Insurance pension - what is it and what does it depend on?

“In 2021, women born in the first half of 1965 and men born in the first half of 1960 have the right to an insurance pension,” the Pension Fund noted.

At the same time, the number of pension coefficients depends on the amount of insurance contributions transferred for the employee by the employer: the higher the official salary, the more the employer transfers contributions to the future pension. So, last year, to grant a pension, it was necessary to have at least 11 years of experience and 18.6 pension coefficient. In 2021, the requirements have increased - at least 12 years of experience and 21 pension coefficients.

“Every year, the number of length of service and pension coefficients will increase until they reach 15 and 30, respectively,” the Pension Fund added.

If the pension coefficients and length of service are not enough, the assignment of the pension will be postponed until the required amount is “earned”. If this cannot be achieved five years after reaching retirement age, then a social pension will be assigned instead of an insurance pension.

When do pensions increase in Russia?

There are several dates during the year when the Pension Fund recalculates payments. The PFR branch for the Kabardino-Balkarian Republic was reminded of this. Thus, on January 1, the insurance pensions of most pensioners are indexed. In turn, on April 1, state pensions, including social ones, will be increased.

“Another such date is August 1, when the Pension Fund increases insurance pensions of working pensioners, as well as payments of pension savings based on the results of investment returns received,” the Pension Fund noted.

At the same time, an increase in pension in connection with such events as reaching the age of 80, acquiring so-called northern experience or dismissal from work is not tied to a date and is assigned when appropriate circumstances occur.

What to do today to receive a higher pension in the future

Get a job officially

Pension points are accrued only from official income. If it is minimal, then the pension will be small. Money in an envelope or on a card does not count.

Receive the maximum white salary

The size of your future pension directly depends on what your official income is today. The higher the salary, the more they contribute to the budget for you and the more you will receive in old age.

In 2021, a citizen can earn a maximum of 10 points per year. To do this, his official salary should be about 122 thousand rubles per month before deduction of personal income tax. There is something to strive for.

How maternity leave and military service affect retirement

Socially significant periods of life during which a person was forced not to work are counted in the insurance period. The PFR branch for the Kaliningrad region was reminded of this.

“Non-insurance periods are counted in the insurance period if they were preceded and (or) followed by periods of work and (or) other activities for which insurance contributions were paid to the Pension Fund,” the Pension Fund explained.

Non-insurance periods include:

— completion of military service upon conscription;

— receiving compulsory pension insurance benefits during a period of temporary disability;

- care of one of the parents for the child until he reaches the age of one and a half years (no more than six years in total);

— receiving unemployment benefits;

— care for a disabled person of group I, a disabled child or a person who has reached the age of 80;

- residence of spouses of military personnel performing military service under a contract, together with their spouses, in areas where they could not find employment due to lack of opportunity (no more than five years).

For each full calendar year of such a period, when calculating the amount of the pension, a coefficient of 1.8 is established. Additionally, a coefficient is established for periods of child care (3.6 - in relation to the period of care of one of the parents for the second child until he reaches the age of one and a half years; 5.4 - in relation to the period of care of one of the parents for the third or fourth child until he reaches the age of one and a half years).

Insurance and early insurance pension for old age

This type of assistance is the newest, because the insurance pension was introduced into a separate type only in 2015. To obtain it, a citizen must meet several criteria:

1. Has reached the legal age. Depending on gender it is:

• 55 years – for women;
• 60 years – for men;

Certain categories of workers can count on the right to retire on such a pension before the due date.

The list of professions and positions that are given this opportunity is approved by the Government of the Russian Federation.

2. Has a certain number of years of insurance experience, that is, one during which corresponding insurance deductions were made from his salary. Requirements for length of service are established on an increasing basis - in 2021 its minimum value is 7 years, until 2024 due to a gradual increase it will reach 15 years.

3. Accumulated a certain number of pension points. This figure is also growing annually - in 2021 it is 9 and should reach 30 by 2025.

In this case, the amount of assistance is formed on the basis of contributions that were made from the employee’s salary during the period of employment.

The size of this payment will depend on several factors:

• the amount of wages (in this case, the amount of deductions is directly proportional to the amount of wages);
• the duration of the insurance period (the longer it is, the more cumulative points are formed on the citizen’s account);
• retirement age (the later this happens, the greater its size).

The funds allocated for the formation of an insurance pension are transferred to pension points and recorded in the citizen’s account.

How is pension insurance calculated?

Starting from 2021, requirements for receiving accruals will be proposed, which, according to the plan, will increase until 2026.

• The age for a woman is 60, and for a man - 65 years, unless there are additional aggravating factors.
• Work experience - at least 11 years, and then - from fifteen.
• The individual coefficient starts from 18.6 points, and then from 30.

If these parameters are not met, then minimum social charges are determined. They can only be received upon reaching 65 and 70 years of age.

Payment to working pensioners

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.

Results

So, what is the insurance period for a pension?
This is one of the main parameters on which both the right to receive an insurance pension in general and the possibility of early registration depend. To protect yourself from disputes with the Pension Fund, you should promptly check the completion of all necessary documents. You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

What does it consist of?

The amount of the basic insurance payment is now called a fixed rate; it is determined by the state and paid from the local or state budget. It may depend on the category, which is determined depending on the type of work of an able-bodied citizen.

The basic payment is an echo of the past, then it was about some kind of “equalization”, when all pensioners received an almost equal amount. The fixed part has replaced it and is a guarantee of social security for pensioners. The size of the basic part is fixed , but you still need to obtain the right to have it credited to you.

A prerequisite is to obtain a joint venture. It, in turn, is paid only upon reaching a certain age and length of service.

The legislative framework

The concept of “insurance part” has come into use relatively recently, since 2015. Pension provision is regulated by Federal Law 400 “On Insurance Pensions” , as well as by the following documents:

• Federal Law-167 , containing the rules of pension insurance;
• FZ-166 , which explains pension standards in Russia;
• Regional documents explaining the current amounts of insurance pensions.

An insurance pension can be obtained by both citizens of the Russian Federation and those who do not have citizenship, subject to certain conditions (for foreigners this, in addition to the basic conditions, is permanent residence in the Russian Federation or the presence of international treaties with the resident country).

Magnifying factor

Some employees do not stop working until they reach age 60 or 65 for women and men, respectively. But when this period comes, the recalculation will be based on an increased “premium” indicator. And its size directly depends on how much the pensioner worked.

How is the old-age pension coefficient calculated if you do not immediately contact the Pension Fund?

Receipt procedure

If there are appropriate conditions that give the right to an insurance pension, a citizen should contact the territorial division of the Pension Fund of the Russian Federation at his place of residence with documents confirming the right to this payment (work book, certificates of earnings, etc.). The applicant has the right to submit an application through the State Services portal, however, after its consideration, he is obliged to provide the original documents to the Pension Fund. Sample application:

After the pension fund makes a decision to assign payments, the money should be expected in the next calendar month.

A pensioner can receive his payments:

• at home;
• at the post office;
• to a bank card.

Benefits of investment pension provision

Deciding how to provide your own pension in the future is a psychologically difficult matter. I would like to take into account all the nuances and protect myself from unpleasant shocks in old age.

Insurance coverage has one undoubted advantage - it is stable. Another thing is that, as a rule, we are talking about a very small, stable amount of monthly pension. Even with extensive experience and additional bonuses, it rarely approaches the size of the former salary. And this is the main reason why retirees continue to work, even when they no longer have the strength to do so. “You can’t live on a pension,” that’s what people say.

The idea of ​​a funded pension is precisely that you can “live” on it - eat well, buy new clothes, travel, indulge in entertainment. That is, do not count every penny. Due to the funded part of pension contributions, the size of the insurance part is slightly reduced, but the investment pension itself has a number of advantages.

The benefits of a funded pension include:

• The ability to choose any fund or management company from those that invest most profitably
• The absence of “points” that are unclear to the uninitiated person and the transfer of the amount of profit directly to the account in cash
• Full ownership of the savings account. In particular, the money in the savings account does not “burn out” after the death of the pensioner, but is inherited by his relatives. A retirement savings account can be bequeathed.

How is the size determined?

The amount of old-age security is strictly individual and depends on the characteristics, duration and nature of the pensioner’s previous work activity. In addition, various allowances are added to the amount of the payment, for example, “northern coefficients” if a citizen has worked for a long time in the Far North.

Also, additional coefficients (called bonuses) take place in the case when a pensioner continues to work after reaching the appropriate age, that is, simply put, he retires later.

Calculation procedure

The formula for calculating the insurance pension consists of the following components:

SP = IPC x SPK + FV.

Explanation of the formula:

SP – insurance pension.

IPC is the sum of pension points.

SPK – the value of pension points.

FV – fixed payment.

The calculation is carried out automatically by the pension fund based on information about the applicant’s insurance experience.

Validity periods and features of asset placement

Let's repeat it again. With the funded pension model, funds are not kept in an account, but are constantly in investment circulation.

Funds may be located:

• On a pensioner's personal account
• On a special account of the Pension Fund

The funds in your personal account are constantly growing, thanks to a special investment mechanism.

Savings account assets consist of several types of income:

• Pension payments from the place of work
• Co-financing program funds (when monthly contributions are made up of citizen funds and state subsidies)
• Maternity capital (one of the few permitted ways to use maternity capital is to place it in the mother’s savings pension account)

You can find out how much money is in your personal savings account at any time. This is usually done on the official websites of the NPF or management company where the account is registered.

The experimental funded pension covers two categories of citizens:

• Those born in 1967 and later
• Those who decided to create a pension savings account before the end of 2015 (regardless of age)

At the same time, only citizens whose year of birth is 1967 and subsequent have the right to transfer monthly pension contributions from their place of work to a savings account. Older people can only use maternity capital or co-financing program money for this purpose.

How to find out the amount of future pension savings in 2020

Let's consider the method of calculating the most popular payment - upon reaching a certain age. It consists of two parts – insurance and savings. And since you can calculate the amount of your old-age pension yourself, you need to prepare in advance certain information about yourself or your elderly relative.

• The length of work experience in years and months. This value includes not only the actual stay at the place of work, but also sick leave, leaves, including to care for a child or an elderly relative, as well as the period of stay at the labor exchange while employees are looking for employment that matches their experience.
• The amount of salary and all allowances, and income tax is not minus.
• The year when a person retires. This is even more important for those who continue to work after reaching retirement age.
• Individual pension coefficient and its cost.
• The amount of the fixed payment may vary due to annual indexation.

Previously, the savings system worked, but then a moratorium was introduced on the accrual of this money until 2022. But they are not canceled, but are issued to pensioners as a supplement to the insurance portion. This is a way to smoothly transition to a new accrual mechanism.

Knowing all the listed values, every citizen will understand how the amount of an old-age pension is calculated. To do this, you need to use a formula to find the total annual pension savings, and then divide them by the expected number of months - the expected survival period. For 2020 it is 258, that is, 21 and a half years. Once this period is passed, payments will not change and will remain fixed.

How to make payments online

Due to the fact that over the long life of a pensioner, he most likely worked in many places, received different salaries, and could also have received additional points several times, the formula becomes somewhat more complicated. Only the Pension Fund can take into account all periods of employment. However, you don’t need to go to the fund’s branch; you can go to your personal account on the website www.pfrf.ru, where you can enter the login and password for the government services portal. There is all the data, as well as a built-in calculator.