The latest reform that affected the pension payments of Russian citizens has made many of them think today. Both those who will reach the required age in the coming years and those who are still quite far away from “retirement” are trying to find out the monthly amount of their provision, as well as the possibility of recalculating and increasing it. However, both categories are right, since the answer to this question is not so easy to obtain. Our article today will help you better understand what the old-age pension is made up of and how it is calculated.
What does the old age pension consist of?
Pension concept
A pension is a regular payment in favor of citizens who have lost the ability to earn income:
- The purpose of the transfers is to provide material support for people.
- The source is the solidarity budget, formed from the contributions of workers. It is called the Pension Fund of Russia (PFR).
- The basis for the appointment is:
- reaching the age limit;
- loss of ability to work;
- social insecurity.
All cases of assigning financial support at the expense of the Pension Fund or non-state pension funds are described in the legislation. They can be schematically represented as follows:
| Category | Base |
| Citizens who have reached retirement age | Men - 65 years old; women - 60 years old (except for preferential categories) |
| Persons who have received the right to early retirement | Activities in industries with hazardous conditions or located in extreme climatic zones. |
| Other citizens who are granted the right to early assignment of pension benefits | Activities in the field of education and medicine. Work in government agencies. Military service and equivalent activities in law enforcement agencies. |
| Citizens who have lost their ability to work while performing official duty | Registration of disability |
| Citizens who have lost their breadwinner (including minors) | Death of a person who was the sole breadwinner |
| Disabled people | Recognition as legal conditions that do not allow labor activity |
Attention: the non-state pension insurance system provides the opportunity for all persons to increase future benefits through regular transfers to the selected fund.
What does it consist of?
The old-age pension includes two parts: insurance and funded. The first one is fixed. It is influenced by various parameters. The second directly depends on contributions to the Pension Fund. Calculated using a special formula.
Insurance pension
This type got its name because it is formed according to the insurance principle. An insured event is the very fact of a person’s retirement due to reaching a certain age. Insurer – Pension Fund of Russia.
The conditions for obtaining insurance coverage are changing. If in 2015, to obtain it you need 6 years of experience, then by 2025 - 15 years. After 2025, the amount of required experience will not increase. The peculiarity of this type is the annual increase by the state, taking into account inflationary processes.
The insurance part also includes a fixed amount, which is assigned to all pensioners regardless of length of service, age and points. It is indexed every year. For citizens who have reached 80 years of age and disabled people of the first group, a fixed amount is a 100% supplement to their pension.
Contribution "ICB. Practical" Moscow Credit Bank, Lit. No. 1978
up to 6.25%
per annum
from 50 thousand
300 days
Make a contribution
Mandatory pension insurance
Law No. 400-FZ, adopted on December 28, 2013, describes the conditions for the appointment of insurance payments from the Pension Fund of the Russian Federation. All citizens working on an official basis are automatically included in the compulsory pension insurance system (MPI) :
- The company makes a contribution to the Pension Fund for each person, the amount of which is calculated from the salary - 22%.
- The insured person is issued a certificate - SNILS, containing the number of the individual personal account.
- The right to receive pension benefits occurs in the event of an insured event. There are several types of these:
- reaching the age limit (old age);
- registration of disability;
- loss of a breadwinner.
According to current legislation, citizens have the opportunity to choose the type of pension insurance:
- only insurance (16% of the contribution goes to the personal account);
- savings (6% of the amount of transfers to the Pension Fund goes to a personal account opened in a non-state fund).
Attention: in 2014, the formation of savings funds was frozen due to the economic crisis.
The technique will not be used until 2021. All transfer amounts are planned to be used for insurance payments. Download for viewing and printing: Federal Law of December 28, 2013 N 400-FZ, as amended. dated 12/19/2016 “On insurance pensions”
Labor (insurance) pension accruals
The main type of pension provision for Russian citizens is insurance or labor payments . Based on the new legislation, they are calculated using the following formula:
- RSP = IKB x SIC + SFV, where:
- RSP - the amount of individual insurance pension;
- IKB - number of points earned;
- SIC - the cost of the individual coefficient;
- FPV - fixed payment.
The individual pension coefficient (IPC) is expressed in points:
- Its amount depends on the contribution transferred to the Pension Fund.
- The maximum value does not exceed 10 (6.25 when forming funded pension benefits).
- It is accrued even when citizens are not employed in the labor sphere. Namely during the period:
- conscript service;
- child care;
- care for disabled people of group 1, disabled children.
Attention: the cost of the point is subject to annual indexation. From 01/01/2019 it amounted to 87.24 rubles.
Calculation of IPC and fixed payment
The individual coefficient depends on the worker’s contribution to the formation of the Pension Fund’s budget. The formula for defining it is:
- IPC = ССВ / ССВМ x 10, where:
- SSV - contribution transferred to insurance savings in the Pension Fund of Russia;
- ССВМ - the maximum value of insurance transfers received from the largest taxable salary.
The fixed payment amount is set by the government. This is part of the content guaranteed by the state. It is subject to annual indexation related to inflation processes. In 2021, the amount of the fixed part was equal to 5334.19 rubles.
Important: citizens applying for pension payments later than the legal deadline can count on the application of increasing coefficients.
Conditions for receiving an old-age pension
This payment is assigned to citizens:
- Having reached the age limit stipulated by current legislation;
- Having:
- minimum work experience;
- the required number of points.
Generally established retirement age: men - 65 years, women - 60 years (excluding the transition period).
At the same time, the requirements for minimum experience and number of points increase annually:
| Woman's year of birth | Age | Released | Minimum IPC size (points) | Experience |
| 1964 1st half year | 55,5 | 2019 2nd half of the year | 16,2 | 10 |
| 1964 2nd half year | 55,5 | 2021 1st half of the year | 18,6 | 11 |
| 1965 1st half year | 56,5 | 2021 2nd half | 21 | 12 |
| 1965 2nd half year | 56,5 | 2022 1st half year | 23,4 | 13 |
| 1966 | 58 | 2024 | 28,2 | 15 |
| 1967 | 59 | 2026 | 30 | 15 |
| 1968 | 60 | 2028 | 30 | 15 |
| Man's year of birth | Age | Released | Minimum IPC size (points) | Experience |
| 1959 1st half year | 60,5 | 2019 2nd half of the year | 16,2 | 10 |
| 1959 2nd half year | 60,5 | 2021 1st half of the year | 18,6 | 11 |
| 1960 1st half year | 61,5 | 2021 2nd half | 21 | 12 |
| 1960 2nd half | 61,5 | 2022 1st half year | 23,4 | 13 |
| 1961 | 63 | 2024 | 28,2 | 15 |
| 1962 | 64 | 2026 | 30 | 15 |
| 1963 | 65 | 2028 | 30 | 15 |
Important: people who do not have these indicators receive a social pension.
Insurance assignments for disabled people
To receive payments from the Pension Fund for disability, you must meet the following conditions:
- execution of an official document by the medical and social examination body on the assignment of disability;
- availability of insurance experience of any size (one day is enough).
Attention: in the absence of information about work experience, a social benefit is assigned.
Maintenance for the loss of a breadwinner
This payment is provided subject to:
- the deceased breadwinner has an insurance record;
- the dependent recipient did not commit a crime against the life of the person who gave the basis for the assignment of pension support.
Attention: a complete list of dependents is given in Article 10 of the Law “On Insurance Pensions”.
Early retirement pension
The right to old-age insurance may arise for citizens ahead of schedule, without taking into account the generally established age for retirement.
Conditions for providing early pension payments:
1. Availability of insurance experience of a certain duration and/or working period in certain areas.
2. Accumulations of the established amount of IPC.
The law defines professional and social categories of citizens who can apply for early post-work rest.
For certain professional categories the following requirements are established:
- payment of insurance premiums at separate rates, starting from 01/01/2013;
- after carrying out the SOUT, working conditions must correspond to the qualifications - harmful (hazardous) production.
Components of an old-age pension
Only by understanding the essence of such provision can you begin to understand what an old-age pension is made up of, on the basis of which it will be possible to make specific calculations and find out how much you can get and how to make the amount as high as possible. According to the law, all compensation payments “for age” are divided into insurance, funded and basic. However, in reality, everything turns out a little differently, since there are special nuances that need to be taken into account, about which most ordinary citizens have absolutely no idea.
Remember
According to statistics, the majority of pensioners at this time completely lack the funded part of their security, and this is not accidental. Deductions for this part are made exclusively for those citizens who were born in 1967 and later, but not earlier. That is, in fact, the funded part cannot be considered a completely complete indicator of what is included in the pension.
Basic (fixed)
This part of the payment is directly related to the state, since it is they who can determine its size. This indicator absolutely does not depend in any way on the person’s work experience, nor on the number and amount of deductions made over the entire career. However, it directly depends on the type and type of pension assigned, and can vary significantly within the limits allowed by the government. For 2021, the PV has reached a certain level, depending on the category of the recipient.
- The basic fixed payment for all recipients by age (55 years for women and 60t for men) is exactly 4.805 thousand rubles 11 kopecks.
- The indicator for citizens who have worked in the Far North for at least fifteen years, with the required length of service (20 and 25 years for women and men, respectively), will be higher and amount to 7,207 thousand rubles 67 kopecks.
- The rate for citizens who worked in conditions comparable to the Far North, with the same length of service, will be 6.246 thousand rubles 65 kopecks.
The formation of the payment and its size occurs during the assignment of security to the person. This issue is clearly regulated and regulated by article number 16 of Federal Law 400. In fact, it is the FV that can be confidently called a guarantee for everyone to receive at least the minimum allowance. This indicator is subject to annual indexation to the level of inflation, therefore it cannot be called a stable specific number; it is constantly growing. If you have dependents, you can apply for an additional payment to the fixed payment for each of them, but no more than three.
Insurance (labor)
The insurance component of the pension is the most important, as it will directly affect the final amount of security paid out monthly. This indicator depends on the salary that a person received even before he successfully retired, and mainly on the number and amount of contributions made to the Pension Fund of the Russian Federation. When understanding what parts a pension consists of, the insurance part should be considered first. In legislation, these contributions to the Pension Fund are called settlement capital (RPC), which is clearly stated in the law under number 173-FZ. Let's look at the main components of this part of the software.
- The average salary, taken, as expected, for any five years (sixty months) of your choice (consecutive) or for the period 2000-2001. There is no difference; you can submit the data that has a more favorable relationship to the average salary at the time of going on a well-deserved leave, throughout the country.
- Any contributions made to the Pension Fund of the Russian Federation after 2001, transferred personally or by the employer for the employee.
According to Federal Law No. 198 on individual (personalized) accounting, all data on such contributions will be entered into a single register called an individual personal account (ILS). It will be assigned to every citizen and will not change until his death. This indicator can be attributed directly to what the old-age pension is made up of.
Cumulative
Let's figure out what the funded part of the pension consists of, as this is really important. Over the entire period of existence of such a system in the Russian Federation, rates for all indicators that we discussed a little higher have been steadily increasing, due to the general level of inflation and the indexing of payments because of this. Thus, the budget of the Pension Fund of the Russian Federation regularly experiences a shortage of funds.
The state has to resort to “infusions” from the state budget or take some extreme measures, for example, raising the retirement age. To prevent this, a savings mechanism was established for the formation of pensions. There are two options for standard accrual, which in total represent the same figure of 22% of deductions.
- In the first option, which does not include the funded part, 16% goes to the insurance payment, and 6% to the fixed payment.
- In the second option, only 10% will go to the insurance share, 6% to forming the PV and the remaining 6% to savings. Unlike insurance, the funded parts of the security are never indexed or increased by anyone.
Basically, the matter will depend on personal commercial instinct and understanding of market processes, as well as the wise choice of a company or fund that you could entrust with managing your money.
Valorization (increase)
Having decided to thoroughly find out what a pension in Russia consists of, we must not forget about the constant valorization of security, that is, the increase in earned capital until 2002, which became the main evidence of the emergence of the right to this type of security in general. The valorization amount is ten percent, plus one percent for each year worked before 01/01/1991. This factor necessarily applies to every citizen of our country whose work experience as of January 2002 was at least one full calendar year.
Determining the amount of increase
SV = PC × 10% + 1% (for each full year of service before 01/01/1991) × 3.67
Let's decipher the abbreviations
SV – the final amount of valorization (increase) of the pension.
PC – information on income taken before January 2002.
3,67 – the accepted indexation coefficient that was carried out until January 2010.
The concept of funded pension
At the request of a citizen (starting from 1967), part of his pension contribution can be used to form a funded element of future payments. The worker must decide this within the first five years. To register a savings deposit, you must proactively contact the Pension Fund of the Russian Federation indicating the selected NPF or management company (management company).
A savings deposit is formed similar to a bank deposit. The company uses the money for investment. According to the project, income from the use of funds must be credited annually to the accounts of depositors. A report on this is sent last.
Attention: the application of the principles of accumulating pension amounts is frozen until 2021.
Citizens wishing to join the savings program must remember:
- the size of the deposit will depend on the success of the company that is entrusted with managing the money;
- the contribution is not guaranteed by the state;
- Amounts are not subject to indexation.
State pension provision
Some categories of citizens of certain professions receive payments from the federal budget. These include professionals with experience and merit in the field:
- public service;
- military service;
- space exploration;
- flight test activities.
In addition, state pensions are paid to citizens belonging to the following categories:
- participant in the Great Patriotic War;
- survivor of the siege of Leningrad;
- radiation victim;
- disabled.
Attention: the amount of the described payment depends on:
- length of service;
- the presence of certain conditions (required length of service, disability, lack of other income, etc.).
Social pension assignments
Some categories of disabled persons who do not have work experience are provided with a fixed-size pension. These include:
- disabled people, including those from childhood;
- senior citizens who have never worked
- a child who has both parents missing (there is a dash on the birth certificate).
You can receive a social pension under the following conditions:
- by old age;
- when determining disability;
- upon the loss of a breadwinner.
Attention: social pension payments are assigned exclusively to citizens of the Russian Federation permanently residing within the country’s borders.
Pension provision for military personnel, civil service pensioners and certain categories of citizens
This category of persons has the right to be assigned one of the following types of state pension provision:
- by length of service;
- upon reaching a specified age (old age);
- on disability;
- for the loss of a breadwinner.
For some federal government employees, pension benefits are assigned by the appropriate federal agency.
Long service pensions
Such pensions are established subject to the following conditions:
- civil servants with 15 or more years of experience;
- military personnel;
- cosmonauts with a certain work experience: for women - 20 years, for men - 25 years. At the same time, men must work as a test pilot for 10 years, and women - 7.5 years;
- test pilots, upon reaching working experience: for women - 20 years, for men - at least 25 years. Moreover, 75% of the work experience must relate to work as a flight crew.
This category of citizens has the right to receive two types of pensions: long service and old age pension (insurance, a certain share).
State old age pension payments
This type of government support is provided to citizens affected by radiation exposure.
The terms of appointment and the amount of payments are affected by:
- categories of citizen;
- types of work performed;
- place and duration of residence in the contaminated area.
State support for disabled people
The following special subjects have the right to this type of payment:
- Veterans and participants of the Second World War.
- Residents of Leningrad who became disabled during the siege.
- Military personnel who became disabled while performing military duty.
- Citizens who received health restrictions as a result of the Chernobyl accident.
- Cosmonauts who became incapacitated during preparation for or flight into space.
The presence or absence of work activity does not affect the receipt of this payment. The amount of payments is set as a percentage of the social pension.
State pension provision for the loss of a breadwinner
This type of security is provided to relatives in the event of death:
- serviceman, time of military service;
- citizens who received a radiation dose;
- cosmonauts and candidates for them.
Payments are made to disabled family members of the deceased: minors (under 18 years of age), parents and spouses.
How to calculate?
The old-age labor pension is calculated independently or using a pension calculator. In any case, it is formed:
- salary size;
- income level as a self-employed person;
- selected pension provision;
- length of service;
- military service, child care and other significant periods of life.
For the self-employed, lawyers, arbitration managers and some other categories, pension calculations will be made not from salaries, but from the amount of a fixed contribution and 1% of money exceeding 300 thousand rubles, which are paid annually for pension insurance.
You can make the calculations yourself. For example, a person worked for 40 years and earned 150 points. In 2021, the calculation will be 150x93=13950, where 93 rubles is the cost of one point for the specified year. A fixed payment is added to the specified amount. Therefore, the insurance part will be 19635.5 rubles.
The cumulative part is calculated using the formula: NP=PN/T. With it, the amount accumulated by the citizen is divided by the survival period. The latter depends on many parameters and is subject to annual adjustments. In 2020 it was 258 months. For example, before retiring, a person was able to save 300 thousand rubles in an account. They need to be divided by 258. It turns out that the amount to be paid will be 1162.79 rubles.
Contribution “Only advantages. Promo" Loko-Bank, Lits. No. 2707
up to 6.6%
per annum
from 50 thousand
up to 1100 days
Make a contribution
Social payments at the expense of the Pension Fund
Under certain preferential circumstances, citizens receive the right to the following payments from the Pension Fund:
- Social supplement. This is an addition to the pension amounts of disabled people whose income is below the subsistence level in the region.
- Monthly payments. Honored citizens have the right to them, for example, heroes of the USSR or the Russian Federation, minor prisoners of concentration camps in the past, and others.
- A set of social services is provided to pensioners without a request. It includes compensation for costs of transportation, sanatorium treatment, and the purchase of medicines.
- An additional monthly payment in the amount of one thousand rubles is awarded to disabled people and participants in military operations during the Second World War, and prisoners of concentration camps; at 500 rub. other categories of persons who took part in the events of the Second World War.
- Former pilots and coal industry workers receive a separate supplement to their pension accruals.
- Small money (1200 rubles) is paid to able-bodied people caring for group 1 disabled people and disabled children. In addition, such an allowance is established for those who look after pensioners who have crossed the 80-year-old threshold.
- Funeral benefit. Appointed upon application to compensate for funeral expenses of a pensioner who received social benefits from the Pension Fund.
- Maternity capital is assigned after the birth of the second and subsequent children, if their date of birth fell between 01/01/2007 and 12/31/2018.
Attention: you can apply for any of these payments only if you have evidence of belonging to a preferential category of citizens.
Important! Compensation for caring for a disabled child provided by one of the parents is 5,500 rubles. Since July 2019, it has been increased to 10,000 rubles.
