NPF agents appeared on the threshold of your apartment. What to do?
The choice of an insurer is a personal and inalienable right of every citizen of the Russian Federation.
Some NPFs have experience in going door-to-door in order to encourage insured persons to switch to NPFs and enter into compulsory health insurance agreements. The Pension Fund is not an organization that controls the activities of non-state pension funds. The decision to transfer pension savings to a non-state pension fund, as well as the decision on whether to allow non-state pension fund agents into one’s apartment, is made by the citizen independently.
Also, citizens need to study documents more carefully before signing them in financial institutions and insurance companies, because the mentioned organizations can cooperate with non-state pension funds and offer citizens to choose one or another insurer, not always providing full consultation, and do not explain the risks associated with the transition.
How to secure your retirement savings
In order to protect your pension savings from financial losses when transferring from one insurer to another, it is recommended not to sign documents without first reading them, since changing insurers by transferring your pension savings more than once every five years is unprofitable .
According to the norms of current legislation, responsibility for the safety of pension savings lies with the state together with the DIA, and guarantees the safety of pension savings aimed at the funded part of the pension, but only in the amount of par . Loss of investment income is possible if you choose an insurer ill-considered.
If you have signed an agreement for OPS
From 1 January 2015, insured persons have the right to submit applications for transfer ("urgent" applications) or for early transfer ("early" applications).
The differences between these applications are in the terms of consideration, as well as in the fact that the legislation provides for different degrees of guaranteeing the safety of pension savings depending on the type of application chosen - “urgent” or “early”. In order to transfer savings to a particular fund, the insured person must:
- submit an application for transfer to the Pension Fund authorities,
- conclude an agreement on compulsory pension insurance with the selected fund.
If a citizen has signed the specified documents, but has changed his mind about transferring funds to a new insurer, he needs to contact the territorial office of the Pension Fund of the Russian Federation before the end of this year to receive detailed advice, as well as to possibly submit an application for choosing the current insurer, thus pension savings will continue to be formed with the previously selected insurer. If a citizen decides to change insurer in order to avoid loss of investment income or losses from investing pension savings, it is recommended to submit an application to switch to a new insurer no earlier than after 5 years.
Basic option - payments for 15 years
Read on RBC Pro
Nassim Taleb - RBC: “I see a threat more serious than a pandemic”
Why Amazon creates failed products and what's wrong with their design
How 12 startups are revolutionizing global finance
When China will become the world's first economy: 5 scenarios from Bloomberg
The pension payment under the SPP will be assigned:
- or when a citizen reaches the standard retirement age (65 years for men and 60 years for women);
- or after 30 years from the date of commencement of payment of pension contributions under the GPP - whichever comes first.
It must be paid monthly and calculated using the formula “amount of pension payment = total amount of participant’s contributed funds / 180”, adjusted for the result of placement of pension reserves. This means that the basic payment option is a pension payment for 15 years. But participants will be given the right to choose other options other than the basic one, according to the explanatory note of the Ministry of Finance.
Shvetsov clarified that “there is a proposal to make the payment stage as a sliding term payment”: the first calculation of the pension is made based on the fact that it is paid for 15 years, but after one or two years a recalculation occurs based on investment income and what has already been paid ; in two years - a new recalculation, etc.
There is also the possibility of early payment of savings if a participant in the system is diagnosed with diseases from the government-approved list of socially significant ones. The payment is made in the amount of treatment costs, but not more than the amount of savings made.
If the profitability of placing pension reserves turns out to be negative, the NPF will be obliged to make up for the negative result from its own funds. In the event of the death of a GPP participant, his accumulated unpaid funds are included in the inheritance and are inherited on a general basis by relatives.
What to do if an unwanted transfer takes place
Recently, cases of complaints regarding the illegal transfer of pension savings to a particular fund without the knowledge of the insured person, as well as regarding the loss of investment income when transferring funds to the fund, have become more frequent; this situation occurs in the absence of high-quality information to the citizen about the norms of current legislation when concluding an agreement from the NPF.
In order to protect your pension savings from transfers, it will be enough not to present your documents, namely: passport and SNILS - to people who introduce themselves as NPF agents, and also not to sign OPS agreements offered by agents if changing the insurer is not part of the citizen’s plans .
In the event of an unlawful transfer of pension savings, the insured person must contact the judicial authorities to invalidate the contract.
How to control your pension savings
Insured persons can order either from the Pension Fund of the Russian Federation, or on the website of government services, or in the personal account of the insured person, an extract from the ILS, which provides information on the amount of pension savings and the current insurer.
Information about the current insurer is necessary in order to know information about the results of investing pension savings.
If the current percentage of investment income does not meet the expectations of the insured person, the average annual return and the results of investing funds from previous years should be analyzed.
The expected financial losses during the transition may be greater than the lost profits from the low investment percentage.
Conditions for assigning a funded pension:
1. Men who have reached the age of 60 years and women who have reached the age of 55 years have the right to a funded pension, subject to the conditions for the appointment of an old-age insurance pension established by the Federal Law of December 28, 2013 No. 400-FZ “On Insurance Pensions” (availability the required insurance period and the established value of the individual pension coefficient).
2. The right to a funded pension has the insured persons specified in Part 2 of Article 6 of the Federal Law of December 28, 2013 N 424-FZ “On Funded Pensions” - upon reaching the age or onset of the period determined in accordance with the Federal Law “On Insurance pensions" as of December 31, 2021, and subject to the conditions giving the right to early assignment of an old-age insurance pension (availability of the required insurance period and (or) length of service in the relevant types of work and the established value of the individual pension coefficient).
3. A funded pension is assigned if the amount of a funded pension is more than 5 percent in relation to the sum of the old-age insurance pension and the amount of a funded pension.
The funded pension is established and paid in accordance with the Federal Law of December 28, 2013 No. 424-FZ “On the Funded Pension”, regardless of the receipt of another pension and monthly lifelong allowance provided for by the legislation of the Russian Federation.
The funded pension is paid for life.
The amount of the funded pension is subject to adjustment:
• based on the results of investing the payment reserve;
• taking into account the pension savings reflected in the pension account of the insured person later than the day from which the payment was established.
Adjustment of the funded pension amount is carried out by SberNPF without additional application from the insured person; information about the new pension amount after the adjustment is available in the Personal Account.
From January 1, 2021, the duration of the expected period of payment of a funded pension is determined annually by federal law on the basis of official statistical data on the life expectancy of recipients of a funded pension in accordance with the methodology for assessing the expected period of payment of a funded pension, approved by the Government of the Russian Federation. The period for payment of a funded pension can be increased or reduced depending on the age of the insured person on the date of application (Article 7 and Article 17 of the Federal Law of December 28, 2013 No. 424-FZ “On Funded Pension”).
Additional information about inheriting an unpaid balance:
The balance of funds is not inherited if the insured person is assigned a funded pension based on the total amount of pension savings accounted for in the funded pension account, consisting of insurance contributions to finance the funded pension, additional insurance contributions for the funded pension, employer contributions paid in favor of the insured person , the net financial result from the temporary placement by the Pension Fund of the Russian Federation of the specified insurance contributions and employer contributions, as well as contributions for co-financing the formation of pension savings received in accordance with the Federal Law “On additional insurance contributions for funded pensions and state support for the formation of pension savings”, funds (part of the funds) of maternal (family) capital aimed at forming a funded pension, and the result of their investment.
Was the answer helpful?
How to transfer your savings to NPF
The law establishes that before December 31 each year, every citizen has the right to submit an application to change the insurer in one of the following ways:
- personally contact the Pension Fund or the MFC with a passport and insurance certificate of compulsory pension insurance;
- send the application to the Pension Fund of Russia by mail, having previously notarized it;
- submit an application for transfer through the government services portal or the personal account of the Pension Fund (for this you need to undergo electronic registration and acquire an electronic signature).
According to the norms of current legislation, the application with the latest date of receipt by the Pension Fund is considered.
Also, when transferring to a non-state pension fund, it is necessary to conclude a mandatory security agreement.
The automatic transfer of pension savings from one insurer to another is not provided for by the current legislation.
How to increase the funded part of your pension
The growth of pension savings is accelerated by legal means. The management of the savings portion is entrusted to the direct owner of the money. To positively influence the situation and make money grow, you should:
- change the financial organization that invests the pension contribution in profitable sectors;
- change the fund in which the pensioner’s money is placed.
The first item on the list leaves investments in the Russian Pension Fund. However, they will no longer be managed by Vnesheconombank, which is not interested in increasing profitability, but by another company chosen by the account owner.
Not any bank is suitable for the role of manager. You must select a management company from the proposed list. It is downloaded from the official website of the Russian Pension Fund.
The list includes 35 participants, including:
- Alfa Capital;
- Finam Management;
- National Manager;
- CJSC "UK Monomakh";
- CJSC VTB Capital;
- Ingosstrakh-Investments;
- LLC "UK PROMSVYAZ";
- Management company MDM.
It is not prohibited to take the savings portion from the Pension Fund and place it in another organization. According to Law No. 424, not only state organizations can form pension funds for Russian citizens. Non-state pension funds also have the right to do this.
A mandatory condition for the operation of a non-state pension fund is a valid license to carry out operations with pension deposits. The choice of fund should be approached with caution, since there is no one to share responsibility for the safety of savings with anyone.
How to change the money management company or transfer funds to the Non-State Pension Fund?
This is done in the following ways:
- personal visit to the Pension Fund;
- with the help of a trusted person;
- using the services of Russian Post;
- on the Internet on the State Services website.
Using any of the above methods, an application for a change in the management of pension funds is delivered to the Pension Fund of Russia. When visiting the office in person, SNILS and a Russian passport are attached to it; when visiting remotely, copies of these documents, previously certified by a notary, are attached.
If you plan to place money in an account with a non-state pension fund in 2021, you need to have time to complete the documents before December 31, 2021. The application for transfer does not have to be submitted directly to the Pension Fund. You can create it in the Non-State Fund. The rest of the work will be done for the client by his employees.
It happens that hopes for a non-state pension fund or a management company are not justified. Money is still growing slowly, in contrast to doubts about the reliability of its continued safety. If a citizen considers that the Pension Fund was better, he can return the money back.
