulate officials.

If a citizen has made a choice to form savings in favor of a non-state pension fund, then all accounting, payments and calculation of the funded component of pension savings are controlled by the non-state pension fund itself.

If the accrual process is handled by the management company, then the payment and assignment is made by the Pension Fund.

Use of mat. capital for the funded part of the pension

There is also the possibility of using mat capital to increase the funded part of the pension

Based on Law No. 256-FZ, which came into force at the end of 2006, those who have a certificate for obtaining mat. capital have the right to redirect part of the funds of this capital to form the funded component of the pension.

This is mostly true for mothers who have been on maternity leave for too long.

After all, according to the law, the employer does not make insurance premiums for them at this time.

To transfer part of the MK funds to the funded component of a pension, a pension in a management company or NPF, a woman needs to contact the Pension Fund of the Russian Federation at her place of registration or place of residence and submit the required application.

At the same time, a woman has the right not to use MK in this area, but to redistribute it to other areas before she has the right to assign her pension. To do this, you also need to contact the pension fund with an application.

Freezing pension savings, what is it?

It's no secret that the country today is in a rather difficult economic situation. This led to the fact that citizens were faced with a new phenomenon for them called “freezing pension savings.”

In simple terms, the country's economy is in such bad shape that it is necessary to find money for the budget in all available ways.

In this regard, a bill arose to freeze savings for 2017. Such measures give the country the opportunity to win about three hundred and forty billion rubles for other needs of our budget.

It is worth noting separately that the prospects do not promise joyful ones. The budget deficit for this year is approximately two trillion two hundred billion rubles.

Against this background, the savings are almost invisible.

Although such extreme measures will cover part of the existing deficit, this is only a temporary solution that is not capable of helping to find a more or less stable solution to the problem

How to calculate your pension

Until 2015, pension payments to citizens were regulated by Law No. 173-FZ of 2001.

The labor pension provided to citizens in old age is formed from the funded and insurance parts. But the adoption of two bills practically combined the concepts of labor and insurance pensions.

• From January 1, 2015, citizens with appropriate length of service, as well as those who meet a number of requirements, are also paid an insurance pension.
• In some cases (by decision of the citizen), it may also be supplemented by a funded pension.

One of the main changes includes a different formula for calculating pension benefits. The calculation is based on the following algorithm:

SP=IPK*SIPC*K+FV*K, where:

1. SP represents the size of the insurance portion;
2. The SPI represents the sum of points that have been accumulated so far;
3. SIPC represents the value of the individual pension coefficient;
4. K is a coefficient that changes depending on whether the calculation is carried out by a fixed part or by points;
5. PV is a fixed part of payments.

Extension of the moratorium in 2017

How long will the moratorium last?

On January 1, 2014, a moratorium on the formation of one of the components of the pension benefit came into force. Namely, the funded part of the pension.

As a result, contributions made by employers in 2014, 2015, 2016 were entirely transferred to the distribution part of the system. At the same time, all amounts of savings made must be accounted for in the personal account of insured citizens.

This moratorium on the formation of the funded part of pensions from insurance contributions has been extended until 2019. It is worth noting that only contributions paid voluntarily can be used for accumulation.

In the following video you will learn more about pensions in Russia:

Jun 15, 2017 Content manager

You can ask any question below

All citizens of the Russian Federation, regardless of the presence or absence of work experience, are required to receive a pension. Its magnitude depends on various factors. The formation process is fixed at the legislative level.

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How does this happen

Today, a special pension savings system operates on the territory of the Russian Federation - it allows working citizens to receive special payments from the state upon reaching a certain age.

At the same time, pensions themselves come in several different types:

• on disability;
• appointing .

The process of forming each individual pension differs significantly from the others. The situation is similar with its size.

Pension payments can be made in various ways:

• one-time payment (possible only in some special cases);
• monthly.

When calculating the amount of the pension, it is calculated in special pension points. The cost of each is indexed annually. This is one way to keep pension contributions at the same level as inflation.

For citizens whose pension began to form before the introduction of the point system, the entire amount is converted into points without any losses.

The right to receive an appropriate pension arises when the following conditions are met:

• reaching a certain age, years:

A citizen planning to receive a pension should familiarize himself in advance with the required number of such points to receive a pension. This will allow you to independently and in advance calculate the amount of your future pension.

The chosen type plays a significant role in the formation of pension provision. For example, if only the insurance part is formed, then the maximum number of points during one year will be only 10. All contributions will be used by the Pension Fund to form the insurance part.

If an officially employed citizen independently chose to form two types of pensions at the same time (insurance, funded), then the maximum number of points per year will be 6.25.

The reason for this is the deduction of 27.5% of the amount of insurance-type contributions in favor of pension-type savings.

An important factor when forming a pension is the year of birth of the future pensioner. If a citizen was born in 1967 or later, he can choose the pension option at any time.

For example, refuse to form a savings account. At the same time, 6% of insurance contributions will be sent to an insurance-type pension.

For citizens of the year of birth indicated above, pension insurance contributions will be accrued from 01.01.15. From the moment of the first accrual, over the next 5 years, it will be possible to choose the appropriate pension provision.

If for some reason the citizen has not reached 23 years of age by this time, then this period will be increased by the amount of time until he reaches this age.

When making a choice in favor of any specific pension option, it is necessary to take into account that the insurance part will constantly increase due to annual indexations. Moreover, this process is guaranteed by state policy.

The savings part is managed by special companies - non-state pension funds. The size of this component of the pension primarily depends on the success of the chosen investment portfolio.

But the future retiree should not worry. Insurance of this part of the pension is mandatory. It will simply be impossible to obtain it less than the value established by law.

Formation of pensions for persons born in 1967

For people born in 1967, there is simply no option to choose a pension option.

The amount of accruals can be calculated as follows: the total number of pension points × the cost of the 1st pension point in the current period + a fixed amount: Where:

For 2019, the following variables have established cash equivalents:

It should be taken into account that when calculating the payment, the cost of the point for each individual year must be taken into account.

For example, in 2019, the accrual formula will look like this: Certain categories of citizens, regardless of their year of birth, are given special increasing coefficients. These categories today include:

• disabled people of group 1;
• persons over 80 years of age;
• having a certain length of service or permanently residing in the Far North and equivalent areas.

Any fixed payment or a special increasing coefficient is applied. It is also called "northern".

How to find out

Today you can find out how your own pension is formed in various ways:

• carry out the calculation yourself - using one of the available special formulas;
• calculate via the Internet - there are quite a large number of special calculators on different resources;
• contact directly the nearest branch of the Pension Fund of the Russian Federation.

You can find out in as much detail as possible with explanations how a certain pension is formed at the nearest Pension Fund branch.

Employees of this institution are obliged to provide the most detailed information on this matter to all citizens of the Russian Federation who apply. When doing calculations on your own, there is a high probability of making some errors.

How to watch via the Internet

To view the process of forming a pension via the Internet, the easiest way is to visit the official website of the Pension Fund of the Russian Federation - its section called “calculator”.

A distinctive feature of this service is its accuracy and the low probability of making any errors.

• gender and year of birth;
• the expected length of service and how many years the citizen plans not to apply for a pension;
• the amount of official wages (before deduction of personal income tax);
• the chosen option for forming a pension (only insurance, insurance and funded);
• the total amount of time spent completing military service under conscription;
• amount of children;
• duration of stay on parental leave;
• duration of care for a disabled person (disabled person, other);
• Do you have any plans to work in agriculture?

After entering all the above data, you just need to click on the “calculate” button. As a result, the pension will be displayed on the screen, which is formed taking into account the data reflected in this application. For maximum calculation accuracy, it will be necessary to indicate only reliable data.

The pension rights of citizens are formed in individual pension coefficients. All previously formed pension rights were converted without reduction into pension coefficients and are taken into account when assigning an insurance pension.

The conditions for the emergence of the right to an old-age insurance pension under general conditions are:

• reaching the age of 65 years - for men, 60 years - for women (taking into account the transitional provisions provided for in Appendix 6 to Law No. 400-FZ). Individual categories citizens have the right to receive an old-age insurance pension early;
• for persons holding government positions in the Russian Federation and government positions in constituent entities of the Russian Federation held on a permanent basis, municipal positions held on a permanent basis, positions in the state civil service of the Russian Federation and municipal service positions - the age specified in Appendix 5 to Law No. 400-FZ . Already in 2017, the process of raising the retirement age for civil servants began six months a year to 65 years (men) and 63 years (women). From January 1, 2021, the step to increase the retirement age will increase - one year per year. Thus, the retirement age for civil servants is brought into line with the proposal for the rate of increase in the generally established age for everyone.
  

  Moreover, if such persons have insurance experience of at least 42 and 37 years (men and women, respectively), an old-age insurance pension can be assigned to them 24 months before reaching the specified age, but not earlier than reaching the age of 60 and 55 years (men and women, respectively ).

Citizens who are specified in Part 1 of Article 8, paragraphs 19 - 21 of Part 1 of Article 30, paragraph 6 of Part 1 of Article 32 of Law N 400-FZ "On Insurance Pensions" and who, in the period from January 1, 2019 to December 31, 2020, have achieved age giving the right to an old-age insurance pension (including its early assignment) in accordance with the legislation of the Russian Federation in force before January 1, 2019, or they will have acquired experience in the relevant types of work required for the early assignment of a pension, an old-age insurance pension may be appointed before reaching the age or the onset of the deadlines provided, respectively, by Appendices 6 and 7 to the said Federal Law, but no more than six months before reaching such an age or the onset of such deadlines.

• having at least an insurance period15 years (from 2024) taking into account the transitional provisions of Art. 35 of the Law of December 28, 2013 No. 400-FZ;
• availability of a minimum amount of pension coefficients -at least 30 (from 2025) taking into account the transitional provisions of Art. 35 of the Law of December 28, 2013 No. 400-FZ.

The number of pension coefficients depends on accrued and paid insurance contributions to the compulsory pension insurance system and the length of insurance (work) experience.

For each year of a citizen’s labor activity, subject to the accrual of insurance contributions for compulsory pension insurance by employers or personally paid by him/her, pension rights are formed in the form of pension coefficients.

The maximum number of pension coefficients per year from 2021 is 10, in 2019 - 9.13.

How many pension coefficients
can be charged to you for 2019?

Enter your monthly amount
wages before personal income tax:

Error! Enter a salary higher than the minimum wage in the Russian Federation in 2019 - 11,280 rubles.

Calculation results

Number of pension points
per year: 7.83

The pension option in the compulsory pension insurance system affects the calculation of annual pension coefficients. When forming only an insurance pension, the maximum number of annual pension coefficients is 10, since all insurance contributions are directed towards the formation of an insurance pension. When choosing to form both an insurance and funded pension at the same time, the maximum number of annual pension coefficients is 6.25.

Citizens born in 1967 and younger who, before December 31, 2015, chose to form an insurance and funded pension in the compulsory pension system can at any time refuse to form a funded pension and direct 6% of insurance contributions to form only an insurance pension.

Also, citizens born in 1967 and younger, in whose favor insurance contributions for compulsory pension insurance will begin to be accrued by the employer for the first time after January 1, 2014, are given the opportunity to choose a pension provision option (form only an insurance pension or form both an insurance pension and a funded pension) within five years from the date of first accrual of insurance premiums. If a citizen has not reached the age of 23, the specified period is extended until the end of the year in which he turns 23.

When choosing a pension option, you should take into account that the insurance pension is guaranteed to be increased by the state through annual indexation. Funds from the funded pension are invested in the financial market by the citizen’s chosen NPF or management company. The profitability of pension savings depends on the results of their investment, that is, there may be a loss from their investment. In this case, only the amount of insurance premiums paid is guaranteed for payment. Pension savings are not indexed.

All citizens born in 1966 and older have a pension option - the formation of only an insurance pension.

Obtaining the right to an insurance pension depends on the year the insurance pension was assigned

*From 2015 to 2020, regardless of the choice of pension option in the compulsory pension system, all citizens will only have pension rights. In this regard, the maximum value of the annual individual pension coefficient is the same for any pension formation option.

The old-age insurance pension is calculated using the formula:

INSURANCE PENSION = THE SUM OF YOUR PENSION COEFFICIENTS* COST OF THE PENSION COEFFICIENT as of the date of pension + FIXED PAYMENT

SP = IPC * SIPC + FV , Where:

• JV - insurance pension
• IPC - this is the sum of all pension coefficients accrued on the date of assignment of an insurance pension to a citizen
• SIPC - the value of the pension coefficient on the date of assignment of the insurance pension.

When assigning a pension from 01/01/2019 = 87.24 rubles. Indexed annually by the state.

• FV - fixed payment.

Thus, the calculation of the insurance pension in 2019 is carried out according to the formula:

SP = IPK * 87.24 + 5334.19

Also, the amount of your pension coefficients (IPC) is significantly increased by applying for an old-age insurance pension for the first time (including ahead of schedule) after the right to it arises. For each year of later application for a pension, the insurance pension will increase by the corresponding premium coefficients.

For example, if you apply for a pension 5 years after reaching retirement age, the fixed payment will increase by 36%, and the sum of your individual pension coefficients will increase by 45%; and if after 10 years, then the fixed payment will increase by 2.11 times, and the sum of your individual pension coefficients by 2.32 times.

Russian deputies are constantly arguing about how to deal correctly with the funded part of pensions - those regular monthly contributions from employers to the Pension Fund that go towards the formation of individual pension savings. The Ministry of Labor is committed to making them voluntary, but the Ministry of Finance, as well as various independent economists, argue that this will be a significant blow to the economy.

In order to artificially increase the size of pensions in our country at the expense of the pensioners themselves, a law on the funded part of pension payments was adopted in 2002. How the funded part of the pension is formed and what it represents will be described below, and only time will tell how effective this step is.

The concept of accumulative payments

What is a funded pension? In order to understand this, you should familiarize yourself with the definition of insurance contributions as a whole, because savings are only part of them. So, insurance contributions to the Pension Fund are completely controlled by the employer and are transferred by him. Their amount directly depends on the official salary, therefore, in order to ensure their own future, it is more profitable for citizens to receive a white salary, and not in envelopes.

The cumulative part can be formed from several sources at once. Thus, the funded pension of pensioners grows with each contribution from the employer, personal deposit of funds into the account from its owner, or government funding. In addition, citizens can increase the amount of this amount with the help of non-governmental institutions and private management companies, which will be selected as custodians of the account and funds.

Beginning of formation

The funded part of pensions began to be accrued to citizens immediately after the adoption of the relevant law. Each pensioner has the right to choose the system for distributing his contributions within five years from the date of its formation. If during this time the citizen has not contacted the relevant authorities, then accruals are formed according to an automatic scheme, that is, all funds will be transferred to the insurance account.

If you want to open a savings account, you will need to regularly contribute funds to it.

A citizen will be able to receive payments as soon as:

• his age will reach retirement age;
• the size of the funded portion will exceed the insurance portion by more than 5%.

If at the time of the start of payments the insurance part is relatively larger than the other, in accordance with the requirements, then a lump sum payment is calculated from the funded pension. That is, a citizen can receive all the accumulated money immediately.

An application for the start of the formation of the funded part is considered no more than ten working days, but due to various conditions of the insurance company it may take longer.

Which is better: insurance or savings?

Insurance and funded pensions allow a citizen to receive money to live on a well-deserved rest, therefore they are necessary and useful, but they have certain significant differences. The insurance pension is indexed annually, but the funded pension is not. At the same time, savings can be received in full one time, even if the citizen does not have enough pension experience at that moment. Also, this money can be increased through investment and transferred by inheritance to legal successors in the event of death.

What is the storage part formed from?

To understand how a funded pension is formed and what is so special about it, you should consider the history of the appearance of this part of the pension from the very beginning. So, employers began making contributions to this part of savings only in 2008. Of the total amount of taxes from each citizen, only 14% of his earnings went to the Pension Fund. Already at the institution, this amount was divided, resulting in the formation of an insurance and funded pension. The latter accounted for only 2% at that time, so the accumulated amounts were always small and were paid to citizens as a one-time payment.

Over time, this part of the payments was increased to six percent, but citizens were not interested in using it, so the contributions were suspended and had to be paid to the owners once they reached retirement age. Only a few years ago these payments were transferred to a separate category.

The state has fueled citizens’ interest in accumulating their own funds by increasing their existing amounts. Thus, citizens who had funded portions of 2-12 thousand before 2015 received a doubling of it, and if they reached retirement age at that time and did not apply for payment, they received a 4-fold increase.

How is the calculation made?

The insurance part of the security today is calculated taking into account accumulated pension points, the value of which is influenced by the amount of official earnings, and the pension coefficient, which is influenced by the period of retirement. The funded part of the pension is now calculated separately. You can do this yourself according to the approved formula.

For it you need to know such constants as:

• the exact amount in the account;
• the approximate amount of future payments.

So, how can you find out your funded pension with this data? You just need to divide the available amount by the number of payments, which will give the amount of the monthly payment.

If the size of the amount in this case can be controlled by the citizen himself, then the duration of payments is determined by the state. Previously, it was believed that after retirement, citizens live about 228 months and calculations were made according to this indicator. Today it has increased to 240 months, but can be artificially reduced, which will increase the monthly payment. To do this, the account owner must apply for payments from it after the established period, but the limitation is allowed only up to 14 years.

Data on the amount of savings

The non-state Pension Fund of Sberbank, in which a funded pension is also possible, provides its clients with information about the status of their account online or in person at any branch. It’s easier and faster to do this via the Internet; just go to your personal account on the official website and check the amount in your account.

To find out the data in person, you will need to take with you:

• passport;
• written statement;
• Account number.

In this case, the extract will also be provided in writing.

The accumulative pension of the NPF is also displayed on the website of the State Pension Fund. You can also view it in your personal account. If you do not have one, you must first go through the online registration procedure.

The State Pension Fund provides data on the amount of savings to citizens who personally apply. To do this, you also need to write an application, provide a passport and insurance number, an extract will be issued within 15 minutes.

In the case of accumulation of funds in any organization or Sberbank, the funded pension is displayed by the employer, since it is he who directs the contributions of his employees. Therefore, you can obtain data on the amount of savings through the accounting department of your own enterprise by providing a passport, personal account information and an application.

Pay

The essence of a funded pension is that it can be received by citizens in several ways.

As soon as a citizen makes a request to pay him his accumulated funds, he needs to choose a scheme for carrying out this operation:

• lifelong - monthly for the duration of the AFP;
• lump sum - the entire amount at once in one payment;
• urgent - monthly for a period of at least 10 years, but determined by the citizen himself.

Both parts of the pension are paid to citizens in the way they choose:

• via mail;
• through a bank;
• through a special organization for pension payments.

Who receives payments on time and when?

To know for sure whether to count on payments from the savings system, citizens should first read the information from the employer. That is, find out whether he made appropriate contributions to the Pension Fund. If everything is in order, then upon the occurrence of an insured event or upon reaching retirement age, you can demand a one-time payment of money from the account. If after such a payment there are still funds left in the account or they are accumulated again, then the citizen has every right to demand that their payments begin again for a new reason. Interestingly, the state does not limit the period of time during which a person can submit a corresponding application.

The timing of receiving money is strictly regulated and must be carried out the very next day after the citizen submits an application or on the next working day after his dismissal. The latter option is observed only if the citizen first writes an application within a month after dismissal.

Early receipt

The following are always paid ahead of schedule:

• savings when the account holder's disability is established.

In the event of the death of the owner of the money, the recipients of his savings become the persons specified in the will, the legal successors or direct heirs specified in the Pension Fund, but only if the rights are registered within six months from the date of death.

In addition, citizens who do not have enough points upon reaching retirement age or after losing a breadwinner can also receive savings as a one-time early payment. The obligatory procedure for a one-time payment is also the presence in the account of an amount of accruals that is less than five percent of labor payments.

Increasing the share of savings

If the funded pension exceeds that provided by law, the Pension Fund can independently transfer the excess amount into bonds or shares of enterprises. In many cases, such a move only helps citizens increase their profits in the future, but if there is no desire to invest your own money in the economy, then you should monitor the state of your account and avoid exceeding the permissible amount on it.

Savings management

What a funded pension is is already clear; it can and should be completely controlled by its owner. To do this, when choosing such a pension system, a citizen will immediately have to make a choice in favor of a management company for his funds. This is done by writing a corresponding application to the Pension Fund. At this stage, you can choose a management company with an agreement with a Pension Fund, Non-State Pension Fund or State Management Company (state management company).

If a citizen chooses state institutions, then he remains registered with them, but when working with non-state institutions, he gets the opportunity to earn more from the funds already in the account. In any case, in order to obtain a guarantee of qualified service, when choosing, you should be guided by data on the period of activity of the institution; it would not be superfluous to also study reviews about the company.

In addition, you need to pay attention to:

• number of company clients;
• financial indicators;
• positions in an independent rating.

If a citizen used the services of a state company and decided to transfer his savings to a non-state company or vice versa, he must first enter into an agreement with an organization that is only planned to serve as a service provider, and then write an application for the transfer of funds to an existing institution. To do this, you only need to have your passport and insurance account number with you. At first glance, everything is simple, but it will take a very long time to wait for the translation. The fact is that, according to the law, the procedure is carried out only in the year following the one in which the application was written, and until the end of March.

You can use such a service at least every year, but without loss it can only be done once every five years. The risk for citizens is that when transferring funds during a loss-making period, they may transfer to a new company in a smaller amount, which will be impossible to restore.

Using savings

The pension fund, in which the funded pension is distributed at the request of the citizens themselves, provides its clients with several options for the development of further events, which directly depend on the use of the funded part today.

First of all, citizens can simply refuse such deductions initially. This move gives them the opportunity to receive more pension points for calculating the insurance portion in the future, because the amount of tax does not change, but its share will increase.

Make a profit from mandatory contributions, and not just from free funds by investing savings in non-state pension funds. The profit from them is always obvious and can sometimes exceed deposit rates.

Despite the obvious profits, many are afraid to trust their funds to non-governmental institutions and prefer strictly regulated companies to them. Of course, there is no point in counting on high profits from them; sometimes they barely exceed inflation.

In any case, it should be taken into account that the choice in favor of funded payments is made only once, but you can return exclusively to the insurance system at any time.

Stopping deductions: permanent or temporary

The funded pension stopped being paid, what happened? The fact is that its receipt and distribution also has certain restrictions, which should be familiarized with in advance.

Payments may be suspended if:

• the citizen has died or been declared missing;
• the citizen has lost the right to receive savings, which may occur due to previously provided conflicting information or funds;
• failure to provide a document confirming a residence permit at the request of the state;
• after six months from the date of temporary suspension of payments;
• The citizen himself refused the assigned amount of savings in favor of other payments.

Depending on the circumstances, payments may stop immediately from the moment of announcements or from the beginning of the following month.

A citizen can resume payments in the future only after personally contacting the Pension Fund with a corresponding application.

In conclusion of all of the above, it should be noted that today in the country more than three hundred non-state funds offer their services for accumulating pensions for citizens, which have the right to conduct their own advertising activities. The services of almost fifty state management companies are also offered to citizens. If you need to find out more about the activities of any of the organizations, you just need to go to the Internet, since all their financial regulations are published for free access without fail.