The labor pension can be divided into funded and insurance. As you know, the employer transfers 22% of the employee’s salary to the pension fund. If a person has chosen both parts for formation, then they are distributed as follows: 16% - insurance pension, 6% - funded pension. Thus, the funded part is the share of the labor pension. It has certain properties:
- the funded part is not indexed by the state;
- it can be invested as an investment;
- Because the stock market behaves unpredictably, investments can bring both loss and income.
Thus, the savings part is a long-term deposit with interest offered by certain funds that work with this type of investment.
Formation of the funded part of the pension
This type of pension was formed over the period from 2002 to 2013. The employee had to have a stable income, make voluntary contributions or use maternity capital.
The bulk of savings consisted of contributions from employers:
- For citizens born in 1967 and younger, provided they submitted the application before December 31, 2015.
- For men (1953-1966) and women (1957-1966) for the period from 2002 to 2004.
An additional part of the savings consisted of contributions from the employees themselves. Pension calculation formula:
Since 2014, enterprises have not made contributions to funded pensions. All the money goes towards the old age insurance pension. Previously accumulated money continues to be invested. A person can receive them upon reaching retirement age.
Requirements upon receipt
Pension payments of the funded part of the pension are made in two cases:
- Upon retirement (55 years old - women, 60 years old - men).
- If you have the right to early payment.
Money can be received in the form of:
- One-time payment. The applicant is paid the entire amount immediately. The payment is due, provided that the amount of savings does not exceed 5% of the amount of the insurance pension. And also when receiving an insurance pension for disability or loss of a breadwinner.
- Urgent pension. The payment period is determined by the recipient. The minimum term is 10 years. Payment is made upon retirement.
- Funded pension. Payments are made every month for life. The expected payment period is 228 months.
What does the benefit consist of?
The form of material support under consideration is multicomponent, that is, it consists of several parts.
- Fixed payment. A fixed payment represents a guaranteed income for a pensioner, which all recipients of insurance pensions can count on. Its size is the same for everyone and is approved by the Government of the Russian Federation every year after indexation. In 2021, the fixed payment for pensioners receiving insurance pension benefits is 6,044.48 rubles.
- Insurance part of the pension . It is expressed in the form of the product of the number of accumulated pension points and the value of one of them. Accordingly, its size is individual.
- Allowances . Various supplements may be established for pensions. For example, if its size, taking into account the fixed payment and the insurance part, is less than the established subsistence level of a pensioner in the region of his residence, then the state sets a premium. Its size is determined as the difference between the accrued pension provision and the level of the subsistence minimum.
Attention! In addition, various coefficients also influence the size of the pension. For example, the regional coefficient, which is used when calculating the amount of security for citizens living in climatically unfavorable areas.
How to find out the funded part of a pension
You can check your account status on the State Services website, at the Pension Fund and through the bank. Let's take a closer look at the last two options.
To the Pension Fund
Information about savings is stored on the personal accounts of citizens in the Pension Fund of the Russian Federation. Ways to obtain an extract:
- Government services. To do this, you need to log in to the USPU website and go to the appropriate section of your personal account. Information is provided free of charge.
- Pension Fund. A person can apply to the Pension Fund of the Russian Federation in person or send an application by mail. The document must be notarized. Data on the account status is provided 10 days after the application. The statement displays information about the length of service, the amount of contributions made, coefficients and the amount of savings.
In banks
You can also make a request about the status of your personal account to the bank. Sberbank, Gazprombank, Uralsib and VTB cooperate with the Pension Fund. Methods for obtaining a statement are through an operator, at an ATM or through online banking.
Differences from labor
A labor pension is currently not established in the Russian Federation. However, its differences from the pension insurance system that replaced it are not so great. So, here you should pay attention to the fact that for calculating the insurance part of the pension, it is not the work experience, but the insurance period that is used.
It should be understood as all periods when contributions for the purpose of compulsory social security were paid for a citizen . It is also worth noting non-insurance periods (that is, the time when the employee was not actually engaged in work, but points were still accrued to him).
Reference! Military service, which was previously taken into account when assigning a pension, at the moment, in the vast majority of cases, does not matter when forming the IPC.
Differences between labor and insurance pensions
How is the funded part of the pension paid?
Payment of savings occurs at the request of the recipient. A person needs to contact the Pension Fund or Non-State Pension Fund. The application indicates the method of receiving funds. For example, a lump sum payment. The application can be submitted in person, sent by mail or through State Services.
The application review period is 10 days. Funds are paid within a month after the decision is made.
On a note! Even working pensioners are entitled to a lump sum of money.
List of documents
To receive payment, the applicant will need a passport and SNILS. The package of documents for the relatives of the deceased is slightly larger. They need to prepare documents about the relationship, SNILS of the deceased and the person’s death certificate. Sometimes a certificate from your place of residence is required.
Who to contact
The documents are submitted to the organization in which the recipient has a personal account. The action can be performed in person or remotely.
Receiving the deceased's pension
The pension savings of a deceased person pass to the heirs. However, payments are not always made. For example, if the deceased was assigned a lifetime payment.
But lump sum payments and fixed-term pensions are inherited. This also includes payments before retirement. For example, in case of illness or disability of a person.
How can heirs receive the funded portion of a deceased person’s pension? Pension savings are inherited along with the rest of the deceased’s property. If a person has not appointed legal successors, then the funds will go to first-line relatives. The payment of money is made by the fund in which the personal account of the deceased is opened. Documents must be submitted within 6 months from the date of death of the testator. Reinstatement of the term occurs by court decision.
The procedure for paying money to heirs:
- Before appointment. Money is paid to relatives if the testator died before the appointment of payments from the funded part of the pension.
- After appointment. The money is paid to legal successors after the appointment of emergency pension payments. The heirs are entitled to the remaining balance of funds.
- After assigning a payment that was not received. If the deceased did not manage to receive a lump sum payment, then the money goes to the heirs. The only condition is that they must live with the testator. The rule does not apply to disabled dependents of a deceased citizen. They are given 4 months to receive funds.
Note. In the first two cases, the exception is maternity capital money (Article 7 of the Federal Law of December 28, 2013 No. 424-FZ).
If there is maternity capital money in the funded pension, then it is received by the second parent or children of the deceased person (clause 4 of the Russian Federation Regulations dated July 30, 2014 No. 711).
Additional nuances
Payment of the insurance part of a funded pension is not always done simply and at the first request of the taxpayer. There are some nuances and pitfalls in this issue that can be avoided if you know your rights and responsibilities as a taxpayer and pensioner.
A person who has received the right to early retirement can receive insurance savings one-time. You must submit a corresponding application to the Pension Fund to which you contributed funds. A special form is provided for it in accordance with Appendix No. 1 of the Ministry of Labor and Social Protection No. 12n dated 07/03/2012.
Both the taxpayer who made contributions and his legal representative can apply for funds. In the second case, you must have a passport and a document that confirms that you have this right.
Attention! When submitting documents to the Pension Fund, you can present copies of the necessary documents, but they must be notarized.
How to find out the amount
You can view the accrual history in your personal account on the State Services portal. Information about the account status is located in the section “Ministry of Labor...” > “Pension Fund...”.
You can also order an extract from your personal account on the Pension Fund website. The action is available in the “Manage Funds...” section.
If relatives do not have access to the deceased’s account, then they will have to contact the Pension Fund. Account information is provided only to family members and heirs of the deceased person.
Questions and answers
No. 1. How are savings formed?
A funded pension is created through contributions from the enterprise (employer) and income from investing funds.
No. 2. Who manages the money of citizens who did not choose an insurer?
Citizens have the right to independently choose a management company. If the employee did not submit an application, then by default the money goes to the Pension Fund of Russia. Vnesheconombank is investing the funds. Trust management of money occurs under an agreement with the Pension Fund. If desired, a person can change the management company.
No. 3. How quickly does the transition from the Pension Fund to the NFP take place?
The basis for switching to a new insurer is the application of the insured person. The general procedure is that the transition takes place 5 years after submitting the application. It allows you to transfer the funded part of a person’s pension along with investment income to a new insurer. When submitting an application for early transfer, the action is carried out for the next year. However, the person’s savings will be transferred to the NPF without taking into account investment profits from the date of the last calculation. More information here.
Pension points
Many citizens are interested in the question of what pension points are, and how they affect the amount of financial support. Let's look at it briefly.
The law establishes that employers are required to pay contributions for compulsory pension insurance for their employees. These funds are converted according to a certain formula into special points, which together make up the individual pension coefficient (IPC). In essence, the IPC reflects the volume of accumulated pension rights of a citizen.
When calculating payments, these points are taken into account as the product of their number and the cost of one of them. So, in 2021, one such unit is 98.86 rubles.
In addition, the number of pension points directly affects the possibility of establishing an insurance pension in principle, as mentioned earlier.
More about insurance points
