What is voluntary pension insurance - concept, functions and goals

Conditions for assigning old-age pensions

Today, the following conditions apply to designate the terms and procedure for calculating and paying labor pensions to citizens in old age:

• this pension is assigned to a citizen only if he reaches the statutory retirement date;
• to receive such a pension, the age of the recipient must be set at least as required by law for calculating the pension;
• You can receive an old-age pension of the established labor type only if the citizen has the required length of service to calculate his pension accruals;
• the recipient must have at his disposal all the documents required for the normal calculation of his pension;
• it is mandatory to submit an application to carry out the proper form for calculating the recipient’s pension;
• a citizen must provide confirmation of the fact that he has Russian citizenship in order to be able to calculate his pension;
• it is required that a citizen has a permanent residence permit at the place of his actual residence in order to calculate his due labor pension;
• the method of payment to the recipient of the labor pension due to him is negotiated in accordance with the established requirements of the pension fund;
• it is possible to accrue pensions on preferential terms if a citizen grants his right to any benefits for receiving a pension;
• the procedure for registering the employee’s old-age pension in question is determined according to the amount of length of service available to him.

The old-age insurance pension is paid from a special insurance fund formed by the state pension fund. It is replenished by contributions from employers for each of their employees. Since the introduction of the moratorium on funded pensions, the amount of mandatory contributions to the compulsory pension system is 22% of the employee’s salary. Private entrepreneurs and self-employed persons must pay PF contributions for themselves.

To assign old-age insurance, you must meet a number of mandatory criteria:

1. Reaching retirement age. Previously, it was 55 years for the female part of the population, and 60 for the male part. However, as a result of the pension reform currently underway, this value should increase in the next five years to 60 and 65 years, respectively. Some categories of workers retain the right to receive an early pension.
2. Having a certain amount of work experience. In light of the ongoing pension reform, the minimum length of service is increasing every year. In the coming year, 2020, it will be 11 years, and by the end of the reform it should increase to 15 years.
3. A certain number of pension coefficients. In 2020, to assign an insurance pension, the IPC value must be 18.6 points.

Insurance pensions are calculated by employees of the state pension fund. Therefore, for the assignment of pension benefits, you must contact the local Pension Fund department at your place of residence by submitting a corresponding application there. It should be accompanied by a set of documentation confirming the right to receive payments.

It includes:

1. The applicant's passport or other identification document. Since the legislation allows for the assignment of pensions to foreign citizens and stateless persons who officially worked in the Russian Federation, they should present a residence permit and/or a foreign passport with a notarized translation into Russian.
2. Documents to confirm the length of work experience - a work record book, or official employment contracts with the employer.
3. If a citizen began his career before the Federal Law on Insurance Pensions came into effect, he must present certificates of the amount of wages he received for 5 years up to 2001 inclusive.
4. Pension insurance document (SNILS).

Appointment dates

You can submit an application to PF employees in several ways:

• Personally coming to the territorial office of the fund.
• Sent by registered mail.
• By submitting papers through the district MFC.
• By submitting an application via the Internet - through the Gosuslugi portal or the official website of the Pension Fund.

After receiving the documents, PF employees have a ten-day period to familiarize themselves with the papers. If a deficiency is detected, the submitter has three months to submit the missing document or replace the incorrectly drawn up document. After this, the fund’s employees are obliged to either accrue a pension to the person or refuse to do so. The refusal must be formalized, indicating a specific reason.

If everything is in order with the documents, the applicant is assigned an insurance pension. Payments begin in the month following the acceptance of the application.

This date is considered:

• The day of submitting papers during a personal visit to the office.
• The moment they are received by PF employees when sent through the MFC.
• The date on the postage stamp.
• The day on which the electronic application was received through the State Services or the Pension Fund website.

The legislation provides for a number of situations when citizens have the right to receive an insurance pension early. This capability is available to:

1. Persons working in hazardous and hazardous industries. According to Federal Law No. 350, such employees can, if they have the necessary “harmful” work experience, apply for insurance payments 10 years earlier than other citizens.
2. Women who have raised 3 children can retire 3 years earlier than expected. If there are 4 children - 4 years earlier, and 5 children - 5 years earlier.
3. Certain categories of disabled people: those with problems with vision, growth (dwarfs or midgets). This also includes persons who have become disabled as a result of participating in hostilities.
4. Pedagogical and medical workers if they have 25 years of experience (for rural residents), or 30 years (for city residents).
5. Citizens who have served a certain federal period in the northern regions, or in areas equivalent to such.
6. Persons permanently residing in the northern regions.
7. Representatives of indigenous peoples of the North and Far East living in historical habitats.
8. Persons engaged in traditional crafts: reindeer herders, hunters, fishermen.

It is worth noting that the assignment of a pension is strictly of an application nature, therefore, in order to receive an insurance payment, an application to the Pension Fund is mandatory.

Pension security is established from the date of acceptance of the application, but not before the right to it arises, with the exception of the case of application within 30 days from the date of dismissal from work (then the date of appointment will be the day following dismissal).

The old-age insurance pension is paid monthly for the current month in accordance with the delivery method chosen by the citizen. You can also receive payments by proxy during the entire validity period of this document, provided that the pensioner confirms the fact of registration at the place of receipt of the pension.

The transfer of funds is carried out by the PFR body to which the citizen’s application was made and where, as a result, a pension file was opened against him.

It is important that the future pensioner can independently choose the organization that delivers the pension. There are several such options:

• Post office:
• possible to receive at home;

or independently at the post office cash desk.

When the pensioner himself receives money at the post office, it should be taken into account that each branch has its own schedule for issuing pensions, and a delivery deadline is also set. It is important to receive the amount due within the established payment period.

The advantage of this method is the ability to withdraw money any day after it is transferred. There is no fee for transferring money to a pensioner's account.

A list of such organizations involved in the delivery of pensions is at the disposal of the territorial body of the Pension Fund and can be provided to the pensioner for choice as a method of receiving payment.

We suggest you familiarize yourself with: Compulsory Medical Insurance Policy, its validity period and whether it is necessary to change the old sample

A citizen must express his desire regarding the chosen delivery method in a written application for a pension or an electronic application to the Pension Fund. In the future, it is possible to change this method by re-applying to the Pension Fund at the location of the pension file.

For timely and uniform payment of pensions, post offices, as well as pension delivery organizations, draw up a specific schedule taking into account the pensioner’s place of residence.

Setting the date for pension delivery has a number of features:

1. On the eve of a holiday or weekend, it can be postponed to an earlier date, but no more than three days before the existing payment date.
2. It can be moved to a later date, but within the delivery period established at the post office.

If a citizen was unable to receive a pension at home according to the established schedule due to his absence, he will be able to receive it on other days of the current month at the cash desk of the post office within the established delivery period.

As for payments transferred through credit institutions, the establishment of a schedule for them is not provided for by current legislation. As a rule, transfers of funds to pensioners’ bank accounts are carried out before the 10th day of the current month.

According to the law, old-age benefits are due to all residents of the Russian Federation who have the appropriate work experience and have reached the established age. For women it is 56.5 years old, for men it is 61.5 years old.

It is impossible to receive the insurance part of the pension at a time. It is paid monthly and constitutes the main type of pension.

You can get it if the basic conditions are met:

• your age has reached the retirement threshold;
• total work experience exceeds 15 years;
• the number of points received for employer deductions is 30 and above.

Comments (4)

Showing 4 of 4

• Ekaterina 01/02/2017 at 09:56
  Good afternoon! Due to the introduction of new legislative norms and the transition to another pension system, from the beginning of 2020, pensions are calculated in points. I am interested in the following question: will the time of leave to care for infants be taken into account in the length of service that gives the right to establish an old-age payment, and if “yes,” then how?

  answer

  Julia 01/03/2017 at 11:32

  Indeed, the current law “On Insurance Pensions”

  such a concept as an individual pension coefficient was introduced. Its value is calculated for each year of a citizen’s working activity and depends on the insurance premiums transferred to his personal account. But Article 12 of the said legislative act also provides for other periods that are counted towards the length of service taken into account when assigning pensions, including the duration of leave of one of the parents for each of the children up to one and a half years of age, but not more than six years in total.

  Read also:  What is insurance and social pension: what is the difference?

  The law also determines the value of the accrued coefficients depending on the number of children: one year of care for the first is estimated at 1.8 points, for the second - 3.6 points, for the third and fourth - 5.4. In a situation where a citizen worked during maternity leave, he will be given the choice to use an individual coefficient for work or for the non-insurance period when calculating his pension.

  answer

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Persons entitled to an insurance pension

Insured citizens who comply with the conditions specified in Federal Law No. 167 can receive an insurance pension. Persons with temporary or permanent registration in the territory of the Russian Federation, as well as foreign citizens (including stateless ones) are considered insured:

• carrying out labor activities under a contract;
• who are self-employed (individual entrepreneur, lawyer, notary, etc.);
• who are members of family communities engaged in traditional farming (as well as farming);
• representatives of the Church ministry;
• other categories covered by pension insurance.

What is insurance and social pension

The insurance pension is a monthly amount of money provided to the insured citizen.
The money is provided to compensate the citizen for wages and other income that were lost due to incapacity for work upon reaching a certain age or after receiving the “disabled” status. According to the law, the amount of money includes the insurance pension itself and a fixed additional payment.

The social pension, unlike the insurance pension, is paid not from contributions from employers, but from the state budget. It is provided to all Russians who are entitled to it, regardless of their length of service. Moreover, even foreigners and stateless persons can receive it.

To whom is it issued?

The type of pension in question is issued to the following types of recipients:

1. Persons who have reached the legal age of retirement for old age pensions.
2. Subjects who have a sufficient amount of work experience to assign pension payments of the type in question.
3. Men who are at least 60 years old and women over 55 years old, provided they have the necessary period of work at their disposal to calculate and receive a pension.
4. Persons who have received awards issued by the government for the impeccable performance of their work duties.
5. Pensioners who have a sufficient period of service in hazardous industries.
6. Other categories of citizens legally entitled to receive such pensions.

Do you want to know what

fixed basic amount of old-age labor pension in 2020

? In our article, you will find a lot of useful information on this issue.

If you are interested in the question - what additional payment to pensions do labor veterans receive, then we advise you to follow the link and read the article.

Social to labor or vice versa

The difference between social and insurance assistance from the state will be especially sensitive in terms of size. This is understandable and logical, because it takes many years to earn the second one, but the first one can be issued by any citizen who has made absolutely no effort. There is a category of citizens who, receiving social benefits, eventually acquire the right to receive insurance payments. Then the question arises of how to switch to an insurance pension from a social one and whether it is even possible to do something similar.

There is nothing complicated about transferring from one type to another, you just need to collect the necessary package of documentation for applying for an old-age insurance pension and submit it to the Pension Fund of the Russian Federation with an application for transfer. The application form can be downloaded directly from our website. In point number three, you will need to check the box, selecting the translation direction you need from those suggested. This possibility of switching from one type of security to another is enshrined in law, namely in article number 166-FZ. The same steps will have to be taken when planning to switch from labor payments to social payments, if necessary.

Conditions for payment of pension benefits

According to the latest edition of the pension legislation, pensioners who continue to work receive an insurance pension, as well as a fixed cash benefit, however, without indexation. Upon termination of an employment contract, a citizen is paid a pension benefit, taking into account indexation at the time of work.

Conditions of appointment

To apply for an insurance payment, a citizen needs to submit an application to the nearest Pension Fund or MFC, or, using the Internet, through State Services.

The application for employment or its termination will be taken into account from the day employees receive reports from the policyholder.

Thanks to the reform implemented in 2020, citizens, after ceasing to work, have the right to choose the type of pension received upon reaching the required age limit: funded or insurance.

The fixed payment is a mandatory monetary addition to the insurance pension, which, in turn, is calculated on the basis of insurance points.

Insurance

The insurance part of the pension is accrued upon reaching the required age and is calculated on the basis of contributions made by the employer during working life.

Cumulative

Formation is carried out on the basis of regular percentage contributions to the Pension Fund by the employer from the citizen’s monthly salary.

Since January 2020, the concept of “labor pension” has ceased to exist, splitting into 2 separate legal acts: on insurance and funded pensions.

The labor pension was divided into insurance and funded pensions, which a citizen has the right to receive simultaneously. For a visual comparison of different types of pensions according to the main criteria, a table is provided, the data of which corresponds to 2020.

Open table

One of the main indicators used to calculate the amount of any insurance pension, including old age, is a fixed payment. Its value is established by government decree and is the same for all categories of pensioners. In 2020, the fixed payment to the insurance pension is 5,334.19 rubles. This value is not constant, but increases annually as a result of indexations.

According to the rules adopted by law, the following procedure for the payment of old-age labor pension is established:

• in cash at the cash desk of the organization that issues and calculates such a pension;
• transferring funds from non-cash transfers to the recipient’s card;
• payments to the pension recipient’s bank card;
• payments to the pensioner’s card, if such a method was agreed upon additionally;
• by mail using the services of a postman.

Do you want to know who is doing

establishing a fixed payment to the specified insurance pension

? Then we advise you to follow the link and read the article.

What is the pension supplement for combat veterans, you can read this link.

You can find out how pensions are calculated for working military pensioners using the link provided.

If previously this was done by social protection of the population, now pensions are completely managed by the Pension Fund.

The benefit is directly assigned only after providing a complete package of documents. In addition, employer contributions are also required to receive monthly payments. Based on information available from government agencies, including information about insurance premiums, cash payments are made to citizens.

Important! All issues related to pension payments are handled by the territorial body. If you change your place of residence, you must notify the Pension Fund about this. Based on registration at the new location, the pension case materials will be transferred to the local authority.

The rules for obtaining and assigning insurance coverage are regulated by legislative acts. On the government services portal, you can directly apply for a pension; after your application is approved, you must appear with the original documents at the appointed time at the Pension Fund.

In order to comply with the procedure for assigning an old-age insurance pension, it is necessary to collect documents and take them to the appropriate authority.

We invite you to read: What does the old-age pension consist of in 2019?

The list of documents includes:

1. application (standard sample, which is issued for completion by a government agency);
2. passport;
3. employment history;
4. certificate of average earnings;
5. presence of dependents (documents confirming their inability to work: certificate from place of study, presence of disability, etc.);
6. certificate of marriage/divorce;
7. education document;
8. children's birth certificate.

Please note: if you apply for a preferential payment, then to the main list of documents you will have to attach additional materials confirming your right to receive benefits (certificate of work experience, disability).

According to the Law “On Insurance Pensions” of 2013, the Pension Fund of the Russian Federation has every right to request documents from both individuals and legal entities.

Over time, pension benefits are constantly changing. This is due to the rate of inflation or changes in conditions.

In the following cases, you can count on recalculation:

• the insurance part of the pension for a worker who has continuous work experience after retirement for 12 months is indexed;
• with prices rising by more than 7%.

Price increases, namely inflation, are determined by the Government of the Russian Federation. This indicator is determined annually. Based on it, recalculation occurs - an increase in the pension minimum.

As a rule, state support funds are indexed twice a year. The second time the pension is increased at the end of the calendar year is based on the remaining funds in the Pension Fund of the Russian Federation.

Once a pension has been assigned, you must wait until the next month from the date of official assignment to receive state benefits. A citizen will be able to independently decide how best to obtain the insurance portion.

The payment procedure offers several methods:

1. at home;
2. at the post office;
3. bank card

Important! The insurance portion is also paid after the death of the citizen. In this case, it is transferred to the closest relatives of the deceased person. You can obtain it by submitting an application and death certificate to the territorial authority.

In the event that a pensioner for some reason cannot receive an old-age insurance pension, he can issue a notarized power of attorney for a loved one. With it, the pension will be transferred to the hands of a trusted person.

The old-age insurance pension is established for an indefinite period and is paid throughout the life of the pensioner from the date of application for it, but not before the right to this payment arises.

In some cases, pension payments may be suspended for six months or stopped altogether. However, such measures may be canceled due to the submission of new or clarifying documents to the Pension Fund of the Russian Federation where the citizen’s pension file is located.

According to current legislation, a pensioner is obliged to promptly notify the Pension Fund of all circumstances leading to the suspension or termination of payments.

Pensioners who want to continue their working activities after retirement should know that from 2020, according to the adopted legislation, the insurance pension and a fixed amount to it will be paid to them without planned indexations.

• As for canceling the payment in general, such a proposal was discussed in the Government and a bill was even considered that would cancel pensions for those citizens whose annual income exceeds one million rubles.
• However, due to the contradiction of this project with the rights of citizens to pension provision and the possible economic and social consequences, such a law was not adopted.

Accordingly, pensions continue to be paid to working pensioners, but in a smaller amount compared to non-working ones due to the Government’s refusal to carry out indexations.

Payment of pension is suspended in the following cases:

1. the pensioner’s failure to receive it within six months;
2. expiration of the residence permit in the Russian Federation;
3. lack of documents confirming a citizen’s right to a pension on the territory of a foreign state in accordance with an international treaty when he moves abroad;
4. the absence of a citizen’s application to leave our country to a foreign state with which an international treaty has not been concluded.

The suspension of payment is carried out for a period of six months from the 1st day of the next month in which the specified circumstances occurred.

To renew the payment, the pensioner must contact the Pension Fund with a corresponding application, attaching the necessary documents. A written request is considered within five working days. If a positive decision is made, pension payment will be resumed from the 1st day of the next month.

Consideration of the application may be delayed for no more than three months only if it is necessary to verify the authenticity of the submitted documents.

Payment of labor pension is terminated in the event of:

1. death of a pensioner or recognition of him as missing;
2. after six months from the date of suspension of payment;
3. submission of false documents or discovery of circumstances depriving a citizen of the right to payment;
4. failure by the pensioner to provide a residence permit after six months from the date of suspension of the pension;
5. refusal to receive payments by the pensioner himself.

How to transfer a pension when changing your place of residence?

Payment of a pension to another place of residence when a citizen moves depends on the new place of registration:

• on the territory of the Russian Federation
• or outside our country.

In the first case, the pension can be transferred both to the place of registration and to the place of actual residence on the basis of a written application. To do this, you need to contact the territorial office of the Pension Fund of the Russian Federation at your new place of residence .

After requesting a payment case, no later than one working day after the citizen’s application, the necessary documents will arrive at his new place of residence within three working days.

Transfer of payment documents is also carried out if the pensioner received money into a bank account, since the information contained in the file will be necessary for further recalculations.

If a pensioner moves abroad, payment of the pension at the new place of residence is resumed in accordance with the rules approved by international treaties concluded by Russia with other states.

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Where to go to get it?

For some categories of citizens, the legislation provides preferential conditions for receiving this type of pension.

Of those who receive an insurance pension in Russia on preferential terms, the following categories of citizens can be listed:

1. working in the Far North;
2. civil servants;
3. persons working in hazardous conditions

These categories of elderly people have every right to receive a special type of pension - early. As a rule, preferential payments are assigned earlier than the old age pension. Their main indicator is work experience under hazardous conditions. As a rule, the established length of service comes before the retirement age, which means that a citizen has every right and opportunity to retire several years earlier.

Of particular note are two types of benefits: for the loss of a breadwinner and for disability. These categories relate to social benefits and are paid to those who need government support.

Thanks to the employer's monthly contributions to the Pension Fund of the Russian Federation, a pension is paid.

The pension size itself is determined from several indicators:

• the amount of the insurance part;
• the amount of the funded part

Each pensioner's payments will be different, since their size depends on many factors. Even before you retire, you should take care of receiving them, as well as find out the ways and options for receiving the insurance part of your pension.

Where does money come from for retirement?

When a citizen, upon reaching the appropriate age, retires, he has the right to be assigned and receive a pension. This payment consists of the following parts:

• Insurance.
• Cumulative.
• Fixed base.

The funded part is not formed for all pensioners, but only for those who took care of it in advance (and this was done before the end of 2015, since after that a moratorium was introduced). Then a certain part of the contributions made by the employer is kept in an individual account. In addition, additional contributions to the insurance part of the pension can be made on a voluntary basis. Only in this case can you count on a lump sum payment of this part of the pension in the future.

Federal Law “On Insurance Pensions”

Like many other areas of human activity, pension provision is regulated by a certain set of laws. The conditions for receiving the corresponding payments are established by the Fed. by law of December 28, 2013 No. 400-FZ “On insurance pensions”.

We invite you to familiarize yourself with: Sample zero calculation for insurance premiums - 2019

From the beginning of 2020, the amount of the fixed benefit to the insurance pension is 5,686.25 rubles, and the monetary amount of the pension point is 93.00 rubles.

The changes also affected the retirement dates of citizens engaged in professional activities in the following areas: medicine (doctors), education (teachers), including additional centers, etc. For the presented categories, a 5-year deferment is introduced.

From 2020, additional payments will be made in the amount of RUB 1,333. 54 kopecks pensioners who carried out activities related to agriculture.

Difference between voluntary and mandatory

The main differences between these two types of insurance lie in their very names. Mandatory implies the obligation of a citizen or his employer to make contributions to the Pension Fund for the future state benefit of an elderly citizen. The decision on voluntary insurance is made by the person himself or his employer; the state leaves the possibility of using this instrument at the discretion of these individuals themselves.

Within the framework of an NGO, a person entering into a contractual relationship with a foundation has the opportunity, at his own discretion, to determine:

• amount of payments;
• the duration of their transfer;
• frequency of application;
• formation scheme (inheritance rules, payment start period, etc.).

NPO rules are established by management companies independently, but must comply with the Standard Insurance Rules approved by the Central Bank. The specified rules of NPFs are registered with the Bank of Russia, and if changes are made to them, they are also subject to registration.

The role of the state in the formation of NGOs is to establish general legislative norms and regulate the activities of NPFs. The authorities do not directly participate in the formation of non-state pensions, since it is only additional to compulsory insurance.

Attention! Do not confuse NGOs with the voluntary transfer of additional insurance contributions within the framework of compulsory pension insurance. The latter is strictly regulated by the state, administered by the Pension Fund of the Russian Federation, and a separate legislative act was adopted as part of co-financing.

Accrual rules

The current legislation establishes the following rules for calculating labor pensions:

1. A pension is issued only if the recipient has the minimum work experience specified by law.
2. The volume of pension accruals is reduced if a citizen retires earlier than the time established by law.
3. Pension payments are calculated strictly in the amounts specified for each specific profession.
4. When calculating a labor pension, the final age of the subject at the time of his retirement is taken into account.
5. The pension is calculated in accordance with the accepted accrual scale and using the appropriate calculation formula.
6. The pension is accrued to recipients for life in the absence of other orders.

Amount of old-age insurance pension

The average annual pension in 2020 is 16,389.62 rubles, but next year, taking into account the level of inflation, the amount could be 16,389.62 rubles.

The calculation of the amount of insurance payments is made by PF employees in accordance with the number of pension points a person has and their current value. The size of the old-age insurance pension also depends on a number of additional factors.

For example, this is the territorial coefficient adopted for the northern regions. Also, when applying for a pension at a later date, citizens are accrued increasing coefficients for each year. Persons who have reached the age of 80 and pensioners with group I disability have the right to increased insurance payments.

The amount of insurance payments to pensioners increases annually due to indexation carried out by the government. It is necessary to prevent a decrease in the real incomes of pensioners due to inflation and rising prices for services and consumer goods. Thus, the old-age insurance pension in 2020 was indexed by 7.05%, which even exceeded the annual inflation rate.

Minimum pension

According to pension legislation, the size of the minimum insurance pension cannot be lower than the subsistence level. It is set individually for each region, depending on the cost of a set of essential goods, medicines, and utilities.

If for the regions of central and southern Russia this minimum averages 10-11 thousand rubles, then for a number of regions of the north and Far East this figure is 20-22 thousand rubles. If the pension amount is below this level, then the recipient is entitled to an additional payment from the federal budget.

DS programs at NPFs

In addition to compulsory insurance, each NPF offers NGO programs. Moreover, one can also take part in such a program according to various schemes approved by the internal rules of the fund. Each of them has a different list. GAZFOND, for example, offers 7 possible participation schemes; NPF Transneft already has 10 such schemes.

In each case, they are subject to individual study depending on the specific situation, the goals of investors and participants.

The differences between these schemes lie in the following criteria:

• duration of pension payments;
• the time of the participant’s right to receive a monthly income within the framework of the NGO;
• level of employer and employee participation in the program;
• the amount of contributions, duration and frequency of their payment.

A complete list of programs and schemes of a particular fund must be given in its pension rules, approved by the Board of Directors. Any citizen should be given free access to familiarize themselves with them.

In conclusion, we note that voluntary insurance within the framework of NGOs allows citizens to independently create an additional source of income in old age. DS serves not only to increase the future income of the pensioner, but can be considered as an investment or an additional guarantee to the employee on the part of the employer. When concluding an agreement, it is necessary to responsibly choose a scheme for the formation and payment of NGOs.

Calculation

Each pensioner is entitled to insurance benefits of varying amounts. Since the amount of work experience and the number of IPC points accumulated during working life are individual for each person, the size of the pension will be different for each pensioner.

Sp = Sat x Cb Fv, where:

• Sp – the required amount of the insurance pension.
• Sb – the sum of IPC points available in the employee’s assets.
• Central bank – the current price of 1 point in rubles.
• Fv – the amount of fixed payments established in the current year.

The procedure for calculating an old-age pension includes the following steps:

1. Receiving an application from a pensioner to calculate his pension.
2. A clear definition of the recipient’s work experience at the time of calculating his pension accruals.
3. Deriving a calculated coefficient for a specific category of persons to which the pension recipient belongs.
4. Setting the exact value of the number of pension points used in pension calculations.
5. Precise determination of the timing of payment of old-age pensions and the procedure for calculating it to a pensioner.

Difference between insurance and social

The main difference between insurance coverage and state insurance is the amount and calculation procedure . Insurance payments are calculated according to a rather complex scheme. Their size is influenced by:

• accumulated experience;
• wage;
• subject of the Russian Federation in which the pensioner worked;
• features of a pension account (with or without a savings component).

When calculating the state pension, neither the length of service nor the number of points matters. The main criteria for registration are reaching the appropriate age, becoming disabled, or losing a breadwinner. At the same time, a higher age is set for her when compared with the previous one.

Also, social and insurance payments differ according to:

• conditions for employment when applying for pension benefits;
• conditions for early payment processing;
• indexing conditions.

Features of insurance and social pensions can be listed in the form of 2 lists. Check them out to understand the differences between these 2 types of financial support.

Features of insurance payments

• age at which you can start receiving – 60 years (men), 55 years (women);
• the minimum required length of service is from 9 (if payments are made in 2020) to 15 (if paid in 2024) years;
• the minimum required number of pension points is from 13.8 (when making payments in 2020) to 30 (when making payments in 2024);
• the opportunity to become a pensioner early - 24 months before retirement age in case of layoffs and when hired for a position that gives the right to become a pensioner early;
• can it be transferred to the management of a non-state pension fund - yes;
• Are workers paid - yes.

Features of social payments from the state

• age from which registration is 65 years (men), 60 years (women);
• minimum required experience - not required;
• the minimum required number of pension points is not required;
• opportunity to become a pensioner early;
• can it be transferred to the management of a non-state pension fund - no;
• Are workers paid - no.

The state pension serves as a kind of replacement for the insurance one. Payments from the state cease to be provided if a person begins to receive insurance, so you should not count on receiving 2 types of financial support at the same time.

What are the requirements?

The following requirements are established by law for recipients of such pensions:

1. Residence in the country for the last 20 years.
2. Availability of work experience appropriate for calculating the volume of work experience.
3. Reaching the statutory retirement age.
4. Russian citizenship at the time of calculating the labor pension.
5. Providing documents that can confirm a citizen’s right to receive such pensions.
6. Submitting an application for pension calculation.
7. Providing documentary evidence of the fact that the pension recipient has benefits established by the state.
8. Indication by documents of information about the amount of wages of the recipient during the period of his work.

General requirements

The Law on Labor Pensions No. 400-FZ provides for different types of insurance pensions. These include the following:

• For old age - it is assigned when a citizen reaches retirement age and quits work (if you wish, you can continue working, the pension will still be paid).
• For disability - established for persons who have been assigned a disability as a result of an MSE (medical and social examination).
• For the loss of a breadwinner - dependents who are disabled are entitled to this if the person supporting them has died.

The type of payment of the insurance part of the pension to pensioners depends on the method, as well as the circle of persons who have the corresponding right. The same factor affects the conditions for granting a pension that must be met. Thus, Article 4 of Law No. 400-FZ talks about the conditions that make it possible to receive a payment. These include having Russian citizenship, as well as an open individual insurance account in the name of a specific person. In addition, foreigners and stateless persons can be pensioners if they reside in Russia on a permanent basis and meet other conditions.

Package of documents

The package of documents required to apply for a pension is as follows:

1. Application for a labor pension by a citizen.
2. Documents confirming that the pension recipient has sufficient work experience.
3. Passport of the citizen whose pension should be calculated.
4. Work book of the worker.
5. An individual code issued to a worker upon his registration with the tax authorities.
6. Pension certificate of the pension recipient.
7. Certificate from place of residence about family composition.
8. Other documents as required by the authority calculating the pension.

Question answer

Almost everyone often has questions regarding the pension provision of citizens. It is worth considering the most discussed ones, both in the Pension Fund and on the Internet.

The insurance part of the pension is calculated taking into account age, length of service and the number of individual pension plans, while for the funded pension the amount of savings is important.

Insurance pension = sum of pension points *

cost 1 point

fixed payment amount.

For pensioners who terminated a contract concluded for the duration of their work activity and receive payments for any type of insurance pension, in 2020 the amount of the insurance payment is indexed by 7.05%, and next year it will be indexed by 6.6%.

The insurance part of a pension is a type of material security created according to the principles of insurance based on age limits.

Pension delivery tools

Each pensioner chooses his own method of pension delivery. It is carried out by organizations with which the Pension Fund of the Russian Federation has concluded a corresponding agreement, the form of which was approved by the Ministry of Labor and Social Protection of the Russian Federation. Such organizations may be:

• mail;
• bank;
• delivery organization.

The list of such authorities can be found in the territorial body of the Pension Fund or MFC. This allows the pensioner to independently choose a convenient way to receive funds. To ensure timely receipt of money, each institution develops a schedule that takes into account the place of residence of each citizen who has received a pension status.

If such an organization refuses to carry out delivery or is deprived of a license to carry out such activities, the territorial body of the Pension Fund of the Russian Federation notifies the pensioner of this circumstance in writing. The insured person is obliged to submit an application to the Pension Fund indicating a new method of delivery of payments.

Deadlines for payment of old-age pensions

The application must be reviewed by officials within no more than 10 days. A longer period will constitute a significant violation.

The main condition for appointment is reaching retirement age. Therefore, if you submit an application ahead of time, it will not be considered positively.

The terms for calculating the pension and its subsequent issuance are not precisely stipulated by the rules of the legislative acts in force in the country.

In the absence of a corresponding government order, every citizen has the right to receive an old-age pension for life.

Pension – what is it?

This is the name given to monthly cash payments that are assigned to specific individuals as the main source of funds for subsistence under certain conditions. There are three types of pensions:

• social;
• labor;
• insurance

Each of them has its own characteristics, which will be discussed later in the article. The amount of payments a person receives is determined by the highest government institutions. The list of persons who can count on such income is formed by federal laws. The main body that deals with the affairs of pensioners is the Pension Fund of the Russian Federation.