Pension provision in the Russian Federation is considered one of the main types of social support for the population. Pensions are monthly contributions to persons with disabilities. They act as compensation for lost earnings, benefits for families who have lost the breadwinner. Let us further consider the features of pension provision, types of pensions and the rules for their appointment.
General information
State pension provision is considered the first type of social assistance to citizens. Even Peter the First introduced payments to employees. They were appointed at the discretion of the emperor. State pension provision used to include not only cash payments, but also the provision of land.
Over time, the circle of entities entitled to compensation has expanded significantly. However, it mainly included military personnel and civil servants.
A serious reform of pension institutions in Russia was carried out after the revolution. In 1918, the first regulatory document governing the purpose of payments was approved. Moreover, it included workers, military personnel and civil servants in the circle of entities eligible for benefits.
As for the peasantry, for this category of citizens, pension provision was introduced only in 1964. This fact clearly indicates a class approach to social assistance to the population. It is worth saying that it survived until 1990, until the adoption of the new Law "On Pension Provision in the USSR". But due to the collapse of the Union, the establishment of clearer provisions in republican normative acts, this document lasted only six months.
Modern legal framework
At the end of November 1990, the RF Armed Forces approved the new Law "On Pension Provision". This normative act was valid until 2001 and was considered intermediate, since the country was at the stage of transition from communist principles to market conditions.
Today, pension issues in Russia are governed by two regulations. They are the Federal Law "On Labor Pensions" and the Federal Law No. 166. These regulations establish different lists of entities entitled to pension benefits, types of benefits.
Sources of financing
Until 1990, expenses for benefits were covered from the state budget. Accordingly, the level of pensions for public servants, military and other needy categories depended directly on the state of the treasury. This approach has several disadvantages. The most significant of these was the need to periodically freeze payments.
In 1991, the USSR Pension Fund was formed, and then the FIU. It is an independent structure, which was created at the expense of insurance contributions deducted by employers, individual entrepreneurs, including, and in some cases, ordinary citizens. The formation of the FIU marked the transition from social security to the principles of social insurance.
Varieties of Payments
In the framework of pension provision in the Russian Federation, 5 types of benefits are provided:
- By old age.
- For the length of service.
- By disability.
- In connection with the loss of the breadwinner.
- Social payout.
Let's consider them in more detail.
Old age pension
It is appointed from the moment when a citizen has reached the age established by law. According to general rules, it is believed that women after reaching 55, and men - 60 years old, cannot work as effectively as in their youth.
As a prerequisite for retirement, a citizen must have employment, and since 2001, an insurance experience.
As part of the pension provision, a special payment was provided - by age. It was assigned to people working in difficult or harmful conditions in certain areas (in the field of health care, education, for example). These benefits are currently referred to as “early retirement benefits”.
Disability benefits
The basis for their appointment is the receipt by a citizen of one of the three disability groups. In this case, the subject must have a common experience. Previously, in its absence, payments were not assigned at all. Currently, for people who do not have insurance experience, certain pension guarantees are established - they are provided with social benefits.
Survivor benefits
The basis is the death of a person who provided financial support to the family. Previously, in the absence of seniority, such a pension was not assigned. Today, as with disability benefits, if the subject has not worked officially, his family can count on social benefits.
Payments for length of service
They arose relatively recently. The length of service is a special work experience. It is calculated according to special rules. Previously, such payments were provided for in the pension system of persons who served in the military, teachers, miners, as well as employees of theatrical and entertainment organizations.
The main difference between the length of service benefits is the fact that it is assigned regardless of age.
Social payment
It was fixed only in 1990. Social benefits are granted to entities that have reached retirement age, become disabled, but have no seniority. This payment is also provided for children who have lost an officially not working breadwinner.
Labor pensions
The law governing their appointment (Federal Law No. 173) relates payments to the deduction of insurance contributions to the FIU. Amounts are withheld by employers (including entrepreneurs). The procedure and amount of contributions are regulated by law. The pension insurance policy acts as evidence of deduction.
The costs of labor pensions are covered by funds collected by the FIU. Federal Law No. 173 applies to citizens of the Russian Federation, foreigners and stateless persons. At the same time, the last two categories are granted labor pensions if they permanently reside in the country.
Federal Law No. 173 fixes 3 types of pensions: old age, disability, and as a result of the loss of the breadwinner. If the subject has the right to two benefits, he can choose only one. Taking into account the fact that pension coverage is provided at the expense of the PFR, only employees are entitled to it.
Old age benefits
This type of pension is regulated by the 7th article of the Federal Law No. 173. The basis for granting benefits is the achievement by women of 55, and by men of 60 years. At the same time, citizens must have an insurance experience of at least 5 years.
The amount of benefits is formed of two parts:
- Insurance. It depends on the size of contributions paid to the FIU.
- Cumulative. In 2001-2006 this part was withheld from workers. Currently, deductions are made by the employer.
Payments for old age are assigned indefinitely.
Currently, many citizens who have reached retirement age continue to work. In this regard, the State Duma periodically raises the question of stopping such persons from paying old-age pensions.
Disability
To receive benefits, a citizen must be recognized as a disabled person of the 1st, 2nd or 3rd group. To do this, he undergoes a medical examination, according to the results of which an opinion is issued on permanent disability. Simply put, the medical commission states that the state of health of the subject does not allow you to continue working.
Disability group is determined depending on the degree of disability. 1st gr. testifies to its permanent loss and the need to receive constant care. The second group also indicates a complete loss of ability to work. However, a citizen does not need constant care. the third group is received by citizens who have partially preserved their ability to work. The criteria by which health status is assessed are approved by the Ministry of Health and Social Development.
Disability groups are provided for persons over 16 (18) years of age. They are not installed for children. A minor will be recognized as a disabled child without a specific group.
The evidence of disability is the conclusion of the MSEC. It indicates the specific group assigned to the person. Citizens who have received disabilities should be examined periodically. Subjects with the 1st and 2nd groups - every 2 years, with the third - annually. Citizens of pre-retirement age receive disability indefinitely. They do not pass re-examination.
One of the prerequisites for the appointment of a pension is the length of service. Its duration does not matter - the fact of its presence is important.
Disability Payment Assignment Procedure
The amount of the pension is determined by dividing the amount of contributions by 19 (19 - the number of years of survival).
The pension is established for the entire period of recognition of the subject as disabled. If a citizen does not pass the examination in a timely manner, payments are suspended. After receiving the opinion of the medical board, pension deduction resumes.
Nuances
If a person recognized as disabled has dependents, an additional payment is made to the amount of the pension. Its value depends on the number of dependent persons, as well as the disability group.
Citizens receiving benefits can continue to work based on their health status. The size of the disability pension does not decrease.
Breadwinner
A pension is granted due to the death of a citizen, recognition of him as dead or missing. In the first case, the supporting document is a certificate issued by the territorial registry office. Recognition of the subject as missing is carried out in court. A decision can be made if the whereabouts of the person is unknown for at least a year. Recognition of the subject as dead is also carried out in court. However, for this he must be absent for at least 3 years.
Subjects of law
The survivor's benefit is granted if the deceased has insurance coverage. Its duration does not matter, the main thing is that it be.
Pension benefits are provided for the close relatives of the deceased, who were his disabled dependents. These include:
- Minors grandchildren, brothers / sisters, children.
- Disabled parents or those who have reached retirement age.
- Disabled spouses.
- Grandparents if they do not have persons who are required by law to support them.
- Close relatives caring for the children of the deceased who have not reached 14 liters.
All of these entities, with the exception of children, need to confirm that they are dependent.
If the breadwinner during his life was not officially employed and did not have insurance experience, no pension shall be awarded. In this case, only the children of the deceased can expect to be paid. Moreover, they will receive a social pension.
Pension in connection with the death of the breadwinner is paid for the period during which the needy person remains incapable of work. Children can receive benefits up to 23 years old if they study full-time.
Provisions of Federal Law No. 166
This normative act provides for retirement benefits:
- for length of service;
- old age;
- in connection with the death of the breadwinner;
- by disability.
Another type of payment is social pensions. They are provided in the case when the citizen was not deducted insurance contributions (military, unemployed and some other persons).
Pension system for people who have served in the military
In the legislation for these citizens 3 types of payments are fixed: for disability, loss of breadwinner, for length of service. In addition to military personnel, the rules for awarding such pensions apply to prosecutors, investigators, drug trafficking control agents, psychotropic substances, and penal correctional institutions.
Employee Benefit Payments
Pensions are calculated in two ways, depending on the length of service. If a citizen has a length of service of 20 years or more, he is assigned a benefit of 50% of the official salary + 3% for each subsequent year worked. If the experience is less than specified, special rules apply. A pension is granted upon dismissal due to circumstances beyond the control of the citizen. These include:
- Reaching the maximum age of being in the service.
- Organizational changes in the structure in which the subject operates.
- Disease or other circumstances that worsen a person’s health.
To assign a pension in these cases, at the time of dismissal, the citizen must be 45 years old, the total working experience must be at least 25 years, of which 12.5 is length of service. A pension will be granted only upon condition of abandonment of official activity. A citizen may enter another job not related to military affairs.
Disabled allowances
For the purpose of granting a pension, common grounds are needed - the establishment of one of three groups. The state of health is assessed by the commission. In this case, the length of service does not matter. The amount of payment will depend on the reasons why the subject received a disability group. It could be:
- Military injury sustained while performing official duty.
- A disease that does not arise in connection with the service.
In the first case, the amount of payments will be higher than in the second. Pension is provided for the entire period of disability. Payments are financed from the state budget. For disabled people containing dependents, surcharges are provided.
Payments to relatives of deceased soldiers
Family members can expect a survivor's pension. The basis is the death of a citizen, recognition of him dead or missing. The recipients are disabled close relatives who were dependents of the deceased.
Non-state pension provision
To ensure an adequate standard of living, every citizen can take part in the formation of his pension. For this, non-state pension funds have been created. Payments that a person will receive after disability are formed at the expense of his personal funds.
Non-state pension provision has a number of features that distinguish it from the traditional state support system:
- Citizens do not need to gain insurance experience.
- Subjects themselves can determine the amount of the contribution and the frequency of their deduction.
- Any member of the NGO system can at any time terminate the contract with the fund and return the accumulated funds.
To receive payments upon reaching retirement age, you should:
- Choose a non-governmental fund and conclude an agreement with it.
- Create an individual deduction schedule.
- Pay in accordance with the terms of the contract.
Any adult citizen can become a member of the program. Issues related to non-state provision of pensioners are regulated by Federal Law No. 75.
Program participants
The parties to the contract are:
- NPF. A non-governmental fund must be licensed.
- Depositors deducting payments.
- Pension recipient.
You can pay a fee:
- Physical person. Citizens can be both depositors and recipients of pensions.
- Legal entity. Some organizations pay contributions for their employees. At such enterprises, employees form a corporate pension.
NPF operates in the manner approved by the board of directors. Registration of funds is carried out according to the rules approved by the Central Bank. The Central Bank approves the list of security schemes and enshrines their detailed description in regulatory documents. In addition, the rules provide grounds for granting non-state pensions. This may be an accident, loss of a breadwinner, disability, old age, etc.