How much are pension points worth for calculating a pension in 2021?

How many points do you need to accumulate to receive a pension?

To become eligible to receive an insurance pension, it is not enough to reach retirement age. You must also have a certain length of service and accumulate a minimum number of pension points. In 2020, 11 years of experience and 18.6 points are enough to grant a pension. Next, the transition period to raise the retirement age will continue, and the number of points and length of service required to receive the payment will also increase. In 2026, retirement will require 30 points and 15 years of experience.

How is the size of pension payments determined?

When forming a citizen’s pension, a fixed part of the insurance pension is added to his total value of pension points. In 2021 it is 5,686.25 rubles.

Thus, the amount of the old-age insurance pension in 2021 can be calculated using the following formula: number of pension points x 93 + 5,686.25

What kind of “governor's additional payments” to pensioners may appear in Russia? More details

Summary in table

The information discussed above can be quite difficult for an uninformed person to understand. Therefore, for convenience, it is worth presenting the data in numbers in a table, dividing the information by year:

What should be the coefficient for calculating a pension?

An individual entrepreneur pays insurance to the Pension Fund, so he can also receive a labor pension. To obtain it you must meet the following requirements:

1. Reach retirement age. As of 2021, the retirement age for men is 60.5 years, and for women 55.5. But every year it increases, in 2028 it will be fixed at 60 years for women and 65 years for men.
2. Insurance experience. This value refers to the period of insurance payments to the Pension Fund. Individual entrepreneurs pay it themselves, while their employer pays for ordinary workers. In 2021, the insurance experience must be at least 10 years. But it increases every year, and in 2024 it will be 15 years.
3. Minimum number of points. In 2021, this figure is 16.2 points. In 2025 it will increase to 30 points.

The amount of the IPC depends on the investments that the citizen or his employer regularly deducted from wages to the fund. The IPC coefficient increases depending on work experience. For example, if a person wants to retire after 5 years of eligibility, he will increase his IPC by 1.45 times.

Currently, the working population does not receive indexation. This will last until citizens stop working. After dismissal, benefits are recalculated for them.

Therefore, it will be possible to increase the size of pension payments by performing labor functions for a long time. The IPC for calculating the maximum pension is established for the person who worked after reaching the age allowing him to retire.

These rules were introduced by government agencies because they believe that working pensioners do not have a particular need for money. Only those persons who have stopped working and are receiving a pension can apply for indexation. In addition, the working population cannot count on an increase in the IPC.

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The benefit for them is calculated based on the indicators when they received the opportunity to retire. Since 2016, recalculations have been carried out since the beginning of August.

In 1 year, a working pensioner will be able to add from 1 to 3 points to the piggy bank. It depends on his income level. The maximum score will be achieved by such a person by the end of his working life.

The concept of pension points was introduced in 2015. Citizens who worked during the USSR often wonder about the transfer of experience gained in the Soviet Union into pension points.

On this issue, the Pension Fund has approved a methodology that involves conducting calculations by period.

They are presented:

• before 1991 – includes time spent working in the USSR;
• 1991-2001 – time of work in the post-Soviet period.

Calculation using this method involves going through several steps. Understanding the calculation scheme is quite problematic for citizens. The maximum IPC during work in the USSR is about 82 points.

The amount was established without taking into account whether the employee went on maternity leave or whether he had breaks in his service. If these indicators are available, the value of the maximum IPC is reduced for an individual citizen.

What are pension points

Pension points are a coefficient introduced for uniform (proportional) indexation of pensions.

Since it is not possible to predict the exact level of inflation in the future, the Pension Fund recalculates all pension contributions into points, and the Government regularly sets the value of a point taking into account inflation.

Thus, no matter how much prices rise in the future, an increase in the value of a pension point will equally (as a percentage) increase the individual pension amount of each citizen. And this pension size will depend on how many contributions the pensioner made during his working life.

Pension points are awarded for insurance premiums that employers pay to the Pension Fund for their employees. That is, only those citizens who work officially can be provided with pension points.

Pension point cost

From January 1, 2021, to calculate pensions, the state has set the cost of one pension point in the amount of 93.00 rubles.

The specified cost is indexed every year by a percentage equal to the indexation percentage of the insurance pension.

How many points do you need to receive an old-age insurance pension?

To receive an old-age insurance pension in 2021, you must score at least 18.6 points. Every year this figure will increase and by 2025 it will be equal to 30 points without further increase. This rule also applies to early old-age insurance pensions.

It is important to know! If the number of pension points is not enough, you will be DENIED from receiving an old-age insurance pension.

How to find out the number of accumulated points

The easiest way to find out how many pension points you have is to look at your personal account statement, which you can request at an appointment with the pension fund or on the State Services portal.

You can also find out the insurance period and the amount of pension savings from the statement.

It should be taken into account that the specified data was not available in the compulsory pension insurance system before 2000, so they are not reflected in the statement.

In addition, you can independently calculate the number of pension points you have accumulated.

Calculation of pension points earned before 2015

Pensioners who are retiring today should be aware that length of service and salary earned before the 2015 pension law reform are also translated into pension points. The law establishes that all rights earned before 2015 are calculated in accordance with the old legislation and are converted into points when assigning a pension.

Calculation of pension points until 2015, formula

PB = MF ÷ SB

PB - Pension points until 2015

SCH - the amount of the insurance pension assigned as of January 1, 2015. It is calculated as the result of dividing the pension capital by the established expected payment period (228 months);

SB - the cost of a pension point as of January 1, 2015 - 64.1 rubles. (at the time of conversion).

Calculation of points earned from 2015 to 2021.

To calculate the number of pension points accumulated per year, you need to know the amount of insurance contributions that your employer paid for you to the Pension Fund at the rate established by the state.

There are 2 options for the established tariff:

• Option 1 - from 16% of the insurance contributions transferred by the employer, only the insurance pension is formed
• Option 2 - of the 16% of insurance contributions transferred by the employer, 10% is used to form an insurance pension, 6% to form a funded pension.

Calculation of the number of pension points, formula

PB = SV ÷ MV ×10

SV - paid insurance premiums at the state rate

MV – maximum contributory salary paid by the employer at a rate of 16% (set annually by the state)

Maximum annual salary for calculating pension points

In 2021, the rule applies: when forming only an insurance pension, you can score a maximum of 9.57 points. Therefore, even if the annual salary is 1,000,000 rubles, in accordance with the rules, you cannot earn more than 9.57 points.

Read more about limiting the maximum number of points in different periods below.

Calculation of the number of pension points, example:

Let's give an example of calculating the number of pension points for 2021 with a tariff of 16% , aimed entirely at the formation of an insurance pension.

With a monthly salary of 30,000 rubles. The employee’s salary for the year will accordingly be 360,000 rubles .

The amount of insurance premiums paid from the annual salary is 360,000 rubles. at a 16% tariff it will be 57,600 rubles.

We divide this value by the amount of insurance premiums from the maximum contributory salary paid by the employer at a rate of 16% (in 2021 it is 876,000 rubles )

57,600 ÷ (876,000 × 16%) = 0.41 rub.

And multiply by 10.

0,41 × 10 = 4,1

Thus, the number of points for 2021 with a salary of 30,000 rubles. per month – 4.1 points .