Defining the valorization process for pensioners
The valorization process begins with the recalculation of citizens' pension savings by at least 10% , plus 1% for each year of service until 1991. Working citizens with experience before 2002 who have not reached retirement age participate in the valorization process, but there will be an increase in pension not that noticeable.
Valorization of pensions
Non-working pensioners whose pensions and social benefits are less than the minimum established in the country will receive additional payments. The pension amount is calculated individually and depends on the region, age and length of service. Valorization amounts are multiplied by indexation coefficients, which depend on the time the pension was assigned.
Valorization of pensions
In the past, a citizen's pension depended on contributions earned over the past few years and work experience. If the salary was low before retirement, the citizen received funds taking into account the last five working years, when the salary was higher.
Valorization affects everyone who was officially employed before the start of the pension reform. The program is based on the official employment of each citizen - the longer a citizen worked, the higher the coefficient and the higher the increase.
How much will a pensioner receive in rubles?
On average, the increase in pension capital due to valorization will be 1,431 rubles per month. The greatest effect of valorization will be for people over 80 years old - the increase per month will be up to 1,700 rubles. Pensioners under 60 years old will receive an increase in their pension in the amount of 700 rubles on average, from 61-70 years old - 1300 rubles, from 71-80 years old - by 1600 rubles. At the same time, pensions increased in this way will be subject to all planned pension indexations that are carried out during the year. The territorial body of the Pension Fund of the Russian Federation at the location of the pension file of the pension recipient will recalculate the amount of the pension received according to the documents of your pension file.
Why was there a need for valorization?
After the pension reform, the contributions of persons who became pensioners before 2002 and those who received pensions later were practically equal and did not cause problems. Over time, the gap has become much larger: people who have taken out a pension these days, in addition to accumulated contributions, receive insurance premiums. The employer is required to transfer these contributions to the citizen’s account.
Valorization of pensions
The length of service was the same, but citizens who retired in 2002 or later received more than citizens who worked before 1991 because in the past, pensions were calculated using a special indicator based on data on the average salary throughout the country.
While it is not necessary to provide paperwork for every year of work, it may increase your pension contributions.
In order for pension calculations to be carried out fairly, it was decided to index the pension contributions of persons who worked before 2002 , even if they have not yet reached retirement age. Those who do not have documents on employment between 1991 and 2001 must prove the presence of at least some work experience before 2002.
Who will receive an increase from valorization
The average amount of pension increase for older citizens is 1,100 rubles, for younger ones – 700 rubles, depending on length of service.
Valorization of pensions to whom and order number.
6.1. From January 1, 2010, the size of labor pensions was increased through the increase (valorization) of the pension rights of citizens acquired by them before 01/01/2002. Valorization of pensions is an increase in pension rights that were acquired by citizens before January 1, 2002. At the same time, valorization applies not only to current pensioners, but also to citizens who have worked before 2002 and have not yet reached retirement age. The amount of valorization from January 1, 2010 is calculated individually for each citizen who had experience before 2002 in the following order: the estimated pension capital of a particular citizen available as of January 1, 2002 increases by 10% and additionally by 1% for every full year of work experience completed before 1991. Recalculation of pensions, taking into account the amounts of valorization from January 1, 2010, was made to all recipients of labor pensions (old age, disability, loss of breadwinner) who had periods of work before January 1, 2002 When establishing a pension after 01/01/2010, valorization is applied when assigning a pension and is included in the general formula for calculating the amount of the pension. Articles on the valorization of pension rights were included in the Federal Law “On Labor Pensions in the Russian Federation” dated December 17, 2001 N 173-FZ (Article 30.1 - 30.3)
7. Retired in May 2009. With insurance pension 4059 rubles. Now the insurance pension, taking into account indexations, is 6,678 rubles. How do I find out if my pension has been valorized? Sincerely, Konstantinov, Sochi.
7.1. Send a request to the Pension Fund for clarification of the calculation of your pension from the date of its assignment. From 01/01/2010, pensions were recalculated in connection with valorization.
8. Retired in May 2009 in the amount of 4,059 rubles for life included in the pension certificate. Today, taking into account indexations, the insurance pension is 6,678 rubles. The entire 29 years of experience was completed before 1999. How can I find out if my pension has been valorized? Sincerely, Konstantinov, Sochi.
8.1. To obtain such information, you need to apply for clarification to your Pension Fund office. The period allotted for consideration of an appeal received in the form of an electronic document or for an appeal in writing is 30 days from the date of registration of this appeal.
Differences between valorization, indexation and recalculation
All three concepts mean an increase in the amount of pension payments, but the conditions, regulation and method of receipt are very different.
Valorization
The size of the increase in pension depends on the length of service earned before 1991. The point of valorization is to equalize the pensions of people who worked in the USSR. Affects citizens employed before the start of the pension reform in 2002. The process occurs automatically; citizen participation is not required.
Recalculation of pensions taking into account valorization
Indexing
Indexation is carried out automatically for pensioners to increase purchasing power during inflation. Indexation depends on price increases ; the government independently determines the coefficient. Pensions of federal civil servants and astronauts are indexed as monetary remuneration increases.
Recalculation
If circumstances affecting pension payments change, recalculation occurs. If the pension authority has all the documents confirming the citizen’s rights to a pension, the recalculation will occur automatically . According to Article No. 142 of the Federal Law, recalculation occurs on August 1. Additional paperwork is required if:
- the pensioner has reached 80 years of age;
- a higher disability group has been established;
- the number of dependents has increased;
- The pension authority mistakenly did not take into account the pensioner’s length of service.
Examples of pension calculations taking into account valorization
A man who, as of January 1, 2002, has a total work experience of 42 years, including 40 years of “union” experience, has an average salary that exceeds the average salary in the country for the same period by 1.3 times the size of the labor pension will increase by 1823.51 rubles.
Calculation conditions:
1. Year of birth - 1931 2. Year of initial pension assignment - 1991 3. Duration of insurance (total work) experience - 42 years
- including until 01/01/2002 - 42 years
- including until 01/01/1991 - 40 years
4. Duration of insurance period after 01/01/2002 - 0 years 5. Ratio of earnings to established wages - 1.3
- taken into account during conversion - 1.2
6. RPK formed after 01/01/2002 - 0 rubles
Calculation of the pension amount taking into account valorization
Amount of old-age labor pension as of 01/01/2010 (including valorization)
FBI (2562) + SC (5470.54) = 8032.54 rubles. Valorization coefficient as of 01/01/2010: 0.5
Calculation of RPK valorization:
1. Experience coefficient as of 01/01/2002: 0.55+0.17 = 0.72 2. Estimated amount of labor pension as of 01/01/2002 0.72 x 1.2 x 1671 = 1443.74 rubles. 3. RPK as of 01/01/2002: PK2002 = (1443.74 - 450) x 144 = 143098.56 rubles. 4. The amount of the insurance part of the labor pension as of December 31, 2009 is RUB 3,647.03. 5. RPK01.01.2002 taking into account valorization and indexation as of 01.01.2010: PC 2010 with valorization = 143098.56 x 1.5 x 3.67 = 787757.57 rubles. (3.67 - indexation coefficient of the RPC since 2002) 6. The amount of the insurance part of the old-age labor pension, taking into account valorization (787760.74): 144 = 5470.54 rubles. 7. Increase in pension due to valorization as of 01/01/2010: (143098.56 * 0.5 * 3.67): 144 = 1823.51 rubles.
A woman who, as of January 1, 2002, has a total work experience of 29 years, including 21 years of “union” experience, has an average salary that exceeds the average salary in the country for the same period by 1.27 times the labor pension will increase by 948.07 rubles.
Calculation conditions:
1. Year of birth - 1949 2. Initial pension assignment in 2004 3. Duration of insurance (total work) experience - 31 years
- including until 01.01.2002 - 29 years
- including until 01/01/1991 - 21 years
4. Length of work experience after 01/01/2002 - 2 years 5. Actual earnings ratio - 1.27
- taken into account during conversion - 1.2
6. Salary in the period after 01/01/2002 - average salary in the country 7. RPC formed after 01/01/2002 (without indexation) - 16,561 rubles.
Calculation of the pension amount taking into account valorization
The amount of the old-age labor pension as of 01/01/2010 (taking into account valorization) FBI (2562) + SC (4261.14) = 6823.14 rubles. Valorization coefficient as of 01/01/2010: 0.31
Calculation of RPK valorization:
1. Experience coefficient as of 01/01/2002: 0.55+0.09 = 0.64 2. Estimated amount of labor pension as of 01/01/2002 0.64 x 1.2 x 1671 = 1283.32 rubles. 3. RPK as of 01/01/2002: PK2002 = (1283.32 - 450) x 156 = 129997.92 rubles. 4. The amount of the insurance part of the labor pension as of December 31, 2009 is RUB 3,313.07. 5. RPK01.01.2002 taking into account valorization and indexation as of 01.01.2010: PC 2010 with valorization = 129997.92 x 1.31 x 3.67 = 624990.99 rubles. (3.67 - indexation coefficient of the RPC since 2002) 6. Amount of insurance premiums with indexation as of 01/01/2010: 16561 rubles. x 2.4 = = 39746.4 rub. (2.4 - average indexation coefficient of insurance premiums since 2004) 7. The amount of the insurance part of the old-age labor pension, taking into account valorization and insurance contributions after 01/01/2002 (624990.99 + 39746.4): 156 = 4261.14 rubles . 8. Increase in pension due to valorization as of 01/01/2010: (129997.92 * 0.31 * 3.67): 156 = 948.07 rubles.
A man who, as of January 1, 2002, has a total work experience of 27 years, including 16 years of “union” experience, has an average salary that exceeds the average salary in the country for the same period by 2.4 times the size of the labor pension will increase by 1154.89 rubles.
Calculation conditions:
1. Year of birth - 1955 2. Initial pension assignment in 2015 3. Duration of insurance (total work) experience - 34 years
- including until 01/01/2002 - 27 years
- including before 01/01/1991 - 16 years
4. Length of work experience after 01/01/2002 - 7 years 5. Ratio of earnings to established wages - 2.4
- taken into account during conversion - 1.2
6. Salary in the period after 01/01/2002 - average salary in the country 7. RPC formed after 01/01/2002 (without indexation) - 108,045 rubles. Calculation of the pension amount taking into account valorization The size of the old-age labor pension as of 01/01/2015 (taking into account valorization) (FBR (4130.16) + SC (6781.46) = 10911.62 rubles. Valorization coefficient as of 01/01/2010: 0.26
Calculation of RPK valorization:
1. Experience coefficient as of 01/01/2002: 0.55+0.02 = 0.57 2. Estimated amount of labor pension as of 01/01/2002 0.57 x 1.2 x 1671 = 1142.96 rubles. 3. RPK as of 01/01/2002: PK2002 = (1142.96 - 450) x 228 = 157994.88 rubles. 4. The amount of the insurance part of the labor pension as of December 31, 2014 (without valorization) is RUB 5,626.57. 5. RPK01.01.2002 taking into account valorization and indexation as of 01.01.2015: PC 2010 with valorization = 157994.88 x 1.26 x 6.41 = 1276061.45 rubles. (6.41 - indexation coefficient of the RPC since 2002) 6. Amount of insurance premiums with indexation as of 01/01/2015: rub. 108045 * 2.5 = = 270112.5 rub. (2.5 - average indexation coefficient of insurance premiums since 2004) 7. The amount of the insurance part of the old-age labor pension, taking into account valorization and insurance contributions after 01/01/2002 (1276061.45 + 270112.5): 228 = 6781.46 rubles . 8. Increase in pension due to valorization as of 01/01/2015: 157994.88 * 0.26 * 6.41: 228 = 1154.89 rubles.
Basic rules and valorization rights
The main rule of valorization is automatic recalculation based on the citizen’s official work experience before 2002 The pension authority has information on the amount of pension contributions as of January 1, 2021.
Rules for valorization of pensions
If a citizen worked unofficially, but can confirm this with other documents, he must send them to the pension authority for review.
Citizens officially employed in the Far North receive an increased valorization coefficient. It ranges from 1.4 to 1.9%, varies from region to region and leads to higher pension payments.
Valorization concept
Initially, you need to understand what valorization is when calculating benefits. The essence of this process is that the Pension Fund has established a specific amount of pension capital.
This indicator increases by 10% from the initial value and by 1% for each year worked after 1991.
For each recipient of payments, the calculation is carried out individually. It depends on the number of years during which the person has been working. The length of service will include periods when the citizen performed socially useful work.
Important! There are no restrictions on total output.
To carry out valorization, a citizen does not need to write an application. This indicates that the calculation is carried out automatically. Documents contained in the pensioner’s personal file are used.
Basic terms of valorization
Calculating valorization is not difficult if you understand the basic terms:
- The work experience coefficient means the period of official employment until 2002. If the work experience is 25 years, the coefficient is 0.55. For 1 year, 1% is accrued, but not more than 75%. Interest rates are reduced if the work experience is less than 25 years.
- Conversion - recalculation of length of service into cash equivalent for citizens working before 2002.
- Pension rights - data on wages and insurance accruals that determine the insurance part of payments.
- Estimated capital is the amount of pension contributions for 2002. All officially employed citizens who have received a pension certificate have an estimated capital. When a citizen begins to receive a pension, the capital becomes the insurance part of the payments.
Calculation of pensions taking into account valorization
Where to go to recalculate your pension?
You need to contact the territorial body of the Pension Fund if you have additional documents on experience and earnings that were not taken into account when assessing pension rights as of 01/01/2002, or if you express a desire to assess pension rights using another option.
Example 1
The man has 34 years of experience, 33 of which he worked during the USSR period. He retired from old age in 1992 and has not worked since then. From January 1, 2010, his estimated pension capital will increase by 10% plus 33% for years of service during the Soviet period. The total increase in the initial pension capital will be 43%, taking into account which the insurance part of the old-age labor pension will be recalculated.
Example 2
The woman was granted an old-age labor pension in 1985. According to the documents of the pension file, the total length of service on the date of appointment was 41 years, additionally documents were submitted confirming the total work experience: 10 years for periods before January 1, 2002, including 5 years before January 1, 1991. From January 1, 2010, her estimated pension capital will increase by 10% plus 46% for years of service during the Soviet period. The total increase in the initial pension capital will be 56%, taking into account which the insurance part of the old-age labor pension will be recalculated.
How to calculate the amount of pension payments
The Pension Fund will independently calculate the amount of your pension upon reaching retirement age. It’s easy to find out this amount; just count two main numbers:
- how many years worked before 1991;
- how many years worked from 1991 to 2002?
To calculate valorization, there is a formula : the percentage of valorization (in the example it was 30%) multiplied by the amount of accumulated capital. Valorization will affect only those citizens whose pensions were accrued before 2002. The rest receive contributions in accordance with the new pension program.
Calculation of pension valorization
To begin with, take the average salary for 5 years, including the months when no work was carried out. This amount is divided by the average salary in the country and multiplied by the length of service. For all years of activity before 2002, a percentage is added. With work experience of 25 years or more, the coefficient increases.
According to the new program, the main part of the pension is calculated from the federal budget and is the insurance part. Previously, pension increases depended on the level of inflation and rising prices on the market. Since 2010, the amount of contributions depends on the income of the Pension Fund and the average salary in the country.
For example, if the length of service exceeds 25 years for a year, the basic part of the pension increases by 6%, after two years - by 12%. Citizens decide for themselves whether they want to retire later or not.
Valorization - revaluation of pension rights since 2010
Valorization is a revaluation of the monetary value of pension rights that were acquired by citizens before the 2002 pension reform.
Valorization was carried out in 2010 in relation to all insured persons who had experience before 01/01/2002. Simply put, valorization affected all current pensioners, as well as all Russians who worked in any period of time before 2002.
How was valorization carried out?
The Pension Fund database contains information on the amount of the estimated pension capital of citizens as of January 1, 2002. Almost everyone who has worked before 2002 has it, only the size differs. From January 1, 2010, this estimated pension capital was multiplied by 10%. In addition, the pension capital was additionally increased by 1% for each year of service completed before 1991. There are no maximum restrictions here. If your work experience before 1991 was 25 years, then in general your estimated pension capital as of January 1, 2002 will increase by 10% + 25% = 35%.
The procedure for valorization
Valorization since 01/01/2010 was carried out by the territorial bodies of the Pension Fund of the Russian Federation without requiring an application on the basis of documents available in the pension file.
If a pensioner (who was a pension recipient before 01/01/2010) submits additional documents before the end of 2010, the recalculation of the pension amount taking into account the valorization amount is carried out from 01/01/2010.
Why is valorization carried out?
Until 2002, pensions in the Russian Federation were calculated based on two factors - the length of total work experience and the average monthly earnings of a person retiring, which was formed in a certain period of time before retirement: either for the last 2 years or for any 5 years throughout your working life. Thus, pension rights in the old, pre-reform system were measured through length of service and through earnings. These two main characteristics determined the amount of the pension.
In 2002, a transition to a fundamentally new system took place. This is a model based on the fact that the size of the pension is determined not by length of service and earnings, but by the amount of insurance contributions that are transferred by the employer for the employee to his individual personal account. Accordingly, the greater your salary and insurance contributions from it, the greater the value of the so-called estimated pension capital. In turn, the estimated pension capital to obtain the pension amount is divided by the expected payment period*.
“When determining the size of the insurance part of the labor pension, starting from 01/01/2002, the expected period of payment of the old-age labor pension is set at 12 years (144 months) and increases annually by 6 months (from January 1 of the corresponding year) until reaching 16 years (192 months), and then increases annually by one year (from January 1 of the corresponding year) until the age of 19 years (228 months).”
It is obvious that citizens whose pension rights are formed entirely on insurance principles, i.e. those who started working after 2002 have not yet reached retirement age. Meanwhile, after the pension reform of 2002, pensions according to the new rules are assigned to those citizens whose pension rights were already formed in the old system, i.e. measured by experience and earnings. Naturally, these rights had to be taken into account; they had to be combined with those insurance contributions that began to be individually taken into account for people and affect pension rights since 2002. In order to combine old and new rights, so that all this is included in the calculated pension capital, a conversion of pension rights was carried out in relation to all pensioners who retired before 2002, and those who started working before 2002.
The assessment of the pension rights of insured persons as of 01/01/2002 is made based on the estimated amount of the old-age pension, determined in a manner similar to the procedure for calculating the amount of the labor pension according to the norms of the previously in force pension legislation, based on the earnings and length of service of the insured person, earned before the start of the reform. (until 01/01/2002).
In order to ensure an increase in pensions for older citizens, the state decided to reassess the monetary value of pension rights that were acquired by citizens before the launch of the pension reform.
Examples of pension calculations taking into account valorization
1. A man who, as of January 1, 2002, has a total work experience of 42 years, including 40 years of “union” experience, has an average salary that exceeds the average salary in the country for the same period by 1.3. labor pension will increase by 1827.69 rubles.
Calculation conditions:
1. Year of birth - 1931
2. Year of initial pension assignment: 1991
3. Duration of insurance (general labor) experience - 42 years
including until 01/01/2002 - 42 years
including until 01/01/1991 - 40 years
4. Duration of insurance period after 01/01/2002 - 0 years
5. The ratio of the average monthly earnings of the insured person to the average monthly salary in the country is 1.3
taken into account during conversion - 1.2
6. The amount of the insurance part of the old-age labor pension as of December 31, 2009 is RUB 3,655.37.
7. The basic amount of old-age labor pension as of December 31, 2009 is 2562 rubles.
8. Calculation of the pension amount taking into account valorization:
The amount of the insurance part of the old-age labor pension as of 01/01/2010 (taking into account valorization):
5483.06 + 2562 = 8045.06 rubles, where 2562 is the fixed base amount of the insurance part of the old-age labor pension.
Valorization coefficient as of 01/01/2010: 0.5 (0.1 + 0.4)
Calculation of RPK valorization:
9. Seniority coefficient as of 01/01/2002: 0.55+0.17 = 0.72
10. Estimated amount of labor pension:
0.72 x 1.2 x 1671 = 1443.74 rub.
11. PC as of 01/01/2002: (1443.74 - 450) x 144 = 143098.56 rubles.
12. Increase in pension due to valorization:
(143098.56*0.5*3.6784):144 = 1827.69 rubles, where
3.6784 - total indexation coefficient of the estimated pension capital until 01/01/2010.
2. A woman who, as of January 1, 2002, has a total work experience of 29 years, including 21 years of “union” experience, has an average salary that exceeds the average salary in the country for the same period by 1.27, the size labor pension will increase by 950.25 rubles.
Calculation conditions:
1. Year of birth - 1949
2. Initial assignment of pension in 2004
3. Duration of insurance (general labor) experience - 31 years
including until 01.01.2002 - 29 years
including until 01/01/1991 - 21 years
4. Length of work experience after 01/01/2002 - 2 years
5. The ratio of the average monthly earnings of the insured person to the average monthly salary in the country is 1.27
taken into account during conversion - 1.2
6. The amount of the insurance part of the old-age labor pension as of December 31, 2009, taking into account insurance contributions after January 1, 2002, is 3,313.07 rubles.
7. The basic amount of old-age labor pension as of December 31, 2009 is 2562 rubles.
8. Calculation of the pension amount taking into account valorization:
The amount of the insurance part of the old-age labor pension as of 01/01/2010 (including valorization)
4263.32 + 2562 = 6825.32 rubles, where 2562 is the fixed base amount of the insurance part of the old-age labor pension.
Valorization coefficient as of 01/01/2010: 0.31 (0.1 + 0.21)
Calculation of RPK valorization:
9. Seniority coefficient as of 01/01/2002: 0.55+0.09 = 0.64
10. Estimated amount of labor pension: 0.64 x 1.2 x 1671 = 1283.33 rubles.
11. PC as of 01/01/2002: (1283.33 - 450) x 156 = 129999.48 rubles.
12. Increase in pension due to valorization:
(129999.48 * 0.31 * 3.6784): 156 = 950.25 rubles, where 3.6784 is the total indexation coefficient of the estimated pension capital until 01/01/2010.
Basic concepts used in calculations
Conversion of pension rights was carried out in 2002 for all pensioners who retired before 2002 and those who started working before 2002. In order to transfer pension rights into capital, it was necessary to calculate the conditional amount of the pension corresponding to the amount of rights that the person acquired while working before 2002. That is, determine the estimated amount of the pension. How was he counted? The length of service coefficient is taken - this is the work experience that was developed before 2002, depending on its duration the percentage was determined. The percentage could be from 0.55 to 0.75.
For example, if, when assigning an old-age labor pension upon reaching the generally established retirement age, a man had 40 years of total work experience (before 01/01/2002), then his length of service coefficient is 0.55 (for 25 years of total total work experience) + 15 (for every year over 25 years). The length of service coefficient is multiplied by the ratio of the average monthly earnings of the insured person either for 2000-2001 according to personalized records, or for any 5 consecutive years throughout the entire working life to the average monthly salary in the country for the same period (not more than 1.2 is taken into account - for except in cases provided for by pension legislation). All this is multiplied by 1,671 rubles (the average monthly salary in the Russian Federation as of the third quarter of 2001). If, when determining the estimated amount of the old-age labor pension, the insured person has incomplete total work experience, then the amount of the estimated pension capital is determined based on the amount of the estimated pension capital with full total work experience, which is divided by the number of months of the full total work experience and multiplied by the number of months of actual total work experience.
The assessment of pension rights by converting them into estimated pension capital was carried out according to the formula:
PC = (RP-warhead) x T, where
PC - the amount of the estimated pension capital;
RP - the estimated size of the labor pension;
BC - the amount of the basic part of the labor pension as of January 1, 2002 (450 rubles per month);
T is the expected period for payment of an old-age labor pension, equal to the same period to be applied when establishing a labor pension.
According to paragraph 3 of Article 30 of the Federal Law of December 17, 2001 No. 173-FZ “On Labor Pensions in the Russian Federation,” the estimated size of the labor pension is determined for men with a total work experience of at least 25 years, and for women with a total work experience of at least 20 years, according to the formula:
RP = SK x ZR/ZP x SZP, where
ZR - the average monthly earnings of the insured person for 2000 - 2001 according to individual (personalized) records in the compulsory pension insurance system or for any 60 consecutive months on the basis of documents issued in the prescribed manner by the relevant employers or state (municipal) bodies;
ZP - average monthly salary in the Russian Federation for the same period;
SWP - average monthly wage in the Russian Federation for the period from July 1 to September 30, 2001;
SC - length of service coefficient, which for insured persons is 0.55 and increases by 0.01 for each full year of total work experience in excess of the duration specified in this paragraph, but not more than by 0.20.
The ratio of the average monthly earnings of the insured person to the average monthly salary in the Russian Federation (ZR/ZP) is taken into account in an amount not exceeding 1.2.
The expected period of payment of the old-age labor pension is an indicator used to determine the insurance part of the labor pension. The expected payment period was determined to be 19 years, but this value will only apply starting from 2013, and before that, from 2002, starting from a period of 12 years, there is a smooth transition to 19 years, adding first six months, then per year until age 19.
SCH is the insurance part of the labor pension. The size of the insurance part of the old-age labor pension (AS) depends on the size of the estimated pension capital of the insured person, formed by converting pension rights acquired by the insured person before 01/01/2002 into the estimated pension capital, and by recording on the individual personal account of the insured person in system of compulsory pension insurance of insurance contributions to the Pension Fund for the insured person from 01.01.2002. The size of the insurance part of the old-age labor pension is determined taking into account the fixed basic size of the insurance part of the old-age labor pension.
Insurance length of service is the total duration of periods of work and (or) other activities taken into account when determining the right to a labor pension, during which insurance contributions were paid to the Pension Fund of the Russian Federation, as well as other periods counted as insurance length of service.
The size of the insurance part of the old-age labor pension is determined by the formula:
SCh = PC / T + B, where
SC - the insurance part of the old-age labor pension;
PC - the amount of the estimated pension capital of the insured person, taken into account as of the day from which the specified person is assigned the insurance part of the old-age labor pension;
T - the number of months of the expected period of payment of the old-age labor pension, used to calculate the insurance part of the specified pension. In 2011 it is 204 months;
B - fixed base amount of the insurance part of the old-age labor pension
FBI (Fixed basic amount) - from January 1, 2010, instead of the basic part of the labor pension, a fixed basic pension amount (the insurance part of the old-age labor pension) is introduced, as an integral part of the insurance part of the old-age labor pension, disability labor pension and accidental labor pension. loss of a breadwinner.
The fixed basic size of the labor pension (the insurance part of the old-age labor pension) is established in a fixed amount and is differentiated depending on the age of the insured person, the disability group and the presence of disabled family members dependent on him, and the category of recipients of the labor pension in the event of the loss of a breadwinner.
Conditions for undergoing valorization
No applications are required; the pension authority carries out all calculations automatically . Documents are needed only if some data has been lost or entered incorrectly; you can deliver the papers at any time.
If any documents are missing, the employer is required to provide copies. If the company no longer exists or it is impossible to contact them, the documents are located in the local archive. Such an archive should be in the city where the work took place. Very small cities and towns transfer documentation to the regional archive.
If the pension authority requires additional documents, they will send a written notice asking you to deliver the papers. If a citizen believes that providing additional documents will affect pension contributions, he needs to come to the Pension Fund and write an application.
An example of calculating a pension taking into account valorization
List of documents that may be needed during valorization:
- passport and copies of pages with information (registration, marriage information);
- amounts of wage payments with dates;
- insurance experience, officially confirmed by documents;
- average salary in Russia after 2002;
- date of retirement.
Insurance accruals for old age, loss of a breadwinner and disability, calculated taking into account the valorization coefficient, can be changed if:
- the citizen was able to prove earnings that were not taken into account in the initial calculation of pension payments;
- if the option for calculating deductions selected automatically differs from that chosen by the citizen.
A citizen can apply for recalculation to the pension authority after the grounds for recalculation arise. Changes in payments are indicated in letters from the Pension Fund of the Russian Federation, or you can go to the Pension Fund and get information at any time.
What is valorization?
This concept is used when talking about increasing the price of things or any services.
If we are talking about pensions, then we mean recalculating the value of the monetary rights of pensioners acquired by them before the pension reform. In other words, valorization implies an increase in citizens’ pensions. This process should be distinguished from indexing and recalculation. Let's understand the concepts:
- Valorization is an increase in pensions that applies to absolutely all citizens.
- Pension indexation is an allowance for retired persons.
- Recalculation is making changes in accruals for certain reasons.
It is clear from the definitions that these processes have almost nothing in common and are only different mechanisms for increasing pension payments.
Why is it needed?
After the collapse of the USSR, the pension system was radically changed. At the same time, during the reform carried out in 2002, citizens, the bulk of whose work experience fell on the Soviet period, lost a significant part of their pension. This was due to the fact that after appropriate amendments were made to the legislation, the final amount of the pension began to be decisively influenced not by the total length of service, but by the amount of insurance contributions paid by the employer for the worker, as well as the amount of his salary. Taking these factors into account, pension capital is formed - the total amount on the basis of which the amount of payments due to the pensioner is calculated.
Since before the reform, as well as during the Soviet period, no deductions were made, to determine the estimated pension capital of citizens, the bulk of whose work occurred during this time, the length of service was transferred to pension capital on the basis of special formulas established by Article 30 of the Federal Law “On Labor Pensions.” The calculation of capital required determining the estimated size of the labor pension. To do this, the pensioner had two formulas to choose from:
- formula based on length of service;
- a formula based on the average salary of a pensioner.
However, such a transfer turned out to be biased and violated the interests of citizens, significantly reducing their pensions. The coefficients used in the formulas made the pension capital small. Valorization partially eliminates this violation by revaluing the amount of pension rights acquired before 2002, and, in essence, increasing the estimated pension capital.
What are the rules?
Valorization is carried out in relation to all pensioners who have work experience acquired before the Federal Law “On Labor Pensions” came into force. To do this, you do not need to visit the Pension Fund branch and write a statement about the procedure there - the department’s employees will do everything themselves.
