How to calculate old age pension in 2020 - step by step

Pension payments are formed from two main components - insurance and basic (to them, at the request of the working citizen, a funded part can be added).

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However, the amount of the insurance benefit is largely determined by the accumulated length of service, the individual pension coefficient, as well as the availability of benefits.

This significantly distinguishes it from the basic part of the manual.

Legislation

The fixed part of the benefit is provided to Russians in accordance with the provisions of Article 16 of Federal Law No. 400.

This regulation states that the exact amount of basic payments is determined by which category of citizens the person wishing to receive a pension belongs to.

In addition, it is necessary to take into account certain factors characterizing the work activity and marital status of potential retirees.

Promises from the authorities

Officials, commenting on the change in the retirement age and the indexation of pension benefits, were rather modest in their assessments. Yes, the amount of the increase of 1,000 rubles constantly flashed in their speech, but most of them referred to the size of the average pension. It is clear that if a citizen received a monthly amount less than the average for Russia, then the increase will be less than 1,000 rubles, and if more, then the increase will be greater.

Yaroslav D. received a pension in the amount of 19,600 rubles in 2020. After the increase, he began to receive 20,981.80 rubles in his hands. The pension increased by 1,381.80 rubles. Anton E. received a pension amount of 9,200 rubles in 2020. After indexation, the pension amounted to 9,848.60 rubles. The increase is only 648.60 rubles.

The authorities kept their promises, and indexation was indeed carried out on time and with a planned increase of 7.05%. Average insurance pensions actually increased by 1,000 rubles.

In the future, the average pension of pensioners will grow at a less significant pace. For example, the volume of indexation has already been planned for 2020 and 2021. It is also untied from inflation, which will be beneficial if prices continue to rise as before, that is, within 3-5% per year. In accordance with the plans of officials, pensioners should expect their pensions to increase by:

• 6.6% – 2020;
• 6.3% – 2021.

In monetary terms, average pensions in these years will be:

• RUB 16,448.58 in 2020;
• RUB 17,484.84 in 2021.

The government emphasizes that at this rate of indexation of pension benefits, the average pension will increase to the planned 20,000 rubles by 2024. But the Accounts Chamber indicates that the dynamics will not be enough to really improve the standard of living of pensioners.

Thus, for the period from 2020 to 2020, there is an acceleration in the increase in real income by 2.5%. However, already in 2024 it will slow down and the “salary equivalent” of the pension will be no more than 31.9%, although in 2020 the ratio is expected to be 33.9%.

Size

According to Article 16 of Federal Law No. 400, the amount of the basic pension benefit is determined:

• type of pension;
• disability group and other health restrictions;
• number of dependent persons;
• the age of the pensioner (upon reaching 80 years of age, the amount of payments doubles);
• having work experience in the Far North;
• carrying out labor activities in agriculture.

Minimum benefits are provided to everyone except survivors' pension recipients (they are entitled to only ½ of the fixed part). Payments of the maximum amount are assigned only to 80-year-old pensioners, disabled people of group 1 and workers of the North.

How much is it now?

The size of the basic part of the old-age labor pension in 2020 is 4,982.9 rubles.

This amount was obtained as a result of annual indexation, and it corresponds to the minimum payment.

For several categories of citizens, the basic part of the pension is significantly higher than this figure.

For law enforcement officers

Although Federal Law No. 400 stipulates the issue of assigning a long-service pension, another regulatory act applies to military personnel: Federal Law of the Russian Federation No. 4468-1.

It establishes that military personnel are not entitled to a basic portion of payments, since their pensions are calculated based on the salary they previously received and increase in proportion to the number of years of service.

• At the same time, Article 46 of the same law establishes that the minimum pension payment for a military citizen corresponds to the basic part of the social pension, taking into account annual indexation.
• In addition, the benefit can be increased due to allowances for dependents or due to special merits during the period of service (Article 45 of Federal Law No. 4468-1).

By disability

Citizens with serious health problems can qualify for a basic pension, but its size will depend on what specific disability group they have.

So the minimum payment for this category of persons will be 9,965.80 rubles, and if a citizen has dependents, then from 11,626.77 to 14,948.71 rubles (depending on exactly how many persons he supports).

If a disabled person of group 1 previously worked in the Far North, then his pension may be equal to 14,948.71 rubles. If a pensioner cannot support himself and requires care, then the amount increases to 21,622.98 (in rubles).

In the Far North

Part 4 of Article 17 of Federal Law No. 400 states that workers in the north can qualify for increased basic payments.

But to do this, they must document the existence of relevant experience:

• 25 or 20 years total (depending on gender);
• 15 years of the north.

If these conditions are met, the basic part of the pension increases 1.5 times - up to 7474.35 rubles.

For each dependent, a citizen who worked in the North will receive an increase corresponding to half the minimum fixed payment.

If a person has worked in regions equated to the Far North for more than two decades, then his basic pension will be increased by 30% (6,477.78 rubles). The same bonus will be assigned for one dependent.

How to sell an application for the delivery of a pension through State Services? Will there be a pension if there is no work experience? Find out here.

If there is a dependent

A dependent is a person who has been declared disabled in accordance with the legally established procedure and is supported financially by another person.

Minor children automatically receive dependent status, while other relatives of the deceased will have to document their status. For this purpose, disability certificates or other relevant documents may be provided.

The increase for one dependent will differ depending on which category the citizen belongs to:

• workers in areas equated to the Far North – 30%;
• northerner – 50%;
• person who does not have benefits – 50%.

In each case, the supplement is due for no more than three dependents.

From officials

For civil servants, pensions are assigned in a special manner, which allows them to simultaneously receive long-service benefits and part of the insurance benefit.

However, fixed payments are due to a civil servant only if he applies for an old-age pension in the general manner.

For working pensioners

Existing legislation allows citizens to receive a pension even if they continue to work.

However, due to the unfavorable economic situation in the country, it was decided to suspend the indexation of benefits for working pensioners.

That is, payments will have a fixed amount, and their value will not change until the person quits. But immediately after this, the benefit is recalculated, and in the future the citizen receives a pension in the normal amount.

For Afghans

Afghans have the status of combat veterans, and therefore are provided with a certain package of social services and various types of compensation benefits.

But these payments are not related to receiving a pension, which can be assigned in the general manner for old age or disability.

If the disability is related to an injury received as a result of combat operations, then the issue of providing pension benefits will be regulated by Law No. 4468-1.

For individual entrepreneurs

One of the conditions for granting a pension is the transfer of insurance contributions to the Pension Fund.

If an individual entrepreneur makes the appropriate contributions in the prescribed manner, then he can qualify for a pension benefit, including its basic part.

What is a fixed payment to an old-age pension?

The fixed amount for old-age payments is a component of the insurance material support of a pensioner (Article 16 of the Federal Law No. 400 of December 28, 2013).

It is guaranteed:

1. persons who retired at a certain age. Before 2020, it was 60.5 or 55.5 years depending on gender. Since 2020, the age has been gradually increasing: in the second half of the year, men aged 61.5 and women aged 56.5 retired;
2. those who have earned a total work experience of at least 11 years;
3. who have accumulated 18.6 pension points (IPC).

All of the above conditions give a citizen the right to receive an old-age insurance pension.

Reference! An insurance pension is often called a labor pension, and vice versa. However, these are different concepts: the second existed until 2020 and included insurance and savings (Federal Law No. 400 of December 28, 2013). It also included a basic part, guaranteed by the state.

Difference between insurance pension and basic part

Now these types of material support exist separately. Insurance payment is the monetary value of accumulated IPC points. The fixed amount for pensions in 2020 is similar to the basic part. The term “labor” applies only to a citizen’s pension rights formed before 2020.

The guaranteed part of the insurance coverage is provided not only to old-age pensioners, but also to disabled people with at least minimal work experience, and family members of the deceased breadwinner.

They don't pay it:

• former employees of the Ministry of Defense and law enforcement agencies receiving a second pension through the Pension Fund. These are those citizens who, after retirement, continued to work and by the age of 60/55 had accumulated sufficient experience and IPC;
• state civil servants who were assigned an additional insurance payment to their long-service pension;
• recipients of other types of benefits, such as social or state security benefits.

A fixed amount is assigned and issued along with the insurance pension. The payment is sponsored by the federal budget through the Russian Pension Fund. For these purposes, employers contribute 6% of the salary for employees to compulsory pension insurance.

What was the basic pension in 2020?

According to current legislation, social security cannot be less than the subsistence level.

In this case, values ​​are taken into account both for Russia as a whole and in individual cities and regions.

For example, in Moscow the lower limit is 10,670 rubles, and in St. Petersburg – 9,617.9 rubles (figures are for 2020). That is, the pension in these cities cannot be less than the given values.

Submission rules

Law No. 400 provides for the possibility of assigning one of three types of pensions:

• according to the age;
• for loss of a breadwinner;
• on disability.

To assign one of them, documentary evidence may be required:

• accumulated experience;
• disability groups;
• the fact of reaching retirement age;
• lack of livelihood due to the loss of a breadwinner.

The calculation of the basic basis of pension provision will be carried out automatically, but taking into account all of the above factors.

Age

The fixed part of the benefit is assigned only upon reaching the established age, which is 60 years for men and 55 years for women.

At the same time, Article 30 of Law No. 400 defines a number of conditions under which payment of security can be assigned ahead of schedule (difficult and harmful working conditions). If a pension is to be provided in the event of the loss of a breadwinner or due to disability, then age does not matter.

Experience

The length of service affects the amount of pension benefits.

In addition, without a certain length of employment (in 2020 it was 8 years), an insurance pension will not be assigned at all.

Payments to disabled people are assigned if they have a minimum insurance period (1 day of official work is enough). This also applies to survivor benefits (the length of service of the deceased is taken into account).

In the absence of any length of service, citizens are assigned a social pension, which does not include the basic pension payment (Federal Law No. 166).

The size of the basic part of the labor pension from February 1, 2020

From February 1, 2020, the basic old-age pension increased by the percentage of inflation (determined by Rosstat). According to official data, the cost of the consumer basket increased by 5.4%, which is the percentage of inflation. In April, it was decided to increase it by another 0.38. Thus, the amount of the basic labor pension in 2020 as of April 1 is 4,824.3 rubles.

If a person’s age exceeds 80 years, then the amount of the basic benefit for him increases by 100%. This year, pensioners over 80 receive 9,648.6 rubles.

The unpleasant point was that, in accordance with the state’s decision to suspend the indexation of accruals for working pensioners until 2020, the basic part of the pension in 2020 as of 01.04 for them remained the same.

True, the government accommodated the working people and, as of August 1 of this year, the fixed benefit for them increased. This was not traditional indexation, where the size of payments increases by a percentage of inflation. The increase depends on what contributions to the Pension Fund were received from the employing organization. The second criterion is the number of “Pension Points” that were earned by the pensioner during his well-deserved retirement.

But the state has established a certain limitation - the amount of the increase should not exceed the value of three “pension points”. In terms of rubles - only 222.

How is it calculated?

The amount of the future pension can be determined only after all documents attached to the application for a pension have been verified for authenticity.

Because of this, the process of considering the application may take three months, but payments will be accrued from the day it was registered (provided that the citizen actually has the right to this type of security).

Documentation

Citizens applying for a basic pension must prepare and submit the following documents to the Pension Fund:

• passport;
• work book and other documents confirming official work experience;
• a certificate of disability and a certificate confirming this, provided after an examination conducted by a special medical commission;
• certificates of marriage or divorce, birth of children;
• certificates: about family composition; from the place of residence; with data on the salary at the place of work; about the lack of pension provision assigned for other reasons.

In addition to this list, persons left without a breadwinner will be required to have documents confirming their poor financial situation and the presence of family ties with the deceased.

Calculation

When calculating the fixed component of the pension, the minimum rate is always taken into account (in 2020 it is 4,982.9 rubles).

Depending on certain significant factors (the presence of dependents, reaching 80 years of age, etc.), it can be increased by 30%, 50%, 100%.

If additional circumstances are identified that have documentary evidence, a recalculation is made, which leads to an increase in the basic pension.

Basic pension amount

Since 2002, the size of the basic pension has increased more than 10 times - from 450 rubles per month to 4,805 rubles. However, of course, it still remains extremely low - while the law prohibits paying pensions below the subsistence level, and therefore all pensioners who fall short of it receive a special additional payment.

Some categories are eligible for a base increase. Namely:

• After reaching eightieth birthday, it will be paid in double amount. That is, for 2020 it is 9,610 rubles.
• If there are dependents, a premium of 33.3% is paid for each. For example, if a pensioner has two dependents in the family, then in 2017 the allowance will be: 4,805 x (0.333 + 0.333) = 3,219 rubles. The supplement is made in a maximum of three times the amount, that is, even if there are four dependents, it will be paid only for three.
• If you have worked for 15 years in the Far North, and the total length of service is at least 20 years for women and 25 for men, a 50% increase is established.
• When working for 20 years in areas equivalent to the Far North and with the same length of service as in the previous paragraph, the bonus will be 30%.

Sometimes a pensioner may move to another category, after which it will be necessary to recalculate the basic part of the pension. What could be the reasons for this?

• he reached the age of 80;
• his working abilities have changed;
• there are dependents or disabled people in the family;
• there was a loss of a breadwinner.

To recalculate based on one of these reasons, you need to collect a package of documents. If the reason is age, then the recalculation will be carried out simply upon reaching the 80-year mark. If there is a change in work ability, a medical commission's opinion will be required.

Questions and answers

Although setting up a basic pension usually does not pose any difficulties, this does not mean that some points should not be considered in more detail.

Are there any benefits?

Responsibility for developing benefits for pensioners lies with regional authorities, and therefore the list of “bonuses” that a retired person can receive is limited by the local budget.

Most often he can count on:

• 50% compensation for payment for housing and communal services;
• compensation for travel expenses on public transport;
• receiving free medical care (including various types of examinations);
• providing material support in emergency situations;
• assistance with burial;
• assignment of various additional payments.

How much will the disability pension be in 2020? What's new about old age pensions? Find out here.

How to calculate the municipal pension? Read on.

At the all-Russian level, a citizen is exempt from paying taxes on a pension and can receive a tax deduction, as well as go on unpaid leave.

Will there be an increase in 2020?

In January 2020, the basic pension was already indexed, which exceeded the inflation rate over the previous 12 months.

This led to her increase in the amount of payments to 4982.9 rubles.

There are currently no plans for any other increases before the planned indexation in 2020.

Basic moments

In 2020, pensions were indexed according to the inflation rate. In 2020, the increase coefficient was 1.04, in 2020 – 1.058, in 2018 – 1.037. However, in 2020, the pension is increased by 7.05%, which is more than 2 times higher than the planned inflation rate. According to Rosstat's forecast at the end of 2020, the inflation rate was only 3.4%.

In practical terms, this led to a significant increase in the monthly amount received by pensioners by 1,000 rubles. And if in 2018 citizens received 14,414 rubles, then the average pension in 2019 will be 15,430.19 rubles. But we are talking only about insurance pensions.

In addition, the state promised to index pensions not in February, as was done previously, but from January 1, 2020. That is, the increase in pension was truly untied from the level of inflation. After all, Rosstat can obtain the final values ​​of consumer price growth only after December, that is, approximately in mid-January.

But working pensioners will not have to wait for an increase, and the average insurance pension will remain at the same level. Their content can be increased by an estimated 7.05%, also taking into account previous indexations, only if they quit their job.

Calculation of old-age insurance pension taking into account Federal Law No. 350-FZ on increasing the retirement age

On January 1, 2020, changes made to certain legislative acts of the Russian Federation on the assignment and payment of pensions, Federal Law dated October 3, 2018 N 350-FZ on raising the retirement age, came into force.
Taking into account Federal Law No. 350-FZ on raising the retirement age, an old-age insurance pension is assigned and paid to citizens insured in the compulsory pension insurance system under the following conditions:

• reaching age from 01/01/2019 for men - 60.5 years, for women - 55.5 years, with its subsequent annual increase until reaching 65 years old for men and 60 years for women.

  Certain categories of citizens have the right to early pension provision. For persons holding government positions in the Russian Federation and permanently filled government positions in constituent entities of the Russian Federation, permanently filled municipal positions, positions in the state civil service of the Russian Federation and municipal service positions, an old-age insurance pension is assigned upon reaching 01.01.2019 for men - 61.5 years , for women - 56.5 years , with its subsequent annual increase until reaching 65 years for men and 63 years for women;

• having at least 10 years of insurance experience starting from 2020, followed by an annual increase to 15 years in 2024;
• the value of the individual pension coefficient (IPC) from 2019 is not less than 16.2, with a subsequent annual increase to 30 points in 2025.

Article 8 “Conditions for assigning an old-age insurance pension” of the Federal Law of December 28, 2013 No. 400-FZ (as amended on November 12, 2018) “On Insurance Pensions”; Appendix 5 “The age at which an old-age insurance pension is assigned during the period of filling government positions, municipal positions, positions in the state civil and municipal service to Federal Law No. 400-FZ “On Insurance Pensions”

More information about the conditions for assigning insurance pensions from 2020 can be found in the version of Federal Law No. 400-FZ “On Insurance Pensions” dated November 12, 2018.

To calculate the old-age insurance pension, you can also use the Pension calculator located on the website of the Pension Fund of the Russian Federation at pfrf.ru/eservices/calc, or at gosuslugi.ru/325191/1.

Data for determining the right of citizens to an old-age insurance pension from 01/01/2019

Appendix 7 “Time limits for assigning old-age insurance pensions” to Federal Law No. 400-FZ “On Insurance Pensions”; Appendix 3 “The duration of the insurance period required for the assignment of an old-age insurance pension” to Federal Law No. 400-FZ “On Insurance Pensions”; Appendix 5 “The age at which an old-age insurance pension is assigned during the period of filling government positions, municipal positions, positions in the state civil and municipal service” to Federal Law No. 400-FZ “On Insurance Pensions”; Article 30 “Reservation of the right to early assignment of an insurance pension” of Federal Law No. 400-FZ “On Insurance Pensions”; Article 10 of Federal Law No. 350-FZ of October 3, 2018 on raising the retirement age

Data for calculating old-age insurance pension from 01/01/2019

Formula for calculating old-age insurance pension:

SP = IPK x SPK + (EF x QEF),

where SP is the amount of the old-age insurance pension;

IPC - individual pension coefficient;

SPK - the cost of one pension coefficient (point) as of the day from which the old-age insurance pension is assigned ( SPK for 2020 = 87.24 rubles );

FV - fixed payment to the insurance pension ( FV for 2020 = 5,334.19 rubles );

KvFV - coefficient of increase in EF, applied when delaying the application for an insurance pension.

Chapter 4 “Amounts of insurance pensions. Fixed payment to the insurance pension" Federal Law No. 400-FZ "On Insurance Pensions"

Individual pension coefficient (IPC) and its calculation from 01/01/2019

The value of the individual pension coefficient (IPC) depends on the sum of the annual pension coefficients (points) for the period before and after 01/01/2015, as well as on the increasing coefficient for the insurance pension.

In 2020, the maximum annual pension points amount is - 9,13.

The IPC is determined by the formula:

IPK = (IPKs + IPKn) x KvSP,

where IPC is the individual pension coefficient as of the day from which the old-age insurance pension is assigned;

IPKs - individual pension coefficient for periods occurring before 01/01/2015;

IPKn - individual pension coefficient for periods occurring from 01/01/2015, as of the day from which the old-age insurance pension is assigned;

KvSP is the coefficient for increasing the IPC, applied when deferring the application for an insurance pension.

You can also calculate the number of pension points (IPC) on the website of the Pension Fund of the Russian Federation at pfrf.ru.

obtain information about the value of the individual pension coefficient (IPC) and its components (the value of the IPC before 2020 and the value of the IPK from 2020):

• contact the territorial branch of the Pension Fund of the Russian Federation at your place of residence;
• order a certificate about the status of an individual personal account on the website of the Pension Fund of the Russian Federation in your personal account;
• request information about the status of an individual personal account with the Pension Fund of the Russian Federation (including history) on the single portal of State Services.

Maximum value of the individual pension coefficient (IPC)

Appendix 4 “Maximum value of the individual pension coefficient” to Federal Law No. 400-FZ “On Insurance Pensions”

From 2020 to 2020, regardless of the choice of pension option in the compulsory pension insurance system (MPI), all citizens will have pension rights only to an insurance pension based on the entire amount of accrued insurance contributions. In this regard, the maximum value of the annual individual pension coefficient is the same for any pension formation option.

Federal Law of December 4, 2013 No. 351-FZ “On amendments to certain legislative acts of the Russian Federation on issues of compulsory pension insurance in terms of the right of insured persons to choose a pension option”

Cost of one pension coefficient (point)

The indexed value of one pension coefficient (pension point) as of January 1, 2015, established by Part 10 of Article 15 “Amounts of Insurance Pensions” of Federal Law No. 400-FZ “On Insurance Pensions”, is 64.10 rubles .

The amount of the fixed payment to the old-age insurance pension from January 1, 2020

From January 1, 2020, the amount of the fixed payment to the old-age insurance pension, taking into account indexation, is 5,334 rubles 19 kopecks .

In accordance with Federal Law No. 350-FZ dated October 3, 2018 on raising the retirement age, from January 1, 2020, for persons who have worked at least 30 calendar years in agriculture, the increase in the fixed payment to the insurance pension is resumed.

The previously mentioned increase was suspended until 01/01/2020.

The fixed payment to the old-age insurance pension increases by the corresponding regional coefficient established by the Government of the Russian Federation depending on the region (locality) of residence, for the entire period of residence of these persons in these areas (localities).

At the same time, persons entitled to increase the fixed payment to the insurance pension by the corresponding regional coefficient in accordance with Part 9 of Art. 17 and at the same time to increase the fixed payment to the insurance pension in accordance with Part 4 or Part 5 of Art. 17 of Federal Law No. 400-FZ, one increase in the fixed payment is established at the choice of the insured person.

Part 9, 10 Part 13 of Article 17 “Increasing the fixed payment to the insurance pension” of Federal Law No. 400-FZ; Decree of the Government of the Russian Federation of March 18, 2015 No. 249 “On approval of the Rules for establishing and paying an increase in the fixed payment to the insurance pension for persons living in the Far North and equivalent areas”

Indexation coefficient of the fixed payment amount to the old-age insurance pension from January 1, 2020

From January 1, 2020 to January 1, 2025, there will be no indexation of the size of the fixed payment to the insurance pension.

Federal Law of October 3, 2018 No. 350-FZ on increasing the retirement age

From January 1, 2020, the amount of the fixed payment to the insurance pension was indexed. At the same time, pensioners who carried out work and (or) other activities during which they were subject to compulsory pension insurance in accordance with Federal Law No. 167-FZ of December 15, 2001, do not have their pensions indexed.

The indexed amount of the fixed payment to the old-age insurance pension and to the disability insurance pension as of 01/01/2015 is 3,935 rubles per month.

Coefficients of other periods included in the insurance period for calculating the old-age insurance pension

If the periods of care coincide in time, the coefficient for the full calendar year of these periods is determined as the sum of the coefficients.

If the duration of another period is less than a full year, the coefficient is determined based on the actual duration of the corresponding other period.

If you have any questions about the violation of your rights, or you find yourself in a difficult life situation, then an online duty lawyer is ready to advise you on this issue for free.

PENSION REFORM 2020: INCREASING THE PENSION AGE