Recalculation of pensions for 40 years of service in Russia is carried out on the basis of the right to an increase to the already accrued amount of benefits arising due to a certain number of years worked. In a sense, such an additional payment plays the role of an incentive, encouraging the country's population to work longer and more formally.
Of course, pensioners are also happy about any increase in their old-age benefits. However, there are a number of features and conditions on which the recalculation procedure is based. To get a clear idea of the scheme for increasing the amount, it is worth understanding in detail all the nuances of the process.
Relationship between pension size and number of years worked
Pension payments to the working population of the country are one of the main social payments from the state. The main condition for the assignment of old-age benefits is the achievement of the appropriate age and citizenship of the Russian Federation.
However, in order to apply for a payment and receive it regularly, it is not enough to simply live to an old age. The amount of time worked by a citizen plays an important role here. Namely, work experience. Moreover, the final pension amount that a person who has completed his professional career can count on directly depends on the latter. The principle is this: the more years you have worked, the higher the amount of old-age benefits will be. It is for this reason that many retirees are in no hurry to leave their place of work and continue to diligently fulfill their professional duties.
In general, the requirements for work experience in the Russian Federation are quite flexible. According to Law No. 400-FZ on pensions, the minimum value that allows a citizen to apply for the calculation of a pension benefit in 2021 is only 9 years, although with subsequent annual increases. And here it should be understood that the amount of payment for such a short period of work will be extremely small, so after reaching the specified threshold it is not worth going on vacation. In addition, the state provides a number of bonuses for long-term work, which cannot but encourage citizens to find official employment and continue to perform their professional duties.
General provisions on pensions
The main regulatory act for assigning a pension is Federal Law No. 400 “On Insurance Pensions”, adopted on December 28, 2013.
According to this act, the amount of the pension is currently calculated based on the fixed part, to which is added the calculated value based on the number of pension points multiplied by their value. The calculation procedure is the same for men and women.
The number of points is influenced by a person’s work experience, and the value of pension points is influenced by the amount of points transferred by the employer.
Every year, the old-age pension is indexed to a set inflation rate. This year, for the first time, working pensioners received a recalculation of their pensions due to an increase in the number of years of work experience.
This recalculation will be made every year to bring the size of the pension of a person who continues to work in retirement into line and increase the number of points every year.
For several years now, there has been news in the media and on the Internet that pensioners will have their pensions reviewed after 40 years of work experience.
However, at present, not a single normative act or resolution has been adopted providing for this kind of increase. Therefore, recalculating pensions after 40 years of work experience is still impossible.
Grounds for increasing the amount of pension benefits
Every pensioner should remember this important point - pensions accrued upon reaching the appropriate age and upon termination of professional activity are not considered the final amount.
Every year, the payment is subject to mandatory indexation related to the level of inflation in the country. True, this point concerns exclusively those citizens who have already completed their labor activity. However, working pensioners are also entitled to a certain bonus. Its essence is to recalculate benefits in accordance with accumulated points for the last year of work. Moreover, the procedure for increasing the amount of benefits is carried out automatically and does not require submitting any application to the Pension Fund.
Conditions for supplementing pensions for long service
In addition to the increase in the amount of old-age payments associated with indexation and recalculation of insurance contributions made by the employer for working pensioners, they are entitled to a bonus for the length of years worked. Of course, if there is such a thing.
In 2021, the length of service upon which the pension for the elderly is increased is 40 years or more. However, there are a number of requirements, without which a working pensioner, of course, can count on recalculation of benefits, but only on a general basis. In this case, the increase will not be related in any way to the length of years worked.
But in order to gain the right to recalculate a pension upon reaching 40 years of service, you will need to meet a number of conditions, the main one of which is considered to be the title of Veteran of Labor. In this case, the person receives the right to a mandatory supplement to the accrued old-age benefit.
It is worth clarifying that fixing the status of Labor Veteran is also carried out only if one of the following requirements is met (Law No. 5-FZ, paragraph 7):
- the citizen has any medals, orders and other insignia of the USSR or the Russian Federation - diplomas, commendations, titles;
- a person started working before reaching the age of majority during the Great Patriotic War, subject to a fixed length of service of 40 years for men and 35 years for women;
- a citizen is awarded insignia for labor merits in any field of the economy with a duration of service of at least 15 years, subject to a total length of service of at least 25 years for men and 20 years for women.
Veterans of labor with a total work experience of 35-40 years, in addition to a pension supplement, are entitled to a number of various benefits. To receive the full scope of preferences, you must officially register your status in the territorial office of the social protection authorities.
In addition, there are a number of additional allowances, which can be received in the following cases:
- if the man’s total experience exceeds 35 years;
- For women, an additional payment is provided for 30 years of experience or more.
In these cases, pensioners are awarded 1 additional pension coefficient.
Bonus 5 points will be awarded if:
- the woman has worked for at least 40 years;
- the man has 45 years of experience or more.
If the total professional experience exceeds 50 years, we can talk about a fixed increase in the pension benefit. The amount is just over 1 thousand rubles.
What pension supplement is due to pensioners in 2021 for a total length of service of 40 years or more?
Pension accruals consist of a funded and insurance part. The savings part has a fixed rate. Today it is 4805 rubles. The amount of points accumulated over the years of work is added to it, multiplied by the cost of 1 point. In the previous year, the price of a point was about 79 rubles. However, it is expected to increase in 2018.
Personal coefficients are accumulated in the account of the future pensioner. They are accrued from incoming contributions from the employer to the Pension Fund of the Russian Federation. The greater their sum, the more points you can accumulate. In addition, the legislation makes it possible to additionally accumulate them due to the duration of the total length of service. So:
- the additional payment for 30 years of service to all citizens is one point;
- for 40-45 years of experience adds another 5 points;
- For official work for 50 years, a pensioner is given a fixed bonus, which in the previous year amounted to 1,063 rubles. In 2021, this amount may be indexed.
In addition, the amount of the increase in pensions for long overall service depends on the region of residence and the citizen’s workplace.
Calculation of length of service: which working periods are taken into account
When calculating professional experience, not only the stages of direct activity are taken into account, but also breaks in work associated with valid reasons. In particular, when calculating the final value, the following are taken into account:
- serving under conscription;
- caring for category 1 disabled people or disabled children;
- assistance to people over 80 years of age (official guardianship);
- service under a contractual agreement;
- maternity leave up to 1.5 years per child.
In the latter case, it is important to clarify that the total period of maternity leave (if there are several children) cannot be more than 4.5 years. If the specified threshold is exceeded, this time will not be taken into account. In addition, the years spent at the University, according to the new rules, are also not included in the work experience.
What working periods can be included in the total length of service?
In order for the state to provide you with an additional payment to your pension payments for 40 years of service, it is absolutely not necessary to work during this time. The legislation establishes rules that state that the following will be taken into account in the full length of service:
- conscript service in the RF Armed Forces;
- maternity leave and the period of caring for the baby until he reaches 1.5 years, however, it is important to note that this period cannot exceed 4.5 years.
The time spent studying at a university in a specialty that will become a citizen’s profession in the future is not included in the work experience according to the law.
Military personnel working under a contract, on the contrary, have the right to count on an increase in their pension for length of service. The amount of the bonus in this case will depend on the number of years served for the Motherland.
Algorithm for recalculating pensions and the amount of additional payments
Direct recalculation of pension benefits is very simple. The number of additional points awarded for accumulated years of experience is multiplied by the value of one such bonus in rubles. This amount will be a pension supplement.
For 2021, 1 pension point equals 81 rubles and kopecks. Accordingly, recalculation is carried out strictly taking into account the specified value. Based on this, you can independently make an approximate calculation of the premium.
However, during the final recalculation, Pension Fund employees will additionally take into account the following factors:
- the branch of professional activity in which the person was employed on a permanent basis;
- the presence of bonuses and awards for diligence in work;
- region of residence and professional activities of the pensioner.
If we are talking about an increase in pension, taking into account forty years of work experience with the title of Veteran of Labor, this means a fixed amount of additional payment. Moreover, its size is set independently by the authorities of a particular region, since the payment is made from the local budget.
For example, premiums to old-age benefits for the title Veteran of Labor by city in the current year are fixed at the following values:
- in Moscow the premium is 495 rubles;
- in the Krasnodar Territory the EDV is 487 rubles;
- in the Republic of Tatarstan the additional payment is 448 rubles;
- in Bashkiria – 376 rubles;
- in St. Petersburg just over 800 rubles;
- in Krasnoyarsk and the region – 421 rubles.
Accordingly, interested persons are advised to seek advice from the local administration in order to clarify the value of the amount of the additional payment to the pension. Here you can inquire about the benefits and preferences granted by rank.
Where to contact
The annual recalculation of pension benefits due to newly received pension points or an increase upon reaching forty years of work experience is carried out by the Pension Fund automatically on August 1 of each year. This is possible due to the employer’s deduction of insurance contributions to the specified authority. Accordingly, all information on the account of a particular citizen is already available in the database, on the basis of which automatic recalculation is carried out.
As for where to go, if the amount of time worked exceeded 40 years for men and 35 years for women, while the person has the status of Veteran of Labor, he will need to visit the social security authorities. More precisely, the territorial office of the structure, functioning in the constituent entity of the Russian Federation where the interested person lives.
After applying, the pensioner can expect to receive an increased pension 30 days after checking the provided data and announcing the response to the request.
