Pensions are divided into 3 types: according to age, disability and loss of a breadwinner. The required payments to citizens are made as a funded pension and in the form of a fixed-term amount. The rights of Russians to payments are calculated using pension coefficients. The previously acquired rights were converted into coefficients by 2021, without being reduced.
Pension laws
According to Russian law, an old-age pension is awarded to those who meet the following conditions:
- 65 years (m) and 60 years (w);
- 15 years of experience;
- from 30 IPC.
The accrual is established by the rules specified in the following documents:
- Federal Law No. 167 “On pension insurance in the Russian Federation”.
- Federal Law No. 400 “On Insurance Pensions”.
- Federal Law No. 424 “On funded pensions”.
- Federal Law No. 446 “On the expected period of payment of funded pensions for 2020.”
- Federal Law No. 111 “On investing funds to finance pensions in the Russian Federation.”
- Federal Law No. 75 “On non-state PF”.
Civil servants, and with them pilots and cosmonauts, military personnel and their relatives, are accrued pensions in accordance with Federal Law No. 166 “On State. pension provision in the Russian Federation".
Regulatory framework
Russian pension legislation is not perfect, therefore it is constantly undergoing certain changes. Their essence is to ensure a decent existence for a citizen who has retired. Before the pension reform in the Russian Federation in 2015, the main legislative act that regulated payments was Law No. 173-FZ (12/17/2001).
After 2015, the concept of “labor pension” virtually ceased to exist. Instead, there are two types of pensions for working citizens:
- insurance (regulated by Law No. 400-FZ, adopted on December 28, 2013);
- cumulative (issues are covered in Law No. 424-FZ of December 28, 2013).
Calculation formula
The amount of the old-age pension entitled to a person from the state consists of 2 parts - insurance and funded.
Reference! The calculation of the age-appropriate pension (SP) looks like this: SP = IPC × SPK + (EF × KvFV).
According to the accepted formula, to calculate the total monthly benefit, the following figures are used:
- Total work experience, including time spent caring for children, military service, caring for disabled people and incapacitated relatives, etc.
- The amount of salary before personal income tax deductions for each year.
- The year in which you plan to apply for a pension (from 60–65 years old).
- IPC is a coefficient calculated individually for each year and the total number for the entire length of service.
- SPK is the value of allotted points for the year in which you plan to retire.
- PV – the insurance part established for the year of planned retirement (fixed).
In addition to the listed data, KvFV is substituted into the formula. This is a coefficient that increases the fixed payment to those who later apply for an old-age insurance pension.
How does the IPC value affect your pension?
Keep in mind that in addition to the IPC, a number of other factors and indicators influence the amount of the insurance pension. The formula looks like this:
SSP = FV x PC1 + IPTot. x RVPB x PC2 + SNP , where:
- SSP – the amount of the insurance pension.
- FV – fixed payment. Its size is reviewed annually on January 1. The basic value in 2021 is RUB 5,334.19. For some categories of applicants the figure is different. So, for example, for disabled people of group I or people over 80 years old, the PV doubles (10,668.38 rubles). If the applicant has one parent who has died and receives a survivor's pension, the PV will be only half of the base value (RUB 2,667.10).
- IPKobshch. – the total number of points accumulated by a citizen on an individual personal account (IPA) for the entire period of official employment and non-insurance periods.
- RVPB is the ruble expression of one pension point. The value is set annually on January 1 and is the same for all recipients of insurance pensions. From 2021, 1 PB is equal to 87.24 rubles.
- NPP is the funded part of the pension. It is determined if the future pensioner participated in its formation.
- PC1 and PC2 are increasing coefficients. They apply if the pension was assigned at the personal request of the citizen later than the time established by law. When entering a well-deserved retirement, in accordance with the law, the value is applied equal to 1.
Pension points are used to calculate all types of insurance pensions (age, survivor, disability). They directly affect the final payment amount. The greater their number, the higher the pension size will be.
Anyone can independently increase their own income in old age by forming a funded pension in the pre-retirement period. The employer can do this for him. The money is placed in a state or non-state pension fund at the discretion of the investor. The final amount of payments is affected by the amount of funds accumulated in the personal account.
Minimum number of pension points
The possibility of receiving an insurance pension from the state depends on the minimum number of pension points earned over the years of work. If a person has earned less than the established value in total for his official work activity, he will only be assigned a social old-age pension.
In 2015, the minimum IPC was 6.6. Its importance increases every year. The growth step is 2.4. By 2025, the minimum should reach the final value of 30 points:
- 2019 – 16,2;
- 2020 – 18,6;
- 2021 – 21;
- 2022 – 23,4;
- 2023 – 25,8;
- 2024 – 28,2;
- 2025 – 30.
Maximum pension coefficient
For each year, the maximum annual IPC is determined for calculating the pension. A person will not be able to be awarded more than the maximum value, although salary affects the number of points earned.
The maximum pension ratio in 2021 is 9.13. From 2021 it will increase to 9.57. Starting in 2021, the IPC cap will be 10 PB. The limit value is also influenced by the fact of formation of the funded part of the pension. If a citizen decides to take this step (there is a moratorium until 2021 - all points are credited to the insurance), the maximum individual coefficient for a calendar year cannot exceed 6.25.
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Funded pension
Savings do not depend on the coefficients calculated by the state. The amounts were formed from contributions from employers in the period 2002–2013. The money transferred to the Pension Fund of the Russian Federation has been frozen by the state since 2014 until 2022. In 2021, contributions from employers go to the insurance part of the pension benefit, and the funded one is no longer formed.
Important! On the PFR portal, citizens of the Russian Federation learn about the amount of pension savings. Information is issued based on the ordered extract.
Those who have the accumulated amount remaining will receive it as an increase to the basic insurance pension.
What is an individual pension coefficient
To give a precise definition of the IPC, it is necessary to first understand some of the features of the pension system of the Russian Federation in terms of the formation of the corresponding rights of citizens.
So, every working citizen is required to be registered in the personalized accounting system of OPS, having a special insurance number of a personal account.
Previously, the main confirmation of a citizen’s participation in the compulsory pension insurance program was a green SNILS card, which every Russian citizen was required to have (without it, for example, it was impossible to get a job). As of April 1, the mandatory issuance of plastic certificates has been stopped, which, however, does not cancel the fact that a citizen is registered in the OPS system, which occurs automatically.
During direct labor activities, certain funds are paid for the employee - insurance premiums. They are directly related to the amount of wages established by the employment contract, since they are calculated as a percentage of it. All funds received into a citizen’s individual account at the Pension Fund are converted into pension points , which have a certain value. Actually, their number calculated using special methods is the IPC.
The conversion of the volume of pension rights into points occurred after a major reform in 2015, the main result of which was the introduction of an insurance pension as the predominant method of material support, while the concept of “labor pension” disappeared from official circulation, as well as previous methods of calculating it.
Points are generated only through employer transfers from “white” salaries. Working unofficially and receiving earnings “in an envelope”, a citizen cannot count on a decent amount of pension coverage in old age.
In addition to insurance premiums, the size of the IPC is affected by some special periods during which the employee does not directly perform a labor function, but his insurance period is not interrupted.
These include:
- being on parental leave (only up to 1.5 years);
- time of care for citizens who have lost their ability to work (disabled);
- compulsory military service;
- being in places where there is no opportunity to find a job (for spouses of military personnel).
Together, these periods can also be taken into account in aggregate.
IPC calculation
The individual coefficient in calculating a pension is the points assigned to a citizen for work in a calendar year.
Reference! Calculation of IPK (total) = (IPKs + IPKn) × K. IPKs is the coefficient obtained before the beginning of 2015, IPKn is the coefficient calculated after 01/01/2015. K – the increasing coefficient provided for a deferred application for a pension.
The volume of IPC for a particular year varies taking into account the transfer of contributions from the employer to the Pension Fund. For calculations, use the formula: IPC = (SV/NSV) × 10, in which SV are contributions transferred to employers, and NSV is the rate of insurance contributions. The rate is calculated by multiplying the maximum contribution base by 16%. The limit is set by the Russian government for each year.
Algorithm for calculating the IPC for earlier periods (before 2002)
Until 2002, data on wages and contributions to the Pension Fund was not centrally recorded, so citizens often have to restore information through archives to confirm their length of service.
The IPC is calculated based on the total amount in rubles earned by a person before 2002. The resulting amount of the estimated pension (RPP) is converted into points, from which the final coefficient is formed. Namely, the resulting RRP value is divided by 64.1 rubles. – the cost of one IPC, established before 2015:
IPC before 2002 = RRP/64.1.
In turn, the RRP depends on three parameters:
- employment before 2002;
- average monthly salary for 2000-2001 or any 5 years before 2002 (the interval without breaks is taken);
- length of insurance period until 1991
Therefore, if the Pension Fund does not have any information on employment before 2002, this will negatively affect the value of the ATP.
Important! It is within this range that citizens can somehow influence the size of the PCA by providing all the necessary documents for those time intervals that will allow the maximum amount to be calculated
Extra points
In addition to points for work activity, everyone has the right to count on points accrued for the periods:
- military service by conscription – 1.8;
- caring for elderly relatives (over 80 years old) – 1.8;
- caring for a disabled person of group I, as well as for a child with a disability – 1.8;
- being with a military spouse in a settlement without places of employment – 1.8;
- stay with a diplomatic spouse abroad – 1.8;
- parental leave (1, 2, 3) – 1.8 and 3.6, as well as 5.4, respectively.
Additional points are calculated together with IPKs, IPKn taking into account the time of the event.
The cost of points is approved annually by the government. According to Federal Law No. 350, the cost is as follows:
- 2020 – 93 rubles;
- 2021 – 98.86 rubles;
- 2022 – 104.69 rubles;
- 2023 – 110.55 rubles;
- 2024 – 116.63 rubles.
Pension rights collected before the beginning of 2015 are automatically converted into points for 2 periods. The first is savings until 2002, the second is from 2002 to 2014.
How much is a pension point worth in 2021?
The cost of 1 pension point in 2021 is 98 rubles 86 kopecks .
A fixed payment supplementing the amount of the insurance pension in 2021 is 6,044 rubles 48 kopecks. In the future, the value of the pension point, together with the additional amount, will be indexed by the state, taking into account inflationary processes and changes in the level of wages. Dynamics of pension point value
| Year | Cost of pension point, in rubles |
| 2015 | 71,41 |
| 2016 | 74,27 |
| 2017 | 78,58 |
| 2018 | 81,49 |
| 2019 | 87,24 |
| 2020 | 93 |
Rules for calculating old-age pensions
Accrual conditions include 3 important components.
- Firstly, age. In 2021, men have the right to apply for a pension at 60.5 years, and women at 55.5. Starting in 2028, men will retire at 65 and women at 60.
- Secondly, accumulated experience. In 2021, to retire, it is enough to gain 11 years of work experience. Already from 2024, it is necessary to gain 15 years.
- Thirdly, the number of IPCs. For 2021, 18.6 points was enough. A minimum of 28.2 points is provided for 2024, and 30 for 2026.
All 3 conditions listed are required. Otherwise, you need to wait another 5 years to receive social benefits in old age, the amount of which is set by the state.
Pension calculation with example
Having in hand all the components for calculations - length of service for officially worked years, the volume of the IPC, as well as the cost of 1 point (STpk) and the volume of the fixed payment (FV) - you can calculate your future pension.
Reference! Calculation of SP = IPC × STpk + FV.
Substituting data into the formula is easy. For example, calculate the pension of a factory worker with 30 years of experience, 1 child (1.5 years on maternity leave) and a salary of 40 thousand rubles. If the employee started working after 2013, there are no pension savings due to the moratorium. Sequence of calculations:
- Payments transferred by the employer are 40 thousand rubles. × 12 × 16% = 76,800 rub. annually.
- Points received: RUB 76,800/RUB 184,000. × 10 = 4.17 points annually.
- The total IPC for 30 years is 4.17 × 30 = 125.22 points.
- Points are added for the period of child care 125.22 + 1.8 (year) + 0.9 (6 months) = 127.02 points total.
- If the “price” of 1 point is 116.63 rubles, then the employee is entitled to 127.02 × 116.63 rubles. = 14814.34 rub.
- A fixed payment of 7131.34 is added to the amount received and a pension of 21945.68 rubles is obtained.
Pension reform
– insurance, in the calculation of which the IPC is applied;
– accumulation payment.
Individual rules for calculating pension savings are provided only for persons:
- those who have reached 80 years of age;
- living in the Far North;
- disabled people of group 1.
Under the new scheme, pensioners have to choose between benefits and salary. The reform is designed in such a way that for 12 months of work, a pensioner can increase the amount of payment by 17%. This will encourage future retirees to continue working as long as possible. At the same time, the law establishes some restrictions. It makes no sense to work for more than 10 years, since the additional coefficient will not change.
The reform provides for the accumulation of funds in the budget and their correct redistribution as needs arise. Official employment has become one of the priorities for most Russians. At the same time, the reform has a number of serious shortcomings:
- Persons who are employed unofficially will not be able to receive a full pension. According to statistics, this is approximately 50% of the population of the Russian Federation. To receive adequate payment, more than 20 years of service is required.
- Employed pensioners will have to choose between benefits and salary. It is no longer possible to combine these two payments.
- According to the new rules, to receive the payment, the minimum length of service for 15 years will be tripled.
The reform will last until 2025. There is annual indexation and fixation of the cost of one point.
How to increase the amount of your future pension?
There are 3 legal ways to increase your income in old age:
- Purchase of IPK. On the Pension Fund website you will learn about the number of pension points. If there are not enough of them, you are allowed to buy no more than 50% of the required work experience (up to 15 years).
- Official receipt of a high salary. Starting from 2021, you will receive 10 points (maximum) for a year worked in an official position. To do this, the salary amount must be 95,833 rubles. and more.
- Additional income. This option refers to personal opportunities to increase the “airbag” in old age. Money can be invested in real estate, securities, or placed in a bank deposit.
Where to send pension savings?
Pension Funds and Non-State Pension Funds handle pension savings. Insurers manage trusted pension savings by investing in securities. A future retiree has 3 options regarding future savings:
- Nothing to do.
- Determine a suitable NPF.
- Select the Pension Fund, then select the management company from the fund register.
If a citizen does not choose a supplier, the Pension Fund becomes the supplier by default. The fund transfers money to the management company of Vnesheconombank, appointed by the state to this role. The management company invests the entrusted funds, reports to the pension fund, and the latter – to those who will apply for a pension.
What are premium rates?
Bonus coefficients should be understood as modifiers that increase the size of pension payments when applying for a pension in a period later than was possible by law.
Their value depends on the number of years during which the citizen has not applied for financial payments.
However, there is also an upper limit to its value. So, if a person has not applied for a pension after 12 years after the right to it arose, then in relation to the IPC the value of the modifier will be 2.32, and in relation to the fixed payment - 2.11.
Receiving insurance compensation
The second option is only an insurance subsidy, issued according to:
- death of the breadwinner;
- establishing disability and, as a result, incapacity for work;
- old age specified by law.
Receiving insurance compensation
Moreover, in any of the listed situations, the person must have worked at least a day before submitting an application for receiving the pension amount.
In the first situation, dependents are relatives:
- not older than 18 years old. or from 60/65 l. (depending on age);
- with children under 14 years old;
- those undergoing full-time education who are not older than 23 years old;
- disabled people of any age who were supported.
They have the right to receive monthly compensation upon provision to the Pension Fund of the Russian Federation:
- passports;
- a document confirming the death of the person holding them;
- necessary information about family ties;
- extracts from the breadwinner's work.
You can apply for monthly compensation at one of the Pension Fund branches
Payment is provided within 10 days. from the date of filing, but only if the necessary documents were provided no later than one year from the death.
An increase is added to the insurance pension - a cash benefit. For dependents left without support, it is 2667.10 rubles. for everyone (full orphans - 5334.19 rubles).
If a special medical commission assigns a disabled group, such a person also has the right to receive an insurance subsidy. In this case, the condition must be met that the injury was not caused intentionally.
The monetary increase for each disability group is:
| Disability | 2019 |
| 1 gr. (inability to talk, walk, care for oneself, disorientation) | RUB 3,782.94 |
| 2 gr. (ability for self-care, movement, communication, but inability to learn and carry out work activities) | 2701.62 rub. |
| 3 gr. (movement, communication, doing work, but with more time) | 2162.67 rub. |
| Disabled children (inability to live independently acquired before adolescence) | 2701.62 rub. |
The amount of the single benefit includes the NSO (complexity of social services). If a person does not want to use this type of assistance, it is exchanged for compensation in material form. In 2021 it is equal to 1121.42 rubles.
In case of assignment to a disabled group, a person has the right to receive an insurance subsidy
For old age payments, the following points must also be met: age must be at least 60 years old. (women) and 65 l. (men).
Due to the pension reform in 2021, the opportunity to work was increased by 5 years. In this case, the age increase is carried out sequentially according to the following scheme:
| Time | Men | Women |
| 2019 | 60 l. + 1 year | 55 l. + 1 year |
| 2020 | 60 l. + 2 g. | 55 l. + 2 g. |
| 2021 | 60 l. + 3 g. | 55 l. + 3 g. |
| 2022 | 60 l. + 4 g. | 55 l. + 4 g. |
| 2023 | 60 l. + 5 l. | 55 l. + 5 l. |
At the same time, the retirement age for female civil servants has been increased in the same way in stages to 63 years. For men in civil service, the period is equal to the above - 65 years. If such persons have an accumulated experience of 42 years (men) and 37 years. (women) payment can be issued earlier than the specified age for 2 years.
- working experience more than 15 years. Similar to increasing the age category, the increase is 1 year for every 1 year (in 2021 - 10 years);
- Pension points must be equal to a certain minimum value established in the selected year.
The retirement age for female civil servants has been increased in stages
Abstracts of innovations
- Transformation of structure. Previously, the pension had three components: the basic amount, accumulation and insurance. A pension of the same name was created on the basis of the funded part. The new type of security is regulated by a separate law.
- Changing the name of a labor pension to an insurance pension.
- Introduction of a system of special points used in calculation formulas.
- Replacing the base part with fixed numeric expressions.
The insurance pension is calculated using the following algorithm:
SP = cost of 1 point * total number of points
The size of this indicator is established annually by Government Decree. In 2021, the point is 78.28 rubles. Points are calculated separately for each year from the date of adoption of the law. To obtain one of the key rights, you need to earn at least thirty points.
The next step in determining the amount of future income is adding a fixed payment. The rules for determining this component have not actually changed. The indicator is established in hard numerical terms. As of 2021, taking into account the inflation carried out at the beginning of the year, the amount is 4085.11 rubles.
Thus, the calculation formula is the sum of the fixed and insurance payments.
Pension = FV + SV
Unlike the specific PV figure, SV is calculated only in points. The criteria that determine the size of the insurance portion are salary and length of service.
In addition to wages, the following factors influence the final pension amount:
- choosing a security option for the OPS program;
- periods that are significant from a social point of view – maternity leave, military service and others;
- applying for a pension after reaching retirement age;
- duration of work;
- income of a self-employed person.
A tool for independently determining the amount of future payments is a pension calculator, available online.
Indexation of pensioner income from 2021
In addition to the increase in the price of individual savings, a pensioner’s income increases when annual indexation measures are carried out. The level of the surcharge exceeds the inflation rate, which helps prevent the depreciation of the preference over time (preserve real purchasing power).
This procedure is not provided for employees. For this category of workers, indexation was frozen. However, no one canceled the right to recount. The action will be carried out taking into account previous periods after the dismissal of the employee or the closure of his individual entrepreneur.
According to the strategy developed by the Government of the Russian Federation, the amount of the benefit will increase every 12 months by an amount slightly exceeding 1 thousand rubles. Thus, if we calculate the final growth of preferences at the end of the transition period, we can come to the conclusion that it will be at least 35% (7% annually).
Upon completion of the transition phase, additional payments will be made twice a year. The first time was in February. This procedure will level out inflationary processes. The second – in April, if the Pension Fund remains saving money.
How to calculate: instructions
Some citizens may be curious about how much PB they have accumulated in their account. To obtain information, you can use one of the following methods:
- government services website;
- official Internet portal of the Pension Fund;
- visit to the Pension Fund institution.
To obtain information on the government services portal, you must perform the following steps:
- Register. Please provide your last name, first name and telephone number. The number you entered will receive a code that you need to enter in the appropriate line in order to log in to the site. In order to fully use the site, you must fill out a form and confirm your identity (uploading a scan of your passport and SNILS).
- Go to the catalog of public services . Go to the “Pension, benefits and benefits” subsection, request an extended statement by clicking on the link “Notice on the status of your personal account in the Pension Fund of the Russian Federation”.
- Wait for a response . The request is processed in a few minutes. After this, you will receive a letter that will contain a report with information on the PB. If necessary, you can print it directly in your personal account.
NPF (non-state pension fund) clients can obtain information about PB on the websites of the relevant organizations. The government services website does not store information about the PB of NPF clients.
It is also possible to check the number of PBs via the Pension Fund website:
- Log in to your personal account. To access it, log in to the government services website with proof of your identity.
- Go to the “Pensions” subsection.
- Click on the “Get pension information” button.
- Wait for a response. You will receive a letter indicating the number of accumulated PBs and your existing experience.
A pension calculator is a service that is intended to explain the procedure for forming pension rights and calculating the amount of payments. In order to use the service, you will need to provide the following information:
- gender;
- year of birth;
- duration of military service. Only conscript service needs to be taken into account;
- number of children;
- duration of care for each child, citizen over 80 years of age or person with group 1 disability;
- the number of years that you are not going to apply for payments after becoming eligible for them;
- category of work (military service, civil service, regular work, own business);
- number of years worked. Information about length of service can also be entered here;
- official salary excluding tax.
The information that will be obtained when using the calculator is conditional. It should not be taken as the exact amount of pension benefits. In order to find out the real number of PB, it is advisable to use the previous 2 methods.
A personal visit to the Pension Fund institution, which is located at your registration address, is considered the most time-consuming method. Find out when you can contact it on a question that interests you, and come to it on time. You need to take your passport and SNILS with you. Information about the number of PBs will be indicated in the statement.
Reference! If you are a client of a non-state pension fund, then you need to visit its nearest branch. The institution's staff will provide you with all the required information.
If before 2013, Russians could not think about the number of PB and received data about it in the form of letters from the Pension Fund of the Russian Federation, then today they need to check the number of points on their own. It’s good that this can be done not only by visiting the Pension Fund in person, but also online.
