Funds that are state property, in no way available for withdrawal and not included in the number of any other budgets, aimed at one goal - the provision of pensions to Russian citizens. This is the definition of the Pension Fund budget . It is calculated for each year by the PFR board with the mandatory balance of income and expenses.
Such a budget is formed at the expense of insurance pension contributions of the civilian population, money from the federal budget, profit from the placement of free finances by the state. At its core, in Russia the budget of the Pension Fund is consolidated. In other words, combining all local and regional funds.
How is it formed?
The budget of the Pension Fund of the Russian Federation is formed in accordance with the legislative act - paragraph 1 of Art. 17 Federal Law No. 197 "On Compulsory Pension Insurance". In particular, it is said here that it consists of the following components:
- State budget funds.
- Insurance premiums paid by employers.
- Penalties and other monetary sanctions levied on the population.
- Profit from investing temporarily free OPS money.
- Reserve funds aimed at paying the funded part of the pension.
- Accumulated funds that are intended for payment of urgent pensions to insured persons.
- Other sources of replenishment admissible according to the legislation of the Russian Federation.
Where is it located?
The generated accumulations of the Pension Fund budget are in the accounts of the territorial divisions of the Federal Treasury, in the divisions of the Russian Central Bank. This is necessary for transparent accounting of cash transactions within the FIU.
Who shapes it?
The budget of the Pension Fund of the Russian Federation is formed mainly by payers-insurers. They send a contribution (in cash and in kind) to the benefit of their own employees who are entitled to state retirement benefits.
The following persons act as such payers:
- Organizations (legal entities) represented both in Russia and in other countries (company branches).
- Foreign enterprises and their branches, units located on the territory of the Russian Federation.
- SP.
- Citizens working for themselves, engaged in art, crafts, art and other types of individual activities.
- Farmers owning their own farm.
- Officially employed citizens (under an employment contract).
Thus, pension insurance contributions are accrued on all varieties of remuneration of a citizen. These include remuneration under civil law contracts - copyright and contract.
What are inter-budget transfers?
The budget of the Pension Fund of the Russian Federation is also characterized by such a thing as inter-budget transfers. What is meant here? This is financial assistance to the budgets of the PFR of the subjects of the federation.
Such transfers are regulated by paragraph 2 of Art. 17 Federal Law No. 167 "On Pension Compulsory Insurance" (2001). Such assistance may be directed to the following:
- Material support for raising pension capital.
- Compensation for the missing budget revenues of the Pension Insurance Fund.
- Coverage of expenses for the payment of insurance pensions in the event of a set-off in the seniority of a citizen of the following periods: military service, caring for a young child, a disabled person, staying with his spouse at the place of his military service.
- For compulsory pension insurance - in the case of early retirement pensions.
- For the material support of the payment of social benefits for the burial of the deceased, who received an insurance pension during their lifetime.
Funds from the budget here will be calculated and distributed in the manner prescribed by the Federal Law No. 18 "On federal budget funds" (2005).
Review and Acceptance
The budget of the FIU is tentatively agreed upon in the highest legislative bodies of Russia in the following order:
- The preliminary draft budget of the FIU is sent for consideration by the State Duma.
- If deputies approve the project, it is adopted. The law "On the budget of the FIU for .... year."
- Then the law is considered by the Federation Council (the upper house of the Russian parliament). If he approves it, the budget of the Pension Fund will enter into force.
It should be noted that such a law is an open document. This means that everyone can read its text, calculations and provisions. It is posted on the official website of the State Duma and the FIU.
In the event that the budget has already been adopted, but it is necessary to make any important amendments to it, for example, due to changed economic circumstances, a draft is sent to the State Duma with the necessary changes. They are entered into the approved budget according to the same procedure as presented above.
Fund income
Let us analyze what makes up the budget revenues of the Pension Fund of the Russian Federation:
- Employers transfer insurance premiums for their employees and contractors. According to statistics, this is more than half of all contributions to the budget of the FIU.
- Cash from the federal budget. They are directed to specific goals. The first is an increase in insurance pensions (due to indexation and valorization), financing of a group of preferential pensions (for the most part, pre-term). The second is to cover the costs associated with providing social support to the population. These are funds for disability benefits, maternity capital, all kinds of supplements for pensions, etc.
- Creating pension savings by citizens on their own. By making voluntary contributions, cooperation with management companies, private pension funds, through the Central Bank.
Fund expenses
As for the expenditure of the budget funds of the Pension Fund, it comes from the resources of the state budget. It is compensated in case of non-payment by payers of insurance premiums or budget deficit for the next financial year. It should be noted that for the inappropriate distribution and expenditure of the budget of the FIU, liability has been established under Russian law.
The budget expenditures of the domestic pension fund are realized on the basis of information about the recipients, types of pensions established in the Russian Federation and the size of these payments.
As for the costs of insurance pensions, which are financed by insurance payments, this is based on the Federal Law No. 400 “On Insurance Pensions” (2013).
Main expense items
Consider what exactly is spent on funds from the formed budget of the FIU:
- Payment of insurance pensions. This is the most significant expense item. Payments occupy more than 3/4 of all expenses for each year.
- Social benefits. This refers to various surcharges and allowances for preferential categories of citizens, the payment of benefits for the care of disabled and disabled people, compensation to Russians living in the Far North and localities that are equal to it, financing various regional state programs, etc.
- Performing the functions of the fund. In particular, the costs associated with the movement of funds. This is the transfer of pension savings from PFR accounts to the balances of non-state PFs, management companies, etc.
- Payment of state pensions. They are laid to certain citizens for their length of service. First of all, former military personnel, test pilots, astronauts, officials. This also includes the payment of compensation to citizens for harm caused to their health during the performance of official duties.
- The costs associated with the payment of funds under the state program "Maternity Capital".
Pension payment
How is the budget of the Pension Fund of the Russian Federation implemented? In accordance with Art. 18 Federal Law No. 167 "On Pension Compulsory Insurance" (2001). Funds are allocated to:
- Payment (under Russian law and international agreements) of insurance coverage under the OPS. Transfer of monetary amounts in an amount equal to the amount of pension savings of the insured citizen to the NPF of their choice (to create an accumulative pension part).
- Delivery of pensions assigned from the PFR budget.
- Financial content, technical, material support of the insurer.
- Payment of guaranteed contributions (the basis is Federal Law No. 442, adopted in 2013).
- Other purposes, according to Russian law, are related to pension insurance.
The ratio of expenses and income
The Pension Fund is trying to build its activities so that its costs do not exceed revenues, so as not to go beyond the budget entrusted to it.
The last financial deficit of the FIU was observed in 2015. It was associated with the transfer by citizens of their savings from the balance of the FIU to the accounts of various non-state funds. Therefore, the deficit was essentially purely technical, was not a sign of financial problems in this department.
Such transfers of funds are carried out to this day. What is the point here? The transfer in fact does not take place from the balance of the fund’s budget, but from the accounts of those management companies to which the FIU transfers the right to dispose of a part of the contributions sent by citizens to the funded part of their future pension.
Therefore, such pension savings (their total amount exceeds 2 trillion rubles), which are temporarily used by the managing organization, are not displayed in the revenue items of the PFR budget. While the funds that are transferred by management companies at the request of citizens to NPFs are still included in the expense item. This state of affairs creates a situation of a technical budget deficit. Of course, it does not in any way affect the solvency of the Pension Fund.
In case there will be a real shortage of funds, it will be covered by the carryover funds of the budget of the Pension Fund of the Russian Federation. This is a kind of surplus that is postponed just for such cases.
If the deficit reaches impressive figures, the FIU will be forced to turn to the Government of the Russian Federation to receive additional funds from the federal budget.
The budget of the FIU is formed mainly from insurance premiums sent by employers, and revenues from the state budget. The main expense items here are insurance pensions, social benefits. The parliament of the Russian Federation accepts and approves this budget.