How to calculate pension points for Soviet service with an example of calculation?

People who have reached retirement age and have worked in the period 1992-2002, as well as before this time, are wondering how pension payments will be calculated for these periods.
During the times from the “Soviet” to the present day, a lot of changes have occurred, including in the calculation of pension payments.

How is “Soviet” experience taken into account when calculating pensions?

• The entire period of work experience is divided into several stages:
• - until 1991,
• — from 1991 to 2001,
• — from 2002 to 2014,
• — from 2015 to the present time.

Information on the procedure for calculating pensions is presented in detail in the Federal Law of the Russian Federation No. 173-FZ. In addition, this document contains a calculation formula and examples of how to implement it. The last stage involves the creation of a new points scheme.

As for the third stage, in this case, the calculation was carried out according to the number of insurance premiums.

Details

In Soviet times, information was documented

and it was necessary to submit a list of documents to confirm work and social experience (regarding service in the troops of the Ministry of Defense and other bodies equivalent to them, provision of leave to care for a child, for a disabled person, for a second child, etc.).

In accordance with the law, if you have documented work experience, 1% of the pension is accrued for years of work. For example, if a person had 4 years of work experience before 1991, then he is entitled to a pension supplement of 4%. If the working period is 15 years, he receives a 15% bonus, etc.

The Decree of the President of the Russian Federation stipulates that, no matter whether there are supporting documents or not, for the period from 1991 to 2001, all citizens who have reached retirement age will receive additional pension increases in the amount of 10%. The introduction of this allowance is characterized by difficulties associated with employment during the years of the collapse of the USSR and the beginning of the development of Russia.

The concept of “Soviet experience” includes all work experience up to 2001, without dividing it into the Soviet or post-Soviet period. Let’s assume that a pensioner’s work experience is 30 years, with 15 years in the Soviet-post-Soviet period.

It is necessary to subtract the coefficient of the average salary both for a specific employee and for the country as a whole. Regardless of the results of the calculations, if the coefficient size exceeds 1.2, then this value is taken as the basis, in other cases in accordance with the calculation.

Pension points for the Soviet era are calculated in accordance with the formula

It includes the sum of work experience and salary for the last 5 years of work. The result obtained must be multiplied by 10%. Moreover, those who worked during the Soviet period will receive an additional 1% annually.

For the period from 2002 to 2021, we add up the cash contributions, and multiply the total by the indexation coefficient. The result obtained should be divided by 228 and the value of the point.

1. Each person can calculate their pension independently using the formula P=SKxZR/ZPxSZP, where:
2. — SC is a coefficient whose maximum value is 0.75,
3. — ZR — average monthly salary for 5 working years,
4. — ZP is the average monthly salary in the country.
5. Pension points for length of service accumulated during the Soviet era were introduced in 2010 and consist of:
6. — 10% of work experience obtained before 2002,
7. - 1% - for each year of employment starting from 1991.

In accordance with the law, pensions are divided into several types:

— for insurance (for citizens with the lowest work experience and, in addition, an individual coefficient),

— state support (civil servants, combatants, military personnel, etc. are entitled to it),

- non-state support.

In order to process financial payments

you need to take a specific period of time - this will take time, therefore, you should start processing in advance, you may need information for confirmation. For example, certificates from archival organizations, certificates received from the place of work, even union cards confirming membership can be used as evidence.

In accordance with the law, registration must begin one month before retirement age. You can do this yourself, or by issuing a notarized power of attorney for someone close to you.

• To apply to the Pension Fund, you must have the following documents:

• 
  - application from a citizen who has reached retirement age,

• - passport,
• - employment history,
• - insurance policy,
• - for men - military ID,
• — an extract for a certain period, if it is not recorded in the work book.
• However, in individual cases additional data may be needed.

If all documents are submitted on time

then it will take no more than 10 days to consider the application. If any information is missing, the citizen must provide it within three months. However, pension payments are accrued from the moment you apply to the Pension Fund.

In order to have a complete understanding of which periods in Soviet times were taken into account when calculating the amount of pension payments, you should contact the Pension Fund, where they will give you full information about the name of the period and its duration.

If errors were made in the documents confirming work experience (for example, work books), as a result of which the Pension Fund of Russia refused to take into account work experience, this fact may be disputed in court. The pension assigned for work in Soviet times is worth taking full responsibility for its registration.

Converting work experience into pension points

Insurance contributions have been taken into account in pension points only since 2015. During the Soviet period, employees of the Pension Fund of the Russian Federation carried out the conversion of pension experience - the recalculation of income received into IPC. A special formula is used for this:

Number of pension points = amount of pension capital / cost of 1 PB (as of January 1, 2015).

In order to determine the amount of pension capital used for recalculation, it is necessary to make a series of calculations: in compliance with the following algorithm:

1. Determine the experience coefficient (SC).
2. Calculate the average monthly earnings coefficient (AMC).
3. Calculate the amount of the estimated pension (RP).
4. Carry out valorization.
5. Apply a correction factor taking into account the indexations made.

Experience coefficient for calculating old-age pension

The value of the SC depends on the number of years of Soviet service. For men who have worked less than 25 years and women whose work experience does not exceed 20 years, the SC is 0.55. For each additional year above the established value, the applicant is entitled to an increase of 0.01.

Please note that the law limits the maximum value of the SK. Regardless of gender, length of service and nature of activity, it cannot exceed 0.75.

Example:

• The man has an official work experience of 16 years. Its SC will be 0.55.
• The woman worked for 23 years. Its SC is 0.58 (0.55 + 0.01 x 3 = 0.58).
• The woman’s work experience is 42 years. SC will be equal to 0.75. (0.55 + 0.01 x 22 = 0.77, which is more than the legally established indicator).

Salary coefficient

To determine the SSC, it is necessary to have data for any 60 months of employment. Having determined the average monthly income, the resulting value must be divided by the average salary for 2001–2002. in Russia (1,494.5 rubles). Regardless of the result obtained, the maximum ratio value is limited to 1.2. The exception is citizens who have experience in the RKS and PKS. Their KSZ varies from 1.4 to 1.9.

Example:

• The average citizen’s earnings for the selected period of employment was 1,600 rubles. KSZ = 1.07 (1,600 / 1,494.5 = 1.07).
• The average salary of the applicant for the selected time is 2,100 rubles. The KSZ will be 1.2 (2,100 / 1,454.5 = 1.4, which is higher than the legally established value).
• The average salary of a citizen with northern experience was 2,600 rubles. KSZ = 1.7 (2,8600 / 1,494.5 = 1.7).

Estimated pension value

Before calculating the estimated capital, it is necessary to determine the value of the RP. If the experience coefficient does not exceed 0.55, the formula is used:

RP = SK x KSZ x 1,671 – 450, where:

• 1,671 – average salary in the country for December 2001;
• 450 is the basic pension amount, which is determined by the law on labor pensions No. 173-FZ (12/17/2001).

The value (SC x KSZ x 1,671) cannot be less than 660. If during the calculation the amount received is lower, the value of the RP is determined at the minimum level - 210 rubles.

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When the applicant’s SC is higher than 0.55, the RP amount is calculated using a different formula:

RP = (SK x KSZ x 1,671 – 450) x St, where:

• ST for women = length of service before 2002, divided by 20;
• St. for men = length of service until 2002, divided by 25.

Important: if (SC x KSZ x 1,671) is less than 660, the value of 210 rubles is used in the calculation.

Example:

• A man has SV = 0.55, KSZ = 1.10. RP will be 560.96 rubles: (0.55 x 1.10 x 1,671) – 450 = 560.96.
• A woman has SF = 0.60 (25 years of experience), KSZ = 1.1. RP will be 816.08: (0.60 x 1.10 x 1,671 – 450) x (25 / 20) = 816.08 rub.

Valorization of pension points

The resulting value of the estimated pension is subject to a one-time increase - valorization. 10% is added to the RP amount. The valorization of a pension, taking into account Soviet experience - up to 1991 - involves an additional increase of 1% for each full year of work.

Example:

• RP = 600 rub. Experience before 1991 – 0 years. The valorization amount is 60 rubles. (600 x 10% = 60).
• RP = 600 rub. Experience before 1991 – 14 years. The valorization amount will be 144 rubles: 600 x (10% + 1% x 14) = 600 x 14% = 144 rubles.

The valorization of pension payments occurred for the first time on January 1, 2010. It affected all Russians - pension recipients who had work experience before 2002. The pension supplement was issued automatically, taking into account the information in the payment file. The goal is to recalculate payments to citizens whose pensions were accrued during Soviet times.

How to calculate pension points for Soviet service with an example of calculation?

Are pension points accrued for Soviet service?

The system of calculation and payment of pensions existing in the Russian Federation is characterized by multiple changes. The latest of these is the introduction of a point system, or so-called individual coefficients (IPC). On the one hand, they simplify the process of calculating pensions, and on the other, they complicate it.

Attention! When retiring, the process of assigning a pension is currently complicated by the fact that it is necessary to provide evidence of work experience in writing.

Such documents must include information not only about the duration of work, but also about the nature of the work that was performed, the amount of wages that were paid to the employee, and a number of other indicators.

In those days, all information was entered on paper, which tended not only to deteriorate, but also to get lost, so the transfer of existing pension rights of the Soviet and post-Soviet periods into individual coefficients is accompanied by many nuances.

Calculating the IPC for each pensioner requires dividing the working time of Soviet-era persons into the following periods:

• until 1991,
• until 2002,
• after 2002.

Pension of teachers according to length of service in Russia.

What is a pension point?

Initially, after the monetary “value” of one pension point was determined, its figure was 64.10 rubles. However, taking into account inflationary processes, a month later this figure amounted to 71.41 Russian rubles.

According to the requirements of the law, the value of a pension point is subject to annual indexation. The date of such recalculation is set at February 1.

On this day, the pension point indicator increases by a special coefficient, the value of which is 1.04.

As of 2021, one pension point is equal to 81 rubles 49 kopecks. In February 2021, its size will be increased again. The principle is this: the monetary value of the point and the fixed payment increase in proportion to inflation processes in the country.

How are pension points awarded for work during Soviet times?

Today, the size of the insurance pension payment depends on:

• the individual part, which includes the length of work experience, the number of points earned, and so on,
• a fixed payment, which is the amount of money accrued established by law.

According to the requirements of Federal Law No. 400, to calculate the insurance payment, the length of the citizen’s work experience, the number of individual coefficients earned by him, as well as the cost of one IPC on the date of assignment of the pension are taken.

It would seem that there is nothing complicated, everything is extremely clear. However, what about people who worked half or most of their lives during the Soviet era? To answer this question, you should refer to the provisions of Federal Law No. 173.

Additional PB

The current standards of pension legislation include such a concept as additional pension points.

Important! They are provided:

• persons who served in military service, as well as a parent who cares for one child until he reaches the age of one and a half years - in the amount of 1.8 points,
• a parent who cared for two children – 3.6 points,
• a parent who cared for three or more children – 5.4 points,
• a citizen who cares for a disabled or elderly person – 1.8 points.

What methods of confirming work experience from the Soviet period exist today?

There are several opportunities for citizens to certify that they have the necessary Soviet-era work experience. These include:

Unfortunately, in practice, it is extremely difficult to find confirmation of employment and payments for such a late time, but it is still worth trying, since this will provide an additional increase to your pension.

Pension calculator 2021 - latest data for calculating your pension

Among the issues that concern our readers, many relate to pensions. You can find out what your state pension will be like now. It doesn't matter how old you are or how long you've been working. We have made a special calculator for you that will help predict the approximate size of your future pension.

Content:

What pension changes await Russians in 2021

In 2021, a number of changes have occurred and are still expected in the Russian pension market that are important for Russian citizens in terms of the formation of their current and future pensions. These events concern both the business of non-state pension funds and issues of calculation and accrual of insurance and funded pensions.

What new awaits Russians in 2021:

• The retirement age, length of service and accumulated points requirements will increase;
• Indexation and adjustments to pension payments will be made;
• The survival period will change;
• For pensioners, the cost of living will be calculated in a new way.

How many years after the right to an insurance pension arises are you ready not to apply for it? Please select your tariff. Please indicate your gender. According to the law, pension savings are not formed for citizens born in 1966 and older. Enter another value for your work experience. Please enter your year of birth. Enter a salary higher than the minimum wage in the Russian Federation in 2021 - 12,130 rubles.

In accordance with the data you entered, your length of service is , the number of pension coefficients is . From 2025, the minimum total length of service to receive an old-age pension is 15 years. The minimum number of earned coefficients for granting a pension is 30.

If in your answers to the questions you indicated less than 15 years of experience or the number of accumulated coefficients does not reach 30, then you will be assigned a social old-age pension: for women at 65 years old, for men at 70 years old. The old-age social pension today is 5,283.84 rubles per month.

In addition, you will receive a social supplement to your pension up to the subsistence level of a pensioner in the region of your residence.

If you want to receive a higher pension, reconsider your life plans so that your work experience is 15 years or more and you can ultimately earn at least 30 pension coefficients.

In accordance with the data you entered, your length of service is , the number of pension coefficients is . You do not have enough pension coefficients or length of service to assign an old-age insurance pension. From 2025, the minimum total length of service to receive an old-age pension is 15 years. The minimum number of earned coefficients for granting a pension is 30.

If in your answers to the questions you indicated less than 15 years of experience or the number of accumulated coefficients does not reach 30, then you will be assigned a social old-age pension: for women at 60 years old, for men at 65 years old. The old-age social pension today is 5,034.25 rubles per month.

In addition, you will receive a social supplement to your pension up to the subsistence level of a pensioner in the region of your residence.

If you want to receive a higher pension, reconsider your life plans so that your work experience is 15 years or more and you can ultimately earn at least 30 pension coefficients.

Please check that the form is filled out correctly. The number of years of combining activities as a self-employed citizen and an employee cannot exceed the number of years of minimum experience specified in each type of activity separately.

If you want to receive a higher pension, reconsider your life plans so that your work experience is 15 years or more and you can ultimately earn at least 30 pension coefficients.

Sorry, the calculator is not intended to calculate the size of pensions of current pensioners, citizens who have less than 3-5 years left before retirement. Number of individual pension coefficients Amount of insurance pension, rub.

Raising the retirement age, changing the requirements for length of service and points

In 2021, the conditions for receiving an insurance pension will continue to change. Many people know that from 2021 in Russia, the generally established age, which gives the right to receive an old-age insurance pension and a state security pension, began to gradually increase. The changes are planned in stages: over a long transition period of 10 years and ending in 2028.

To receive an insurance pension, there are also requirements for length of service and pension coefficients (they are sometimes also called pension points). Over the course of ten years, while the reform is underway, these indicators will also change and by 2029 they will amount to 15 years of work experience and 30 points.

For 2021, the following conditions for assigning an insurance pension apply:

• retirement for men at 61 years 6 months, for women at 56 years and 6 months;
• insurance experience - at least 12 years;
• the number of accumulated coefficients (points) is at least 21.

Indexations and adjustments

On January 1, 2021, insurance pensions of non-working pensioners were indexed by 6.3 percent. In addition, the cost of one coefficient in the new year was increased from 93 rubles to 98.86 rubles, and the size of the fixed payment increased from 5,686.25 to 6,044.48 rubles.

From August 1, the Pension Fund of Russia and NPFs will carry out annual adjustments to the amount of funded pensions and fixed-term pension payments for compulsory pension insurance.

Change in survival time

On January 1, 2021, a law came into force to increase the period of payment of a funded pension - or the survival period.
This is the expected period for payment of the funded pension. It is established by a special law in accordance with the average life span of a citizen after retirement.

In 2021, the survival period was 258 months, in 2021 - 264 months.

How is experience earned after 2002 taken into account?

Since 2002, insurance premiums have been introduced in the Russian Federation, and the Pension Fund of the Russian Federation began to keep automated records of years worked. And first, we will consider not how pension points are calculated for Soviet experience, but how IPC is calculated for Russian experience.

Since 2015, individual pension points have been additionally introduced to calculate the amount of payments. The value of points increases annually. One point in 2021 costs 98.86 rubles, and a year earlier officials estimated it at 93 rubles.

The longer a person works, the more he will receive, because the points based on the results of his work activity are summed up. When a person stops working, the amount of points is multiplied by their value in the current year, a fixed amount is added (in 2021 it is 6044.48 rubles), the same for everyone, and a funded part (if any). When calculating, special increase coefficients are also used if a person switches to government support later. For clarity, they are presented in the table (data from Federal Law dated December 28, 2013 No. 400-FZ):

How to use the table? Let's see how late the person turned to the Pension Fund. Let's say for 60 months. In this case, his pension points will increase by 1.45 times, and the fixed payment will increase by 1.36.

Calculation of pensions for those born before 1967: formula, example and rules

The state regularly improves the pension system. Now the year of birth is one of the key factors according to which old-age cash benefits will be paid: those born before 1967 receive a pension in three components, and after this year - in two.

A calculator designed to inform you of its preliminary size will help you calculate the pension for those born after 1967. Algorithms allow you to calculate the amount without leaving your home. The pension calculator will also be relevant for persons born before 1967.

Calculate pensions using an online calculator for citizens born before 1967

The calculation of pensions for those born before 1967 can be done either through a calculator or by contacting the Russian Pension Fund in person.

Important! The calculation formulas are publicly available, and every citizen is able to independently determine the amount of the future benefit, but this does not exclude the possibility of a gross error.

Calculators record some coefficients for ease of calculation. This means that they will also withdraw an approximate amount.

Only the Pension Fund can provide accurate information, using all the nuances of legislation and benefits for each individual citizen.

The pension consists of three parts:

• cumulative;
• fixed;
• insurance

Each citizen has his own savings portion. This depends on investing regularly for your future retirement. Please note: the state does not index savings based on inflation.

The second part of the pension is fixed, or otherwise basic. It is established by the state, its size changes annually taking into account inflation. In 2021 it is 5,686.25 rubles, but for a certain category of citizens it changes up or down.

Unlike the funded share, the insurance share is indexed. It is calculated by dividing the size of the Pension Capital (PC) by the estimated number of months during which the benefit will be paid. For PC you need to know:

1. Estimated pension payment (RP). It includes:
   Coefficient for length of service. At the moment, it is 0.55 for men with more than 25 years of experience, and for women - 20. If a person has a period longer than this, then 0.1 is added to him for each year. In this case, the total amount does not exceed 0.75.
2. Ratio of wages to the national average. Limit for the indicator: no more than 1.2.
3. Average salary. The Pension Fund calculates it and charges 1,671 rubles.

The formula is as follows: all three of the above indicators are multiplied.

1. Conditional pension capital (CPC). To calculate you will need:
2. Fixed share.
3. Estimated payment time in months.

Formula: Estimated Payout - (Fixed Proportion / Estimated Time).

Unknown information can be obtained from the Pension Fund.

Calculation rules

The basic principle of calculations is the conversion of all working years of a person into certain points. Their calculation is influenced not only by the number of years worked, but also by the amount of contributions made to the Pension Fund. And they, in turn, depend on the income a person receives.

Currently, future payments directly depend on the number of pension points earned. Their cost is regularly indexed by law in accordance with inflation.

Calculation of points

Depending on various circumstances, the number of points awarded may vary significantly. They are influenced by the following factors:

• periods of work before and after 2002 (this is a transitional moment when the new pension system was introduced);
• number of years of work experience;
• actual receipt of different salary levels;
• different working conditions.

The latter conditions include representatives of certain types of professions or the presence of difficult natural conditions caused by territorial residence in certain regions of Russia. Such circumstances include:

• professional activities of teachers;
• work of doctors with the population;
• work of rescue teams;
• the profession of miners;
• people working on the railway;
• employees involved in geological research.

And also any professions if people were forced to live and work in the territories of the Far North or their place of residence was equated to these lands.

How to confirm non-insurance periods?

It also happens that the length of service does not include the insurance period, but, for example, military service or child care. Here you will need to submit supporting documents. As such documents, you will need:

• military ID, or a certificate from the military unit. An entry in the work book about the period of military service is also suitable;
• the time of receipt of involuntary unemployment benefits is certified by an extract from the central employment center;
• certificates of care for an elderly person or a disabled person are issued by the Pension Fund, therefore, it will be enough to send the corresponding request;
• If the applicant cared for a child under 1.5 years of age, then you will need a certificate from the housing office stating that the child lived with the parent or a statement from the employer about the provision of such leave. The child's birth certificate will be required.

In the latter case, a document will be required indicating that the second parent did not provide documents on child care during the same period and did not receive additional privileges from the state.

The concept of coefficient based on experience and earnings

The length of service is used when calculating pensions for the period before 2002 and is an indicator of the employee’s total length of service. The earnings coefficient is an individual indicator of a citizen, determined for a month out of any 60 consecutive months within 10 years of service.

In this case, breaks are not taken into account. To do this, it is necessary to divide the salary amount accepted for calculating the pension by the average monthly earnings.

What is the experience coefficient?

Valorization

This is a recalculation of old-age payments for the Soviet period. It affected all senior citizens – those with mixed experience and those who are already pensioners. At the same time, all of them automatically receive an increase of 10%, and for those who have experience before 1991, 1% for each year.

Fixed pension rate for 2002

Since 2001, pension payments have increased by 352 rubles and by the beginning of 2002 its average amount was 1,600 rubles.

Updated pension limit in 2015

After the indexation of the pension, as of February 1, 2015, the size of the insurance pension increased by 1,265 rubles and amounted to 12,464 rubles, and for old age the insurance pension was 12,930 rubles, that is, it increased by 1,313 rubles.

Volume of points before 2002

Points before 2002 must be calculated with double conversion and an increase of 10%, plus 1% for each year before 1991.

Moreover, if the recalculation showed a lower number of points for the current year, then the pension remained unchanged - it did not decrease. If the indicator was higher, additional accrual occurred.

Additional PB

The current standards of pension legislation include such a concept as additional pension points.

Important! They are provided:

• persons who served in military service, as well as a parent who cares for one child until he reaches the age of one and a half years - in the amount of 1.8 points;
• a parent who cared for two children – 3.6 points;
• a parent who cared for three or more children – 5.4 points;
• a citizen who cares for a disabled or elderly person – 1.8 points.

Early retirement in case of staff reduction in 2021: latest news.

Read how to calculate the pension coefficient here.

How length of service affects the amount of pension, read the link: