Let's find out: what is the difference between insurance and social pensions

What is insurance and social pension

The insurance pension is a monthly amount of money provided to the insured citizen.
The money is provided to compensate the citizen for wages and other income that were lost due to incapacity for work upon reaching a certain age or after receiving the “disabled” status. According to the law, the amount of money includes the insurance pension itself and a fixed additional payment.

The social pension, unlike the insurance pension, is paid not from contributions from employers, but from the state budget. It is provided to all Russians who are entitled to it, regardless of their length of service. Moreover, even foreigners and stateless persons can receive it.

Assignment of an old-age insurance pension

• in special natural and climatic conditions (workers of the Far North, miners, etc.);
• in special working conditions (public transport drivers, teachers, doctors, etc.);
• certain social categories of citizens (mothers of many children, disabled people, etc.).

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In some cases, early retirement . It is provided to those who have worked for a long time in harmful or difficult working conditions, as well as in connection with the social characteristics established by Art. 30, 31 and 32 of the Law “On Insurance Pensions”.

Types of social

According to the Federal Law “On State Pension Provision in Russia” dated December 15, 2001, number 166, disabled Russians, foreigners, stateless persons who cannot work or have restrictions on work have the right to receive these types of financial assistance from the state.

By disability

Provided to persons with disabilities of any category, including children with disabilities and minors.

Upon loss of a breadwinner

Provided to children and citizens who are under 23 years of age, but are studying full-time at an educational institution. The grounds for registration are the loss of either parent, the loss of a single mother.

By old age

Provided to Russians who have reached 60 years of age (female persons) and 65 years of age (male persons). After the changes in 2015, this type of pension can be applied for by foreigners and stateless persons who have lived in Russia for at least 15 years and have reached the appropriate age. The exception is people belonging to small northern ethnic groups. They can start receiving Social Security in Old Age 10 years earlier.

Types of social pension

Many people think that types of social pension are equivalent to insurance pensions, however, this is a misconception. In our country, social benefits are issued to only 2-5% of the total number of citizens who have reached retirement age.

To receive government support, conditions are different from insurance payments: you do not need to provide information about your length of service.

Thus, a social pension is a monthly benefit of the minimum amount that a citizen can afford under existing conditions.

Depending on the category of citizens who receive social assistance, there are three types of social pension.

By old age

If with the insurance type of payments, women and men could retire at 55 and 60 years old, respectively, then with the social type, it is assigned to citizens who have reached retirement age at 60 and 65 years old (women and men, respectively).

On the occasion of the loss of a breadwinner

Benefits for the loss of a breadwinner are provided to children and other citizens who have family relationships under the age of 23 and who are engaged in full-time study at an educational institution.

By disability

Persons recognized as disabled due to health limitations , including those disabled since childhood, have the right to apply for state assistance in the form of cash.

Types of insurance

In the Russian Federation, there are the following types of insurance pensions.

By old age

Provided to Russians who have reached the age of 60 years (female persons), 65 years (male persons). The main condition is the presence of a minimum work experience and a required number of points. It must be said that certain groups of people have the right to stop working early. This applies to those who work in hazardous conditions or in northern regions.

By disability

This pension can be received by citizens who have not reached the required age and have health problems certified by doctors. If a disabled person has no work experience, he can receive a disability pension.

Upon loss of a breadwinner

It is received by disabled dependents of a deceased person. This group of persons includes:

• sons, daughters, grandsons, granddaughters of the deceased who have not reached the age of majority;
• family members of the deceased who study at an educational institution;
• husband/wife, mother and father of the deceased who have reached the required age or have lost their source of income;
• family members of the deceased who do not work and care for his children under 14 years of age;
• family members of the deceased with the status “disabled” (disability group does not matter).

Which pension is more profitable to receive? Social or disability

If the recipient of a disability insurance pension has less than 15 years of insurance coverage (taking into account the transitional provisions of the new pension formula) or the required number of points is missing, this type of pension is paid to women up to 60 years of age and men up to 65 years of age, after which a social old-age pension is assigned.

If the recipient of a disability insurance pension has at least 15 years of insurance experience (taking into account the transitional provisions of the new pension formula), and the sum of points is at least 30 (also taking into account the transitional provisions), this type of pension is assigned to women under 55 years of age and men up to 60 years (for persons holding government positions in the Russian Federation and permanently filled government positions in constituent entities of the Russian Federation, permanently filled municipal positions, positions in the state civil service of the Russian Federation and municipal service positions, until they reach the age specified in Appendix 5 to the Federal Law in the corresponding year dated December 28, 2021 No. 400-FZ, or until the early assignment of an old-age insurance pension, after which an old-age insurance pension is assigned.

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Difference between insurance and social

The main difference between insurance coverage and state insurance is the amount and calculation procedure . Insurance payments are calculated according to a rather complex scheme. Their size is influenced by:

• accumulated experience;
• wage;
• subject of the Russian Federation in which the pensioner worked;
• features of a pension account (with or without a savings component).

When calculating the state pension, neither the length of service nor the number of points matters. The main criteria for registration are reaching the appropriate age, becoming disabled, or losing a breadwinner. At the same time, a higher age is set for her when compared with the previous one.

Also, social and insurance payments differ according to:

• conditions for employment when applying for pension benefits;
• conditions for early payment processing;
• indexing conditions.

Features of insurance and social pensions can be listed in the form of 2 lists. Check them out to understand the differences between these 2 types of financial support.

Features of insurance payments

• age at which you can start receiving – 60 years (men), 55 years (women);
• the minimum required length of service is from 9 (if payments are made in 2021) to 15 (if paid in 2024) years;
• the minimum required number of pension points is from 13.8 (if payments are made in 2021) to 30 (if payments are made in 2024);
• the opportunity to become a pensioner early - 24 months before retirement age in case of layoffs and when hired for a position that gives the right to become a pensioner early;
• can it be transferred to the management of a non-state pension fund - yes;
• Are workers paid - yes.

Features of social payments from the state

• age from which registration is 65 years (men), 60 years (women);
• minimum required experience - not required;
• the minimum required number of pension points is not required;
• opportunity to become a pensioner early;
• can it be transferred to the management of a non-state pension fund - no;
• Are workers paid - no.

The state pension serves as a kind of replacement for the insurance one. Payments from the state cease to be provided if a person begins to receive insurance, so you should not count on receiving 2 types of financial support at the same time.

How is your old age insurance pension determined?

In accordance with the data you entered, your length of service is , the number of pension points 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 assigning a pension is 30. If in your answers to the questions you indicated less than 15 years of experience or the number of earned 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.

In accordance with the data you entered, your length of service is , the number of pension points 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 assigning a pension is 30. If in your answers to the questions you indicated less than 15 years of experience or the number of earned 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.

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Old age pension: insurance, social, minimum

All citizens registered in the compulsory pension insurance system were converted

their pension rights
as of January 1, 2021
. Thus, their rights were converted into calculated pension capital.

1. Old-age insurance pension, or in other words, labor pension - to receive it you need to reach the required age, have a minimum work experience and the number of pension points.
2. Social pension - the assignment of these payments is made in certain cases, loss of a breadwinner, disability, and for citizens who have reached the required age, but do not have the required length of service.
3. State pension - this payment represents compensation for lost income for certain categories of citizens, these include test pilots, victims of radiation and others. This payment requires specific conditions - lack of any income, length of service, and others.

The main differences between labor, insurance and social pensions

Since 2002, pension reform has been taking place in Russia.
Until January 1, 2015, the Law “On Labor Pensions in the Russian Federation” No. 144-FZ dated December 17, 2001 was in force. According to its provisions, an employee applied for cash payments in old age when he reached the required age and had at least 5 years of experience. After January 1, 2015, the concept of “labor pension” is absent in the legislation. Instead of one law, there are two: “On insurance pensions” and “On funded pensions”. That is, the previous labor pension was divided into insurance and funded, which a person can claim at the same time. Let's take a closer look.

In the context of changing legislation, it is not immediately possible to understand what an insurance and labor pension is, and what is the difference between these concepts. A person who is responsible for his future should plan today what payments he can count on after finishing his working career.

Until 2002, data on the working experience of citizens was used to calculate pensions. After the pension reform and until 2014, monthly contributions were introduced, deducted from the salary, which included an insurance and savings part.

Now the security system has switched to a point-based scheme for calculating insurance pensions. A person has the right to choose which part he will form with deductions - only insurance or insurance together with funded.

In order for us to understand the difference between insurance and social pensions, it is important to understand their concepts.

IMPORTANT: At the moment, labor and insurance pensions are almost identical concepts. Work experience is taken into account only for the period before 2002; since 2002, the pension is calculated according to the length of service and the number of contributions.

In connection with this clarification, below in the article we will analyze the difference between insurance and social pensions. To complete the picture, it is necessary to consider all the nuances of similarities and differences.

Conditions for assigning an insurance pension:

1. The retirement age is 55 for women and 60 for men. Workers in certain industries, such as mining, metallurgy, loading operations, driving public transport, etc., have the right to retire early.
2. The duration of the insurance period depends on the year of application. The indicator changes annually, in 2017 it is 8 years.

The insurance period is the total length of service during which contributions to the pension fund were deducted from the salary. In addition to working days, it includes:

• service in the Russian troops;
• maternity leave up to 1.5 years;
• caring for a disabled person, an elderly person 80 years of age and older;
• residence of the spouse at the place of military service of the husband/wife;
• period without work if registered with the employment service;
• temporary disability with receipt of social benefits;
• public Works;
• moving in the direction of an employment center, etc.

The experience does not include:

• maternity leave from 1.5 to 3 years,
• vacation at your own expense,
• temporary suspension from work due to the fault of the employee,
• periods of downtime at enterprises.

Points, or coefficients, are a value that depends on the number and amount of contributions to the pension fund. The minimum indicator for assigning a labor pension changes annually:

• in 2021 it will be 11.4 points,
• in 2021 - 13.8 points,
• in 2021 - 16.2 points.

REFERENCE: If a citizen refuses the accumulative part of the contributions, the accrual is carried out against the insurance part, therefore, it brings more points. It is better to make a choice in the next 3 years, since in 2021 the insurance direction will bring 10 points, mixed - 6.25.

1. The basic part, or federal payment, is the amount fixed by law. The indicator is indexed annually.

In 2021, the guaranteed minimum is:

• for pensioners over 80 years of age and disabled people of group 1 - 9610.22 rubles;
• for old age pensioners, disabled people of groups 1-2 - 4823.37 rubles;
• for disabled people of group 3 and persons who have lost their breadwinner - 2411.69 rubles.

IMPORTANT: An expanded list of basic payments, which takes into account “northern allowances” and the number of dependents, can be found on the PRF website.

2. Individual pension coefficient (IPC) - an indicator reflecting the number of contributions made for an employee.

3. Premium coefficient (PC) - an indicator that increases payments for working pensioners.

The average amount of transfers in the country as of April 1, 2017 is 13,655 rubles.

Old-age pension payments are granted until the end of life. The retirement age this year is 60 for men, 55 for women. For state and municipal employees holding high positions, the number of years has been increased to 65 for men and 63 for women.

To qualify for this type of payment this year, an applicant must have at least 8 years of insurance experience and 11.4 insurance points. The requirements are increasing every year, and by 2024 the length of experience will reach 15 years, the value of points will be 30.

You can apply to the fund at any time after reaching the required age. If a citizen prepares documents in advance, the transfer occurs no earlier than required by law.

The standard package of documents includes:

• statement;
• citizen's passport or residence permit;
• SNILS;
• certificate of average monthly salary in the period before 2002;
• work record book, employment contracts, dismissal orders, personal accounts, certificates of renaming of enterprises and other documents that can confirm both work and insurance experience;
• other papers at the request of the Russian Federation.

REFERENCE: A citizen has the right to first submit an application and part of the documents, and then within three months bring the missing papers.

If a disabled person of any group has at least some insurance experience, he has the right to apply for a disability pension. To obtain the service, the applicant must include an extract from the inspection report in the standard package.

The duration of the appointment depends on the number of contributions deducted from the salary. If the recipient has at least 8 years of experience and a sufficient amount of points, payments are made before the old-age pension is assigned. If he does not meet the conditions of the new program, he switches to social security at age 65 (for men) or 60 (for women).

The following are entitled to the service:

• dependents of the deceased;
• minor relatives or full-time students;
• parents, husband/wife, grandparents of retirement age;
• relatives raising minor children;
• disabled citizens who are related to the deceased.

The length of service of the deceased does not matter, only its presence is important.

REFERENCE: If family members register an application within a year, the date of assignment of payments is considered to be the day of death of the breadwinner. If the deadline is exceeded, the service will be considered completed from the moment the documents are submitted.

The standard package of papers must be accompanied by a death certificate and documents confirming the relationship - a marriage or divorce certificate, a certificate of family composition, a birth certificate, a guardianship agreement, an adoptive parent's certificate or other documents.

Social pension is monthly transfers from the pension fund to persons who are unable to work. This:

• veterans of the Great Patriotic War and residents of besieged Leningrad who received disability due to intentional harm to health;
• disabled people of all groups;
• minors and university students under 23 years of age who have lost their parents;
• men aged 65, women – 60 years old, living in Russia for 15 years and not qualifying for a labor pension;
• representatives of small ethnic groups of the North who have reached 55 years of age (for men) or 50 years of age (for women).

What is the difference

The social pension, unlike the labor (insurance) pension, is transferred from the country's budget. The amount of payments is fixed and does not depend on length of service. If a citizen has the right to both types of pensions, he is given the right to choose the largest option.

Terms of registration:

• residence in Russia;
• reaching a disabled age;
• belonging to ethnic minorities of the north.

The amount of old-age transfers is 5034.25 rubles. Payments are made until the end of life, without an extension period.

Appointed to children under 18 years of age, as well as full-time students before graduation. The amount of payment to persons who have lost one of their parents is 5,034.25 rubles, both parents or a single mother is 10,068.53 rubles.

To apply for benefits, the child’s representatives must bring to the pension fund a death certificate, as well as papers indicating a family relationship - documents about marriage, adoption, certificate of residence, etc. Confirmation of the status of a single mother is necessary with a birth certificate with a dash in the “Father” column or a certificate from the registry office that the father’s name was entered at the request of the mother.

Depending on the diagnosis and course of the disease, the pension is assigned both for life and for a certain period. To extend payments, it is necessary to undergo repeated examinations.

The amount of the disability pension is presented in the table.

IMPORTANT: After passing a medical examination, the citizen or his representatives are given 12 months to complete documents for a pension. A mandatory document to confirm disability is an extract from the Bureau of Medical and Social Examination (BMSE).