What is a Retirement Point? How are pension points calculated for pensioners?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Retirement savings of employed persons are divided into two parts: savings and fixed. Each person decides for himself whether he will receive a fixed payment, or send all the funds to form the funded part of the pension. The form by which the amount of savings is calculated includes several elements. One of them is retirement points. They will be discussed in this article.

Factors

The size of the insurance pension is affected by:

• the amount of insurance premiums transferred to the budget from the "white" salary;
• tax payer age;
• presence of a disability group, dependents;
• accommodation;
• time of retirement (early or not);
• formation of savings.

In 2017, persons who permanently reside in the Russian Federation and receive a pension as of December 31, 2016 are provided with a one-time payment in the amount of 5 thousand rubles. This amount is paidwithout filing an application and is not subject to personal income tax.

Calculation of pension

The amount of the pension is calculated according to the formula:

Pension=P x S x K + FV x K, where:

• P - the sum of all individual odds.
• С - monetary expression of one coefficient (point).
• K - increasing indices for insurance and fixed payments.
• PV - approved payment.

Let's take a closer look at each of these parameters.

Individual odds

The pension score is an indicator that evaluates each year of official employment, taking into account insurance contributions. When calculating the pension for 2016, the sum of all accumulated points is taken into account. If a person went on a well-deserved rest before 2015-01-01, then the calculation algorithm differs from the standard one:

SP=MF / S where:

• SP - insurance pension.
• MF - insurance pension as of 12/31/14 without a fixed payment and funded part.
• C - the cost of one point on 01.01. 15 (64, 1 rub.).

The sum of all points accumulated after 01.01. 15=MW / MW x 10 where:

• CB - premiums for the formation of insurance payments paid at the rate of 10 or 16%.
• MV - contributions from the maximum salary.

How are Pension Points calculated?

When calculating, coefficients for individual periods included in the length of service are taken into account. For example, the period of caring for a child when he reaches 1.5 years. The sum of thesecoefficients are added to the already calculated scores. These periods are taken into account only if they are not included in the calculation of the disability or survivor's pension.

The number of pension points that can be accumulated per year is limited by law and is constantly increasing (until 2021). The maximum number of coefficients is different for persons who have decided to form the funded part of the payment (5, 16 for 2017), and for those who refused it (8, 26 for 2017).

The cost of the coefficient annually (01.02) increases at least by the price growth index. Every year, from April 1, new values of the coefficients of the Federal Law "On the budget of the PFR" for the planned year are set. As of 02/01/16, the cost of one point is 74.27 rubles.

Example

See how to calculate Retirement Points using the formula:

B=(S/M) x 10 where:

• S - the amount of contributions transferred to the formation of a pension in the PF from annual earnings.
• M - the amount of contributions from the maximum salary paid at the rate of 16%.

Employee salary - 30 thousand rubles. per month, i.e. 360 thousand rubles / year. The maximum base is 720 thousand rubles:

720 x 0.16=115.2 thousand rubles – the maximum amount of contributions.

We will calculate pension points under the following conditions:

• employee chose only insurance pension;
• employee chose mixed insurance model.

Option 1. The amount of contributions at the 16% rate is 57.6 thousand rubles. (360 x 0.16).

B=(57, 6/115, 2) x 0, 1=5.

Option 2. The amount of contributions at a 10% tariff is 36 thousand rubles. (360 x 0, 1).

B=(36/115, 2)0, 1=3, 125.

Fixed payout

It is set in a fixed amount in relation to the insurance pension. The amount of the payment is indexed every year. As of February 1, 2016, it is 4.56 thousand rubles. Increased payout amount provided:

• disabled group I;
• citizens over the age of 80;
• persons who worked or live in the Far North;
• to citizens who support disabled persons.

Indexation is not carried out for working pensioners.

In cases of granting an old-age pension ahead of schedule, later than the right to receive it or refusal to receive a pension, an increasing coefficient for a fixed payment is applied.

Special occasions

Some milestones in life count towards seniority. For example, conscription service, child care. During such periods, a person usually does not work, but he is awarded a certain number of points. If a person continues to work, then he himself chooses: to count points calculated from earnings, or to use those guaranteed by the state.

Pension point for socially significant periods:

• 1, 8 - for a year of caring for a person over 80 years of age, a disabled person or a year of leave to care for the first child;
• 3, 6 - for the year of caring for a second child;
• 5, 4 - for the year of care of the third and subsequentbaby.

How is seniority determined?

A citizen can confirm his employment until 2002 by providing a work book. Since 2003, personalized accounting has been introduced. All information that organizations transmitted about their employees was recorded in the personal account of the PFR.

Insurance period earned before 01/01/15 will also be recalculated into a pension point. First, pension rights are determined as of 01.01. 2002 The pension is then calculated on the basis of the average salary for the 2 years before retirement or for five consecutive years. Since 2002, pension rights have been determined based on the amount of contributions paid. In 2010 they were revalued by 10% of the value of the pension capital. An additional 1% is charged for each year of work. Until 2014, the accumulated pension capital is annually indexed by a certain coefficient. The resulting amount of savings is divided by the cost of one coefficient. This determines the total number of points.

It is rather difficult to make such calculations on your own. All information about the taxpayer is stored in the pension "file". Therefore, when calculating the amount of a pension, it is better to focus on the calculator presented on the PFR website.

How to do it?

You need to go to the PFR website in "Electronic Services" and favor in the "Personal Account". Here you can see the already accrued pension points for working pensioners and calculate their number for the current year based onsalary data.

Young employees can use the calculator to estimate the approximate amount of their pension if they plan to serve in the army or have a child. Older people can see how the amount of the payment will change if they "delay" at work. Under the condition of late registration of pensions, both parts of the payment are indexed to the premium coefficient. But "recycling" longer than 10 years is meaningless. The pension increases only for the first decade.

In 2014, the government suspended the formation of savings. All funds were directed to current payments. This timeout was necessary in order to survive the crisis in the Pension Fund and "reformat" the work of NPFs, whose services are already used by more than 22 million people. The Ministry of Labor still insists on the introduction of a voluntary format for the formation. But depriving the country's economy of "long" money could lead to a serious economic crisis.

New rules

From 2017, the old-age pension is granted under the following conditions:

• experience is at least 8 years (by 2024 - 15 years);
• retirement score of at least 11.4 (annual increase of 2.4 to 30);
• citizen has reached 60 years old (male) or 55 years old (female).

The retirement age for public office holders in 2017 is 60.5 and 55.5 years, with subsequent annual increases to 65 and 63 years.