Types of pension benefits existing in the Russian Federation

Pension provision in Russia: varieties

Table of types of pensions in the Russian Federation:

Insurance pension – what does it consist of?

It is considered the most common type of pension provision in the Russian Federation. All people who have SNILS are considered insured citizens. The insurer here is the Pension Fund of Russia.

To calculate insurance pensions, the number of pension points (PB) is multiplied by the price of one PB. The result obtained is added to the size of the fixed payment.

PB is credited for each year of official work of a Russian. The number of pension benefits depends on the insurance premiums received in the personal account and the selected type of pension provision. You can accumulate a maximum of 10 PB per year, and when forming a funded pension - 6.25.

A special feature of PB is that they are accrued even during non-insurance periods, for example:

• military service;
• care of minors;
• caring for a person with group 1 disability;
• caring for a minor with a disability.

Every year the price of PB is indexed. When registering pension payments, existing pension benefits are converted into rubles, taking into account their price in the year the citizen retires.

The fixed payment is guaranteed by the state and is subject to indexation. Also in the Russian Federation, increasing coefficients are provided for citizens who postponed the registration of pension benefits to a later date.

Insurance pensions include payments:

• by old age;
• on disability;
• for the loss of a breadwinner.

By old age

To start receiving old-age pension insurance, you need:

• reach the appropriate age or obtain the right to receive payments early;
• gain the necessary work experience;
• have the required number of PB.

For men, the retirement age is 60 years, for women – 55. The minimum required work experience is 15 years.

It is possible to apply for an old-age insurance pension at any time after the right to it arises. Russians who do not have enough length of service/PB are assigned social pensions.

Disabilities

To apply for disability insurance payments, you must have a document confirming the presence of disability, as well as accumulate experience (at least 1 day). With the adoption of the new bill, pensions are provided to disabled people regardless of the reason for loss of ability to work.

When determining a disability group, ITU experts provide the citizen with an extract from the examination report, which states until what date it is valid (can be issued for an indefinite period).

Survivor's loss

This insurance pension is provided to a citizen if he is a dependent of a deceased breadwinner who had work experience. An exception is situations where a dependent commits an offense/crime that leads to the death of the breadwinner.

A son/daughter, grandchildren, husband/wife, mother/father can be recognized as disabled dependents. A complete list of relatives who belong to the group of disabled people is given in Article 10 of the Federal Law “On Pension Insurance”.

For more information on the types of insurance pensions, watch the video:

Amount of payments for compulsory pension insurance

The pensioner has the right to choose to form exclusively the insurance part or to divide contributions into two components, when one is made to the savings fund, and the second is fixed. A citizen can make a decision about this only in the first five years of work experience.

The legislation of the Russian Federation established the obligation for the employer to make monthly contributions in the amount of 22% of the employee’s salary. The distribution of pension payments in the account in the Pension Fund of the Russian Federation depends on which method of pension payments a person has chosen. Namely:

1. If contributions are transferred only to the insurance part of the subsidies, then 6% goes to the basic part and 16% to the benefit;
2. When accumulation occurs on both parts, then 6% is allocated to the basic and funded parts, and 10% to the insurance account.

For 2021, the moratorium on the transfer of contributions to the funded part from the Pension Fund remains valid. However, citizens were left with the right to act independently:

• act on the basis of a co-financing program;
• use maternity capital to form an insurance pension.

At the same time, all employers are responsible for ensuring accurate pension payments. Violation of the rules is punishable by law.

Insurance

The insurance type of pension in Russia is a mandatory form of contributions for the entire population of the country. Thus, compensation occurs for the income part of the life of people who previously received wages when they enter a well-deserved retirement or in the event of loss of legal capacity.

Payments are recognized as a guarantor of financial protection in relation to minor children and disabled citizens, including the loss of a breadwinner.

At this time, the current tariff rate is 22% of the salary. When calculating, the following parts are used, into which the percentage is conventionally divided:

1. Individual tariff of 16%. This rate can be divided into two parts - 10% insurance coverage, 6% - the savings part;
2. The Solidarity tariff has a fixed rate of 6%, which is transferred to the Pension Fund for future provision of old age.

In accordance with the current legislation and the new pension reform, contributions received into the account are converted into points (IPC). Every year, these funds are indexed to ensure that a person receives a decent benefit after retirement.

Old age benefit

In accordance with the Federal Law, this form of pension assignment requires the occurrence of the following factors:

• having a minimum insurance period;
• the appropriate age for retirement;
• retirement earlier than the established period due to legal circumstances;
• the required number of IPCs has accumulated in the account.

Note: to retire, a man must be 60 years old; for women, this right begins at 55 years old.

Provision in the presence of a disability group

Disability benefits mean that for a person in this status, the number of IPCs in the account does not matter. That is, he receives legal payments based on compulsory insurance coverage.

To assign contributions to the recipient, a citizen must fulfill two conditions:

• have a medical examination confirming the assignment of a disability group;
• having even a short work experience.

It is noteworthy that this right comes when a person has worked for one day. Legislative regulations recognize such a person as disabled and assign a subsidy, regardless of the circumstances of receiving the group.

Survivor's benefit

Federal Bill No. dated December 28, 2013 spells out the conditions for assigning this type of pension. Current regulations give the right to receive government support in the event of the loss of a breadwinner. However, to apply for a subsidy, the following conditions must be met:

• the deceased person must be in the status of a breadwinner and have work experience at the time of his life;
• the death should not occur due to the actions of dependents.

A complete list of persons entitled to receive state support can be found in Article 10 of this law.

Please note: payments in respect of minor dependents are made until they reach the age of 18 or after completing full-time education in institutions of the Russian Federation. Subsidies are paid every month. Download for viewing and printing:

Funded pension

This type of pension, unlike the insurance one, is formed at the request of the citizen. Russians who were born after 1966 are given the opportunity to choose - to direct all contributions only to insurance coverage or to transfer some of them to a funded pension.

People who are employed for the first time retain the right to make this choice for 5 years. The decision to allocate part of the contributions to the formation of a funded pension must be formalized by submitting an application to the Pension Fund.

State pension - concept and types

State pensions are intended to compensate for lost income for the following groups of Russians:

• civil servants;
• military;
• people who took part in the Great Patriotic War;
• people who survived the Leningrad siege;
• people who have suffered from radiation exposure;
• astronauts;
• test pilots;
• unemployed Russians.

Social

For persons who are unable to receive insurance payments, a social pension is provided (in accordance with legislative act No. 166 of December 15, 2001 “On state pensions in Russia”).

It is provided to disabled Russians who cannot engage in work due to old age or disability. To apply for a social pension, you must permanently reside in the Russian Federation and have the status of “unable to work.”

By old age

This pension is provided to Russians who have suffered from radiation exposure. The conditions for the emergence of the right to it, as well as its value, depend on the group of citizens to which the recipient is classified, the work he performs, and the length of residence in the territory affected by radiation.

By length of service

Such a pension can be obtained by the following groups of Russians:

• officials who have spent at least 15 years in civil service;
• military (in accordance with the legislative act of February 12, 1993);
• cosmonauts with 25 and 20 years of experience (for men and women, respectively). A minimum of 10 and 7.5 years must be spent in flight test personnel;
• test pilots with 25 and 20 years of experience. 2 thirds of the available experience must be spent as a flight crew.

By disability

The amount of this pension depends on the recipient category. Recipients of the state disability pension include:

• participants and veterans of the Great Patriotic War;
• people who lived in besieged Leningrad and became disabled because of this;
• military personnel who have become disabled due to illness or injury during military service;
• people who lost their ability to work due to the man-made disaster at Chernobyl;
• astronauts who become disabled while preparing for or performing a space flight.

Work experience does not affect this pension. The amount of payments is determined as a percentage of the amount of social pension provision.

For the loss of a breadwinner

This pension is provided in the event of the death of a military man serving in the army, or of Russians exposed to radiation, as well as in the death of cosmonaut candidates. Money is provided to disabled relatives of the deceased, primarily to minor sons/daughters, mother and father, husband/wife.

The amount of payments depends on the category to which the recipient belongs. A pension for the relatives of a deceased military man who served in the army is provided regardless of whether the family members of the deceased have a job.

Insurance and labor pension - what is the difference?

The difference between insurance and labor types of payments provokes a considerable number of questions, including those arising due to changes in legislation that have occurred in recent years. To distinguish between these concepts, it is necessary to have a clear understanding of the terms and knowledge of the characteristics of each type of income received by Russian citizens upon the onset of old age:

Related articles How to apply for an old-age pension Who receives a social pension in Russia Retirement age in Russia

1. A labor pension is assigned when a citizen loses his or her ability to work due to old age. To provide himself with this type of payment, a pensioner must engage in work or other useful activities throughout his life. A standard labor pension is assigned upon the onset of old age, but it is also provided upon completion of a certain length of service provided for by the profession. In the latter case, such payment is called a long-service pension.
2. An insurance pension is a monthly payment that compensates for official earnings or any other income of a citizen, the receipt of which is excluded due to the occurrence of an insured event. One of the features is the fixed nature of payments, the amount of which directly depends on the subtype of insurance chosen when taking out the policy. The amount of the insurance pension is indexed annually by the state.