Where is it better to transfer a funded pension (NPF rating)

After a number of reforms, in addition to insurance (labour), social and state security for old age, accumulative security also appeared. There are many options for how best to manage your money to maximize profits with minimal risks in old age. Whether to leave your savings under the management of the Pension Fund of the Russian Federation or use the services of another structure, where to transfer the funded part of the pension so that it brings maximum income - these are the questions that will be discussed in our article.

The funded part of the pension: where is it better to transfer and why?

Since 2002, a new system of pension contributions has been introduced, which has changed at least three times over the past years. Previously, there was only one option: the employer deducted 22% of contributions from the employee’s salary, 16% of which went to the formation of insurance coverage, and 6% to the creation of a fixed payment (FB), guaranteed by the state. After the reform, the structure of contributions could be changed; in addition to the standard scheme, another one was implied, when 10% was allocated to “insurance”, 6% went to PV, and the remaining 6% could be set aside in the form of separate savings.

Important

Starting from January 2021, all formal contributions to the funded part are indexed to the insurance, without any splitting. From April 2017, they will be transferred to insurance accounts or frozen until new government decisions.

The funded pension has now become completely separate; any citizen can form it independently, choosing the ideal conditions for themselves. That is why it is extremely important to figure out where it is better to transfer the funded part of the pension, so as not to regret the choice you made.

Rules and procedure for deductions

When figuring out what to do and where to transfer the funded part of the pension, you should first understand how the process will take place. All of the above relates to the so-called “silent ones”, that is, to those individuals who have never applied to the Pension Fund of the Russian Federation with a request to transfer their funds anywhere. For those who transferred their funds to a management company or non-state pension fund, the procedure and rules will look slightly different.

• Wanting not only to save the savings portion, but also to earn money from it, a citizen can simply redirect his own collected funds to a management company, state management company or non-state pension fund.
• The employer continues to contribute exactly 22% of the required interest, while the Pension Fund of the Russian Federation is already managing them, redirecting 6% to the fund that the insured person indicates in a special application.
• To register and transfer the funded part of your pension to a non-state pension fund or management company, you will have to write not one, but two applications. One of them will be addressed to the Pension Fund of the Russian Federation, and the other to the selected company or fund, which will handle the savings.

When filling out an application to the Pension Fund of the Russian Federation, you will need to indicate all the details of the non-state pension fund or management company, postal and legal addresses, personal account number and other information that would not hurt to find out in advance.

Three translation options

The choice of various companies and funds is quite large; this will be discussed below, when we provide a convenient rating of where it is better to transfer the funded part of the pension. However, it doesn’t hurt to figure out what the options may be in general.

Non-state Pension Fund (NPF).

Most NPFs are formed on the basis of a financial institution or company. These organizations and institutions are regulated by Federal Law No. 75-FZ, adopted in 1998, but finally edited in 2015. To transfer funds to a non-state fund, you will need to write an application and conclude a contract (agreement).

Management company (MC).

Among the main functions that are included in the powers of the management company, there is the most important one - complete control and trust disposal of assets, property, deposits, as well as other wealth and property of its own clients. The activities of each management company are regulated and governed by Federal Law No. 156-FZ, published in 2001, but finally amended in 2015. To start cooperation with a management company, an application will need to be submitted exclusively to the Pension Fund of the Russian Federation, where you need to indicate the personal account of the client of the management company.

State Pension Fund of the Russian Federation (PF RF).

The third option is to leave your money under the control of the Russian Pension Fund. Then it will be the state fund that will handle the funds; it will manage them, accumulate and multiply them, and provide significant interest rates on the deposits of its clients’ portfolios.

Where is the funded part of the pension transferred and where is it stored? How can I find out which fund I am in?

Also, companies with lower ratings (B+, C+) do not perform well in the market. But this indicator reflects the main shortcomings of such organizations, for example, a low reliability indicator, minimal profitability in a given reporting year, etc.

The purpose of transferring a funded pension to a non-state pension fund

The easiest way to find out where my pension money is allocated in addition to mandatory insurance payments is to send a request online. You should be careful, as there are many fictitious sites on the Internet. They ask a person to transfer a certain amount of money in exchange for information about the NPF. Non-state pension organizations also provide their clients with all the necessary data via the Internet. The client has the right to send a request to the NPF email and receive a response. Some organizations have created personal accounts on official websites where citizens can check their accounts. You can track where your pension savings money goes through government services. The government services portal contains information not only about pension savings. There you can find out about all the services provided by the state in Russia. To do this, you need to go through the registration procedure on the site. A person chooses his own login and password, which only he controls. How can I find out where my pension savings are located through the portal? To begin, enter the name “Public Services Portal” in the search engine. The registered user opens the portal start page and, following the instructions, creates a request for information.

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Citizens of the Russian Federation have the right to independently manage one of the parts of their pension—the funded one. By regularly transferring contributions to your account during your working life, you can increase the amount of your future benefits. Transferring pension savings to a non-state pension fund has both positive aspects and a certain risk. The choice of a financial institution must be approached responsibly, having studied the rating of funds, their reliability and profitability. Read more about this in our article.

What to look for when choosing a non-state pension fund

Quite a lot of people wonder where to invest their funded pension. The answer depends on how many years the citizen has left until his retirement pension. Please note that the Pension Fund will be a good choice provided that it is no more than 10 years away. In all other cases, it is better to trust the NPF.

Before signing an agreement with a non-state fund, find out more about it. The funded part of your pension will depend on the profitability of the chosen institution. To do this, analyze what income the fund received and over what period of time. According to the Central Bank for 2018, we present the TOP-10 NPFs by profitability:

NPF reliability rating for 2021

Pay special attention to the following points:

1. Does the fund have a license corresponding to its activities?
2. How many clients does the fund have?
3. Take a close look at the financial statements.
4. What are the results of cooperation with the fund?

Among other things, always pay attention to the history and date of foundation of the fund. Listen to offers, find out the conditions.

When choosing a non-state pension fund, remember that there are 4 main types of such organizations:

• Child type. Promotes corporate pension programs of any companies, the number of contributions exceeds the number of savings.
• Universal type. Serves individuals and legal entities, has quite a lot of savings.
• Corporate type. Serves the founder's pension programs. Savings grow thanks to clients.
• Territorial type. The main feature is that it operates in a specific area.

The rating of the fund is important, since to a large extent it helps determine its reliability. There are 5 positions in total:

• Class "A" includes three categories. A simple letter “A” indicates the high reliability of the establishment, a letter with one plus (A+) raises this bar, and a letter with two pluses (A++) is the highest rating of all.
• Class "B" declares the fund's good reputation.
• Class “C” indicates satisfactory performance of the fund.
• Class "D" indicates that the fund is bankrupt.
• Class "E" means that the fund does not even have a suitable license.

Carefully study the following figure, which can be entitled “Where to transfer a funded pension: rating”, since it contains information about the rating of NPFs for the current year. In total, there are about 125 non-state pension funds in the Russian Federation.

When to change NPF

You can change your pension fund every year, but at the same time you will lose some money. This can only be avoided if you change the insurer 5 years after making payments.

NPF rating: where is it better to transfer the savings part

The non-state pension fund (NPF) is not very well known, but clients speak favorably of its activities. They note that the main advantage is the income and the interest rate that allows it to increase. Keep in mind, you can increase your profit by 3 or 4 times.

NPF is distinguished by its flexibility in concluding a contract with a client and offering him favorable conditions for preserving the deposited funds. Absolutely any person specified in the agreement can inherit savings. Remember that in the absence of this clause in the agreement in the case of a deceased citizen, the money will not be lost, but will go to the heir.

The big advantage is that the funded part of the pension is not subject to taxation.

The fund's complete openness also inspires trust in NPFs. They do not hide information from clients, do not do anything behind their backs, and the organization constantly draws up and sends reports to higher authorities, so that a citizen can monitor all its activities.

In addition to its advantages, the fund has disadvantages, like any structure. Imagine that the biggest problem of a non-state pension fund is that the administration cannot be one hundred percent sure whether the enterprise will be popular in the future. This is a clear flaw, given the desire of clients to increase the profitability of their savings with each subsequent year, and not to worry about whether the organization will fail.

Trying to delve as deeply as possible into the question of where it is best to transfer the funded part of the pension, you will have to work hard, since at this time there are at least fifty non-state pension funds registered with the Pension Fund of the Russian Federation and having an agreement with it, as well as more than three hundred management companies (list can be downloaded from our website).

JSC NPF Sberbank

A joint-stock company called “Non-State Pension Fund of Sberbank”, which has long been known in the market for such services, was founded in March 1995. In March 2010, NPF Social Partner was merged with the organization. There are also a large number of management companies under the leadership of the JSC.

• LLC Management Company "Pension Savings".
• LLC "Manager.
• JSC "REGION EsM"

As of the spring of 2021, more than 6.5 million clients were registered in this NPF, with more than 170 thousand already receiving funded pensions, and about 47-48 thousand receiving compulsory pension contributions. The total assets of this fund are extremely high, and the network of branches covers almost the entire country, from Kamchatka to the Kola Peninsula. The JSC operates on the basis of a perpetual license issued upon opening.

JSC NPF LUKOIL-GARANT

One of the largest and most reliable joint-stock companies in the country engaged in non-state accumulation of pension contributions is the NPF "Lukoil-Garant", widely known throughout our vast Motherland. You can transfer the funded part of your pension here without fear, because the company has been operating on the market since 1994, that is, more than twenty-three years. Management companies also work under the auspices of NPFs to help invest funds and generate additional income from them.

• LLC Management Company "AK BARS CAPITAL".
• Management Company "DROSMENO INVESTMENTS LTD".
• OTKRITIE UK LLC.

Over the years of fruitful work, NPF has never violated a single obligation to its clients, regardless of the economic situation of the country and the crisis in the world. According to international reports, the fund regularly tops the list of leaders in the OPS market.

JSC NPF VTB Pension Fund

An honorable fifth place in our improvised rating is occupied by a member of the international VTB group - NPF “VTB Pension Fund”. To date, this group has managed to unite more than three dozen financial institutions. The fund operates in twenty countries around the world, and the trust of people abroad allows us to speak about the reliability and solvency of the organization. VTB does not have pension reserves, and there is only one management company under its leadership in our country, but it deserves special attention: JSC VTB Capital Asset Management. The group also has a special depository LLC SDK Garant. In 2014, there was a slight drop in profitability, but the joint-stock company quickly corrected its positions and significantly strengthened them.

NPF "GAZFOND pension savings"

Statistics for the current year show that the top position in the list of the most profitable NPFs is occupied by GAZFOND pension savings. In addition, it is also on the first line in the ranking in terms of the volume of funds and the number of clients. The only thing stopping him from taking first place is NPF Sberbank.

This fund has many advantages. Here are just a few of them:

1. A++ rating, which allows us to judge the reliability and performance of the organization as a whole.
2. Prevalence throughout Russia.
3. Merger with 3 leading NPFs.

The transfer of the funded part of the pension to this fund follows the same scheme as in the case of other non-state pension funds. First you need to sign a contract. You can do this in one of the following ways:

• come to the fund's branch;
• go to the official website of this NPF, use the “Online Agreement” service (be sure to take your passport or temporary identity card and SNILS with you).

After concluding the agreement, submit the appropriate application for transfer to the Russian Pension Fund. To do this, again use one of the options suggested above.

Please note that at present, NPF “GAZFOND Pension Savings” no longer belongs to , since in 2021 its owner changed.

online registration in 5 minutes

The freezing of funded pensions allowed the state to attract significant sums of money to solve current problems. It is planned to extend it for at least another couple of years. This step makes it possible to ensure the financial support of persons who have already reached retirement age. But for citizens who are of working age today, this situation does not bring anything good.

Who is entitled to the funded part of the pension?

However, in addition to the insurance pension, there is also a funded pension. It is formed from the same contributions. At the same time, funds in the amount of 6% are allocated to the funded part of the pension, while 16% goes to the insurance part. In general, citizens, with a few exceptions, choose for themselves whether to form the funded part of their pension payments or not.

This is due to the fact that on January 1, 2021, a federal law came into force, which regulates that the acceptance of applications from insured persons to transfer to a NPF or Pension Fund, including early transfer, as well as notifications about replacing an insurer and refusing to change an insurer, is now carried out by two ways. First: in the form of an electronic document through the portal of state and municipal services. Second: by contacting the client services of the Russian Pension Fund in person or through a representative. Neither NPFs nor MFCs accept applications of such content.

If you formed your pension savings in a non-state pension fund, then you should contact this fund for payment of funds. The question in what form it will be assigned - as a lump sum, fixed-term or funded - will be decided when, as a result of calculations, it becomes clear whether the size of the funded pension exceeds the 5% threshold of the total amount of the insurance and funded pension combined. If the amount of the funded pension is less than the specified share, then the amount of pension savings is assigned in the form of a lump sum payment.

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Be careful! You can transfer pension savings without loss of investment income no more than once every 5 years. For example, in 2021, transferring pension savings without loss is beneficial only for those citizens who last wrote an application to choose an insurer in 2021. The same goes for “silent people”, that is, those who have never transferred their pension savings. They are recommended to apply for early transfer to the NPF only in 2021. If the decision to change insurer is made earlier than the specified period, part of the investment income will be lost.

In general, the state, private management companies and non-state pension funds worked in the same way: results fell and rose synchronously, usually along with inflation. Two crisis periods are visible when inflation rose and yields fell: 2021 and 2021.

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I have been working in the pension insurance system for ten years and have been following the main changes. In this article I will tell you about the results of compulsory pension insurance. I will explain why a funded pension is needed, where it is located, where and why it can be transferred in 2021, and how it affects your future pension.

What is a funded pension?

The best non-state pension funds are slightly ahead of price increases. In general, the differences are small; over a long period of time, most funds work the same - they give a return of 5-10% per annum. There is no gap of tens of percent between them. This is because non-state pension funds cannot invest all their money in shares of one company or buy as much currency as they want.

As noted earlier, employers pay 22% of their employees’ salaries to the Pension Fund, 6% of which was used to form pension savings for their employees. In 2021, the Government was forced to freeze the funded part of pensions due to sanctions imposed on the country. The freezing of funds means that now 6% is not sent to the NPF, and is also spent on payments to today's pensioners. The government plans to abandon mandatory payments for the funded part of pensions and invite citizens of the country to independently form an additional funded part of their pensions. Employers' insurance contributions will be retained to form payments to today's pensioners. The funded part will be formed by the Russians themselves.

Subtleties of transfer from RF Pension Fund to Non-State Pension Fund

After reviewing the information about existing non-state pension funds and management companies, and there are many more of them than are presented in our rating, all that remains is to choose the most suitable option and place your money there. But how to transfer the funded part of the pension to the selected non-state pension fund, is there a special procedure and what do you need to know before deciding to take such a step?

Remember

Any client of a NPF or Pension Fund of the Russian Federation who places his funds of the funded part of his pension there has every right to change the location of their placement once a year. For example, if you find that your money is being invested ineffectively or even unprofitably, you can write a statement and change the management company to save and increase it.

• Contact the branch of the Pension Fund of the Russian Federation at your place of registration (registration) or actual residence.
• Write an application with a request to transfer the savings part to the selected NPF.
• Submit your application to the operator and wait for a response within ten working days, excluding weekends and public holidays.

You can submit papers in person, by mail or online through your personal account on the official portal of the Pension Fund of the Russian Federation. When submitting in person, certification will not be required, but if it is more profitable for you to send a letter, you should remember that it must be registered, and it is better to have the application certified by a notary.