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- Non-state pension provision
Throughout the history of the pension system in the Russian Federation, its fundamental changes have been carried out more than once. The most notable of them occurred in 2002, when old-age pensions in Russia were divided into 3 separate groups: basic (cancelled), insurance and funded. The latter is of the greatest interest, since before the 2002 reform there were no analogues in our country.
The funded part was allocated as a separate type of pension payment in 2013. In accordance with the law, citizens have the right to independently determine the need for the formation of this type of security and decide how it will happen - transferred to the Pension Fund or to a non-state pension fund (NPF). The work of a non-state pension fund is a licensed activity and for certain violations the organization may lose its document.
- 5.1 Top 5 most reliable companies
Can NPFs be trusted?
Many citizens who have the right to control how their future pension provision will be formed, although they decided to transfer part of the insurance contributions to the funded part, however, left it in the state fund. This position is motivated by many by the fact that savings in the Pension Fund are more secure.
Important! By saving money in the Russian Pension Fund, citizens have virtually no influence on the size of their future pension, since the amount of savings increases (is indexed) only within the framework of inflation.
NPFs propose to increase future pensions through investment income, which is generated as a result of investing pension funds of citizens in various projects (mainly shares and other securities). So is there a risk of losing your pension by forming it in a non-state pension fund?
The answer to this question is somewhat ambiguous. There is no need to worry about the amounts that the employer or the citizen himself transfers to the funded portion. Federal legislation provides for comprehensive measures to control the activities of non-state pension funds. In addition, “pension” money cannot be recovered for obligations of a non-state fund that arose for any reason.
However, the pension is transferred to a non-state pension fund to receive income from investments. No fund can guarantee this. The loss of investment income may well occur due to financial problems of a non-state pension fund, but it is also lost, for example, when moving from one fund to another more often than once every 5 years.
In addition to the accumulation and formation of funded pensions, which occurs within the framework of compulsory pension insurance, NPFs actively enter into voluntary pension insurance agreements. State guarantees of the safety of funds do not apply to these savings. In this regard, there is a risk that in the event of bankruptcy or revocation of the fund’s license, they will be lost.
From the above it follows that NPFs can be trusted and placing the funded part of the pension on their accounts does not imply the risk of its loss. At the same time, the termination of the fund’s activities often causes the loss of investment income and funds placed under voluntary pension insurance contracts.
The most common reason for the termination of the activities of the organizations in question is the revocation of the license, which occurs on the initiative of the Central Bank of the Russian Federation.
List of non-state funds whose license has been revoked
The first non-state pension funds began to appear around the mid-90s, but they did not yet participate in the compulsory pension system. After citizens were allowed to transfer pension savings to NPF accounts, control over the latter’s activities increased significantly. The Central Bank of the Russian Federation annually due to their failure to comply with legal requirements.
The largest organizations that have closed in recent years are:
- "Power";
- "Sun. Life. Pension";
- "Protecting the future";
- "Sunny Time";
- "Adekta-Pension";
- "Povolzhsky";
- Mechel-Fond;
- "Siberian Capital".
The activities of these organizations with revoked accreditation have now been discontinued.
How does the process work?
If a non-state pension fund has gone bankrupt, an arbitration manager is appointed to consider the case (a temporary manager at the observation stage and a bankruptcy trustee for bankruptcy proceedings).
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The appointed specialist will first check the activities of the fund, determine the real financial situation, and then make a conclusion about the legality of the actions of the management and founders of the company. If no significant violations are identified, citizens’ funds are transferred to the Pension Fund of the Russian Federation, and the organization’s property is sold at auction (the funds are used to satisfy creditors’ claims).
In certain cases, NPF clients can also act as creditors.
Why can an NPF license be revoked?
For an organization to be deprived of a license to operate within the framework of an OPS, there must be a compelling reason. The Central Bank of the Russian Federation makes a similar decision in the following cases:
- concealment or unreliability of information provided to the regulator;
- lack of sufficient working capital;
- high investment risks;
- violation of legal norms when investing.
- refusal to transfer funds to other non-state pension funds in the event of a corresponding expression of the client’s will;
- placement of assets in credit institutions that do not meet the requirements imposed on them by law.
Reference! When a violation is detected, the Central Bank of the Russian Federation, as a rule, issues an order to eliminate it, and the license is revoked only if it remains unfulfilled.
What is a system for guaranteeing the safety of pension savings?
The Deposit Insurance Agency (DIA) operates a special pension savings guarantee fund. It was created to protect the rights and interests of citizens insured in the compulsory health insurance system. Each NPF has an obligation to transfer funds to this fund. If a system participant’s license is revoked, the DIA will compensate the organization’s clients for lost funds.
Thus, the state guarantees the safety of citizens’ pension savings within the framework of the pension fund.
What will happen to savings if the NPF goes bankrupt?
In accordance with the current legal norms, after the revocation of the license, temporary managers are appointed, whose responsibility is to transfer all funds to the Pension Fund of the Russian Federation with the subsequent liquidation of the fund as a legal entity.
The funded pension, from the moment the license is revoked, goes to the Pension Fund. In this regard, the citizen must submit an appropriate application to choose another insurer before the end of the calendar year.
If the client of an unreliable fund decides to leave his savings in the Pension Fund, then he does not need to take any action.
Summary
- NPF opening refused to pay the funded part of the pension. What to do.
- If the employer did not contribute funds to the NPF, what should you do?
- I want to terminate the contract with NPF Future, there is no office in my city, what should I do?
- I lost my contract with NPF Prosperity, what should I do?
- NPF Road just found out that the fund went bankrupt, what to do next Alexander 89183082877
- I recently signed an agreement with Sberbank with NPF Sberbank, I want to terminate it, what should I do?
- What to do if an agreement is supposedly signed with a non-governmental pension fund?
- What's happening at school
- What to do on vacation
- What to do and how to get the money back
- RVP what to do
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Questions
1. NPF opening refused to pay the funded part of the pension.
What to do. 1.1. Larisa Vladimirovna, you are not the first. You will have to go to court with a claim to declare illegal the decision to refuse a lump sum payment of the funded part of the labor pension, and to impose the obligation to pay the funded part of the labor pension in a lump sum.
2. If the employer did not contribute funds to the NPF, what should I do?
2.1. Go to court with a claim for compulsion.
3. I want to terminate the contract with NPF Future, there is no office in my city, what should I do?
3.1. Hello! Send notice of termination of the contract by mail to the address specified in the contract.
4. I lost my contract with NPF Prosperity, what should I do?
4.1. Contact the fund branch to resolve this issue.
5. NPF Road just found out that the fund went bankrupt, what to do next Alexander 89183082877
5.1. Hello! If the case is in an arbitration court at the bankruptcy stage, then you should contact the same court with an application to include you in the register of creditors.
6. I recently signed an agreement with Sberbank with NPF Sberbank, I want to terminate it, what should I do?
6.1. Good day! Submit an application to terminate the contract. Once a year you have the right to change your pension fund.
6.2. You can transfer to any other pension fund. To do this, you must submit a corresponding application. Choose which one first. The contract cannot be terminated just like that.
6.3. Hello, Natalia! If you want to terminate the agreement with Sberbank NPF, then you need to submit an application for termination of the contract and provide data for the transfer of the redemption amount located on your personal pension account in the NPF. You can always find a way out of any situation. Good luck to you and all the best in your endeavors.
6.4. Hello! I would advise you to terminate the contract at the end of the year and transfer to another fund of your choice; there will be no problems with this.
7. What to do if an agreement is supposedly signed with a non-governmental pension fund?
7.1. What to do if an agreement is supposedly signed with a non-governmental pension fund?
Apply to the court to terminate the contract if the NPF refuses to terminate it voluntarily.
8. At work they obliged me to switch to their NPF Magnit, but in “My Documents” they don’t provide this service, they said that they should do it themselves at work. What should I do? My phone
8.1. Good afternoon. An employee from NPF Magnit should come to you and fill out all the necessary documents for the transition. Ask your employers for contact information.
8.2. No one can oblige you to switch to a non-state pension fund; only you decide where to have a savings account, in the Pension Fund of the Russian Federation or in a non-state pension fund. I recommend not signing any documents, this is arbitrariness, but it’s better to contact the prosecutor’s office. The employer may be held liable for such actions.
9. My son died on July 22, we wrote an application for a funded pension and the refusal came today, I worked in the North on a shift and wrote the reason for the refusal of the non-state pension fund, please advise what to do next.
9.1. If you applied to the Pension Fund of the Russian Federation, and you received a response that the pension savings of the deceased were transferred to a non-state pension fund, then with a similar application you need to contact the non-state pension fund in which these savings are currently located.
10. I am a teacher with 28 years of experience and have the right to receive a preferential pension. A letter was received from the Pension Fund about the refusal of the funded pension. Reason: NPF funds. What does this mean and is it possible to win the case in court?
10.1. Good afternoon, NPF is a non-state pension fund! The wording means that your funds are not stored in the state pension fund! You can get a preferential pension if you have more than 25 years of service! You can always go to court, but first you need to understand what the violation is and whether it exists!
10.2. You should check with the Pension Fund about which NPF your pension savings are taken into account, and fill out an application for assignment of a funded pension to this NPF.
11. My father died and got married five months before his death. As a result, the son from his first marriage and the widow inherited. 8 months have already passed since the death and it turned out that the widow withdrew the pension accruals of the deceased, who did not reach retirement age, without the knowledge of the second heir-son. The son did not even know that his father had any contributions to the NPF. Are the widow's actions legal? What should I do now if 8 months have already passed?
11.1. Hello, please clarify the question, what is your pension, funded? The amounts of accrued pension payments due to a citizen of retirement age in the current month, but not received by him in connection with death in the same month, are not included in the inheritance property (personal property). They are paid to family members of the deceased who lived with him on the day of his death. If the pension is funded, then it is divided among all heirs. The testator's son must go to court to receive part of the savings that the widow received.
Questions and answers
In 2020, I entered into an agreement with a well-known pension fund to form a voluntary funded pension and regularly deposited funds into my account. Now he's broke, what will happen to my money?
Maxim Petrovich, Sarapul city
Unfortunately, the DIA does not provide compensation for funds under voluntary pension insurance contracts. The question of whether you will receive your funds will be determined depending on the availability of the fund's own funds after the completion of the liquidation procedure.
I can’t decide on the choice of a non-state pension fund. Many of them offer equally tempting returns. How to choose the most suitable one?
Elena Sergeevna, Binsk
Profitability is an important criterion when choosing a non-state pension fund. However, we should not forget that the exhortations of agents and advertising brochures do not always correspond to reality. On average, the yield of successful funds is about 8-10%. If they promise higher, then this is, apparently, an unscrupulous organization.
The main selection criterion is reliability. Leading analytical agencies regularly publish ratings of non-state pension funds. You should focus on them when choosing a fund.
Top 5 most reliable companies
Below is the Top 5 non-state funds according to Expert RA, the leading analytical agency in Russia.
- "GAZFOND "pension savings".
- JSC NPF NEFTEGARANT.
- GAZFOND
- "VTB Pension Fund"
- "NPF Sberbank".
The presented organizations have a “ruAAA” rating, which means an extremely high level of reliability and extremely low risks even with significant changes in market conditions.
What are the signs of possible bankruptcy of a non-state pension fund?
If the fund falsifies its statements, then it is impossible to monitor the actual state of the assets. Signs of possible bankruptcy may include a lack of profitability in a retirement account. The funds publish this information quarterly on the Central Bank website. True, it is worth understanding that investing implies a long-term nature, and if at some point the profitability turns out to be low, this is not always a sign of bankruptcy. If losses occur over a long period, then this is a signal that it is better to withdraw savings to a more reliable place.
Too high a return (above 7-10%) also indicates that the fund is pursuing a risky policy and investing money in risky assets. This usually doesn't lead to anything good.
Various rating agencies assign ratings to non-state pension funds based on profitability, reliability, and volume of savings. They should also be reviewed periodically. A decrease in ratings indicates a deterioration in the fund’s condition.
