2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The Government of the Russian Federation decided that from 2014 the part of the pension, which was called funded, will be reduced from 6 percent to 0. But you can keep the usual six percent if you know where to transfer the funded part of the pension.
First of all, to save those same six percent, you must submit a special application to the Pension Fund. Transferring all powers to an agent will not work here, you have to do everything yourself.
At the same time, the procedure itself is absolutely free, you just have to spend some time filling out a number of documents.
Pension - what is it formed from?
The accumulation and payment of pensions are two separate processes that should be distinguished if a person is thinking about where to transfer the funded part of the pension. When he reaches a certain age, the payment of his pension begins. And the accumulation of this money is connected with the taxation of citizens who are still working.
Until the end of 2013 - what wasbefore?
Of the total salary of each citizen, about 30 percent used to go to taxes. 6% was deducted just to form the funded part of the pension, another 20 - to the insurance part. The rest of the money went to other funds.
Accumulative funds is a sum of money that is stored in apension account, personal for each citizen. In addition, you can bequeath these funds to heirs. This can partly solve the problem of where to transfer the funded part of the pension. The insurance element of a pension is quite another matter.
This component is fully controlled and regulated by the state. It is the insurance part that is spent on current payments to pensioners. In our country, there is a noticeable trend of an annual increase in their number. Therefore, the issue of pension provision is now receiving much attention at the state level.
Why do we need a funded part of the pension?
As already mentioned, the formation of this amount occurs on a separate account, which is registered to a particular person. So, in principle, the question of where to transfer the funded part of the pension should not arise. Such money cannot be spent on paying pensions to people who have already reached the required age. It is transferred to the heirs either upon death or by will.
The government promises that social pensions will increase by the coefficient for those who
will becompletely abandon the cumulative part. But for now, one can hardly be sure that such initiatives will be implemented soon.
It is worth noting: the usual pension of six percent will continue to be paid to those who transfer the funded part to a non-state pension fund until the end of 2013. In general, almost no changes are expected in this direction next year. The option to opt out of a pension in terms of savings is offered by the state by default.
Those who don't know about this reform yet should hurry up to get it right. The funded part of the pension was still maintained in 2013. The transfer of the funded part of the pension from one pension fund to another may take some time, because of this, you can lose part of the money.
Recommended:
Is it possible to receive the funded part of the pension at a time
After people had the opportunity to invest part of employers' contributions and some other funds in NPFs, many rushed to take advantage of this. One of the main criteria for such a choice was not only the acquisition of additional profit, but also the possibility of receiving a funded pension at a time. But it turns out that this is not always possible
How to take the funded part of the pension at a time: who is supposed to, methods of obtaining, necessary documents and legal advice
Citizens who transferred part of the contributions to the funded pension often wonder how to withdraw the accumulated funds. And it is desirable to do it at the same time. The law provides for different conditions for the payment of a funded pension, including a one-time payment. You can learn about this and other useful information from the following article
Contributory pension: the procedure for its formation and payment. Formation of insurance pension and funded pension. Who is en titled to funded pension payments?
What is the funded part of the pension, how you can increase future savings and what are the prospects for the development of the investment policy of the Pension Fund of the Russian Federation, you will learn from this article. It also reveals answers to topical questions: "Who is en titled to funded pension payments?", "How is the funded part of pension contributions formed?" and others
What is the funded and insurance part of the pension? The term for the transfer of the funded part of the pension. Which part of the pension is insurance and which is funded
In Russia, the pension reform has been in effect for quite a long time, a little over a decade. Despite this, many working citizens still cannot understand what the funded and insurance part of a pension is, and, consequently, what amount of security awaits them in old age. In order to understand this issue, you need to read the information presented in the article
What does it mean to "freeze" the funded part of the pension? Pension payments
The topic of freezing the funded part of the pension has been actively discussed over the past few years. What does this mean in practice?
