What parts does the Russian pension consist of?
Let's take a closer look at how the old-age pension is formed and what parts it consists of. The insurance share of the pension is formed from part of the contribution that employers transfer for their workers according to the established tariff.
A larger percentage of the pension fee is spent on financing in the solidarity system than on the savings fund. There is a legally approved pension fee - 22% of the salary before tax deductions.
The contribution is divided into parts depending on age. If his year of birth was before 1967, then 16% is collected by a personal account in the Pension Fund insurance system. The balance of 6% goes to the solidarity part of the tariff.
For all other workers who were born after 1967, the contribution is broken down into accounts as follows:
Accordingly, for those born in 1966 and earlier, the amount of benefits is calculated depending on the amount of contributions made for them.
The funded part is mandatory for all citizens who were born since 1967. A share of the contribution goes to the pension fund of your choice.
The assets of this fund are formed from such shares. They are invested in investment projects. The management company, which signed the PRF cooperation agreement, manages the finances.
To increase the size of the funded part of the pension, you can, at your discretion, contribute not only the mandatory 6%, but also additional amounts.
To form an accumulative pension capital, you need to submit a corresponding application to the Pension Fund. In case of refusal from further participation in the savings system, funds already transferred to an individual account can be withdrawn as a single payment immediately or as an urgent savings payment.
You can also accumulate funds while earning work experience in a non-state pension fund, which a citizen can choose independently.
After the collapse of the USSR on the territory of the Russian Federation, changes in the calculation of time worked by a citizen changed repeatedly. Until 1998, Russia used the inherited calculation of years worked to calculate pension benefits.
The amount of payments was calculated according to two parameters:
When selecting the fourth item, the total number of years worked includes the following periods:
There are still some periods before 2002 that are included in the number of days of service worked and are converted into capital, taking into account the increasing coefficient. These include the following.
A coefficient of 1.5 is applied for the following circumstances:
Coefficient 2 is used when taking into account the following years:
Coefficient 3 is taken into account if there are the following:
In those cases when, according to the method of paragraph 3 of Art. 30 FZ-173 establishes a large amount of the total amount of capital for assignment; all of the above non-insurance periods are included in the total number of years of work experience either on a calendar basis or are not taken into account at all.
Before the beginning of 2015, the approved minimum years of work experience was 5 years. New rules have now come into force. This parameter will gradually increase annually by 1 year, starting from 6 years in 2015, until it reaches 15 years in 2024.
If a Russian does not have the required number of insurance years to assign a benefit, then he will be paid a minimum social pension. It has a fixed value, which is slightly lower than the insurance amount.
You can increase the size if you do not register it after reaching the age specified in the law and later leave the workplace. Each subsequent year of work will bring an increase to the amount of this benefit.
Note! Official length of service is confirmed only by work records entered on the pages of the work book. This number of working years may not be sufficient to determine the amount of pension payments. If an employee works unofficially under current conditions, then such length of service will not give him the right to a labor pension in old age.
The amount of earnings has a special influence on the size. At an enterprise, it is now possible to earn a minimum length of service with a large salary and receive a higher benefit than a low-paid worker who has officially worked honestly and conscientiously for 35 years of his life.
Since 2015, workers have been given the opportunity to independently choose which benefit they want to receive from two completely separate types of labor pensions:
These funds are formed in completely different ways. The insurance pension fund is created in a solidarity system from contributions from workers, which are used for current payments to the generation of pensioners. The funded type of pension budget is also formed from contributions, but does not participate in the current payment of benefits to pensioners, but is directed to investment in financial markets. The insurance type of pension increases due to indexation, but the funded type does not
The share component of the insurance pension, which often exceeds the fixed basic amount of this type of benefit, in the future depends on the amount of the contribution paid to the solidarity fund. Moreover, for Russians officially employed in production, fees are also paid by their employer.
As for the self-employed part of the population (notaries, lawyers, individual entrepreneurs, etc.), they pay all contributions for themselves.
Note! All fees paid for the worker are reflected in his personal account in the PRF. Subsequently, for calculating the amount of the insurance type of pension, these data are the main ones.
You should know that the annual amount paid to the insurance Pension Fund for each worker is affected by his age. For example, in 2010, a certain tariff was established on the levy for workers born in 1966 and earlier, in the amount of 20% of their earned income.
At the same time, workers born in 1967 and younger had to deduct 14% of the amount of accrued earnings. Every year the tariff is revised by the Russian authorities.
From the transferred funds, the share of the insurance part of the labor pension is separated, which is used to create an estimated pension capital. The size of the fund is annually indexed by a coefficient approved by the Government of the Russian Federation. These financial resources are used to pay three types of labor pensions:
In the process of determining a pension for a Russian citizen, when he reaches the age approved by law, the entire base capital from the contributions paid is distributed over the months in the expected period for the payment of insurance benefits. To do this, divide the total number of all fees paid by 228 - the number of months in the expected period for paying pensions.
With the onset of 2015, changes regarding the calculation of the insurance and funded parts of pensions came into effect.
Now the insurance share should be calculated not in ruble banknotes, but in points (coefficients).
In the future, when calculating the pension amount, it must be recalculated into ruble currency.
The cost of points will be approved annually by the Russian authorities and will increase according to the percentage of inflation.
When you retire, all points earned will be totaled and then multiplied by the set price.
To the final value you must also add the guaranteed amount, which is assigned by the state in a fixed amount (basic pension).
The result is the final amount of insurance benefits for an elderly citizen who has become a pensioner. There are special points that are assigned to a pensioner for uninsured periods of service:
So, the right to an old-age pension is given to persons who have the required age, number of years of work and minimum scores established annually by law.
Let's move on to consider the answer to the question of what parts the disability pension consists of.
Similar to the same methodology as in calculating the age benefit, the amount of the insurance part of the pension in connection with loss of health is calculated. The formula looks like this:
P = Const+ $/(V x K), where
Legal acts reflect the following amount of time, representing the standard duration of insurance months by age:
As for the funded part, in contrast to the described method for determining the amount of insurance benefits for a disabled person, the adjustment coefficient K is excluded from the formula.
Pension legislation changes quite often due to the demographic and economic crisis. Persons interested in this topic should pay attention to the amendments coming into force. Information for readers is provided on the basis of the current legislation of the Russian Federation as of 2016.
Submit your question in the form below
Very often people ask for clarification on how the pension is calculated and what it consists of.
In accordance with the Federal Law “On Labor Pensions,” the pension consists of two components: the Insurance Part (IC) and the Savings Part (SC). The insurance part consists of insurance premiums paid by your employer for you. The funded part consists of your personal contributions. At the same time, a state pension co-financing program is currently in effect. The essence of the program is that the state doubles the money you deposit. That is, if you contributed the minimum amount to participate in the program - 2,000 rubles, then the state will contribute another 2,000 rubles. In total, for the year, 4,000 rubles will be credited to your individual account with the Pension Fund, in addition to the insurance contributions made by the employer. The maximum amount that the state can transfer to the account of the insured person is 12,000 rubles. An exception is made for persons who have reached retirement age (men - 60 years, women - 55 years), but have not applied to the Pension Fund for the accrual of any part of the labor pension. For such persons, co-financing increases not two, but four times, but should not exceed 48,000 rubles per year.
This does not exclude participation in the employer's program. He can also co-finance your pension up to 12,000 rubles per year, which will not be subject to insurance contributions.
But this is not all the advantages of the Funded part of the pension. The additional funds you contribute to the savings portion are invested in the stock market in order to generate additional income.
The state co-financing program is valid until October 1, 2013. You can find out how much money is stored in your individual account with the Pension Fund from the annual notices sent out by employees of the Pension Fund of the Russian Federation.
So, the formula by which the Insurance portion is calculated is as follows: SCh = PC / T + B,Where
The amount of estimated pension capital ( PC) is determined by the formula: PC = PC1 + SV + PC2, Where
The formula used to calculate PC1 next: PC1= (RP - 450 rubles) x T, Where
The legislator established that the estimated size of the labor pension (RP) when assessing pension rights can be determined in two ways: 1 Option: RP = SK x ZR / ZP x SZP, Where
Option 2: RP = ZR x SK, Where:
These formulas are valid subject to the conditions established in the Federal Law “On Labor Pensions”, therefore, if you doubt that your pension has been calculated correctly, it is better to contact a qualified specialist.
The pension consists of three parts: basic, insurance and funded. Basic - state guarantee of minimum pension provision, assigned to a citizen of the Russian Federation if he has an insurance period of a certain duration. The insurance part is the employer's contributions to the pension fund to the citizen's personal account, which are summed up. For citizens born before 1967, the pension consists of a basic and insurance pension, and for those born after 1967, it also consists of a funded pension. The insurance portion is deducted to the savings portion. The funded part accumulates and is the only part that a future retiree can influence.
first of all, from the total work experience all your life - the higher it is, the higher the pension will be. Medals, merits, special certificates, etc. at the place of work are also taken into account. Under what conditions did you work, what position did you hold in life? She’s had 50 years of experience or so and she’s still working. And her pension is not small and her salary most likely is too. She works as a chemistry teacher, you have the title of honored teacher, a respected person in the area, like, etc. I think the total income per month is about 40 thousand rubles, but at what cost does she pay for all this? She works from morning until late evening and also rehearses those who are going to enter medical institutions. Because classes with a chemical bias, and so, as a rule, everyone does not enter budget places.
The labor pension consists of three parts:
The first and second parts of the labor pension are formed from the social tax paid, and the last is a state-guaranteed pension payment. It can even be increased if you apply for a pension later than the due date for entering retirement age.
Payments of the insurance part of the pension are guaranteed by the Pension Fund and it manages the contributions. The funds of the funded pension are managed by a state or non-state investment organization (non-state pension fund).
Social pension taxes paid are converted into points. When you reach retirement age, these points will be multiplied by a nominal amount, which is approved annually by the government, and this will result in the size of the pension payment.
I suggest you familiarize yourself with pension formula scheme to understand how their pension works out.
The pension is calculated based on a number of factors, such as:
Since the beginning of 2015, the formula by which pensions will be calculated has changed slightly. But still, the size of the future pension will directly depend on the length of service of the future pensioner, the average salary, plus additional points depending on the age at which the person retires.
Don’t rely too much on the state, I took early retirement in 1967, my funded pension is about 439,000 rubles, naturally they didn’t pay it in a lump sum, but added 1,100 rubles monthly. I don’t agree, I’ve written to the pension for now, but if I do, I’ll file a lawsuit.
The accumulation mechanism and structure of the old-age labor pension can be studied in detail in the picture. The calculation will differ primarily depending on the year of birth (before 1966 and after 1967). The difference will be in the presence of the so-called funded part of the pension, which will only affect persons born in 1967.
The pension formula has changed several times in recent years. You can see this formula on the official website; it was specially written so that no one would understand anything, even though there is a decoding of each component. According to this formula, the pension consists of the insurance part, from a number of some incomprehensible individual coefficients, the amount of the pension also includes the concept of survival, working at retirement age without receiving a pension, and other incomprehensible components of the formula.
From January 2015, the size of the old-age labor pension will consist of three components:
The main difference is that the insurance part will be calculated not in rubles, as before, but in points. The number of points directly depends on the pensioner’s length of service and the size of his salary.
In order for every pensioner to be able to calculate the amount of his pension, the Ministry of Labor has developed a special pension calculator. You can find it on the website rosmintrud.ru or on the website of the Russian Pension Fund. True, there is now an announcement on the site that work is underway to improve it.
Pensions there are:
Labor pensions there are:
The largest pensions are state pensions, the smallest pensions are social ones.
The minimum length of service that gives the right to receive an old-age pension upon reaching retirement age is 5 years.
If, upon reaching retirement age, a person does not have a minimum of 5 years of service, then after 5 years he has the right to a social pension (women at 60 years old and men at 65 years old).
State pension civil servants, military personnel, victims of radiation and man-made disasters receive.
Labor pensions are paid from the pension fund, which is formed by employers making contributions to the insurance contributions of their employees in proportion to their earnings. These deductions go to an individual personal account; the account number can be found in SNILS.
According to the current legislation of the Russian Federation old age labor pension in Russia since 2002 consisted of three parts:
But in fact, there was no funded part, since women born in 1957 and younger retire in 2012.
Since 2010, the basic part has been added to the insurance part.
Since 2012, the pension consists of two parts:
The size of the old-age labor pension since 2012 depends mainly on several factors and conditions:
The most common reason for retirement is reaching a certain age (in Russia - 60 years for men, for women - 55). What does the pension consist of? The labor pension consists of parts called insurance and funded. That is, the total volume of these payments depends on the amount of funds collected in the savings and insurance pension accounts.
Let's take a closer look at the formation of both parts of payments. Let's start with insurance, since the main share of pension contributions goes in this direction. Insurance contributions are made by employers of citizens. Today this tariff is 22% of wages before taxes. This money is distributed between retirement accounts in different ways. It all depends on the age of the employee.
So, for future retirees who were born before 1967, 16% of this 22% is put into an individual insurance pension account. The remaining 6% goes to the solidarity part of the tariff. The same 6% goes to the joint account of persons born after 67 of the last century and later. Another 10% is deposited into the individual account. The remaining share - 6% - forms the individual accumulative part of the tariff. Accordingly, what parts the pension consists of depends on age: persons born in 1966 and earlier receive a pension according to the volume of their insurance deposits.
The insurance part consists of the amount of the estimated pension capital (PC), divided by 216 (the expected number of months of pension payment), and the base, the value of which was set at ~3100 rubles in 2012. PC is formed from contributions to an individual insurance account. Thus, the variable part of insurance payments does not depend on contributions to the solidarity account. This account is used to provide basic pay and for other purposes.
Contributions to the accumulative pension fund, as follows from the previous explanations, are mandatory for all working Russians born in 1967. and younger. The funded part goes to the disposal of the pension fund that the citizen has chosen and becomes part of the assets of this fund. This part is used for investments made by a management company collaborating with the pension fund.
As mentioned, the amount of mandatory payments for persons born in 1967 and younger to a savings pension account is 6% of annual income. However, each person can deposit additional funds into this account. This is done either through a bank or through an employer, who can, at the employee’s request, withhold the specified amount in favor of a savings pension account. All contributions to the savings account are individual (that is, there is no joint part for the savings account).
The pension fund servicing the funded part can be either the Pension Fund of Russia (PRF) or one of the non-state pension funds. The insurance account is generated only through the PRF.
The old-age pension consists of funds accumulated in insurance and savings pension accounts. Transferring contributions to a savings account is mandatory only for persons born in 1967 and later. The management of the insurance account is carried out only by the PRF; management of the savings account can be entrusted to a non-governmental organization.
More and more often, citizens in Russia are wondering what their pension consists of. This is an important issue that is recommended to be taken care of in your youth. The pension system in the Russian Federation is constantly changing. Over the past few years, many theories and systems have been put forward regarding pension provision for the population. Some of them have already entered into force, while others are under consideration. However, an important point is to determine the components of the pension. What does it consist of? What happens? How much is the average citizen entitled to in a given case? All this will be discussed further below.
From now on, it is clear that the total amount of the old-age labor pension consists of a very large number of components. The pension system of the Russian Federation has been constantly changing recently. And therefore, all the proposed schemes for calculating state support are relevant only for today. It is likely that other options for generating pension payments will soon be used.
What does a pension consist of? Based on everything previously said, we can conclude that the following elements have an influence:
