What is compulsory pension insurance? The answer to this question will provide FZ-167. Some of its provisions will be considered in the article.
What is the law about?
What relations does FZ-167 regulate "On Compulsory Pension Insurance"? Article 1 of the presented regulatory act speaks of legal relations in the field of the emergence and exercise of the rights, obligations and certain types of liability of insurance entities of a mandatory nature. And what is pension insurance? The law speaks of a combination of organizational, legal and economic measures that are aimed at obtaining a citizen's earnings after the corresponding registration process.
The most important element in the pension insurance system is pension coverage. We are talking about the performance by the insurer of its obligations to issue payments. At the same time, pension insurance is financed by the insurer. The insurer, in turn, is the Russian Pension Fund.
On the powers of the state
Despite the fact that most of the functions are performed by the authorities from the Russian Pension Fund system, the federal authorities are the source of all powers. What specific functions of state institutions are worth highlighting here? Here is what Article 3.1 of FZ-167 enshrines:
- determination of the procedure and principles for building and investing pension funds from existing savings;
- establishment of the process of formation, consideration and approval of the pension budget in the Russian Federation;
- consolidation of the procedure for the preparation, approval of budget reporting and external audit of the FIU;
- PFR system management;
- determination of the principles of storage of finances in the FIU system;
- implementation of state control and supervision functions over the rights of insured persons.
State bodies may carry out some other functions that comply with the provisions of Federal Law-167.
Pension Insurance Entities
In chapter 2 of Federal Law-167 "On Compulsory Pension Insurance", the main subjects of the entire system under consideration are given. It is immediately worth noting that there are only three entities: these are insured persons, policyholders and insurers.
What can you tell about the insurer? According to the law, this is the name of legal entities implementing state insurance processes. The Pension Fund of the Russian Federation itself, as well as non-governmental pension funds may be called an insurer.
Policyholders can be legal entities and individuals, as well as individual entrepreneurs. Policyholders are persons who have voluntarily agreed to enter into the legal relationship in question.
Article 7 of Federal Law 167 refers to insured persons. According to the law, this is the name of citizens who already have compulsory pension insurance. The law provides detailed information about exactly who the insured citizens can be: for example, entrepreneurs, representatives of small communities, clergy, persons who have concluded an employment contract, etc.
On the rights and obligations of subjects of the pension system
Chapter 3 of Federal Law 167- "On Compulsory Pension Insurance" provides the basic powers and responsibilities of each pension system entity. So, the insurer is able to manage the funds of the FIU and demand from its superiors appropriate conditions for work. His responsibilities include monitoring the accuracy of the information provided, as well as timely and high-quality work with available financial resources.
Insurers are able to appoint their representatives, apply to the courts, pay contributions and receive all necessary information from the insurer. If we talk about responsibilities, we need to highlight here the timely payment of the relevant contributions, the fulfillment of the requirements of the FIU representatives, ensuring the implementation of the rights of insured persons and some other mandatory functions.
The insured persons have the opportunity to receive insurance coverage in full in a timely manner, as well as to defend their freedoms and interests. At the same time, it is their responsibility to present the relevant documentation to the insurer, as well as to comply with the conditions established for the allocation and payment of compulsory insurance.
About financing
It is easy to guess that financial support for the entire system under consideration is possible only at the expense of the budget of the Russian Pension Fund. This is also stated in Article 16 of the Federal Law-167 “On Pension Insurance of Compulsory Character”.
All PFR funds are the property of the federation. They are not subject to withdrawal and are not included in other budgets. In order to form a pension budget, it is necessary to correctly balance all expenses and income. Every year, the Government of the Russian Federation approves a new budget system, in accordance with which all further functions are implemented.
Insurance rates
Article 22 of FZ-167 (2001) "On Mandatory Pension Insurance" contains information on the rate of insurance premium. According to the normative act, the determination of the amount of insurance premiums in respect of insured persons is implemented by the FIU on the basis of individual type accounting.
In this case, it is necessary to take into account a number of tariffs, depending on the age of citizens. Depending on whether a person was born before or after 1966, and pension provision will be established. Moreover, all insurance contributions that were calculated in excess of a fixed contribution will be used to finance the funded part of the labor-type pension.