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The legislation of the Russian Federation establishes special benefits for citizens who lived and worked in the Far North for a certain period. The advantages of such length of service include early retirement and 30-50% premiums to insurance benefits compared to other citizens of the country.
The calculation of long-service insurance benefits is carried out depending on the region where the employee was employed. This article describes in detail what northern experience is, what it includes, who can count on benefits, as well as the specifics of registering pension payments.
“Northern” pensions: regulatory regulation
Now in the Russian Federation there are 3 main laws in accordance with which pensions are calculated:
- Law “On Insurance Pensions” dated December 28, 2013 No. 400-FZ (its provisions apply to citizens retiring after January 1, 2015);
- Law “On Labor Pensions” dated December 17, 2001 No. 173-FZ (from January 1, 2015 is valid only in terms of the provisions governing the calculation and payment of pensions that were assigned before January 1, 2015, provided that the relevant norms do not contradict the Federal Law “On Insurance Pensions” ");
- Law “On State Pension Security” dated December 15, 2001 No. 166-FZ (regulates the calculation of pensions for civil servants and other categories of citizens of the Russian Federation who are on state support).
It can be noted that in accordance with the provisions of Law No. 173-FZ, Russian pensions were calculated until 01/01/2015. Now pensioners of the Russian Federation, including residents of the North, receive a pension calculated primarily in the manner approved by the new regulatory act - Law No. 400-FZ.
The provisions of Law No. 173-FZ apply only if this is required for the purpose of calculating pensions under the new law. But when calculating specifically northern pensions, they are practically not taken into account.
Let's study the features of calculating northern pensions, taking into account the provisions of these regulations - the current law No. 400-FZ, as well as law No. 166-FZ.
Early retirement in the North
First of all, it makes sense to note that citizens who worked in the North have the opportunity to retire much earlier than Russians working in more southern regions.
Thus, men who have a total length of service of 25 years and have worked in the Far North for 15 years or in regions equivalent to it for 20 years can retire at 55 years of age. Women have the right to retire at age 50, provided they have a total work experience of 20 years and the same length of work in the North as men. In turn, men who worked in more southern regions retire at 60, and women at 55.
If a man or woman has worked in the Far North as a reindeer herder, fisherman or hunter, amounting to 25 and 20 years, respectively, for each gender, they have the right to retire another 5 years earlier than the ages indicated above.
Raising the retirement age will also affect workers in the Far North. The transition period to raise the retirement age will last the same as for all residents of the Russian Federation from 2020 to 2028. Below is a table of retirement in connection with innovations:
Read more about raising the retirement age here.
Find out about the nuances of assigning pensions to northerners in ConsultantPlus. If you do not have access to the K+ system, get a trial online access for free.
What will not be included in the northern pension experience?
Pension Fund employees will completely exclude the following periods from their northern work experience:
- Staying on leave without pay. A necessary condition is that the leave without pay is documented, and the employer did not transfer insurance contributions for this period.
- Being in unemployed status is independent of whether it is confirmed by the employment center or not.
- Period of part-time work. Exception: a citizen worked in several institutions on a part-time basis, then the length of service will be counted. In this case, the employee should pay special attention to making entries in the work book and save part-time employment contracts.
- Additional days off to care for a disabled child (Article 262 of the Tax Code of the Russian Federation).
- “Donor” days are the time to donate blood.
- Period for dismissal due to staff reduction.
For women, maternity leave for up to one and a half or three years will be additionally excluded. And maternity leave will count towards your length of service.
Northern experience as a preference when assigning a pension
A person’s work experience in the North may give him the right to retire earlier even if the specified indicators of length of service are not achieved, but are commensurate with them.
If a citizen has worked at the CS for at least 7 years and 6 months, then he has the right to retire earlier, based on the fact that his retirement age decreases by 4 months for each year worked in the Far North. Moreover, each year of work in areas equated to the KS corresponds to 9 months of labor activity in the Far North.
In general, the length of service, which is 15 years when working at a compressor station or 20 years in areas that are equivalent to it, reduces a person’s retirement age by 5 years for most categories of workers who have grounds for retirement. For example, those categories that are specified in paragraphs. 1–10, 16–18 art. 30 of Law No. 400-FZ.
Let us now consider the basic principles of calculating northern pensions.
The procedure for confirming northern experience
Registration of pension payments for such persons occurs according to general rules. The Pension Fund of the Russian Federation sets the amount of insurance payments for citizens, which can be increased taking into account the regional coefficient. This benefit is valid as long as the pensioner lives in the area for which the coefficient applies.
Men and women with years of service in the North are entitled to retire earlier than other citizens: from 60 and 55 years, respectively. The package of certificates is submitted several months before retirement.
This time reserve makes it possible to collect the missing papers in case of submitting an incomplete package of documents for the first time. Typically, the application is processed within two weeks. If the application is submitted late, months without insurance payments will not be reimbursed.
The package of papers for the Pension Fund of the Russian Federation must contain:
- completed application form;
- photocopy of passport;
- employment history;
- employment contracts confirming employment;
- documents, certificates and acts that confirm employment and/or residence in the Far North or in areas with equal climatic conditions.
When moving to another region of the country with more favorable weather conditions, pensioners are denied a “northern” pension, since the regional coefficient ceases to apply to them.
Life in the Far North and nearby territories is characterized by difficult working conditions. Such citizens are under the social protection of the state, which guarantees benefits upon retirement subject to the established period of work experience. When calculating the pension supplement, which for Russian citizens ranges from 30 to 50%, regional coefficients are taken into account.
Reference! An increased fixed payment is provided for persons who have permanent and temporary registration in the Northern regions, as well as for citizens actually residing in this area at the time of receiving benefits.
Law No. 400-FZ (“On Insurance Pensions”): northern supplement to a fixed payment
The pension according to Law No. 400-FZ consists of the following main components:
- insurance pension (calculated using a complex formula using individual pension coefficients and indicators of their value);
- fixed payment (which is established in accordance with paragraph 1 of Article 16 of Law No. 400-FZ).
The size of the insurance pension does not directly depend on whether a person worked in the North or not.
In turn, in accordance with paragraph 4 of Art. 17 of the Law “On Insurance Pensions” dated December 28, 2013 No. 400-FZ, the following persons have the right to receive a fixed payment increased by 50%:
- men who have 25 years of experience or more and have worked for 15 years or more in the Far North;
- women with 20 years of experience or more and who have worked for 15 years or more in the CS.
The current fixed payment amount is RUB 4,982. 90 kopecks per month (Clause 1, Article 16 of Law No. 400-FZ).
It turns out that the fixed pension payment to citizens who worked in the Far North and have the above-mentioned length of service becomes equal to 7,474 rubles. 35 kopecks (RUB 4,982.90 + 50%). Thus, the pension of a citizen who worked at the CS is, in general, greater than the pension of a citizen who worked further south, by 2,491 rubles. 45 kopecks
If pension recipients who worked in the Far North have disabled dependent family members, or if recipients of the corresponding pension are over 80 years old or if they have a 1st group disability, an increase in the fixed payment on the grounds specified in paragraphs. 1–3 tbsp. 17 of Law No. 385-FZ, is supplemented by additional payments in the amount of 50% of the corresponding increase.
So, if a person who worked at a compressor station is 80 years old, then he:
- firstly, he receives a fixed payment increased by 2,491 rubles. 45 kopecks regarding the southern pension;
- secondly, he receives a 100% additional payment to the fixed payment - in the amount of 4,982 rubles. 90 kopecks (Clause 1, Article 17 of Law No. 385-FZ);
- thirdly, he receives an additional payment to the specified 100% increase in the fixed payment in the amount of 50%, that is, 2,491 rubles. 45 kopecks
In accordance with paragraph 5 of Art. 17 of Law No. 400-FZ, a fixed payment as an independent element of a pension (that is, an indicator enshrined in Law No. 385-FZ), as well as an element of calculating the northern pension, taking into account the provisions of paragraphs. 1–3 tbsp. 17 of Law No. 385-FZ increases in similar cases by 30% when calculating pensions for citizens of the same age and gender as indicated above, as well as those with similar length of service - if they worked in regions that are equivalent to the KS for 20 years and more.
Conditions of appointment
The Northern Pension for women and men is awarded if citizens meet certain legal requirements. To accrue the maximum benefit earlier than the established deadlines, the following conditions will need to be met:
- reaching the age specified by regulations (the indicator depends on the length of labor service at the CS, the gender of the northerner);
- the established length of labor activity in the areas of the CS and in territories with a climate of similar harmfulness;
- compliance with the requirements for minimum total production years;
- the presence of a set number of pension points (by 2020 this figure is 13.8).
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Increased pension for residents of the North using a coefficient
In accordance with paragraph 9 of Art. 17 of Law No. 400-FZ to receive an increased fixed payment under clause 1 of Art. 16 of Law No. 400-FZ is entitled to receive citizens living in the KS, who have the right to a pension, but who do not have experience working in the Far North and in areas that are equivalent to it. But in this case, instead of premiums, the regional coefficient established by law is applied.
Similarly, if a resident of the North is 80 years old or if he has a disability of the 1st group or if he has dependent persons who are unable to work, he receives additional payments guaranteed by paragraphs. 1–3 tbsp. 17 of Law No. 400-FZ, which are also increased by the regional coefficient.
When a person moves to another region of the Constitutional Court or a territory equivalent to it, other coefficients may be applied - those determined for the relevant area (clause 10 of Article 17 of Law No. 400-FZ). Now the coefficients in question are those given in the information letter of the Department for Pensions of the Ministry of Labor of the Russian Federation dated 06/09/2003 No. 1199-16.
So, for example, in Chukotka the corresponding coefficient is 2. Accordingly, the fixed payment to his pension will generally be 9,965 rubles. 80 kop. (4,982.90 × 2).
The procedure by which “northern” additional payments to fixed payments are calculated and paid, established by paragraphs. 9, 10 tbsp. 17 of Law No. 400-FZ, is regulated in more detail by Decree of the Government of the Russian Federation dated March 18, 2015 No. 249.
Registration procedure
The northern pension is accrued from the moment the application is submitted, but not earlier than the period when the right to receive security arose. The registration process is subject to general rules. To do this, you need to collect the necessary package of documents and contact:
- in person or through a legal representative (if the latter has a power of attorney) to the territorial branch of the Pension Fund or the Multifunctional Center;
- directly to the employer;
- through your personal account on the fund’s website;
- send documents by registered mail.
Pension benefits for northerners are assigned upon presentation of:
- identification document;
- papers that can be used to confirm the presence and duration of northern or general experience;
- salary certificates for 60 consecutive months for any period before January 1, 2002 (if necessary);
- other documents that the Pension Fund may require to clarify additional circumstances.
Calculation of the northern pension by choice: coefficient or bonus?
If a person can receive additional payments to fixed payments to an insurance pension on 2 grounds (that is, firstly, he has “northern” experience, and secondly, he lives in the North), then he must independently choose one of them (clause 13, Article 17 of Law No. 400-FZ). That is, decide whether he will receive a pension taking into account the premiums established by Law No. 400-FZ, or using regional coefficients.
The main criterion that in this case makes sense to focus on is the value of the regional coefficient actually established in its region. If it is greater than the applicable increase in the fixed payment fixed in the provisions of Art. 17 of Law No. 400-FZ, it makes sense to choose a scheme according to which the pension is calculated taking into account the corresponding coefficient.
Northern pension: nuances of calculation
So, the northern pension is a pension that can be increased relative to the standard one on one of 2 grounds (at the citizen’s choice):
- application of bonuses to the fixed payment (with sufficient work experience in the North);
- multiplying the fixed payment by the regional coefficient (if the person lives in the North).
It can be noted that during the period of Law No. 173-FZ, the northern pension was calculated according to similar principles: bonuses and coefficients were calculated on the fixed amount of the insurance part of the labor pension (some kind of analogue of the fixed payment under Law No. 400-FZ).
Thus, the higher the fixed benefit, the higher the northern pension. Other components of the pension formula - be it the individual coefficient or indicators of its value - do not change, based on the fact that the person has work experience in the North.
The fixed payment, the main indicator for calculating the northern pension, should generally be indexed in relation to inflation.
How is it calculated
The Pension Fund of the Russian Federation provides a unified algorithm for calculating insurance pension state subsidies for all Russians. Payments to northerners are determined by the following formula:
VSP = CPB x CB + FV, where:
- VSP – the amount of the insurance pension;
- PBC – the number of pension points (or individual pension coefficient (IPC)) accumulated on a citizen’s personal account;
- Central Bank – the price of one point, which by 2020 is 81.49 rubles;
- FV is a fixed payment, the size of which increases taking into account inflation, and by 2020 it is 4983 rubles.
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For northerners, the fixed compensation payment has been increased. It can vary between 7474.35-19433.4 rubles and depends on the following factors:
- the presence of dependents cared for by the pensioner;
- disability group of the benefit recipient;
- the age of the northerner (for citizens who have reached 80 years of age, the Pension Fund of the Russian Federation automatically recalculates the pension upward);
- duration of total experience;
- the length of mining in the CS regions.
Regional coefficient
The basic insurance pension coverage of northerners is increased by the regional coefficient. It applies to a fixed allowance and varies between 2-1.15, depending on the region of permanent residence of the pensioner. Legislative regulations establish the application of an increasing regional coefficient to both insurance and social pensions.
To receive an increased benefit, a northerner must annually provide the local branch of the Pension Fund with information confirming the fact of residence and registration in the territory belonging to regions with a harmful climate. If a citizen does not provide the required data, then the pension is reduced by reducing the fixed payment. If there is no branch of the Pension Fund of the Russian Federation in the area where the pensioner lives, then the information is provided to the local branch of the village administration.
Do I need to confirm my right to a northern pension?
If a citizen moves to the northern region, where a higher coefficient for the fixed pension payment has been established, then he will be able to obtain the right to the additional payment that arises only if he contacts the territorial division of the Pension Fund. The pension, taking into account the recalculation, will be accrued from the 1st day of the month following the date when the application to the Pension Fund was made (subclause 2, clause 1, article 23 of Law No. 400-FZ).
If a person moves to a region that does not belong to the territories of the Constitutional Court or areas that are equivalent to it, then his pension must be recalculated taking into account the fact that the legal grounds for applying the increasing coefficient disappear (clause 9 of Article 23 of Law No. 400-FZ) . The law establishes the following criteria for recognizing the relevant move as valid:
- registration of a citizen was carried out in a settlement outside the North (subparagraph “c” of paragraph 10 of article 23 of law No. 400-FZ);
- an application for the issuance of a pension file has been submitted to the representative office of the Pension Fund in the relevant locality;
- an application for relocation has been submitted to the Pension Fund office;
- The fund recorded non-compliance with the procedures for confirming registration in the North in the manner established by clause 19 of Art. 21 Law No. 400-FZ;
- The fund has recorded non-compliance with the procedures for confirming registration in the North in the manner established by clause 5 of the rules established by Resolution No. 249.
It may be noted that according to the provisions of Art. 23 of Law No. 400-FZ, a move can also be confirmed by the fact that a citizen has been deregistered in a northern settlement - due to the expiration of the registration period or at the request of the pension recipient himself (subparagraphs “a”, “b”, paragraph 10 of Article 23 of the law No. 400-FZ). However, the Supreme Court of the Russian Federation, by decision of October 7, 2015 No. AKPI 15-859, recognized the relevant subparagraphs of paragraph 10 of Art. 23, as well as the corresponding provisions of paragraph 11 of Art. 23 inactive.
Pension for northerners when moving
When a northerner is fired or changes his place of permanent residence to regions with a different climate, his pension insurance benefit is recalculated. A decrease or increase in pension depends on which region, region or republic the citizen moves to. The recalculation will affect only the fixed payment, the amount of which depends on the increasing northern coefficient. If a citizen moves to areas with a more comfortable climate, the size of the pension is reduced.
“Northern” supplements to state-supported pensions of citizens
A separate legal act regulates the calculation of pensions for civil servants, as well as other categories of citizens who are guaranteed state support - we are talking about the Law “On State Pension Security” dated December 15, 2001 No. 166-FZ. Let us consider how the provisions of this law determine the procedure for calculating “northern” pensions.
Law No. 166-FZ establishes separate rules for calculating pensions for the following categories of citizens:
- for state civil servants;
- for military personnel;
- for veterans of the Great Patriotic War, as well as residents of besieged Leningrad;
- for those affected by the consequences of radiation and man-made disasters, as well as members of their families;
- for astronauts and members of their families;
- for pilots and testers;
- for disabled citizens.
All types of special pensions established by the state for specified categories of citizens who live in the North (for example, these may be long-service pensions) are increased by regional coefficients - the same ones that are used when calculating a regular pension. As soon as a person leaves the territory of the North, the corresponding coefficients are not used when calculating the pension.
Results
Citizens who worked in the North and earned a pension there have the right to receive it in an increased amount. The appropriate bonus is determined by laws regulating the calculation and payment of pensions for various categories of the population.
You can familiarize yourself with other features of calculating pensions in the articles:
- “Is the pension subject to income tax (nuances)?”;
- “What is the pension supplement for 40 years of service?”
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