How to calculate 5 percent of the funded part of a pension

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• What is a funded pension?
• How is retirement calculated? Calculation formula
• Calculation of immediate pension payment
• Calculation of lump sum payment

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In accordance with the compulsory pension insurance system (MPI), employers transfer contributions to each employee's personal account registered with the Pension Fund, starting in 2002 . After the pension reform, some citizens were allowed to choose between forming only an insurance pension or simultaneously with it and a funded pension.

Thus, the main source of the formation of a funded pension is contributions to compulsory pension insurance in the amount of 6% of the citizen’s payroll.

In addition, it can be formed on a voluntary basis as a result of:

• participation in the state pension co-financing program;
• payment of additional contributions;
• crediting the entire amount of maternity capital or part thereof.

Depending on the type of funds received, pension savings can be calculated and paid in various ways : in the form of a lifetime, fixed-term or lump sum payment. There are online calculators that can approximately predict the amount of a future funded pension.

It should be taken into account that the moratorium on the formation of NP has currently been extended, and the amounts of insurance contributions for compulsory pension insurance are used entirely to finance the insurance pension.

Funded pension - what is it?

The pension reform implemented by the state allowed Russian citizens to personally manage the funded part of their pension. The insurance part of the pension is calculated according to new rules that provide for the use of pension points. According to the new rules, the funded part acquired the status of an independent pension.

Cumulative pension (CP) is a monthly payment of funds accounted for in a special part of a citizen’s personal account in the Pension Fund, which is established upon reaching retirement age.

It can develop in the following individuals:

• Women and men born in 1957-1966 and 1953-1966, respectively, for whom employers made contributions to it from 2002 to 2004.
• For workers born in 1967 and younger, since insurance premiums were transferred for them to finance the funded part.
• For persons who took part in the State Co-financing of Pensions Program.
• For citizens who have allocated maternity capital funds to funded pensions.

In order for this type of pension provision to be formed, it was necessary to make a choice in favor of it by the end of 2020 by writing a corresponding application to the Pension Fund. Citizens for whom compulsory social security contributions were accrued for the first time since January 1, 2014, can also form savings during the first 5 years of work.

Design features and innovations in 2020

As it was, a funded pension in 2020 can be created by persons born no earlier than 1967. For other citizens, this will be possible if they become participants in state projects. co-financing. They will need to annually deposit an amount from 2,000 to 12,000 rubles into their personal pension account. These funds will be doubled using budget resources. The rate of 22%, paid by the employer, can be divided: 16% for distribution to the Pension Fund for the insurance part and 6% for distribution at the individual discretion (insurance, savings share).

The savings part is formed in a personalized manner and this is its main advantage over the insurance part. Funds are assigned to a specific person and are given the opportunity to invest them profitably. As a result, savings accumulate and are used to supplement the basic pension payments. Under the solidarity system, today's pensioners are provided with payments that are not related to future pension accruals of a particular payer.

The current legislative norms define the procedures for obtaining the funded component. The first step is to find out where the deductions are accumulated. Information will be provided by territorial multifunctional centers (MFCs), PF branches, or can be found on the government services website. Documents required:

• confirming insurance experience;
• passport;
• statement;
• SNILS;
• application for the insurance part of the pension (with simultaneous registration of both parts).

Within ten days, having accepted the documents for consideration, the Pension Fund makes a decision. If approved, both parts are paid simultaneously, but in 2020 the formation of the funded part of the pension remains limited. By Presidential Decision No. 413-FZ of December 20, 2017, the moratorium was extended until 2020. The amendments were adopted by the State Duma and approved by the Federation Council. The document enters into force on January 1, 2018.

How is the funded part of a pension calculated?

Cumulative pension provision is formed mainly from employer insurance contributions in the amount of 6% (their total contributions are 22%) of the payroll. Therefore, for persons who receive a salary “in an envelope”, the NP will not be available. It may also include:

• Voluntary contributions that can be transferred to a non-state pension fund (NPF), a state or commercial management company (MC). The choice remains with the citizen.
• Money provided by the state under the co-financing program . This concept appeared in 2008, when the state decided to increase voluntary contributions from citizens. As of today, this program has been discontinued.
• Maternity capital funds .

Formula for calculating funded pension

After the 2020 reform, citizens received the right to choose whether to form a funded pension or not. If a citizen has chosen the first option, then his insurance premiums are divided: 6% of them go to the NP, and 10% to the insurance.

It is worth noting that accumulated funds are not indexed and are not protected from inflation, therefore the choice of an organization that will manage savings must be carefully considered.

According to Article 7 of the Federal Law “On Funded Pension”, it is calculated using a formula that looks like this:

NP = PN / T,

Where:

• NP - funded pension;
• PN - pension savings accounted for in a special part of the personal account of the insured citizen;
• T is the expected payment period during which the citizen will receive a pension payment (in 2020 it was equal to 240 months). In 2020, the expected period has been increased to 258 months .

Calculation of urgent pension payment of pension savings funds

Urgent pension payments are made to insured citizens who have formed pension savings only through :

• contributions to co-finance pensions;
• additional insurance premiums paid by the employer or self-insured person;
• family capital funds, income from their investment, if the right to establish an old-age insurance pension has become available (including ahead of schedule).

The amount of immediate pension payment is calculated using the formula :

SP = PN / T,

Where:

• SP - urgent pension payment;
• PN - amount of pension savings;
• T - the period for payment of urgent benefits specified in the application of the insured citizen, which cannot be less than 10 years .

The amount of the urgent pension payment every year from August 1 is adjusted based on the amount of funds from additional insurance contributions to the pension fund, co-financing contributions, employer contributions, maternity capital funds, income from their investment, which were not taken into account when determining the amount of pension savings when establishing or previous adjustment of the urgent pension payment. pension payment.

Calculation of lump sum payment

With this payment, the citizen receives all pension savings at once in one payment. Only certain categories of citizens are entitled to receive it:

• persons whose funded payment is 5% or less in relation to the amount of the old-age insurance pension;
• citizens who have a disability , a survivor's pension , or a state pension , but they do not have the right to an old-age pension due to insufficient work experience or the amount of pension points;
• heirs of the citizen whose pension savings were formed after his death.

A one-time payment cannot be established for citizens who have already received it before. The pensioner has the right to apply again for her appointment only after 5 years.

Rules for calculating savings

It is allowed to receive all the funds at once only on the condition that the funded part is no more than 5% of the total pension provision of a particular citizen. If the amount is greater, then the payment will be either urgent or indefinite. For fixed-term loans there is a time limit; they cannot be paid for less than 10 years.

To calculate the amount of payments that will be transferred to a citizen every month, you will need to divide the entire amount of accumulated funds by the number of months during which payments are planned to be made. As of 2020, this figure is 246 months .

Formula for calculating savings

Urgent pension payments are received only by those persons who have accumulated savings using their own funds.

This is stated in Federal Law No. 424 of 2013 “On funded pensions”.

These include:

• additional contributions made by the employee or the management of the organization where he works;
• funds from the co-financing program;
• maternity capital or investment income.

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When talking about how to calculate the funded part of a pension, such indicators as the total amount of savings and the period during which the funds are paid are taken into account. It cannot be less than 120 months .

The formula for calculating the funded part of a pension looks like this:

• N – the amount of payments due to a citizen every year;
• P – accumulated funds in the account;
• T – time during which payments will continue (indicated in months).

At the beginning of August each year, the amount of the emergency benefit changes depending on how many contributions the person has made. Investment income also influences savings. Those amounts are taken into account that were not previously taken into account when determining the total amount of accumulated funds or establishing or changing urgent payments.

Calculation example

To understand the provisions reflected above, you need to give an example. When citizen Ivanov retired, he was given a monthly payment of 7,900 rubles. At the same time, during his working career, Ivanov accumulated 280,000 rubles in his account.

If Ivanov chooses to establish perpetual benefits, then the formula reflected above will need to be applied. It turns out: 280000/246 = 1138.21 rubles. The specified amount must be added to the monthly benefit: 7900 + 1138.21 = 9038.21 rubles. This is how much Ivanov will receive every month.

Speaking about the lump sum payment, you will need to calculate whether 1138.21 is less than 5% or not. For this, 1138.21/9038.21 = 12%. Due to the fact that 12 is more than 5, Ivanov will not be able to receive a one-time benefit.

If Ivanov wishes, the payment period can be reduced to 10 years. Then the monthly premium will be 28,000/120 = 28,000 rubles. The total pension in this case is equal to 28000+7900=35900 rubles. This amount will be paid to the citizen for 10 years. At the end of this period, the amount will be reduced to 7,900 rubles (may be higher, depending on indexation).

Pension savings calculator

It is not entirely possible to accurately calculate the amount of the established funded pension due to the impossibility of determining the results of investing funds of a non-state pension fund or a management company. However, many websites of non-state pension funds (for example, NPF Sberbank, VTB) offer an approximate calculation of a funded pension, taking into account approximate income from investment using online calculators.

Having opened the selected calculator, you should enter the following data:

• age and gender of the citizen;
• the amount of savings in a pension account, which can be taken from a letter from the pension fund;
• average salary;
• work experience.

The average return of the fund in which the funded part of the citizen’s pension is located is also indicated Having specified all the necessary data, click on the “Calculate”

. The calculator will show information about how much money will accumulate over the entire period of time before retirement, and what the monthly payment of savings will be.

Ways to receive pension savings

If there are pension savings, a citizen, upon reaching retirement age, can either receive pension savings in whole or in part, or register for their receipt within a certain time.

According to the Federal Law “On the procedure for financing payments from pension savings” dated November 30, 2011 No. 360-FZ, pension savings can be issued in the form of:

1. lump sum payment,
2. immediate pension payment,
3. funded pension.

How to find out the amount of pension savings online

The most convenient and fastest option to obtain the information you are interested in is the Internet . It is enough to turn on the computer and go online to the website of the NPF with which the citizen entered into an agreement. This can also be done through the website gosuslugi.ru by following a few simple steps:

1. If a citizen is not registered on the site, then he needs to do so.
2. Create a personal account.
3. Fill out the form on the portal.
4. In your personal account, click on “electronic services”. On the next page, go to “Informing insured persons about the status of their individual personal accounts,” then click on the “receive service” button. Information about the current savings of the insured person will appear on the screen.

Also, if you have registered for government services, information can also be obtained through your personal account on the Pension Fund website.

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New formula for calculating pensions in 2020

To correctly find the old-age insurance pension in 2019, it is worth taking the following formula as a basis:

SP = IPC*SIPC*K + FV*K, where:

• IPC – the sum of collected points;
• SIPC – price of IPK;
• FV – fixed payment;
• K – bonus coefficients (different indicators for PV and IPC).

It is worth finding the correct value, taking into account state regulations:

• insurance period limit – 9 years;
• coefficient value – 13.8;
• pension points (in 2020) – 81.49 rubles. for 1;
• the amount of additional payment for age is 4.9 thousand rubles.

For Russians, the algorithm will directly depend on the parameters mentioned above. In the case of individual entrepreneurs, who are also tax residents of the country, they will be able to calculate their benefits or old-age pension according to a similar scheme.

The cost of a pension point in rubles in 2020 for calculating a pension

A pension point is a parameter through which the insured person’s right to a pension, expressed in relative units, is reflected. They must be formed taking into account the accrued and paid contributions to the Pension Fund, which are intended for financing, also taking into account the length of service and the period of refusal to receive.

The value of the found pension point in rubles in 2020 reflects the ratio of money allocated for financial support, budget transfers and the total amount of IPC of people who will receive insurance pensions. According to the legislation of the Russian Federation, the size of the coefficient is indexed every year in February according to the inflation level of early years and repeated on April 1.

But now the standard indexing procedure has been adjusted. Government representatives decided to check the insurance pension earlier than the usual date - January 1. In fact, the calculated inflation rate increased to 7.05. If we analyze the minimum requirements (16.2 points), it turns out that this cost is considered low. The number of points is interconnected with the amount of contributions that the employer or individual entrepreneur paid to the fund for each employee during the period of employment.

How to find out the number of accumulated points

Until 2013, information about pension rights was sent in the form of letters from the Pension Fund, but now citizens must make requests on their own. There are several methods to obtain almost any information about pension calculations. Many of them are connected to the Internet:

1. Portal “Government Services”. To do this, you need to go to the website, register under your full name and indicate your phone number. Confirm the creation of your account using the code sent and log in to the portal. In order to have access to all functions of the resource, it is recommended to confirm your identity (with scans of documents). Then you should go to the “Pension, benefits and benefits” section and send a request for an extended statement “State of personal account in the Pension Fund of the Russian Federation”. A notification is automatically sent to the user's personal account.
2. Official website of the Pension Fund. To access the required information, you also need to create a personal profile on “State Services”. Next you need to go to your personal account and confirm your account. It’s worth going to the “Pensions” section and selecting “Get pension information” from the list. After processing the request, you will receive a report that you can print.
3. Pension calculator. Designed to explain the algorithm for generating rights and calculating the amount of the insurance pension. To use it, information is required such as the applicant’s gender, date of birth, period of service (conscription), number of children, duration of maternity leave, category of work, length of service and level of officially issued earnings before withholding personal income tax. The calculation result is displayed almost instantly online.

You can also personally visit the Pension Fund office located at your place of registration. It is worth checking the appointment schedule in advance and arriving at the appointed time. You need to take your passport and SNILS with you in order to receive full information about the collected pension points in the statement. You can also obtain data through a bank, but only if you have the appropriate agreements in place.

Calculation of individual coefficient

To understand how to calculate a pension in 2020, it is important to understand that the fixed payment is presented in the form of an exact amount that is added by the state to the insurance pension. According to Part 8 of Art. 10 of Law No. 350, its amount is 5,334 rubles, but under other circumstances and conditions the amount can be further increased if:

• there are disabled dependents in the family;
• have at least 15 years of experience in the Far North or equivalent areas;
• assigned disability group I;
• reached the age of 80 years;
• late retirement was made (due to bonus coefficients).

The size of the IPC in 2020 for an approved payment depends on the period for which the citizen specifically delays by refusing or slows down the receipt of pension payments:

If you do not apply for a pension for about a decade after receiving your license and continue to work, then in addition to additional insurance coverage (and points), the citizen is entitled to an increase in the PV of more than 2 times.

But given the average life expectancy of people in the country, you will have to wait up to 75 years, and this is not always cost-effective.

It is also worth understanding how the number of pension points is calculated:

IPC value = SV/SVmax*10, where:

• SV - insurance premiums paid by the employer at a rate of 22% of gross salary (before deduction of income tax - 16% or 10%);
• СВmax – the maximum amount of contributions from the taxable base according to the 16% tariff.

It is clear from the formula that the IPC is considered a key value for a pension: the better a citizen’s wages, the more points on his personal account. Therefore, you can accumulate the maximum amount only through profitable work.

Comments (8)

Showing 8 of 8

• Kulikova Larisa Viktorovna 11/23/2016 at 10:12
  Good afternoon I receive a pension for a disabled child. Can I be paid the funded part of my pension?

  answer

  Yulia 11/24/2016 at 11:32

  Hello! If you were born in 1957 or later, officially worked in the civilian sector from 2002 to 2004, opted for a funded pension until 2020, and retired upon reaching the established age, then you have the full right to receive the funded portion. According to Law No. 360-FZ, no other options are provided.

  answer

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Who is entitled to a lump sum payment?

Officials have foreseen that in some cases residents will want to use the deferred funds at a time.

The procedure allows you to transfer the entire amount accumulated in the account at the time of application. However, not all residents are eligible to use this service. It is provided for the following persons:

1. A one-time payment is due when the accumulative part does not exceed 5% in relation to the amount of the insurance part. The interest is calculated on the date of assignment of the savings contribution.
2. A one-time payment is provided for citizens who have received a disability or survivor pension. Their insurance period may be less than required (they have not reached retirement age).

The amount of the due payment is calculated depending on the funds accumulated in the account. The application for approval/refusal is analyzed within 30 days. If the decision is positive, the money will be transferred within a couple of months.