How to get the funded part of the pension
The term “funded pension” appeared in the pension legislation in 2001, while the law “On labor pensions in the Russian Federation”was adopted. It came into force on January 1 of the following year, and the result of its action was the division of the pension into several parts.
The pension was divided into several parts (basic, insurance and funded), each of which had to be financed from separate sources. And, if the first two concepts are more or less familiar and logically understandable, then few people managed to understand the funded part of the pension.
Funded part of pension
The accumulative pension is a monthly payment of pension savings, which were formed from the insurance contributions of employers (6% of the total salary for citizens born in 1967 and younger), other additional insurance contributions and income from investment.
A working citizen can count on a funded pension if he has the right to an old-age insurance pension or early retirement for a well-deserved rest, as well as if the amount of the cumulative share exceeds 5% of the amount of the old-age insurance pension. These conditions are spelled out in the Law.
To have an idea of the main differences between all parts of the pension, we propose to understand the overall structure of payments. Let us assume that the rate of pension insurance contribution that the employer pays to his employee in PF is 28%. This amount is divided as follows:
14% is allocated to the Federal budget and spent on the payment of the basic part of the pension;
another 14% goes to the Pension Fund to Finance the insurance and funded part of the pension.
Initially, for the employees of the above age group to Finance the funded part of the employers deducted 3%, and a little later – 6%.
After the reforms and the formation of the funded system, not all citizens were able to understand the theory of such payments and dispose of the funded part of their pension. A little more than 15% of people transferred to the account of the non-State pension Fund and about 1% preferred management companies, as well as left their funds in the pension Fund of Russia. Citizens whose cumulative part of the pension amounted to less than 5% of the total amount of payments, these funds are paid at the same time on retirement.
Summing up the results of the pension reform, in 2012 the government adopted a Law according to which the funded part of the pension was allocated from the total pension payment. Starting next year, the funded pension was made a separate payment.
Options for a funded pension
Those people on whom the management monthly deducted 6% for financing of cumulative pension, can choose one of two options:
transfer of their savings to NPF (non-state pension Fund). In this case, contributions will be assessed at the same rate. Initially, it was assumed that at the time of retirement, the amount of pension savings will increase (its size depends entirely on the level of income of the company where the citizen transferred his savings). Once a year, the law allows you to transfer savings from the NPF to another company;
in the absence of an application for transfer to the NPF, all insurance premiums from the employer will begin to flow to the FIU. Such deductions the citizen already won’t be able to dispose of.
The main difference between other sources of pension financing and savings is that the funded part of the pension is inherited. This rule applies in the event of the death of an able-bodied citizen before the start of his / her receipt of a funded pension.
Only participants in the co-financing programme and those citizens who have also made voluntary contributions in addition to mandatory ones have the right to receive a fixed-term pension. If the management transferred only the obligatory contribution to the employee, the cumulative part can be received indefinitely, as part of the labor pension.
Rules of calculation and receipt of funded pension
The value of the funded part of the labor pension is calculated by dividing the total amount of pension savings together and the income from investment. This manipulation is carried out on the day when the funded part of the pension of a citizen of retirement age is accrued.
Not all citizens, but only those whose cumulative part is less than 6% of the size of the labor pension, that is, the insurance part and the cumulative, will be able to receive the available amount at a time and in full. A one-time payment can be used by people receiving a social pension, a disability pension or after the loss of the main breadwinner in the family, as well as men (60 years) and women (55 years), whose insurance experience is less than 5 years.
To the pensioner was able to get their funded part of the pension, Mirsovetov recommends to apply to the FIU or NPF at the place of residence with the application and documents. The application can also be sent by mail. Usually all apply to a non-state pension Fund, having SNILS, the original passport and the insurance contract concluded with the NPF. In the case where the Depositary is the pension Fund of Russia, when applying you need to bring the same documents as for the insurance pension.
When the application has been successfully registered, the NPF or FIU issues you a receipt or notifies you of the application. During the next decade, the public authority decides on the purpose of payment or refusal.
After consideration of the submitted documents to the pensioner calculation of cumulative pension will be made. The order of payment in NPF is specified in the same place. The money is accrued from the date when the application was submitted and the necessary documents were provided. At the same time the money can be obtained if:
at retirement age, you have been awarded a disability pension;
in addition, you are paid a social old-age pension;
on pension savings the newly deceased claim by his relatives.
In other cases, the funded pension will be paid every month.
The calculation of the amount of the pension
The calculation of the amount of this payment is based on the waiting period (until January 1, 2016 it was 228 months, or 19 years). Since the beginning of this year, the waiting period for payment is established by the Federal law on the basis of statistics on the life expectancy of pensioners. Based on the calculations, in 2016 this period of waiting for the funded pension was set for 234 months, or 19.5 years. The funded part of the pension is paid for life.
After the death of a pensioner who has issued a funded pension, his relatives will not be able to receive this money, because the law provides for the inheritance of only fixed-term pension payments. If a citizen died before the appointment of his savings payments, the successors or successors have the right to dispose of the money and get them.
If during the life of the pensioner issued an urgent payment of the funded part, his heirs will receive the unpaid balance in full.
Benefits of these payments:
future pensioners themselves affect the level of their pension. A person independently chooses the method of investing the funded part of the pension in the organization where he will be able to provide the highest percentage. Thus, the future pension increases;
taking part in government programs to increase the funded element, for example, in the program “co-financing»;
these funds are the personal funds of the person. He can bequeath them, invest them, and determine how to pay them.
There are no drawbacks to a funded pension, at least they do not concern a pensioner. The only risk is the moment of choosing a NPF or a management company. If this organization is not entirely trustworthy, the investor risks not getting his interest. After learning about this problem, you can choose another company.