Contributory pension: the procedure for its formation and payment. Formation of insurance pension and funded pension. Who is en titled to funded pension payments?

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

Contrary to popular belief, caring about future deductions from the budget includes not just official employment and the payment of mandatory contributions to the Pension Fund, but also the opportunity to choose the development option and the formation of future subsidies. In order not to regret the lost profits and receive decent benefits upon reaching a certain age, it is necessary to understand how deductions from the budget in Russia are calculated, what constitutes an insurance and what is a funded pension, the procedure for the formation and payment of mandatory contributions from the employer. Having made a choice, citizens will be able not only to find out the amount of deductions from the budget, but also to index their savings.

Funded pension: characteristics and features

Pensions in Russia are divided into 2 types: insurance and funded parts. FirstThe deductions are used to pay benefits to workers who have already reached retirement age, as well as to social pensions (not related to old age). The accumulative part represents the employer's contributions to the Management Company or the Non-State Pension Fund. The funded pension will be paid after the employee reaches a certain age.

The formation of an insurance pension (and a funded pension) can be carried out in 2 ways:

• 6% - in the UK or NPF for subsequent indexation of accumulated funds, and 10% - for insurance payments;
• all 16% - for contributions to pensioners.

In the first case, the employee must contact the offices of the Pension Fund of the Russian Federation in order to write an application for transfer to the NPF or the Criminal Code. In the second, on the contrary, you do not need to come anywhere - this will mean a voluntary refusal to form a funded pension in order to accrue insurance payments for existing recipients of budget funds.

Transfer of pension contributions to NPF: features

In order to increase the amount of future contributions from the employer to the Pension Fund, a citizen must make a choice: in which of the organizations will his funded pension. The formation, investment, payment and right of inheritance of contributions will directly depend on the correct decision of the employee.

Those citizens who by the end of December 2015 have not chosen a company that would be engaged in the indexation of mandatory contributions (OPS) are considered "silent". The funded pension, the procedure for its formation and payment for the "silent" remain in the past- now all pension payments will be a one-time part and indexed depending on the state of the country's economy and the size of the budget. From January 1 of this year, 6% of savings will automatically go to the insurance part, which is intended for the payment of benefits to pensioners.

Employees born in 1967 (and subsequent periods), who have decided on the choice of a non-state pension company, take responsibility for the state of mandatory contributions from the employer.

When choosing between the state and the NPF (or the Management Company), it should be borne in mind that the transfer of the accumulative share of pension contributions to another management company or fund is carried out once a year, and in case of a change in one’s decision regarding the “fate” of deductions from budget, you must re-apply to the department of the Pension Fund of the Russian Federation. However, when changing the NPF with a time interval of less than 5 years, the indexation deductions received during the period of being in the previous company are burned out.

PFR or NPF: which is better?

Being faced with a choice of how to use the funded part of the pension, citizens of the Russian Federation need to decide which direction is a priority for them.

If you refuse to transfer pension savings to NPFs or UK, the amount of social contributions depends entirely on the state of the country's economy and the size of its budget. The state guarantees the annual indexation of insurance payments, taking into account the growth of inflation and adjustment factors. Funded pension, its orderformations and payments in this case are not taken into account.

The level of coefficients that correct the final amount of insurance premiums for the state will be significantly lower than for private companies, since their indexation is related to the state of the company in the insurance services market. That is, Russian citizens have a choice: to stay in the Pension Fund and be guaranteed to receive insurance payments upon reaching a certain age, or to transfer funded contributions to a private company, where they will be further indexed.

If the company's activity over the past year has been successful, the amount of trade payments on the funded pension may be higher than the insurance part offered by the state. However, there is a risk of lost profits here: in the event that an NPF or a management company waged a loss-making campaign, no additional payment to the funded pension will be made.

How to choose the right NPF and UK?

When choosing an NPF or a management company, first of all, you should pay attention to the availability of a license that gives the right to provide services for the OPS and NGOs. The presence of a license guarantees the fulfillment by the organization of its obligations for pension insurance and provision, namely: indexation of employee contributions taking into account the profitability ratios of NPFs, up-to-date information on the level of insurance savings, payment of funds in full in a lump sum or divided by periods.

The funded pension is paid by the company that the employee chose last (in case of changing the NPF). It is important to know that having a license does not necessarily indicate successfulactivity of the company for the current period, and no company gives a 100% guarantee that the contributions of payers will be indexed.

In addition to the license, the employee must carefully study the activities of the NPF or MC, compare customer reviews with the promises of the company's employees, study the ratings of agencies.

the funded part of the pension in the NPF or UK. The number of clients who have entrusted their savings, experience in the insurance business and the lack of dissatisfaction on the part of participants in the insurance program also play an important role in determining the candidate.

What to do if the license was taken away from the NPF?

Since 2015, the Central Bank has tightened the requirements for NPFs and MCs, in particular for the provision of pension services to the population of the Russian Federation. This resulted in numerous license revocations from companies that failed due diligence.

One of the decisions that caused the deprivation of the right to engage in activities in the field of NGO and NGO was non-compliance with the requirements of the legislation of the Russian Federation on the amount of pension savings, which serve as a guarantee of fulfillment of obligations to members of the fund.

Citizens whose NPFs or MCs have lost their licenses can transfer their contributions to another company, for example, to the Pension Fund of the Russian Federation,which will be responsible only for the formation of an insurance pension (and there will be no funded pension in this case), or another non-state fund.

Since 2015, a system of guaranteeing pension contributions has been operating in Russia, operating on the principle of bank deposit insurance, which protects the accumulated funds of employees, which will be paid in full from the funds of the Pension Fund of the Russian Federation or NPF (UK).

How to find out the size of your future pension?

When transferring to an NPF or a UK funded pension, the procedure for its formation and payment will be displayed on the company's website. To do this, you need to register in the "Personal Account", having passed the necessary identification. In any non-state fund, when entering the site, the full name of the employee, the number of the OPS or NGO agreement and SNILS must be indicated. As additional details, they may require a registration address, information about the employer and an extract from the work book.

After registering in the "Personal Account", the following information will be available to the program participant:

• Date of the conclusion of the contract by the NGO or NGO.
• Contract status (active, suspended, closed).
• Total amount of accumulated funds.
• The amount of interest accrued for the period from the moment of joining the NPF or the UK to the present period.
• Retirement account statement (receipt from employer, personal contributions, indexing).
• Cumulative part transferred from another NPF (in case of transfer from onecompany to another).

To accurately calculate the size of the future pension, the user of the resource can use a calculator that will calculate online what payments are due to the payer after the end of work. The calculation is based on the age of the participant, gender, beginning of employment and official salary. The principle of the calculator is simple: the higher the level of remuneration for work, the greater the amount of pension due to the payer.

The calculation of the main part of the labor pension on the PFR website follows the same principle.

In addition, users can use a free service: ordering an extract from the Pension Fund of the Russian Federation. The report on the status of the pension account and accrued payments is generated once a year. The funded part of the pension, the procedure for its formation and payment will not be reflected in the PFR report.

How to get the funded part of the pension?

After an employee has reached a certain age (60 years - male, 55 - female), he is en titled to the payment of savings, which he can receive at the PFR or non-state fund (UK) department. The amount of deductions due to the employee will depend on how long the OPS agreement was concluded, on the level of wages and the state of the NPF. If the activities of the fund were successful, then the funded pension, the formation of which began from the date of the conclusion of the OPS agreement, will be paid taking into account the profitability ratios that are individual for each commercial organization. If the size of the investment portfolioThe NPF or MC was small during the term of the contract, or the company experienced difficulties in the financial market, then the accumulated funded part of the pension, taking into account the accrued interest, will be small, or there will be no allowances at all.

The funded pension, the procedure for formation and payment completely depend on the company's activities, and if the total amount of accruals does not suit the payer, you can contact the company's management with a request to revise the adjustment factor.

Each company pays the funded part in its own way, and each of the companies allows the program participant to choose a convenient method of enrollment: a lump sum in the form of a total amount or in the form of annuity payments broken down by months.

To receive payments, an employee must reach the required age and have supporting documents with them: a Russian passport, a pension certificate, SNILS and an OPS agreement. If the method of receiving payments implies the presence of a bank account, then you need to take the details for making the transfer. At the Russian Post office, a fee will be charged for the service in accordance with the tariffs of the organization.

Payment of the funded part of the pension to legal successors

The law on the payment of funded pensions establishes that in the event of the death of a citizen, his pension contributions will be paid to his successors. In order to independently determine the circle of persons who will be en titled to payment, a participant in the OPS program or an NGO must contact the FIU (if it is"Silent") or NPF and write an application for the distribution of the circle of persons who will receive benefits.

If the employee has not independently determined who is en titled to funded pension payments, the priority right to receive contributions belongs to his next of kin: children, spouse, parents.

Siblings/brothers, grandchildren and grandparents are the second in line to receive a funded pension. The procedure for its formation will not differ from the payment to previous relatives.

To receive pension contributions, relatives must contact the PFR or NPF office within 6 months from the date of death of the program participant and provide a package of documents confirming the connection and the right to receive payments. The FIU makes a decision on accrual / refusal within 5 days, non-state companies - up to 14 working days.

Deductions will be made no later than the 20th day of the month following the date of receipt of the application.

CSOs and NGOs: what's the difference?

Those who want to index their insurance savings have repeatedly faced the problem of which method is more profitable: non-state pension provision or compulsory pension insurance.

In both the first and second cases, the employee's savings transferred to the Pension Fund will be indexed.

The main difference between the programs is that in the case of an OPS agreement, pension savingsare deducted by the employer, and with an NGO, the employee himself is obliged to make payments (DSV) to the FIU. And if, under the OPS, payments depend on the salary level of the program participant, then under the DSV, the client himself chooses the amount of deductions (but not less than the amount established by the agreement).

Thus, CSO and NGO are related programs (like the concepts of funded pension and term pension payment), the difference is only in the way of making contributions.

Moratorium on the funded part of the pension

From January 1, 2014, the Government of the Russian Federation "froze" the funded pensions of citizens for an indefinite period. This decision was made in connection with changes related to the reorganization of the system of pension funds, each of which must be tested by the Central Bank for the fulfillment of all obligations to the parties to the agreement. Companies that passed the test automatically received a perpetual license to provide pension services to the population and entered into the pension savings insurance program. The extension of the moratorium in 2016 was due to the budget deficit and the difficult state of the Russian economy.

The funded pension, the procedure for its formation and payment in 2016 will still not be indexed.

Thus, this article was devoted to the topical pension issue of interest to many (the procedure for formation, payments, legal justifications) and possible nuances in this area.