Is the funded part of the pension worth it? Assignment of a funded pension. How are contributions made?

Before the reform, Russia had a distribution pension system - contributions that were deducted by employers from the employee’s salary were sent to the Pension Fund of the Russian Federation, and from there to cover the insurance payments of other citizens. After the reform, the pensioner is calculated the amount of insurance payments and the funded part of the pension is calculated separately, which directly depends on the amount of contributions paid from wages.

What is the funded part of a pension?

You can count on old-age insurance pension accruals only if you have a full length of service, otherwise citizens receive a social benefit established by the state. What is a funded pension for an insured person? With the reform of the insurance system, pensioners acquired the right to receive an increase in the amount of accruals (social or old-age) due to the transfer of part of the paid contributions to the individual accounts of employed persons.

The accumulated funds belong to a specific person, are not redirected to payments to other pensioners and are guaranteed to be paid to the account owner upon reaching retirement age, even in the absence of the required insurance period. The employer's contributions, which are stored in the citizen's personal account, are called the funded part of the pension.

Law on the funded part of pensions

Regulatory regulation is carried out by laws:

1. "About funded pension." It was adopted on December 28, 2013, changes were made on May 23, 2016.
2. “On amendments to certain legislative acts of the Russian Federation on issues of compulsory pension insurance regarding the right of insured persons to choose a pension option” dated December 4, 2013.

What year did it start?

The funded part of the labor pension began to form after all citizens were assigned a personal account number. From 2002 to 2004, part of the contributions paid by the employer is sent to the Accumulative Pension Fund and deposited in the personal accounts of employed persons. Since 2016, the right to further accumulation of savings is granted only to citizens born in 1967 and younger.

They were required to decide and announce their decision to choose a system for distributing insurance premiums by the end of 2015. For those who have started working, the time to choose a system for distributing insurance premiums is 5 years or until the employee turns 23 years old. For those silent who did not write an application, automatically all 22 percent of contributions will be directed to insurance payments.

The difference between the funded part of a pension and the insurance part

The disadvantage of forming savings is that these funds are not indexed to the level of inflation - the insurance part is indexed annually. There are positive differences between this type of payment:

1. The entire amount of savings is paid upon the occurrence of an insured event, even in the absence of mandatory work experience.
2. The opportunity to earn income is to increase the amount of transferred contributions through investing.
3. The right to inherit the funded pension of the deceased is provided.

How is it formed

The following sources are provided by law for the formation of savings:

1. Mandatory pension contributions. They include funds from the period 2002-2004 concentrated in the personal accounts of employed persons, as well as the distribution of contributions transferred by the employer after the pension reform of 2013. According to the adopted law, 16 percent is deducted for insurance payments. The tariff for financing savings payments is 6%. Since 2014, a moratorium on the formation of savings has been introduced: due to a lack of funds in the state budget, the entire amount of paid contributions is allocated to insurance payments. The freeze on savings transfers was extended into 2019.
2. Voluntary contributions are provided for all categories of citizens.
3. Funds from the Pension Co-financing Fund. From 2008 to November 5, 2015, persons who deposited money in the amount of 2,000 to 12,000 rubles into a personal account received a 2-fold increase in the amount of savings. For citizens who have reached retirement age and have not applied for pension payments, the amount of money contributed increases four times.
4. Maternity capital funds can replenish a personal account if the insured person writes an application.

Calculation of funded pension

Since January 2015, the approaches and procedure for calculating pension payments have changed:

1. The methodology for calculating the insurance portion is based on taking into account annual pension points, the value of which depends on the level of earnings.
2. The previous concept of the base amount in the calculation formula has been replaced by a fixed indicator, which is approved by a government decision and represents the minimum level of pension payments guaranteed by the state with compulsory insurance coverage.
3. Increasing the amount of pension accruals is possible by accumulating the amount of insurance points and applying the pension coefficient, which increases with increasing age at retirement.

Since that time, the funded part of the pension has been separated into an independent form and is calculated separately. The transferred contributions are taken into account in monetary terms and are fully paid to citizens upon reaching retirement age or when social benefits are assigned to benefit recipients. The amount of monthly payments to citizens is determined by dividing the total amount of accumulated funds by the number of expected months of receiving accruals.

In 2019, the approved value is used for calculation - 240 (the survival time after retirement is considered to be 20 years). When entering a well-deserved retirement at an age older than established by law, the amount of payments increases due to a decrease in the number of months. After the application, all funds concentrated in the personal account are taken into account in the calculation:

• insurance and voluntary contributions;
• maternity capital funds;
• increase received under the co-financing program;
• income accrued when investing savings.

How to find out the amount of savings

If you have an agreement with Sberbank NPF, you can obtain information about the amount of savings on the organization’s website online. To do this, you need to enter your passport data and go to your personal account. To obtain information about the status of your account, you can use the services of a bank that is a partner of the NPF. To do this you need:

• fill out an application;
• receive an account statement.

Through the Internet

Information on the amount of savings can be obtained on the Pension Fund website. To do this, in your Personal Account of the government services portal you need to:

• register: fill out the form provided;
• confirm registration using the received code;
• wait until you gain access to your account;
• log in;
• activate the Electronic Services section;
• select Pension Fund;
• find out the information you are interested in.

In the pension fund

You can obtain information about the status of your personal account from the pension fund at your place of residence or from a non-state pension fund with which an agreement has been concluded to invest contributions. To do this you need:

• show the employee your passport and insurance number;
• to write an application;
• wait 10-15 minutes and receive a certificate about the amount of accumulated funds.

Through the employer

How to find out the funded part of a pension for an employed citizen? The employer who makes the deduction of contributions has access to the data of the insured person. You need to contact the company’s accounting department for information and:

• present your passport and personal account number;
• write or present an oral statement about the release of information;
• get an extract.

Payment of the funded part of the pension

After applying for payment, the insured person will calculate monthly charges. There are several schemes for receiving funds:

1. One-time payment. All savings are issued in one amount.
2. Urgent. The duration of payments is determined by the account owner, but it cannot be less than 10 years.
3. Lifetime. Payments are made monthly.

Who can receive

The right to receive accumulated funds is provided for by law for categories of citizens who simultaneously meet the following conditions:

• the insured persons were employed, and for them the employer transferred insurance contributions to the pension fund from their wages;
• an insured event has occurred;
• At the time of registration of the pension, there is a balance in the personal account.

When can I get it?

The time for insured citizens to apply for accrual of savings is not regulated by law, and the deadlines for receiving (assigning) payments are set as follows:

• the next date after the day of submission of the application and package of documents.
• the date following the day of dismissal, if the application is written within 30 days after the termination of the employment relationship with the employer.

How to get it early

Before reaching the insurance age, you can apply for an early pension in case of disability. Early receipt is possible upon the death of the insured person. Legal successors - persons specified in the application to the Pension Fund - can receive the savings of the deceased. In the absence of such a document, heirs - close relatives - have the right to receive it if the application is submitted within 6 months from the date of death.

Return of the funded part of the pension

Who can receive the funded part of the pension in a lump sum according to the law? Such payments are provided:

1. For persons receiving disability, survivors, or Social Security insurance benefits (who do not have enough work history or pension points upon reaching retirement age)
2. For citizens for whom the calculated amount of accruals is 5% or less of the amount of labor payments.

Management of the funded part of the pension

According to the law, the insured person has the right to independently manage savings. Those who have decided to form savings must write an application to the Pension Fund and choose one of the options:

• a management company (MC) that has an agreement with the Pension Fund;
• investment portfolio of the state management company (GMC) - Vnesheconombank;
• non-state pension fund (NPF).

How the funded pension increases

During his working life, the amount of pension savings of the insured person may exceed the amount of transferred funds due to investment provided for by law. Contributions are used by companies to finance the economy - they are placed in government bonds or shares of Russian enterprises and bring profit to its owners.

How to choose a non-state pension fund for the savings part

When choosing one of the options: a management company or a state management company, the insured person remains registered with the Pension Fund, and the selected company receives the right to manage savings on the stock market. A high percentage of profit can be obtained by concluding an agreement with a non-state pension fund. With this investment option, the NPF management company keeps records of the receipt of contributions and income from investments. The following factors may be in favor of choosing a company:

• significant duration of its activity;
• a large number of insured persons who have chosen the company;
• stable financial performance;
• positive customer reviews;
• first positions in the ranking according to independent agencies.

How to transfer the funded part of a pension

The insured person is given the opportunity to transfer from one fund to another. When deciding to transfer to a non-state pension fund or management company, you must visit the office of the selected company with a passport and SNILS card, conclude an agreement, and then write an application to the pension fund for the transfer of savings funds. In case of transfer to the State Management Company, you must submit applications to the Pension Fund. The decision on transfer is made next year by March 31.

Insured persons can take advantage of the transfer option annually. Without loss, you can request a transfer of funds once every five years. Management companies reserve the right not to pay income if this rule is violated. In the case when money is transferred during a loss-making period for the company, you can receive savings in an amount less than the nominal value.

How to use the funded part of your pension

According to the law, the insured person is provided with three options for using contributions:

1. Refuse savings contributions to increase insurance deductions. This method will increase the amount of pension points. Only if you have a mandatory work experience upon reaching retirement age can you hope for an increase in the total amount of insurance accrual.
2. Form savings, use them for investment through non-state pension funds - this is how the state provides the opportunity for insured persons to make a profit not with the help of their own free funds, but from mandatory contributions. Sometimes the return on such investments exceeds the interest rates on bank deposits.
3. Invest funds with the participation of the State Management Company or Management Company. If there is distrust of non-state structures, it is possible to use the services of companies whose activities are strictly controlled by the state. The yield on such placement is lower than when investing through non-state pension funds. Often the rate of return on such investments is equal to the rate of inflation.

For citizens deciding how to manage savings contributions, the following nuances need to be taken into account:

1. The right to transfer to the formation of cumulative payments is granted once.
2. The time and number of transitions to accrual of only the insurance part is not regulated.

Video

A pension is an important help for older people, the presence of which allows you to devote most of your time to yourself and not worry about the lack of other sources of income.

Today in Russia there are three types of pensions: state, insurance and funded. And if everything is more or less clear with the first two, then a funded pension remains a not very clear thing for many.

Let's try to figure out who is entitled to the funded part of the pension and what it is.

This type of pension has the following significant differences from state and insurance:

• Of the mandatory amount of contributions made by the employer, 6% is allocated for the creation and replenishment of the funded part.
• The employee has the right to choose where to invest this part of the funds to increase it. To do this, you can choose a Pension Fund, any management company or a non-state fund.
• This amount of money can be received as a lump sum payment immediately after retirement.
• It can be received by relatives or proxies of the pensioner in the event of his death.

Note! It can also be obtained before retirement, if the citizen has a disability of 1-3 groups.

What categories of citizens are entitled to it?

Citizens belonging to the following categories can receive the funded part of their pension:

1. Those born after 1966 and participating in the compulsory pension insurance system.

   They can receive it if they meet the following conditions:

   – They carried out labor activities after 2001.
   – Their age is considered retirement age or they have the right to receive a pension early.
   – The pension insurance experience exceeds 6 years.

2. The second group of citizens entitled to receive the funded part of the pension includes persons born between 1953 and 1966 (men) and from 1957 to 1966 (women).

   Important! The accumulation part of this group of citizens was filled from 2002 to 2004 inclusive. The condition that the insurance period must exceed five years is not relevant for them.

3. Citizens who are participants in the co-financing of pensions by the state are also entitled to receive a funded portion.

   These include pensioners who allocated additional funds to the Pension Fund and a group of people who own certificates of family or maternity capital, who sent their funds to the Savings Fund.

4. In the event of the premature death of a pensioner before he receives funds from the account, as well as before the size of this pension is changed, the accumulative part can be received by the relatives of the deceased or persons who are his successors.

How can you get the accumulated money?

To receive these funds in a single payment, you must contact the Pension Fund of your city. To do this, you will need to have the following list of documents with you:

• Your passport;
• a document indicating your length of service and the amount of your pension. It can be submitted to the Pension Fund;
• You will also need an individual personal account insurance number;
• do not forget to take with you the details of the bank to whose account payments will be made from the savings part of the account.

The time for consideration of your application and the decision to satisfy it or not is up to 30 calendar days. After this period, you will either receive a payment or a refusal in writing, indicating the reasons for such a decision. According to the law, starting from 2015, payments are made no more than once every five years.

How can I find out the size of the funded part of my pension?

Information to answer this question can be obtained using the following methods:

1. Using Internet services.

   To do this, you must register on the official website of State Services. This can be done from anywhere and at any convenient time. With its help, you can find out the exact amount of your savings portion and take advantage of other functions provided by this Internet resource.

   Step-by-step instructions for performing this method:

   – We go to the State Services website. In the registration section, we indicate all the necessary data about ourselves and go through a check for their accuracy.
   – Log in to the site using the password received after registration.
   – Select the “Pension Savings” tab.
   – Click on the button that is responsible for issuing results on pension savings.

2. Pensioners who are not comfortable with modern technologies can contact the pension fund directly at their place of residence. The employees of this institution will register you on the “Public Services” website and help you find out the necessary information on the spot.

If your funds are at the disposal of any non-state pension fund or you are a participant in a pension program, you can find out the information you are interested in at the office of this organization.

In addition, it is possible to find out the amount of money in a personal account after a person’s death. To do this, relatives or other people close to him must submit an application to the Pension Fund. You need to have the following documents with you:

• relative's passport;
• death certificate;
• insurance certificate belonging to the deceased;
• if the funded part was registered as an inheritance, it is necessary to present documents proving the relationship with this person.

The entire amount that the pensioner had accumulated before his death will be divided among all relatives who applied to the Pension Fund within six months.

Note! If more than six months have passed since the date of death, the funded portion can only be received after a court decision.

A person always gives preference to current goods over future ones. The only way to force the population to save for old age is by force. For this purpose, a mandatory state funded system and a corporate system are practiced, when companies, usually reputable ones, voluntarily contribute towards the future pension of their employees. For those few highly organized and conscientious people who want to save money, it is easier for them to find convenient and effective formats themselves. But provided that they do not spend these funds before retirement, and during the retirement period they will spend them wisely. It is also fundamentally important that a country with a rapidly aging population without a funded element in the pension system will face serious financial destabilization, because there will be nothing to pay pensions with. Knowing this, sensible investors avoid investing in it for the long term.

In the pension reform, fundamental changes concern the insurance pension, which from January 1, 2015 will be calculated according to the new pension formula. The methodology and formula for determining funded pensions have remained virtually unchanged, but the same cannot be said about the attitude of the authorities. Without completely abandoning the funded pension, they are economically trying to oust it from the sphere of compulsory insurance contributions so that it becomes predominantly voluntary, as is practiced in developed countries. For this purpose, increasing coefficients have been invented that put the mandatory funded part of the pension at a disadvantage compared to the insurance part.

It’s great when a person, from a young age, takes care of his own prosperous old age, without particularly relying on the state. All over the world, the funded pension system is the best way to force a person to make pension savings, prevent him from spending it before retirement, and allow him to spend it evenly throughout his entire survival period. A Russian who would like to have some kind of tangible funded pension should put aside current affairs and try to figure out whether this is possible in Russian conditions?

Current pension system

Since 2002, Russia has had a mixed pension system for people born in 1967 and younger, including distribution (insurance) and funded parts.

The employer pays to the Pension Fund of Russia (PFR) an insurance contribution in the amount of 22% of the employee’s wage fund (in excess of his salary), of which:

6% goes to the solidarity portion, intended for the payment of pensions to current pensioners, and is not taken into account in the employee’s individual personal account and does not affect the amount of his future pension;

10% is nominally taken into account when determining the insurance part of the employee’s future pension, but in reality this money also goes to the solidarity part;

6% goes to the funded part of the pension. These funds are excluded from the “solidarity purse”, reducing the budget of the Pension Fund, the deficit of which exceeds 1 trillion rubles.

Those born before 1967 do not have the funded part of their old-age labor pension. According to them, the scheme is as follows: 6% of insurance premiums go to the solidarity part, 16% to the insurance part. Men over 60 years of age and women over 55 years of age who have worked for at least 5 years have the right to receive an old-age labor pension.

The survival period during which a pensioner receives a pension until 2016 is 19 years, or 228 months.

The fixed basic amount of the insurance part, which is paid along with the insurance and savings parts, is the same for all pensioners - does not depend on the state of the individual personal account. Its value is determined annually by the government. In 2013, it was equal to 3,610 rubles.

In 2014, no one is receiving a funded pension.

A contributory pension is still mandatory. There is a fixed payment attached to it. Employees born in 1967 and younger have a choice:

- save your funded pension . The rate of insurance premiums for the funded part will be 6%. At the same time, the insurance pension will decrease, since it will be covered by insurance contributions at a rate of 10% and the increasing coefficients will be lower than in the case when the mandatory funded part of the pension is not formed. The funded pension is not indexed to inflation. The profitability of pension savings depends on the results of their investment by a non-state pension fund or management company in the financial market. Both plus and minus are possible. Success largely depends on the chosen non-state pension fund and, therefore, on the employee’s ability to make the right decision. In case of losses, only the paid insurance premiums for the funded pension are guaranteed. The funded pension is still calculated in rubles, and not in points. The mechanism for determining it is simpler and more transparent. The funded pension is inherited.

• if the employee did not change the tariff for forming the funded part of the pension in 2013, did not transfer pension savings to the NPF and/or back to the Pension Fund, then from 2014 16% of insurance contributions (out of 22%) will be directed to the insurance pension, 6% - to a common “solidarity purse”, without affecting the size of the employee’s future pension;
• “silent people” who have never submitted an application to choose a non-state pension fund or management company, including Vnesheconombank, and who have decided to form a funded pension (at a 6% rate), must submit an application to the Pension Fund by December 31, 2015 to select a non-state pension fund or management company, after by concluding an agreement on compulsory pension insurance with him/her. Otherwise, all insurance premiums (16%) will be used to form an insurance pension;
• If in previous years an employee applied at least once to choose a non-state pension fund or management company, including Vnesheconombank, and it was granted, he will continue to receive 6% of the tariff for his funded pension - without an additional application. It is required if the employee refuses to form a funded pension;
• For those who in 2013 submitted an application to choose the state management company Vnesheconombank with a 2% tariff, starting from 2014, by default, the funded part ceases to be formed. 16% of insurance premiums go towards the formation of an insurance pension without additional application. If an employee wants to form a funded portion of 6%, then before December 31, 2015, he must submit a new application to the Pension Fund to choose a non-state pension fund or a management company, having previously concluded an agreement on compulsory pension insurance.

The choice can only be made once during 2014-2015. In order for it to be conscious, you need to understand the essence of the problem.

Funded pension

The funded part of the old-age labor pension established before January 1, 2015 will be considered a funded pension after this date.

Pension savings For workers born in 1967 and younger, the maximum possible version looks like this:

If the employee does not participate in the corporate pension program and the state pension co-financing program, and did not use maternal (family) capital for pension needs, then there will be no second, third and fourth terms in this formula. These are purely voluntary components of a funded pension.

State pension co-financing program launched on October 1, 2008 to motivate workers to make voluntary additional contributions to their future pension, as is practiced in developed countries. To join the program, it was enough to submit an application to the Pension Fund before October 1, 2013 (this date has been extended approximately until January 1, 2015) and make the first contribution before December 31, 2013. The minimum contribution is 2 thousand rubles per year, the maximum is 12 thousand rubles. Here are the possible options:

The employee himself makes contributions through the bank or, at his request, the employer does this for him, contributing the assigned amount or a percentage of his salary to his funded pension. Transferred amounts are subject to income tax deduction;

An employer can become a voluntary second party to co-financing the funded part of its employee’s pension. Incentives are also provided for him: he is exempt from paying insurance premiums in the amount of the premium paid (but not more than 12 thousand rubles per year per employee), this contribution reduces taxable profit.

The state increases the amount of contributions received for the year in a ratio of 1:1, that is, it adds the same amount from the state budget, but not more than 12 thousand rubles per year.
For those who have reached retirement age and continue to work, benefits were provided: for 1 personal ruble of a working person, 4 rubles are paid from the budget, but not more than 48 thousand rubles per year. On October 1, 2013, a restriction was introduced: Russians who have reached retirement age and receive any type of pension can no longer count on co-financing.

The co-financing rules are valid for 10 years from the date of the first payment. You can leave the program earlier if you wish. After January 1, 2015, the state will continue to co-finance the contributions of those who have already joined the program, but accepting applications from new participants will no longer be accepted. The corresponding contributions are invested by order of the employee, like other pension savings. In 2009, 2.2 million employees participated in the co-financing program, in 2010 - 4.0 million, in 2012 - 6.8 million, in 2012 - 10.4 million, in 2013 - 15.9 million.

Maternity (family) capital can be partially or fully used to form a funded pension for the mother who gave birth to or adopted a second or subsequent child. Only 2% of families took advantage of this opportunity; they do not need to improve their living conditions, do not want to pay for their children’s education with family capital (children are educated abroad, the family was afraid of the complex bureaucratic procedure for paying for educational services with capital) and decided to replenish their pension savings this way. In order to use maternity capital to form a funded pension, the owner of a certificate for this capital must submit an application to the Pension Fund after the child reaches the age of three. With a new application, this decision can be waived.

Pension savings of non-state pension funds or management companies are invested in the financial market in the hope of receiving additional income. Profitability depends on the state of the market, the variety of investment sources, and the qualifications of managers, that is, losses cannot be ruled out.

The state management company Vnesheconombank has the right to invest pension savings in two investment portfolios: base- formed from bonds of the Russian Federation and corporate bonds of Russian issuers guaranteed by the state; extended- formed from government securities of constituent entities of the Russian Federation, corporate bonds of Russian issuers, state-guaranteed deposits (in rubles and foreign currency) in banks, mortgage-backed securities, bonds of international financial organizations. VEB can use pension money to buy no more than 30% of one issue of corporate bonds and no more than 20% of the total volume of issues of one issuer. To ensure a higher return on investment of pension savings, the Pension Fund of the Russian Federation proposes to allow them to invest more actively in corporate and infrastructure bonds. But private managers are skeptical because returns from infrastructure projects rarely exceed the rate of inflation.

In 2012, the return on pension savings in Vnesheconombank amounted to 9.2%, in NPFs - 6.7-7.2%. Over a longer period (2004-2012), average inflation was 9.6% and exceeded the return on pension savings. Therefore, it is too early to say which system is more effective; too little time has passed.

Survival period adjustment . If an employee works after reaching retirement age, his funded pension will increase, since pension savings will continue to be formed and they will be divided not into the legalized 228 months of survival, but into a smaller number of months. The expected period for payment of a funded pension is reduced by 12 months for each full year worked from the date of acquisition of the right to assign a pension. But the survival period cannot be less than 168 months (14 years). In other words, the government welcomes a potential retiree to work for no more than 5 years. Anything beyond that will not be counted and will not affect the benefit. And when forming an insurance pension, increasing coefficients increase over 10 years of work after reaching retirement age.

Periods for receiving pension savings after retirement differ:

• The mandatory component of pension savings (employer insurance contributions and income from their investment) is divided by the survival period (228 months) minus the number of months worked after reaching retirement age, but at least 168 months. It turns out lifelong funded pension;
• For each of the voluntary components of pension savings (for insurance contributions for corporate pension programs, for the co-financing program, for maternity capital - taking into account the income from their investment), at the time of assigning a pension, a person can choose: to receive them for life as part of a funded pension according to the algorithm for the mandatory component or as urgent pension payment. In the second case, the period is determined by the pensioner himself, but it cannot be less than 10 years;
• all pension savings can be paid to the pensioner at one time, if they amount to a small amount that does not exceed 5% of the entire old-age pension (insurance plus funded part).

Right to funded pension . A funded pension will be assigned to those who are entitled to an old-age insurance pension in accordance with the Law “On Insurance Pensions”, naturally, if they have pension savings. In 2025, men from 60 years of age and women from 55 years of age will have the right to an old-age insurance pension, provided that their individual pension coefficient is at least 30 points and their insurance period is at least 15 years. Russians will reach this maximum within 10 years:

The funded pension will be established and paid by the fund in which the employee’s pension savings were formed - the Non-State Pension Fund or the Pension Fund. You will need to contact him (including to register and receive an urgent or one-time pension payment of pension savings). The funded pension will be paid and delivered in the manner and within the time limits established for insurance pensions. If pension savings were formed in the Pension Fund, then the funded pension will be delivered simultaneously with the insurance pension.

Adjustment of lifelong funded pension and fixed-term pension payment will be made by the Pension Fund or NPF, if pension savings were formed in it, on two grounds: on August 1 of each year, based on pension savings that were not taken into account when assigning payments or previous adjustments, as well as based on the results of investing pension savings transferred to payment reserve. Among these reasons there is no indexation for the level of inflation.

Inheritance of funded pension . The authors of the pension reform came up with incentives for increasing the insurance pension (increasing coefficients, indexation for inflation, etc.). And the main advantage of a funded pension is that it is inherited.

If an employee dies before he is assigned a funded pension, his legal successors will receive the pension savings. Who and how much - the employee can determine himself in an application to the NPF or Pension Fund, where he forms pension savings. Otherwise, these will be legal successors: 1st priority - parents, spouses and children of the deceased, 2nd - brothers, sisters, grandparents, grandchildren.

There is no choice regarding the inheritance of maternal capital as part of pension savings and the circle of recipients is narrowed - this is the father/adoptive parent of the child or the child (children) himself, if there is no father/adoptive parent.

If a pensioner has received a funded pension for some time, then the remainder will be paid to the legal successors, but only on the condition that he chose not a lifetime, but an urgent payment of the pension. The opportunity to choose an urgent payment is provided only for additional contributions to the funded part of the pension and does not apply to insurance contributions by employers as part of compulsory pension insurance.

Non-state pension funds

In addition to the Pension Fund, non-state pension funds in which pension savings were formed have the right to pay funded pensions. NPFs in Russia were created as non-profit organizations- this means that they should not have profit. That is, the fund is obliged to distribute the income received from investing pension savings to the accounts of its clients (future pensioners), and for its work it receives commissions for its own needs - no more than 15% of investment income. When investing assets, a non-state pension fund must meet the standards of safety, profitability and diversification (diversity) prescribed by law. NPFs do not have a goal to receive excess income; it is enough to exceed the official inflation level. The standards for the placement of pension reserves and investment are controlled by the Federal Antimonopoly Service, the Ministry of Finance and the Central Bank. All NPFs are licensed. 21 million people out of 70 million workers entrusted their pension savings to non-state pension funds.

From the fact that NPFs are non-profit organizations, it follows that they have no owners (only founders) and formally the funds cannot be sold. In practice, this leads to companies controlling the NPF through its board or administrator. The change of control (actually the sale) takes place non-publicly and is formalized through a change in the board (administrator) of the fund.

Mandatory pension savings and pension reserves of non-state pension funds:

By October 2013, 1.8 trillion rubles of pension savings of the “silent people” had accumulated in Vnesheconombank.

In recent years, the non-state pension fund sector has become attractive to large businesses: these “money bags” are replenished regularly, and the money from them can be used to buy tasty assets on the financial market. Thus, NPF Surgutneftegaz became the main shareholder of UTair, NPF Gazfond manages a significant stake in Gazprombank. NPF Electric Power Industry and NPF LUKoil-Garant, over which the Otkritie financial corporation established control a year ago, actively participated in the placement of shares of Nomos Bank, that is, pension funds were embedded in complex transactions. However, most transactions involving pension funds are not advertised and remain non-public. The fact is that you cannot formally buy a non-state pension fund.

Consultants describe the scheme used as follows: a loan is taken out from a bank, a non-state pension fund is “bought” with it, several bond issues are made using pension money, and assets are purchased with the money raised through bonds. The deposit scheme works similarly. By placing NPF funds in a related bank on a 5-year deposit at an interest rate below inflation, you can get this money back in the form of a loan on favorable terms. It is unlikely that new investors need the “pension business” itself; they are buying a “machine” that collects billions of rubles from the market, which can then be invested at 2-3% per annum in long-term projects. If such a scheme leads to the bankruptcy of NPFs, the reputation of all private funds will suffer. Will the funds whose money is used in this way survive the inspection and new licensing that the Central Bank is organizing in 2014-2015?

The authors of the pension reform decided to bring more clarity, transparency and security (remove unreliable non-state pension funds and create a system for guaranteeing pension savings) in this area where large “socially dangerous” funds are circulating. The government instructed the Central Bank to analyze the financial solvency and professionalism of 116 non-state pension funds that have licenses to operate in the field of compulsory pension insurance, and to retain only those that have a stable financial base.

In 2014-2015, NPFs must undergo re-registration and become joint stock companies (JSC), that is, to become commercial organizations. They will be required to disclose their owners to the Central Bank, confirm their financial stability and join the savings guarantee system. But, if banks guarantee deposits of no more than 700 thousand rubles, then non-state pension funds guarantee pension contributions without growth from their investment. If the NPF ceases to operate, pension savings under compulsory pension insurance will return to the Pension Fund so that employees can re-select the NPF from those that have passed the Central Bank inspection.

Requirements for non-state pension funds that wish to operate in the form of a joint-stock company will remain the same. This concerns the procedure for the formation and placement of pension reserves, investment of pension savings, regulation and supervision. But NPF shareholders will have the right to participate in the management of the fund and will be responsible for its obligations. When NPFs become joint-stock companies, it will be easier and more convenient to monitor their sale transactions, since joint-stock companies are required to publish information about the owners, and non-profit organizations only disclose the names of the founders, who often have nothing in common with the true owners.

The declared goal of transforming non-state pension funds into joint-stock companies is to protect future pensions from losses. However, some experts fear that these joint-stock companies, like all commercial organizations, will strive to maximize profits. That is, the main thing for them will not be clients (future pensioners), but shareholders who will want to receive additional income in the form of dividends. It is known that when investing it is easier to increase income by investing in high-risk instruments, shareholders will be very tempted to “spin” other people’s pension money in the hope of earning more. Without special restrictions, the social aspect of non-state pension funds may come to naught.

The managers of many non-state pension funds have a positive attitude towards the commercialization of funds, seeing this as a simplification of the procedure for mergers and acquisitions, the possibility of attracting new active investments and their return, and paying dividends. But they are confused by strict deadlines. They are afraid of double taxation, additional income tax and the costs of changing reporting, training accountants to new standards, attracting new lawyers and notaries, and making contributions to the guarantee fund.

Everyone has the right to form future funded pension provision by making contributions to their personal account. These come from employers, personal contributions and government funding.

In addition, the citizen is given the opportunity to choose an insurer. This may be a state, non-state pension fund (NPF) or a management company (MC). Insured citizens have the right to change the policyholder, but not more often once every five years.

This type of pension is calculated and paid regardless of the assignment of another pension. Changes in the conditions for the provision of a funded pension, the rules for establishing and the procedure for its payment are carried out by introducing amendments to this Federal Law.

Procedure for applying for a funded pension

To apply for a funded pension, an insured citizen simply needs to apply with the relevant documents at the place where pension savings are formed. When in doubt, you should specify, where exactly funds are stored You can apply for a funded pension through the local branch of the Pension Fund (PFR), through the electronic portal of public services or through the territorial MFC.

Payment of pension savings (one-time, fixed-term, lifetime)

• Russian Post. At the post office at your place of residence or at home. In this case, the pensioner is given a date for receiving the pension in accordance with the established delivery schedule. If the pension has not been received within 6 months, its payment is suspended. The resumption of transfers will resume after writing an application to the Pension Fund.
• In the bank. Receipt is possible both through the cash register and to a bank card. Delivery of funds to the account is made on the day the funds are received from the Pension Fund. You can withdraw funds at any convenient time after they have been credited.
• Through an organization that delivers pensions. Receipt is possible at home and at the cash desk of this organization. Delivery conditions are the same as through the post office. A complete list of such organizations can be found in the territorial office of the Pension Fund.

When choosing a delivery method or deciding to change it, you must notify the Pension Fund by writing a written application or submitting an application electronically on the Pension Fund website through your personal account.

Both the pensioner himself and an authorized person can receive a pension if they have an appropriately executed power of attorney.

The funded part of the pension is one of the parts of the old-age pension, which is formed on the basis of a person’s pension savings accounted for in his individual pension account.

You've probably already heard about pension savings, which not only lie in fund accounts, but are also your capital at the present time. Is it possible to remove some part of it at a time, before old age? Can. Let's figure it out.

Not every one of us is concerned about the fate of the funded part of our future old age support. Because not everyone knows what it is, where to invest funds and how to manage them. We've already talked about that. However, people do not trust both the state and non-state pension funds - they simply want to receive their “hard-earned money” at a time, without waiting for old age. Unfortunately, the law does not provide many opportunities for this. Let's look at their entire list.

What part can be removed at a time?

They require a separate discussion, however, we will describe the main differences.

The insurance portion goes into the “common pot” of the Pension Fund and is spent on current needs, in particular, on paying pensions to current pensioners. As an old-age benefit perspective, this part brings insured citizens only pension points, on which the size of their pension will depend.

The savings amount of 6% immediately becomes the personal capital of the insured person. Therefore, we are now interested in the accumulative part - it is this that can be received immediately. This is money included in the insurance premiums that each employer is obliged to pay for its employee.

Unfortunately, for several years now, since 2014, this part has been “frozen” by the authorities, that is, all employers’ funds go only to the insurance part. However, what was accumulated before is still at the disposal of the citizen and increases due to the profit received from investment. This is, of course, if the non-state pension fund was chosen correctly. If it was not chosen entirely successfully, there will be no profit, but no losses either, the funds will simply remain in the original amount.

When can you receive the funded part of your pension?

By law, the funded part of the pension is payable monthly from the moment the citizen retires. That is, a person can give himself an increase to his insurance pension. The answer to a fairly common question: “The funded part of the pension: how to get it in a lump sum?” contained in Federal Law dated November 30, 2011 No. 360-FZ. It says that any pensioner has the right to receive his savings as follows:

• immediately, at a time in full (except for working pensioners);
• monthly in the form of pension payments;
• in the form of a funded pension.

As for those who can receive the funded part of their pension in a lump sum, without waiting for retirement, there are not many such categories of citizens:

• citizens who are disabled people of groups I, II, III;
• citizens who have lost their breadwinner (Article 4 of Law No. 360-FZ dated November 30, 2011);
• heirs of the deceased insured person.

The size of the amount paid at a time depends on how much funds have been accumulated in the citizen’s personal account on the day when it was decided to withdraw all savings at once, in a lump sum.

How to receive a funded pension all at once

Disabled people of groups I, II, III and persons who have lost their breadwinner can apply immediately after the appointment of a disability insurance pension or an insurance pension for the loss of a breadwinner. This is possible, but on the condition that at the time of reaching retirement age the disabled person does not have sufficient insurance experience or the value of the individual pension coefficient to assign an insurance pension. At the same time, those citizens who have previously written an application for the appointment of funded payments will not be able to receive them at a time.

To shoot everything at once. you must write an application to the territorial office of the Pension Fund of the Russian Federation at your place of residence or to the NPF to which the savings were previously transferred. The application form can be found in the appendix to the order of the Ministry of Labor of Russia dated July 3, 2012 No. 12n. Filling out this document is not at all difficult; you only need to indicate:

• FULL NAME.;
• date of birth;
• passport details;
• residential address;
• individual savings account data;
• information about the representative of the insured person (if any);
• method of receiving payment;
• details for receiving it.

The completed application pages should look like this:

The application must be accompanied by documents confirming the right to a lump sum payment, as provided for in the Rules, approved. by Decree of the Government of the Russian Federation dated December 21, 2009 No. 1047. All documents can be delivered to the Pension Fund or Non-State Pension Fund in person or sent by mail. This can also be done electronically through your personal account on the Pension Fund website. To do this, you will have to register on the Unified Portal of State and Municipal Services and attach all the necessary documents, converting them into electronic format.

After receiving documents from the applicant, the Pension Fund or Non-State Pension Fund is obliged to issue a receipt notification of acceptance and registration of the application. The fund must make a decision on payment of funds or refusal to do so within a month from the date of receipt of the application. In case of a positive decision, funds must be transferred to the applicant using the specified details:

• in the case of an application to the Pension Fund - no later than two months from the date of a positive decision;
• in the case of non-state pension funds - no later than one month.

How to receive the funded part of a deceased relative’s pension

If a person participating in the funded pension insurance program dies, then his immediate relatives (heirs) have the right to receive the funded part of his pension. In this case, it does not matter where the funds are located: in the Pension Fund or Non-State Pension Fund. Inheritance is possible if at the time of death the citizen has not yet retired due to old age, i.e. if it is a woman, then she is under 60 years old, and if a man is under 65 years old (these are the new retirement age standards from 2019 , but keep in mind that there is a gradual transition to it until 2022).

If the deceased took care of the inheritance of these funds in advance and left an application to this effect in his Pension Fund, then the money will be distributed among the heirs in accordance with his order. In this case, not only relatives, but also strangers can inherit money. If there is no order in the fund, only immediate relatives who are heirs by law can apply for them. The funds will be distributed between them in equal shares. The heirs of the first stage are:

• children, including adopted children;
• parents, including adoptive ones;
• spouse of the deceased.

If there are no heirs in the first place

Then, in the second place, siblings, grandparents and grandchildren will inherit the savings.

In order to receive money, the heirs must apply to any branch of the Pension Fund or Non-State Pension Fund where the deceased’s funds were placed. If the name of the NPF is unknown, then you can contact the Pension Fund, they will give information about the placement of funds. Such a statement must be written even if the fund has information about the death of the insured person. The application must be accompanied by certified copies of death documents and those papers that confirm relationship (marriage certificate, birth certificate indicating parents, etc.). A pension card or a document from a territorial fund indicating the number of the individual personal account of the deceased would not hurt. It is necessary to declare a desire to receive money within 6 months after the death of the insured person. If you do this later, you will have to get the money through the courts.

The fund must review the documents within 5 days after receiving the documents. If they are completed incorrectly, they will be returned to the applicant. If they are submitted to the wrong address, they will be redirected in the right direction, and if everything is in order, they will be hired. It will be possible to receive a payment only 6 months after death. This period is provided to ensure that all potential heirs have the opportunity to declare themselves.