Survival period: concept, definition, calculation of approximate periods, funded pension and the amount of its payment

Many terms from Russian bureaucratic slang sound surprisingly cynical. This is also the term “survival period,” which denotes the projected life expectancy on a funded pension for the average resident of the Russian Federation.

Like the retirement age, the survival period increases annually, which means that the amount accumulated over the years of working activity will be extended over a longer period of time. As a rule, the average annual increase in the survival period is 0.5 years .
In 2020 it corresponded to 252 months, in 2020 it stretched to 258 months. KEY EVENTS OF THE WEEK:

• Will the retirement age be returned in Russia?
• A new ranking of Russian regions by life expectancy among men and women has been compiled

Pension provision

A pension is a permanent cash payment that is provided on a regular basis to persons with a certain social status. Regular guaranteed salary is paid to the following categories:

1. People who have lived to a certain age receive an old-age pension.
2. People who have serious health problems since birth, as well as those who have suffered injuries and injuries that do not allow them to fully carry out work, are issued a disability pension.
3. For minors, in case of loss of parents or guardians (death, etc.) - issued in connection with the loss of a breadwinner.

Pension payments are of two types:

• State guaranteed payments.
• Private (implemented by private pension funds).

The assigned pension payments are of an indefinite nature.

What to do to ensure that the amount of monthly payments does not decrease

According to the reform program, a citizen’s savings, which depend on his length of service, should only grow in size. The fact that survival time will increase in the future cannot be considered as a way to reduce the burden on the Pension Fund. This is the real state of affairs.

The increase in the expected benefit period in 2020 will not affect the amount of one-time benefits for retirees.

The following are entitled to receive such benefits:

• persons who are not paid old-age pensions (the reason for this may be the lack of the required level of output or the fact that not enough IPC has been accumulated);
• citizens receiving support from the state due to loss of ability to work, loss of a breadwinner;
• those who have accumulated 5% or less of the total amount of old-age insurance accruals in the account (this figure includes fixed charges and benefits).

A lump sum payment is understood as a one-time release of funds. The citizen is transferred the money accumulated during his working life.

How will increasing the expected period affect term payments?

An increase in the survival rate may not affect the amount of urgent payments for the population. Urgent benefits are understood as monthly income due to citizens who have retired.

A limitation has been established on the duration of the time period during which security from the state is required. It cannot be less than 10 years.

Only those persons who took part in the co-financing program can receive this type of benefit. It is implemented by the state. Not only individuals, but also employing companies can participate.

Citizens whose payments are formed using family capital also have the right to these pensions.

Estimated survival times

The term was approved by Decree of the Government of the Russian Federation No. 531 in 2015. The indicator is subject to annual adjustments, based on data from the Federal State Statistics Service. The calculation of the survival period is carried out by the state executive body - the Government of the Russian Federation. The data is processed, and as a result, the average period of a person’s life in retirement is calculated. The indicator is usually calculated in months. The survival periods of the male and female parts of the population of the Russian Federation differ in terms of timing. Women have more, men have less.

Why is the survival age low?

A person’s life expectancy is influenced by many factors that, at first glance, do not affect the population in any way. Let's look at each reason in more detail:

1. Addiction. The problem of drug addiction is very acute in our country. Unfortunately, a large number of our youth have tried drugs at least once in their lives. And these are the people on whom the demographic situation in the country depends. It is not surprising that this problem comes first, because it is the young generation that is responsible for the demographic situation in the country.
2. Drunkenness. This vice has been with us since very ancient times, but it does not disappear over time, but progresses. Almost the entire population drinks, and although it has now become fashionable to lead a healthy lifestyle, this does not save people from problems with alcohol. Not everyone is ready to give up a bottle of beer or wine at the end of the day or week, because people think that this is not alcoholism.
3. Low salaries. This is also the reason for low life expectancy. After all, in order to survive, some people work several jobs and simply do not have time to rest. People don't have enough money, and therefore they are in constant stress. Low income leads to the fact that food is consumed anyhow, and there is no question of any balanced diet.
4. Mentality. Unfortunately, our country also has such a problem. Such attitudes have been drummed into our heads for a very long time, and they have successfully taken root. These include the reluctance to go to the doctor if something bothers you, the lack of desire to live better, the inability to relax with health benefits, and in our country it is also not customary to engage in sports, because laziness. People do not think about their health and themselves, they were taught to think about the country and society, forgetting about themselves, and they still do this.
5. Problems with employment. This is especially true for women. It is very difficult for them to find work, because employers believe that since she is young, she will give birth soon. If you are already with a child, you will often go on sick leave. Well, if you’ve crossed the thirty-five-year threshold, they won’t take you at all, since they need young specialists with work experience. An absurd situation is developing. But it’s no better for men either. Bosses who get on their nerves over every little thing, constant overtime work, being called to work even in the middle of the night do not surprise anyone, but nevertheless do not contribute to a high quality of life.
6. Climate conditions. Our country is located in a climate where there are no fresh fruits and vegetables year-round, which means people don’t get enough vitamins. The cold for nine months of the year also does not have the best effect on the body.
7. Medical service. Free healthcare is in a deplorable state. Hospitals do not have new equipment, doctors do not want to work for low salaries. There seems to be no way out. Maybe because everything is so bad with medicine, many people are in no hurry to go to the hospital, and not everyone has enough money for private services.
8. The war has not yet been completely erased from our memory and life. During that period, so many businesses and cities were destroyed that some have not yet recovered from it.
9. Russia has big environmental problems. This is due not only to the fact that mineral processing enterprises are located in our country, but also to the very attitude of people towards nature. For reference: two of the ten dirtiest places on the planet are in our country - Dzerzhinsk and Norilsk.
10. Smoking. Russia has the largest number of smokers among the European population - approximately sixty percent. Even a child knows about the problems associated with smoking, but for some reason this does not stop anyone. Moreover, smoking is abused either by the poorest people or by the richest. The middle class leads a healthier lifestyle.
11. Low level of people with higher education. Yes, yes, education also affects life expectancy. After all, the more diplomas or professions a person has, the easier it will be for him to get a good position with a good salary. But people without higher education will not be able to do this, so they work wherever they have to, just to survive.
12. The situation with corruption also leaves its mark. The population is in constant fear for the future and does not trust the current government. By the way, our country has one of the highest percentages of corruption in the world.

Technology for calculating survival time

During the 2020 pension reform, the Cabinet of Ministers adopted Resolution No. 531, which approved the technology for calculating mandatory payments to older people. To calculate the pension, the survival period is set according to a certain formula. It looks like this:

• T = (Si × ei + Sj + ej / Si × Sj) × 12.

This technique requires detailed explanation. Each symbol has a certain meaning:

• The symbol T indicates the estimated period for which the transfers are expected to take place (expected payment period). The unit of measurement is one month.
• Symbols Si - indicate the size of the male population who have reached the age of sixty.
• Symbols Sj - indicate the female part of the population, whose age is fifty-five years.
• The symbols ei indicate the expected life span of the male half of the population.
• The symbols ej indicate the expected life span of the female half of the population.

Data are provided by statistics and accounting authorities.

National averages

Survival ages vary greatly across regions. Let's figure out what it is like in each region of the country (see table).

As you can see, the survival age by region of Russia does not differ much. Russia ranks one hundred and twenty-fifth in the world ranking of average life expectancy. It's somewhere in the middle. By the way, in African countries people rarely live to be fifty-five years old, while in European countries they often cross the eighty-year threshold.

Features of the process before approving the survival period

There are some features that apply during the annual recalculation of the survival period. Before the annual approval of the updated deadlines, a comparison is made with current indicators. This procedure looks like this:

1. In the event that the updated indicators are higher than the current values, the maximum current indicator for the outgoing year is approved.
2. If the indicators are below the high point of the outgoing year, but above the established limits last year, then the period is accepted in the calculated (updated) amount.
3. When the indicators are below the high point of the outgoing year, but not higher than the established limits for the previous reporting period, then the period is approved in the maximum amount that was determined for the past year.

Accumulative pension payments

Before we figure out how the funded pension and the survival period are related, let's talk about what such a payment means? These are funds that are accumulated into a single whole by adding employer contributions and income received from investing the collected amount. Monthly transfers by the employer for a legally employed person are equal to 22%, the share of the funded part is 6%. It is these two amounts that make up the savings in question.

How are payments made? The scheme looks quite simple:

• At the time of retirement, the collected amount begins to be transferred monthly along with the main pension payments. Simply put, it is an additional supplement to the mandatory part of the pension.
• The monthly paid portion is calculated using a formula. When making calculations, the expected payment period also plays a significant role.

Let's summarize

1. The survival period, or projected life expectancy on a funded pension, is raised every year.
2. This matters for “young” pensioners and future pension recipients.
3. The concept of “survival period” is also used by insurance companies offering the corresponding types of services.

Author

Breslav Lev Andreevich

Your comments are very important and allow us to identify truly useful materials that are interesting to a wide range of people. Don't forget to rate publications and share your opinion with other site members.

Calculation method, specific amount and choice

The formula and final payout amount is calculated as follows:

• PEP = NPP + PD (or OPV);

Where:

• PEP – constant monthly payments;
• NPF – accumulated pension funds (funded part);
• PD – survival period (expected period of payments).

Let’s say the funded part of the funds at the time of retirement is 50,000 rubles. In this case, the calculation will look like this:

• 50 000 / 246 = 203,25

The amount of the monthly supplement will be 203 rubles 25 kopecks. How the expected period is calculated is described above.

The law also provides for the following types of receipt of the funded portion:

1. One-time receipt. It is possible to pay the amount in full.
2. Urgent receipt. The deadline is set by the pensioner, but not less than ten years.
3. Standard savings payments calculated according to an approved formula.

Future plans of the Pension Fund

The survival period for calculating pensions in 2020 may not affect this or that group of pensioners in the Russian Federation. Pension reform aimed at increasing average monthly payments will be carried out systematically.

The final completion of the ongoing reforms is expected in 2022. It is planned to increase the survival period to 320 months.

An increased survival period for calculating a pension means a reduction in the amount of monthly payments. It was this fact that became the reason for the Government’s decision to develop a system designed to prevent a real reduction in payments. The system provides for encouraging older citizens to go on vacation later.

This period is expected to be reduced by one year for each additional 12 months from the date of becoming eligible for a pension benefit.

Category "early term"

The pension legislation of the Russian Federation provides for the possibility of early retirement. The survival period for “early term recipients” differs from the generally accepted one. The category is divided into two lists, numbered 1 and 2. Starting in 2013, the period rises annually by twelve months. From the first list, the survival period is: from 2016 - 24 years, for the second list from 2021 - 29 years.

The reasons for this retirement are:

• Difficult working conditions (for example, working in a mine or hot shop).
• Harsh climatic conditions (work in the Arctic or Far North).
• A number of specific professions (ballerinas, rescuers, etc.) fall under this category.
• This also includes residents of regions exposed to radioactive contamination who have the appropriate status.

Citizens are divided into two main categories that give them the right to early exit:

• five years earlier;
• ten years earlier.

If such citizens do not stop legal work, then an additional preference is provided for them - a bonus for length of service. All other calculations follow the general formula. The complete lists of beneficiaries can be found on the website of the Pension Fund of the Russian Federation.

We are counting pensions

The amount of the funded pension, tied to the period of survival, is determined as follows:

All pension savings in your account are divided by the hypothetical period for payment of the funded pension. The result obtained is the amount of the pension for each month.

Expected payment period for 2020

The survival period in Russia for this period is determined at 246 months. Based on data from the State Statistics Service, we can say that the indicators for the past 2020 exceeded the established maximum and were at 261 months. Accordingly, the maximum level was determined. Therefore, in the current year, the figure for calculation using the formula is 246. In dry language, the current period has increased by six months compared to the previous period.

How survival time is reduced

The survival time can be reduced if an elderly citizen applies for a funded pension later than he has such a right. In this case, periods in calendar months are calculated from the total survival time.

Let's look at an example:

Pensioner Egorov began receiving an insurance pension in 2020. However, he did not apply for savings until 2020. Accordingly, when calculating the amount of his financial support, the next survival period of 228 months will be used. This is due to the fact that in 2020 it is 252 months, but the pensioner applied for payments 2 years later, so 24 months were deducted from the period.