What does the pension consist of?
Let us remind readers that the pension in the Russian Federation consists of two parts: insurance and funded.
The insurance part of the pension is a monthly and lifetime cash payment that represents compensation for lost income. Today, all insurance contributions transferred by the employer (22% of the employee’s salary) go towards the formation of an insurance pension.
To date, all contributions go only to the formation of the insurance part of the pension.
Let us dwell in more detail on the savings part, since this is what the heirs can claim.
Holders of pension savings can be divided into 2 categories:
1. Citizens who were born in 1966 and earlier. For such citizens, pension savings were formed only from 2002 to 2004 inclusive, at the expense of contributions to the Pension Fund paid by the employer. Thus, the funded part of the pension of this category of citizens took only 2 years to form, and the amount of such pension savings is unlikely to represent an impressive amount.
2. Citizens born in 1967 and younger. Their default funded pension was formed from 2002 to 2014 also at the expense of contributions paid by employers to the Pension Fund. Since 2014, a moratorium on the formation of the funded part of the pension until 2023 was introduced.
How citizens' pensions are formed
The Russian Federation provides for a solidarity system for providing citizens. Current pensioners can receive insurance and savings payments. The provision may be state or non-state. The Pension Fund's expenses for government payments are borne by the federal budget.
Funds from the Russian Pension Fund for insurance payments are generated through contributions from employers. Pension contributions are 22% of salary, but are not deducted from it. Until 2015, the indicated interest was distributed between the insurance part (16%) and the savings part (6%). Since 2015, the calculation structure has changed.
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According to the new rules, funded pensions are replenished with personal contributions from employees. You can also accumulate capital through contributions from employers (if provided for by the corporate system) and funds from the funds themselves
Is it possible to inherit the insurance portion of a pension?
Payment of the insurance part of the pension ceases after the death of the pensioner, starting from the first day of the month following the month in which the death of the pensioner occurred.
If the pensioner did not manage to receive the payment due to him in connection with his death, disabled members of the family of the deceased who lived with the pensioner at the time of his death are entitled to receive it. The list of such persons is indicated in Part 2 of Art. 10 Federal Law “On Insurance Pensions”.
The period for applying for an unpaid pension is 6 months from the date of death of the pensioner. In a situation where there are several applicants for the pension payment due to the deceased, the amount of such payment will be divided between them in equal parts.
If disabled family members are absent or simply have not made a claim, the unpaid part of the pension is inherited on a general basis.
Algorithm for applying to the Pension Fund for the unpaid part of the insurance pension
Below is an approximate procedure that is recommended to be followed when receiving the unpaid portion of the pension due to the pensioner.
1. Prepare the necessary package of documents:
- application for pension payment;
- applicant's passport;
- documents confirming the death of the pensioner;
- documents that can confirm family relationships with the deceased;
- certificate of inheritance.
2. Send the documents to the Pension Fund.
A package of documents is submitted to the territorial body of the Pension Fund. Moreover, it can be presented personally by the applicant, as well as through the MFC.
In connection with the current epidemiological situation, it is recommended to first clarify the procedure and mode of operation of a specific PFR body.
Unreceived funds must be paid to the applicant within 5 days from the date of receipt of the application by the Pension Fund. The method of receipt is previously indicated in the application.
Who is entitled to receive the deceased's pension savings?
The legislator establishes 2 categories of such citizens, these include:
- 1st stage – children, spouse and parents of the deceased;
- 2nd line – brothers, sisters, grandparents and grandchildren (if there are no relatives listed in the first category).
When inheriting the funded part of a pension, the age and ability to work of the heir does not matter; only the fact of being assigned to one of the queues indicated above is important. Pension savings are divided in equal shares between relatives of the same line; accordingly, if there is only one heir, then he will receive the entire available part of the funded pension.
Separately, mention should be made of maternity capital, which was aimed at forming savings. If the specified funds, at the time of the woman’s death, had not been paid to her, then only:
- father (adoptive parent) of the child, in connection with whose birth (adoption) the right to maternity capital arose;
- minor children of the deceased woman;
- adult children of a deceased woman studying full-time until graduation, but no longer than until they reach 23 years of age.
In what cases can pension savings be inherited?
The specified amounts of money are not inherited a priori, but only if:
- a potential pensioner died before receiving the funded part of the pension;
- the pension recipient died after retiring, but did not have time to apply for payment of pension savings;
- a potential pension recipient died before reaching retirement age.
If a pensioner has received a payment from pension savings at least once, then the legal successors will no longer be able to claim payment of the rest of their pension savings.
Where does the money of those who do not live to retire go?
If a person does not live to see his pension, then the money that he did not receive for the current month can be received by his relatives who lived with him. In the future, monthly accruals of the deceased’s pension are not provided. In the absence of relatives, the money remains in the Pension Fund budget.
If a person fails to live up to the age of retirement, legal successors have the right to receive his cash savings accumulated in an individual account during his lifetime. From the budget of the Russian Federation, relatives of the deceased can receive social benefits for burial.
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Algorithm for legal successors to apply to the Pension Fund for the unpaid funded part of the pension
1. Collect the necessary package of documents.
As in the case of payment of the insurance part of the pension, it is necessary to collect a certain set of documents. These include:
- application for payment of pension savings;
- applicant's passport;
- documents that confirm relationship with the deceased;
- SNILS of a pensioner;
- court decision to restore the deadline for filing an application for payment of pension savings funds - for legal successors who have restored the deadline in court for filing an application for payment of pension savings funds.
The list indicates the main documents that must be submitted to the Pension Fund, however, the list itself may vary depending on each specific situation. If you have difficulty selecting the necessary documentation, our specialists are ready to assist you in resolving this issue. You can consult by phone: + or via WhatsApp.
The specified set of documents must be submitted to the territorial body of the Pension Fund of the Russian Federation or the non-state pension fund in which the deceased’s savings were located, within 6 months from the date of death of the pensioner. If the six-month period is missed, it will have to be restored in court.
2. Receive a receipt notification that the Pension Fund has accepted your application. Such a receipt is issued on the spot or sent by mail within 5 working days from the date the application is accepted for consideration. The Fund may return the application if the information specified in it does not correspond or if required documents are missing. In any case, the fund is obliged to indicate the reason for the return.
If you doubt the correctness of the application or set of attached documents, our lawyers are ready to provide you with qualified legal assistance.
3. Wait for the results of the review of your application.
The decision must be made by specialists no later than the last working day of the month following the month in which the six-month period established for the appeal of legal successors expires. For example, if 6 months expires on 03/31/2020, then the last day on which the fund can make a decision will be 04/30/2020.
The law establishes a closed list of grounds for refusal to pay pension savings to legal successors.
4. If the fund makes a decision in your favor, receive the funds due. The deadline for their payment is no later than the 20th day of the month following the month in which the decision on payment was made. For example, if the decision on payment was accepted by the fund on 04/30/2020, then the payment must be made no later than 05/20/2020.
The method of receiving funds is previously indicated in the application.
Amounts of pension savings of the deceased that are paid to legal successors are not subject to personal income tax.
Inheritance by relatives
No one limited the right of the relatives of the deceased to receive part of the pension savings that was not used to pay a pension during the person’s lifetime. There are situations when Pension Fund employees try to convince the heirs of the opposite, but in this case it is necessary to focus on the existing legislative framework, namely: • Decree of the Government of the Russian Federation No. 711, which defines a strict procedure for the use of all savings stored in the Pension Fund, including in cases where a citizen did not live to see retirement, • the law “On Labor Pensions”, which establishes the right to receive the unspent part of pension savings by the heirs of the deceased, • Decree of the Government of the Russian Federation No. 710, which clearly regulates the rules for disposing of funds that a person invests in a pension fund fund during its life.
Thus, we can immediately note three legislative regulations that allow the heirs of the deceased to receive the unspent part of pension savings. Each person's funds are kept in the fund in a separate personal account.
However, it is also important to know that you can apply to the Pension Fund to claim the pension savings of the deceased only within six months from the date of his death. But this is done outside the general inheritance case, that is, the application must be submitted separately, along with a separate package of documents. If the established deadline has been missed, it can only be restored in court and only if there are compelling reasons.
It is important to know how to inherit the unused part of pension savings, but this is not all the points. In addition, close relatives have the right to receive the current pension payment of the deceased. Also, the spouse of the deceased has the right to transfer to the pension of the deceased spouse in the event that his payment is greater.
Is it possible to restore the deadline for filing an application for payment of the funded part of the pension?
Yes, this period can be restored in court. The distinctive point here is that the courts, when considering this category of cases, are not as strict as in the case of restoring the deadline for filing an application for acceptance of an inheritance.
The courts, realizing that knowledge about the pension system and its capabilities is rather narrow, and that an ordinary citizen may not always know about the opportunities that he has, quite often restore the terms.
An application for restoration of deadlines is submitted to a court of general jurisdiction, the amount of the state fee for its consideration is 300 rubles.
Pension savings of a deceased citizen from the point of view of Russian legislation
The fate of the funded share of pension provision is decided in various ways in accordance with certain laws.
There are 3 of them, and each of them regulates certain cases. So, the laws that determine the future fate of the pension of a deceased person:
- The lost pension of a deceased citizen must be paid to his relatives. This is what the law “ On Labor Pensions ” says.
- When a Russian does not live to see retirement, and his funded portion is in the Pension Fund, then Government Resolution No. 711 .
- When a deceased person who did not live to see the appointment of a pension transferred his accumulated pension funds to a non-state fund, then Government Resolution No. 710 .
Receiving a pension for a deceased relative is possible within six months from the date of his death, or you will have to restore the missed period in court.
How to bequeath your pension savings
The ability to bequeath your pension savings is enshrined in law, and any citizen who possesses them has the right to dispose of them in the event of death, without resorting to the services of a notary.
You can take care of the distribution of your pension savings now
To do this, you need to contact the territorial office of the Pension Fund or the non-state pension fund in which your pension savings are accumulated.
When applying, you must have your passport with you, as well as a completed application for the distribution of pension savings between legal successors. In addition to other data, this application must indicate the legal successors themselves, as well as the size of their shares.
In the event of the death of the insured person, the fund will be obliged to notify the legal successors of the opportunity to receive the pension savings of the deceased.
The Russian pension system appears to be quite complex, and the payment of pension funds to legal successors can be affected by the smallest nuances. Our lawyers with many years of experience in the field of inheritance law will help you resolve any issues of inheritance law. Call the number: + or write to WhatsApp.
