According to the legislation, since 2015, the insurance part of pension savings has been transformed into a separate type - insurance pension. Since there are several types of pensions, not everyone understands what it is and what it is made of. What is an insurance pension will be discussed in this article.
The concept
Insurance pension - what is it? A similar question is asked by citizens who are faced with such a term. From the name itself it is clear that this pension is formed on the basis of insurance. That is, during the entire period when the employer deducts mandatory insurance contributions to the Russian Pension Fund for his employee , the employee receives an insurance pension. Its size depends on salary. Upon the occurrence of an insured event, that is, reaching retirement age and the inability to work further, a citizen begins to receive monthly state payments.
What is it for?
Since a new type of payments will be in place of the retirement pension, you should understand what their differences are and why they are needed. Do not panic and make hasty conclusions, as our citizens are accustomed to, faced with something unknown and new. In fact, everything is very simple, and most importantly, you should understand: the higher the salary of a person, the higher the insurance premiums and, accordingly, the larger the pension. If earlier a citizen could receive only a certain amount of pension payments, today he is entitled to determine the size of his pension in the future. Thus, we can conclude that the more an employee earns, the higher his insurance pension payments will be, which in the future will be able to determine the amount of his income.
How is formed
As mentioned above, the insurance pension is formed by the compulsory insurance payments of the employer for his employee. The total amount of contributions is 22% for compulsory pension insurance. These percentages are divided into a joint tariff, which is 6%, and an individual tariff, equal to 16%. The joint tariff is intended for financing fixed payments. The choice of a citizen offers two options for retirement benefits. Depending on his individual decision, he can choose which part of the interest will go towards the formation of an insurance pension. For example, an individual tariff, comprising 16% of contributions, can go entirely to the accumulation of the insurance part of pension contributions. Or, as in another option, 6% can go to a funded pension, and 10% - to form an insurance. Thus, it becomes clear why changes were introduced into the legislation on insurance pension, and how it is formed.
Labor insurance pension
This type of pension is of interest to almost the entire working population of the country. It is he who is the main one for calculating retirement savings and how the total amount of revenues in the end. It is formed of two parts - this is a funded and insurance pension. What this concept is will be described below. The main thing to know about is that it is very problematic to independently calculate the size of a given pension; several coefficients and formulas are used for this. Moreover, a lot can change when a citizen reaches retirement age.
So, the concept of labor insurance pension means a person has at least six years of insurance experience, for which the state guarantees him monthly payments upon the occurrence of an insured event. In this case, it will be retirement age.
How to calculate the amount of labor insurance pension
As mentioned above, in order to calculate the size of a given pension, it is necessary to use special formulas and coefficients. The calculation is based on two parts of the pension - insurance and funded. An insurance pension - what it is and how to calculate it, was described above, but how to find out the size of the funded pension will now be described. The funded part of the pension is formed at the request of the citizen, that is, he has the right to choose only one type of pension provision. Thus, you can create a funded pension at your own discretion. Its size will correspond to 6% of monthly mandatory contributions.
To find out the size of the labor pension for insurance contributions, it is necessary to add the insurance and funded parts. To calculate the insurance part, you need to use the following formula: MF = PK / T + B. Here MF - this is directly the insurance part; PC - the amount of capital that determines the amount at the time of assignment of pension contributions by age; T - the period in which payments by age are expected; B - the basic component of a retirement pension, it is fixed, its size can be obtained from your pension fund manager.
The law on insurance pension says that its size is subject to annual indexation, depending on the growth of consumer prices. Thus, the calculation of the size of the retirement pension will depend on a change in several factors that affect the standard of living and the pricing of the food basket.
Who can count on retirement benefits?
Old-age insurance pension is paid to citizens who have reached retirement age. For women it is 55 years old, for men - 60. Since 2015, in order to receive an old-age insurance pension, it is necessary to have deductions for at least six years.
Persons monthly contributing insurance premium to the Pension Fund can rely on pension payments when they reach the required age if the individual pension coefficient is at least 30.
How to take care of your pension
The old pension system, which smoothly passed from Soviet times to modern economic realities, showed its incapacity. That is why a reform has taken place that has changed the general approach and look at the mandatory monthly deductions of citizens. Today, everyone can independently take care of their future retirement. It’s enough to competently approach this issue so that you don’t make an astonished look and say: “Insurance pension - what is it?”. As mentioned above, monthly deductions can affect the amount of future income when there is no longer an opportunity to work. Thus, you should not hide your salary so that you do not end up with minimal income in the future. You can independently make payments to the funded part and in this way increase the amount of future income.
What is an early retirement pension?
Some citizens may receive retirement benefits earlier than required, that is, men up to the age of sixty, and women up to fifty-five, respectively. The right to receive an early retirement pension are persons who work, for example, in difficult conditions. Three lists can be distinguished in one place depending on the length of service . Which of these is an individual should be specified in the Pension Fund of Russia.
An early retirement pension has many nuances when applying for it, so a citizen working in difficult working conditions must collect all the necessary documents confirming the length of service. It will not be superfluous to include certificates from the workplace in the list of documents, since a work book is not enough.
Pension system arrangement in Russia
Currently, the Pension Fund of the Russian Federation is responsible for the following types of pensions for which it has the authority to form, assign and pay to the disabled people:
- state pension provision;
- labor;
- non-state.
Depending on the desire, every citizen has the right to form a pension at his discretion. This applies to the able-bodied population, whose working experience has not yet reached a certain level. For example, you can deduct interest on your income to both state pension funds and non-state (non-state pension funds). If the depositor has opted for non-state pension funds, then from the moment of signing the contract, the two parties become liable. A citizen is obliged to monthly deduct a percentage of his salary, and the fund undertakes to pay him monthly deductions from the moment of disability.
Old-age insurance pensions can also be paid through non-state pension funds. Since the beginning of 2015, with the introduction of several reforms related to payments to unemployed citizens, the following feature has appeared: if the citizen's working experience is less than established and the accumulated points are insufficient, then he can receive payments only after five years. Thus, the length of service for a pension significantly depends on the welfare of each person living in the territory of the Russian Federation.
Interesting Facts
Since recently, namely with the introduction of pension reforms in 2015, the state has assumed responsibility for only one type of mandatory payments - an insurance pension. Therefore, a person who has decided to make deductions in favor of the funded system also fully undertakes such an obligation on his own. In any case, the size of the insurance pension will depend on each citizen. The state can pay only the basic allowance and only in certain cases.
For people in agriculture, the government made small supplements to retirement points. For example, for workers with over thirty years of experience and permanently residing in the countryside, an increase in pension is provided.
Mothers with many children will also receive additional points for calculating mandatory payments by the state.