Pension Fund budget: adoption, fixed assets, income and expenses

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

Funds that are state property, in no way available for withdrawal and are not included in any other budgets, aimed at one goal - the provision of pensions for Russian citizens. This is the definition of the budget of the Pension Fund. It is calculated for each year by the Board of the Pension Fund of the Russian Federation with the obligatory consideration of the balance of income and expenses.

Such a budget is formed at the expense of insurance pension contributions from the civilian population, money from the federal budget, and profits from the allocation of free finance by the state. At its core, in the Russian Federation the budget of the Pension Fund is consolidated. In other words, combining all local and regional funds.

Due to what it is formed?

The budget of the Pension Fund of the Russian Federation is formed in accordance with the legislative act - paragraph 1 of Art. 17 of the Federal Law No. 197 "On Compulsory Pension Insurance". In particular, it is said here that it consists of the following components:

1. State budget funds.
2. Employer paid premiums.
3. Fee and other monetarysanctions imposed on the population.
4. Profit from investing temporarily free money OPS.
5. Reserve funds used to pay the funded part of the pension.
6. Accumulated funds that are intended for the payment of urgent pensions to insured persons.
7. Other sources of replenishment allowed under the legislation of the Russian Federation.

Where is it hosted?

The formed accumulations of the Pension Fund budget are on the accounts of the territorial divisions of the Federal Treasury, in the divisions of the Russian Central Bank. This is necessary for transparent accounting of transactions with monetary resources within the FIU.

Who shapes it?

The budget of the Pension Fund of the Russian Federation is formed mainly by payers-insurers. They send a contribution (in cash and in kind) to their own employees who are eligible for public pensions.

The following persons are such payers:

1. Organizations (legal entities) represented both in Russia and in other countries (branches of companies).
2. Foreign enterprises and their branches, subdivisions located on the territory of the Russian Federation.
3. IP.
4. Citizens working for themselves, engaged in arts, crafts, arts and other types of individual activities.
5. Farmers running their own farms.
6. Officially employed citizens (under an employment contract).

Insurance pension contributions are thus accrued on all types of paymentcitizen labor. These include remuneration under civil law contracts - copyright and contract.

What are intergovernmental transfers?

The budget of the Pension Fund of the Russian Federation is also characterized by such a phenomenon as interbudgetary transfers. What is meant here? This is monetary assistance to the budgets of the PFR of the subjects of the federation.

Such transfers are regulated by paragraph 2 of Art. 17 of Federal Law No. 167 "On Compulsory Pension Insurance" (2001). Such assistance can be directed to the following:

1. Material support for increasing pension capital.
2. Compensation for missing budget revenues of the Pension Insurance Fund.
3. Coverage of expenses for the payment of insurance pensions in case of inclusion in the length of service of a citizen of the following periods: military service, caring for a young child, a disabled person, staying with a spouse at the place of his military service.
4. For mandatory pension insurance - in cases of early pensions.
5. For the material support of the payment of social benefits for the burial of the dead, who received an insurance pension during their lifetime.

Funds from the budget here will be calculated and distributed in the manner prescribed by Federal Law No. 18 "On Federal Budget Funds" (2005).

Consideration and acceptance

The budget of the Pension Fund of the Russian Federation is preliminary agreed upon in the highest legislative bodies of Russia in the following order:

1. PFR draft budgetsubmitted for consideration by the State Duma.
2. If the deputies approve the project, it is adopted. The law "On the budget of the PFR for …. a year" is being published.
3. Then the law is considered by the Federation Council (the upper house of the Russian parliament). If he approves it, then the budget of the Pension Fund will come into force.

It should be noted that such a law is an open document. This means that everyone can get acquainted with its text, calculations and provisions. It is posted on the official website of the State Duma and the FIU.

In the event that the budget has already been adopted, but some important amendments need to be made to it, for example, due to changed economic circumstances, a draft with the necessary changes is sent to the State Duma. They are paid into the approved budget in the same order as above.

Fund income

Let's analyze what constitutes the budget revenues of the Pension Fund of the Russian Federation:

1. Employers transfer insurance premiums for their employees and contractors. As statistics show, this is more than half of all contributions to the PFR budget.
2. Money from the federal budget. They are directed to specific targets. The first is an increase in the value of insurance pensions (due to indexation and valorization), financing of a group of preferential pensions (mostly early). The second is to cover the costs associated with the provision of social support to the population. These are funds for disability benefits, maternity capital, various additional payments to pensions andex.
3. The creation of pension savings by citizens on their own. By making voluntary contributions, cooperation with management companies, NPFs, through the Central Bank.

Fund spending

As for the expenditure of the budget of the Pension Fund, it occurs at the expense of the state budget. Compensated in case of non-payment by payers of insurance premiums or budget deficit for the next financial year. It should be noted that liability under Russian law is established for the misallocation and spending of the PFR budget.

Expenses of the budget of the domestic pension fund are realized on the basis of information about the recipients, the types of pensions established in the Russian Federation and the amounts of these payments.

As for the expenses for the payment of insurance pensions, which are financed by insurance payments, this is carried out on the basis of Federal Law No. 400 "On insurance pensions" (2013).

Main expenditure items

Let's consider what exactly the funds from the formed PFR budget are spent on:

1. Payments of insurance pensions. This is the largest expense item. Payments take up more than 3/4 of all expenses for each year.
2. Social benefits. This refers to various additional payments and allowances to privileged categories of citizens, the payment of benefits for the care of the disabled and disabled people, compensation to Russians living in the Far North and areas equated to it, financing of various regional government programs, etc.
3. Performing the functions of the fund. In particular, the costs associated with the movement of funds. This is the transfer of pension savings from PFR accounts to the balance sheets of non-state Pension Funds, management companies, etc.
4. Payment of state pensions. They are assigned to certain citizens for long service. First of all, former military personnel, test pilots, astronauts, officials. This also includes the payment of compensation to citizens for harm caused to their he alth during the performance of official duties.
5. Costs associated with the payment of funds under the state program "Maternity capital".

Paying pensions

How is the implementation of the budget of the Pension Fund of the Russian Federation? In accordance with Art. 18 of Federal Law No. 167 "On Compulsory Pension Insurance" (2001). Funds go to:

1. Payment (according to Russian law and international agreements) of insurance coverage for OPS. Transfer of sums of money in an amount equal to the amount of pension savings of the insured citizen to the NPF chosen by him (to create a funded pension part).
2. Delivery of pensions assigned from the PFR budget.
3. Financial content, technical, material support of the work of the insurer.
4. Payment of guaranteed contributions (the basis is Federal Law No. 442, adopted in 2013).
5. Other purposes, according to Russian legislation related to pension insurance.

Expense-income ratio

Pension fundtries to build his activities so that his expenses do not exceed income, so as not to go beyond the budget entrusted to him.

The last financial deficit of the PFR was observed in 2015. It was associated with the transfer by citizens of their savings from the balance of the PFR to the accounts of various non-state funds. Therefore, the deficit was purely technical in nature, not a sign of financial problems in this department.

Such transfers of funds continue to this day. What is the point here? The transfer actually takes place not from the balance of the fund's budget, but from the accounts of those management companies to which the PFR transfers the right to dispose of some of the contributions sent by citizens to the funded part of their future pension.

Therefore, such pension savings (their total amount exceeds 2 trillion rubles), which are temporarily used by the managing organization, are not reflected in the income items of the PFR budget. While the funds that are transferred by management companies at the request of citizens to the NPF are still included in the expense item. This state of affairs creates a situation of technical budget deficit. Of course, it does not in any way affect the solvency of the Pension Fund.

In case there is a real shortage of funds, it will be covered by the transfer funds of the budget of the Pension Fund of the Russian Federation. This is a kind of surplus that is set aside for just such cases.

If the deficit reaches impressive numbers, the FIU will be forced to turn to the Government of the Russian Federation to receive additional funds fromfederal budget.

The budget of the PFR is formed mainly from insurance premiums sent by employers, revenues from the state budget. The main items of expenditure here are insurance pensions and social benefits. The Parliament of the Russian Federation accepts and approves this budget.