Alas, in this mortal world there are many processes that so far are not subject to man. And one of them is aging. To alleviate the inconvenience, quite a few different schemes were invented, one of which is a pension. But which organization is responsible for ensuring that people receive material assistance when the time comes? A pension fund is a financial institution created specifically for this purpose. Funds are public or private, but each performs a set of important functions in society.
What is a pension fund? Does he manage all the consolidated funds?
Initially, we should decide what we are dealing with now. A pension fund is an organization that provides socially significant services to the population of a certain state (or countries). When a person reaches a certain age, he is entitled to the appropriate payments, and it is the fund that makes them. Simply put, the PF manages the means of the pension system (in whole or in part, it depends on the state). Specifically, in our case, the fund guarantees the fulfillment of the rights of citizens of the Russian Federation to receive appropriate payments.
Pension funds and legislation
This organization was created in accordance with the decree of the Supreme Council of the RSFSR No. 442-1 “On the Organization of the Pension Fund of the RSFSR”. At the moment, its budget is approved by the State Duma of the Federal Assembly as a separate law at the time of adoption of the main financial document of the Russian Federation. At the moment, there are more than 40 million pensioners and 20,000,000 beneficiaries in the country who receive payments from it (despite the fact that 128 million citizens live in the Russian Federation). As you can see, at the moment the Russian Pension Fund is experiencing significant stress.
Social features
An important reason why the Pension Fund of the Russian Federation exists is its performance of social functions. The obligations that this organization fulfills include:
- Assignment of pensions to citizens, based on their experience and working conditions, with subsequent payment of the corresponding amounts.
- The Pension Fund of Russia takes into account insurance funds that are received under compulsory pension insurance.
- Social payments are assigned and implemented for certain categories of citizens: people with disabilities, veterans, people who have been awarded high prizes.
- Registration of all participants who are members of the mandatory pension insurance system.
- Work and interaction with employers who pay insurance premiums. In particular, the Pension Fund of Russia collects arrears. Consequently, some law enforcement functions are entrusted to him.
- The Pension Fund of Russia is engaged in the payment of funds that are issued as maternity capital.
- Manages all the funds that the pension system of the whole country has at its disposal.
- It implements a program of state co-financing of voluntary savings. It is also known as the initiative of the Russian Federation “Thousand per thousand”.
- Administers insurance funds that are received under compulsory pension and medical insurance.
- The Pension Fund of Russia establishes federal social supplements in order to bring the total income to the subsistence level.
State Pension Fund
In this case, the Russian Pension Fund will be considered. Conditionally, the mechanism of this provision can be formulated as follows: the current generation of able-bodied citizens works, receives material benefits. Some of them are passed on to modern pensioners who receive maintenance from the state for their past labors. When a generation of working age becomes older, and matured youth comes in its place, this scheme will act, as before, only with other participants. And those who used to fill the Pension Fund of Russia will be paid security. This is a cyclic shift. The negative side of this order is the gradual decrease in the purchasing power of the pension, which is due to a number of reasons. Therefore, in the absence of additional sources of income, old age can be a very unpleasant part of life. Indeed, in most cases, the amount paid by the Pension Fund of Russia does not differ much from the cost of living.
The difference in hierarchy should also be noted. So, after the national level of organization, the next is the Pension Fund of the region. He is working on all the issues that arise in this administrative unit. The district pension fund, in turn, collects information.
Private pension funds
The main problem, namely the impoverishment of pensioners, is often proposed to be solved with the help of private pension funds. They are the owners of funds that can be mobilized. So, private pension funds act on the principle of investment funds: citizens give them money, managing organizations decide where to invest them, and from the received interest they pay pensions for people. Thus, money does not lose its purchasing power by increasing its mass. But such a good and attractive scheme has its drawbacks.
This type of pension is popular in the United States of America, therefore, about the features of the system will be described on the example of this particular country. So, a rather problematic point is the question of honesty and return of funds in the event of the ruin of an emergency fund. Another problem is that they operate in a market economy, where it is impossible to guarantee that everything will turn out as planned. Therefore, money can be lost (in most cases a fixed percentage is accrued, but even a private pension fund does not help with the ruin of it). The Pension Fund of Russia does not have such negative aspects, but it has its drawbacks.
Importance in society
As you can see, these organizations are important so that people can feel support on time, when they themselves can not fully monitor themselves. Often, the Pension Fund of the Russian Federation actively interacts with social services. It is also worth noting that the practice of monthly payments, although partially, allows you to free children from the need to provide financial assistance to their parents. Therefore, the Pension Fund of the Russian Federation is important in terms of increasing the effectiveness of social institutions.
Contributions as the main source of income
The main source of replenishment held by the Pension Fund of the Russian Federation is contributions received from existing employers. The standard rate is 22%, which are taken from the payroll. Since 2009, it has become possible to make voluntary contributions that go to the funded part of the pension. It is stipulated here that both the state and the employer pay pension in equal amounts (the state has a restriction for this rule - the amount of payment must be at least 2 thousand rubles and not more than 12). This option is beneficial for each of the participants in this relationship. So, the employer receives a tax deduction from the amount of earnings in the amount of up to 12 thousand rubles. Also, part of the obligations of the Russian Pension Fund was transferred to the National Welfare Fund.
Conclusion
As you can see, a pension fund is not difficult, and it is very easy to understand this organization. In conclusion, it should be said that the availability of timely contributions is important, because they allow you to keep the whole system afloat. Also important is the availability of white wages (which is not affected by the contribution to the state budget). After all, the Russian Pension Fund works for the benefit of any citizen of the Russian Federation.