A funded pension is money that a citizen pays to the appropriate organization on a voluntary basis. They are accumulated on a separate account of a non-state pension fund (briefly, NPF) or a state management company (UK). When the time comes, citizens think about how to pick up the funded part of the pension at a time. Sometimes this happens without a problem. In other cases, you have to be content with other options for receiving cash.
A bit of history
In 2002, the first pension reform began, in accordance with which a system of compulsory pension insurance was adopted (in short, OPS). It forms the pensions of future pensioners. By law, an employer is required to make contributions for an employee every month. This procedure is carried out until the employee is registered at work. Of course, we are talking only about those cases when the citizen's labor activity is carried out in an official manner. This means that the employee should receive the so-called white salary, and not money “in the envelope”.
At the same time, the labor pension was divided into insurance and funded parts, and citizens were able to choose:
- Leave deductions in full in the insurance part.
- Allocate the funded part in order to later receive the right to a lump sum payment of the funded part of the pension.
This right was valid only for persons born in 1967 and later.
Formation of funded pension
The funds that the employer contributed began to be distributed on the personal account of the future pensioner, depending on the choice he made. Also, citizens were entitled to deposit the appropriate funds for the funded pension voluntarily, in accordance with one of the following programs:
- Co-financing (currently it is no longer possible to do this).
- Maternal capital (current and still).
These funds transferred to NPFs or UK are invested in various projects. This allows you to significantly increase the income that can be obtained in the future. Thus, a funded pension may consist of the following parts:
- The contributions that the employer makes.
- Voluntary contributions of citizens.
- Income received from investing funds available in the account.
Payment of contributions
Currently, employers transfer contributions to the Pension Fund in the amount of 22% of the employee's salary. This is stated in Art. 426 of the Tax Code of the Russian Federation. These funds are distributed as follows:
- 6% goes to the joint part;
- 16% - on an individual basis.
The funds of the joint part are used to pay pensions to today's pensioners, and may also be spent on the necessary needs of the state.
The individual part is recorded on the personal account of the employee. It is from this money that his future pension will be composed. It can be distributed as follows:
- In relation to persons born in 1966 and earlier, all funds are allocated to an insurance pension.
- In relation to persons born in 1967 and later, cash means 10% of the insurance payment, and 6% of the funded pension, if the future pensioner expresses the corresponding desire.
This is evidenced by the law on the lump-sum payment of the funded part of the pension. In addition, the funded pension is paid once to citizens who have contributed voluntarily (previously under the co-financing program, and then maternity capital).
When can I take my savings?
Despite the fact that the funds of the funded pension are not stored in the Pension Fund, but in the NPF or the UK, they cannot be withdrawn before the retirement age. This type of pension is assigned along with the main insurance pension payment.
Earning a funded pension early
As mentioned above, the way to take the funded part of the pension at one time or in another way is relevant only when the right to an insurance pension arises. However, citizens may go on a well-deserved rest ahead of schedule set by law on a common basis. There are a number of categories of insured persons who are entitled to retire early.
Other grounds for receiving the funded part of the pension are not provided by law. The reason for this is that the employer makes contributions through the mandatory pension insurance system. And in accordance with it, payments are assigned only when an insured event occurs. This is stated in article 6 of the law "On funded pension" No. 424-FZ.
Having decided that the time has come, those to whom a lump-sum payment of the funded part of the pension is due, apply for this purpose to one of the following organizations:
- FIU (if the money was entrusted to the management company).
- Non-state pension fund (if the savings were kept by a non-state pension fund).
Obtaining a funded old-age or disability pension
There are times when an old-age pension is granted ahead of schedule due to a deterioration in human health or for various social reasons. Then you can simultaneously apply for the funded part of the pension.
In principle, this can be done later. And this option will be more profitable, since the amount of payment will only increase. That is, the later a citizen writes an application for a lump sum payment of the funded part of the pension (or in another order), the greater the amount he will receive as a result. This provision applies both to pensioners who go on vacation in the generally established regime, and to those who do this ahead of schedule. You can receive money as follows:
- At a time.
- Urgently.
- Indefinitely (or for life).
Perpetual payment of savings
In an unlimited order, a funded pension is paid every month during the life of a pensioner. However, it is prescribed only if the amount on the corresponding account is more than 5% compared with the main insurance payment.
A funded pension depends on the amount of funds in the pensioner's account, as well as on the period that is set by the state. If in 2017 it was appointed for a duration of 20 years or 240 months, then in 2018 it increased by six months and began to equal 20.5 years or 246 months. To determine the exact amount of payments, you should divide the available amount by the number of months.
Lump sum payment
The law on the payment of funded contributions No. 360- (namely, in article 4) states the possibility of taking the funded part of the pension at a time, that is, in the form of a single payment. This is possible, as mentioned earlier, upon reaching the retirement age (both in the generally established and in the early stages). And another condition is the insignificant amount of a lump sum payment of the funded part of the pension. That is, payment is made only once if it is less than 5% of the basic insurance pension.
You also need to understand that if a citizen by the retirement age does not gain the necessary number of pension points, as well as the number of years of work experience, he will be able to use the savings in such cases:
- If an survivor or disability insurance pension is awarded.
- Assigned state pension (including social).
After receiving the money, if desired, it is possible to continue to form a funded pension in the event that a citizen decided to continue his labor activity while already retired. But the next time you can apply for a withdrawal of money no earlier than after 5 years. In addition, if previously savings were already withdrawn, then a lump sum payment to pensioners from the funded part of the pension this time is no longer due.
Urgent payment
An urgent pension, as well as an indefinite one, is a payment transferred to the pensioner every month, but during the period chosen by him. But this option is possible only if the citizen made voluntary contributions to his account, namely, the funds were transferred:
- mothercapital;
- co-financing contributions;
- additional money paid by the employer on a voluntary basis (that is, other than mandatory payments).
Fixed-term pension is established for a different period, which is determined by the insured person. However, it cannot be less than 10 years or 120 months.
The amount of payment also depends on the relevant period. To find out the exact amount, you need to divide the available savings by the number of months during which it is planned to receive this pension.
Payment upon death of the insured
The cumulative part of the pension, lump-sum paid, has an advantage over insurance and state payments in that it can be inherited. For this purpose, a citizen can apply to the Pension Fund or NPF about how he will manage the money after his death.
The statement should register the heirs, as well as their shares. In this case, family ties will not matter. The insured person may indicate those whom he wishes. If he does not make such an order, then after his death the money is inherited only by relatives according to the law (that is, in order). In this case, first the funds are distributed between the children, spouse or parents. If the deceased does not have such, then the inheritance passes to the sisters and brothers, grandfathers and grandmothers, as well as grandchildren.
But the money will be transferred only in the following cases:
- If the deceased did not apply for payment in life.
- If an urgent payment is established.
- After the amount of the lump-sum funded part of the pension was determined, but not paid.
In addition, it must be borne in mind that only the children of the deceased mother and her spouse (father of the children) can inherit the capital. If there are none, then the money goes into the reserve budget of the Russian Federation. If there are no heirs to other parts of the funded pension, then the funds are transferred to the budget of the organization where they were stored (PFR or NPF).
Legal advice
A funded pension has its advantages and disadvantages. The advantages include the ability to inherit this part. But making the appropriate decision, it is recommended to take into account some negative factors. These include, for example, the impossibility of early withdrawal of a pension, as well as non-fulfillment of indexation in relation to it, which is annually performed in the insurance payment.
In this regard, lawyers offer to carefully weigh the “pros and cons”, as well as consider a number of alternative ways of accumulating cash. These include, for example, the following:
- Open a special pension deposit in the bank on demand. It can be replenished at any time, as well as withdraw these funds.
- Take advantage of the cumulative life insurance program, which lasts from 5 to 40 years.
- Conclude an agreement with non-state pension funds for voluntary retirement benefits.
In this case, you need to pay attention to the next moment. If in the first two cases it is allowed to invest in any currency, then in the case of non-state pension funds, contributions can only be made in rubles.
In contrast to the funded pension, discussed in the article, these methods allow you to use cash in advance.
Savings yesterday and today
All who are entitled to a lump-sum funded part of the pension could conclude an agreement with the selected organization earlier. But at present a moratorium has been imposed on this action. This decision is explained by the fact that during a certain period it is supposed to check the activities of NPFs, namely their break-even. But, according to experts, in fact, the reason is that a lot of citizens hastened to apply their right, because of which a budget deficit formed in the FIU.
Therefore, the ways how to pick up the funded part of the pension at a time or receive it on an urgent or unlimited basis can now be used by insured persons who already have a funded account. The exception is those citizens who decide to make savings voluntarily.
Conclusion
Judging by the information contained in the article, in order to receive a lump sum payment to pensioners from the funded part of the pension, many nuances must be taken into account. It is far from always possible to observe all of them. This leads to the fact that in some cases one has to be content with only a small increase to the basic pension.