How often can you change NPF: transfer to another NPF, how to change?

The current pension legislation gives citizens the right to place the funded part of their pension at their choice. A future pensioner can entrust his funds to a state management company or place them in one of the non-state pension funds (NPF). Often a person has a desire to transfer his funds under the management of another organization - for example, if he is not satisfied with the profitability of the current fund or has doubts about its reliability. Previously, to do this, you had to personally contact the fund or the Pension Fund branch, fill out paperwork, etc. Now there is an easier way to manage your retirement savings without leaving home. Let's look at how to change a pension fund through the government services portal.

Where can I form a funded pension?

Persons who have decided in favor of forming pension savings can use the following options for their placement:

• In the Pension Fund of the Russian Federation with the choice of a management company (MC) . In this case, the management company can be any - private, with which the Pension Fund of the Russian Federation has entered into an agreement, or state-owned (Vnesheconombank).
• In a non-state pension fund (NPF).

If the savings are in the management company, then the assignment and payment of the funded pension will be made by the Pension Fund of the Russian Federation, in the case of placing funds in a non-state pension fund - by the selected NPF.

The formation of a funded pension occurs through compulsory insurance contributions transferred by the employer for its employees to compulsory pension insurance (compulsory pension insurance), voluntary contributions , and through the investment of these funds. Insurance contributions are transferred by the employer in the amount of 22% of the employee’s salary , of which:

• 6% goes to a funded pension;
• 16% — for insurance pension (10%) and solidarity tariff (6%).

It is worth remembering that from 2020, pension savings from insurance contributions to compulsory pension insurance can be formed by persons born in 1967 and younger who, before December 31, 2015, decided in favor of a funded pension. The same opportunity remains for citizens who have recently started working, and for whom no more than 5 years have passed since the start of deductions of insurance premiums.

The procedure for forming a pension in a non-state pension fund or management company

Unfortunately, since 2014, by decision of the Government, the formation of funded pensions from insurance contributions has been “frozen” . As a result, all contributions are transferred only to the insurance pension. The moratorium has been extended into 2020 and will also remain in effect in 2020. As a result, only the voluntary component remains for the formation of pension savings.

The procedure for forming a funded pension differs from the formation of insurance pension provision:

• Unlike an insurance pension, the funded version does not accrue pension points. Incoming funds are placed in the citizen’s individual account in the management company or non-state pension fund of his choice.
• Pension savings are not indexed ; their profitability depends on their investment in the financial market. However, there are risks, since this process can have both positive and negative results. In any case, there are state guarantees : in the event of losses or cancellation of a license from a non-state pension fund, the insured person retains savings in the amount of paid insurance premiums, but excluding investment income.

In the event of the death of the insured person, his savings are inherited and can be paid to his relatives or to the person whom the insured person indicated in the agreement with the NPF (UK) or in the application.

Rating table for non-state pension funds

You can choose a non-state PF based on the entire list of such organizations compiled by the state PF and posted on its website. Funds that have been consistently in the top ten for a long time deserve special confidence .
This position is eloquent evidence of stability and reliability.

Of course, no specialist can give a 100% guarantee in this case.

The difficult economic situation and constantly changing inflation indicators do not allow us to make a long-term forecast in this area.

Various independent agencies also compile ratings. The best of them is considered to be NRA (national agency) and Expert RA.

When compiling the rating, experts are guided by the following indicators:

• Profitability level. Indicators for the entire period of the fund’s activity are taken into account, and not just for the last year. If the rating does not contain information on this item, this means only one thing - the leaders of the organization are hiding the true state of affairs from the public. Such a “wake-up call” should alert a potential investor.
• Reliability is determined by more than twenty-five parameters. The analysis is carried out for each quarter separately and for the year as a whole. After which the experts assign a certain class to the fund (a total of five classes are taken into account in the rating table).

A high class is marked with the letter “A”, a very high class is marked with “A+”, and an exceptionally high class with “A++”.

In the table compiled by Expert RA, it looks like this (the information is relevant for the first quarter of 2020):

TABLE

The most impressive results are from the leader of the rating – the European Pension Fund. The fund's accumulation in 2020 amounted to 57.7 billion rubles. From 2009 to 2014, all of his clients' investments doubled.

And “Surgutneftegaz” received a high rating of reliability thanks to an impressive reserve of 15,349,000 rubles. This is one of the richest funds in the country.

Specialists also considered MNPF Big to be reliable in all respects. The fund has been operating since 1995, and its client base numbers more than 500,000 people. The organization has always fulfilled its obligations to investors even in the event of an unfavorable economic situation.

The second list of the rating is distinguished by a rather conservative financial policy, which increases its reliability in the eyes of experts. Client funds are invested by the Defense Industrial Fund exclusively in securities, bonds and shares.

Another fund with stable indicators of reliability and profitability is in fourth place. This organization participates in the state program for co-financing pensions. Experts have classified the Education and Science Non-State Pension Fund as one of the most reliable non-state funds.

The dynamics of rating assignment can be found on the agency’s website (the table is constantly changing depending on the analysis performed).

You can find out how to get maternity benefits by reading our thematic material. Sick leave payments do not always go smoothly. You can find out how to arrange them correctly here!

Read our article on how to correctly make entries in employee salaries.

Is it possible to transfer from a non-state pension fund back to the Pension Fund?

In order to reliably place your pension savings and receive maximum income from investing them, you need to take a very responsible and competent approach to choosing a non-state pension fund: basic information about NPFs can be obtained from the data of rating agencies, also on the official website of the Central Bank of Russia, where data on NPF profitability. There you can also see which NPFs have had their license revoked.

If desired, a person forming pension savings can at any time refuse their further formation and direct funds only to an insurance pension :

• In this case, the funds accumulated up to this point will not disappear anywhere, but will continue to be invested by the fund or management company in which they are placed, and will be paid to their recipient in full when the right to receive them occurs.
• At the same time, the insured person can continue to manage his savings. A citizen can transfer them from one NPF to another (or change the management company) or transfer them from the NPF back to the Pension Fund , but not to an insurance pension, but to a selected management company (private or public), which will invest them.

Best institutions

The NPF rating will allow you to make the right choice of the institution that will be involved in the formation of your pension:

1. JSC NPF Sberbank.
2. NPF "GAZFOND".
3. NPO "NPF BLAGOSOSTOYANIE".
4. JSC "NPF FUTURE".
5. JSC NPF LUKOIL-GARANT.
6. JSC NPF SAFMAR.
7. OJSC NPF RGS.

These are the most popular and reliable institutions. The NPF rating can be continued by other organizations that are trusted by many people.

How to transfer pension savings to the state pension fund?

Transferring pension savings from one NPF to another, from NPF to the Pension Fund and back, as well as changing the Management Company is legally permitted annually, but not more than once a year .

However, it is worth knowing that replacing an insurer more than once every five years can lead to the loss of investment income that was received by the previous insurer. Without loss of income, you can change the management company or its investment portfolio every year.

In order to still leave the NPF and transfer savings to the state pension fund, you need to:

• Decide on the choice of the Management company that will invest the funds received, and select the investment portfolio that it offers. The list of management companies with which the Pension Fund has entered into a trust management agreement for pension savings can be found on the official website of the Pension Fund.
• Submit to the Russian Pension Fund an application for transfer (early transfer) from the NPF to the Pension Fund of the Russian Federation.

Deadlines and methods for submitting an application for transfer of funds to the Pension Fund

An application for transfer of savings funds from a non-state pension fund to the Pension Fund must be submitted before December 31 of the current year. Depending on the type of transfer, the transfer will be made from the beginning of the year following the year of filing the application (for early transfer) or the year after the expiration of the five-year period from the date of its submission (for normal transfer):

• The application form can be downloaded from the Pension Fund website or obtained from its territorial office.
• An insured person can contact the Pension Fund in the way that is most convenient for him: in person or through a representative directly to the territorial department of the Pension Fund or a multifunctional center (MFC), via the Internet on the government services portal, or through partner organizations.
• At the same time, you can notify the non-state pension fund from which you plan to withdraw and transfer pension savings about the termination of the contract.

Other required documents

In addition to the statement of his intention to transfer to the Pension Fund of the Russian Federation, the insured person will need to submit additional documents: a passport and a certificate of compulsory pension insurance (SNILS).

Before the end of the maximum period for submitting documents - until December 31 of the year preceding the one in which the transition should take place, a citizen can change his decision regarding the selected insurer, or investment portfolio, or management company and submit a new appeal or notification of replacement . The information that is received last and will be accepted by the Pension Fund for consideration.

After receiving the documents, the pension authority must review them before March 1 of the year in which the transfer to the Pension Fund is expected, and make a decision on whether to approve the application or refuse:

• If the request is satisfied, the Pension Fund within the same period makes the necessary changes to the unified register of insured persons and, by March 31, notifies the insured person and the non-state pension fund from which the funds are transferred about its decision.
• If the decision is negative, the Pension Fund also notifies the insured person, but no changes are made to the register, and the agreement with the NPF continues to be valid.

How often can you change NPF?

The legislator provides the right for future pensioners to switch from one NPF to another. There are only 2 ways:

• Urgent, i.e. An application for transfer of funds can be submitted once every 5 years. Consequently, investment income is completely preserved;
• Early, i.e. the applicant has the opportunity to transfer to another NPF once a year. However, previously received investment income is not paid out. And therefore the volume of savings does not increase, and in some situations it may even decrease.

In this regard, the benefits of maintaining savings in one NPF for a period of at least 5 years become obvious. Then the pension capital will become more and more.

Note! Don't go overboard with the number of statements:

• if, within the period specified by law, several applications for the transfer of funds to the Pension Fund of the Russian Federation are submitted, then the decision will be made on the most recent one;
• If several applications are submitted on the same day, the Pension Fund of the Russian Federation will refuse to satisfy all of them.

Obligation of NPFs to transfer savings back to the Pension Fund

After the Pension Fund of the Russian Federation, as a result of satisfying the request of the insured person, makes a positive decision on the transfer of savings from the NPF to the Pension Fund and changes are made to the unified register of insured persons, the agreement with the Non-State Pension Fund terminates:

• At the same time, the NPF, on the basis of a notification received from the Pension Fund of the Russian Federation, must transfer the pension savings of the insured citizen to the state pension fund. Funds must be transferred from the NPF to the Pension Fund no later than March 31 of the year following the year in which the application for transfer was submitted.
• The Pension Fund, in turn, must transfer the savings received from the NPF to the Management Company within the month following the month in which they were received by it.

In accordance with Federal Law N 75-FZ, any non-state pension fund is obliged to transfer the pension savings of the insured person back to the Pension Fund if other cases arise:

• revocation of the NPF’s license to conduct financial transactions with pension savings;
• the death of a person who sent maternity capital funds or part thereof to a non-state pension fund for the formation of a funded pension;
• on the basis of a notification from the Pension Fund of the Russian Federation in the event of the insured person’s refusal to send funds (part of the funds) of maternity capital to the formation of savings;
• termination of the contract on compulsory pension insurance as a result of judicial recognition of its invalidity;
• declaring the fund bankrupt by the arbitration court with the opening of bankruptcy proceedings.

When terminating a contract with an insured person, the NPF must send him a notification about this, as well as issue an extract from his individual personal account, from which funds will be transferred to the Pension Fund. The Pension Fund, in turn, must also notify the citizen about the receipt of savings funds from the NPF to his personal account.

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What should I include on the form?

It must indicate:

1. Passport details.
2. Solution.
3. Data of the new organization.
4. The amount of savings.

The transfer of money is carried out 3 months from the date of application and submission of the application. To notify the fund, you can personally contact the branch, send a letter to the address or through your personal account on the website. If an institution refuses to transfer money to another organization, the court may impose a fine in the amount of 300 - 500 thousand rubles.

Comments (27)

Showing 27 of 27

• Galina 03/15/2017 at 10:14
  I wrote to the pension fund an application to transfer my funded pension from the Non-State Pension Fund to it. Will my accumulated funds be lost, and how will I know about the results?

  answer

  Lyudmila 03/15/2017 at 12:10

  Your application to the Pension Fund about your intention to transfer your pension savings from a non-state pension fund to it must be considered by the pension authority before March 1 of the year in which the transfer is expected. This is provided that the Pension Fund of the Russian Federation received the application on time, it contains reliable information and does not contain errors.

  The Pension Fund notifies the insured person and the NPF of the decision made. The maximum deadline for this is March 31 of the year following the year in which:

  • An appeal has been submitted (in case of early transfer);

  Five years expire from the year in which the transfer application was submitted (for a normal transfer).

If for some reason the notification has not reached you, you can contact the territorial branch of the pension fund for a copy of this document.

If the decision is positively made, the non-state fund, on the basis of a notification received from the Pension Fund, is obliged to transfer your accumulated funds back to the Pension Fund no later than March 31 of the year following the one in which the transfer was announced (in case of early withdrawal) or the year in which the application was submitted 5 years have passed.

The Pension Fund of the Russian Federation must also inform the citizen about the fact of receipt of pension savings funds to the individual account of the insured person within a month from the date of their receipt.

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Reasons for refusal

Why might there be a refusal? The reasons for this are as follows:

1. Incorrectly written application.
2. Violation of deadlines.
3. Incorrect application procedure.
4. Difficulties in identifying the applicant.

With the termination of the contract, the client has his own losses, for example:

1. Retention of profit for an incomplete reporting period.
2. Tax 13% is withheld. If the money is sent to another NPF, there will be no collection.
3. Translation costs.

To avoid losses, you need to contact the NPF in advance with a request for transfer rules, and then submit an application. It also usually states how often the NPF can be changed. If the insured person is dismissed, the OPS agreement must be terminated to move to another institution. In this case, everything is paid by the company employee.

If work is terminated due to liquidation of the company or for other reasons, the employer must pay all costs himself. The ideal period is the end of the year to save interest.

General issues

At the legislative level in 2014, it was decided that it was necessary to “slow down” the formation of funded pension payments through insurance contributions. This means that any contributions are transferred only to the insurance pension account. That is, we can conclude that only the possibility of making additional voluntary contributions remains.

It's worth noting that previously people who were born in 1967 or later were given a choice of savings. People born in 1966 and earlier were not given such a right to choose. But since 2014, they have been granted this right by amendments to the legislation.

The algorithm by which a funded pension is formed has some differences from insurance of pension payments:

• for example, there are no pension points in a funded pension;
• The funded pension is not indexed, but you will still receive guarantees from the state if the NPF’s license is canceled or losses occur. A person who has insurance retains the amount of premiums that have been paid, but then investment income is not taken into account.

If a force majeure situation occurs, for example, the death of the insured person, all accumulated funds will be inherited and paid to relatives. When drawing up a contract or writing an application, a citizen also indicates a person who can receive payment in the event of an unforeseen situation.

Transfer from NPF to Pension Fund

Advantages and disadvantages of non-state pension funds

Transferring to another fund has its pros and cons. The positive points include:

1. High stakes.
2. Independent formation of a pension.
3. Protection from pension reforms related to the conditions for receiving a pension, reduction of payments.
4. The work of organizations is carried out in accordance with the law.
5. Tax benefits are provided.
6. All information about the work is available on the website.
7. Low risk of fraud.
8. Inheritance of part of the pension.
9. If the NPF does not provide a profit for 1 reporting period, then it compensates for the losses of the insured person thanks to its reserves.
10. The fund invests money in reliable sources, the list of which is fixed by law.

The disadvantages include:

1. Lack of clear indicators for increasing pensions - the NPF rate is not fixed in the contract, since it changes every year.
2. Low percentage of profitability.
3. Invested funds cannot be withdrawn until retirement.
4. The country's currency is used.
5. The client cannot influence investment operations carried out within the NPF.
6. Tax is deducted from the earned investment.
7. Long term.
8. Fundraising for asset management.

Thus, the right to choose an organization is assigned to each person. In the absence of any changes, you can freely move from one institution to another.