Welcome to website. In this article we will tell you how pensions for old age, disability and loss of a breadwinner are calculated. We will touch on all issues related to the calculation of pensions. A large number of amendments are often made to pension legislation, as a result, many citizens who are entitled to benefits do not know how pensions are calculated in Russia.
Benefits are calculated on an individual basis, and in order to know the accrual procedure, you need to navigate the pension documents, as well as understand what the insurance pension part is, and how the final amount is obtained when taking into account points and pension coefficients.
Previously, calculating pensions was easy and simple, and knowing the amount of length of service and average earnings was enough, a citizen could easily independently calculate the amount of his future pension. But the introduction of a new pension reform has created multi-level provision for citizens of various categories who are entitled to receive pension payments.
A pension is a monthly payment that a citizen of retirement age receives to maintain their standard of living.
As a rule, pensioners do not have additional sources of income, so they belong to an unprotected category of citizens. They are hit hard by the economic crisis, inflation, rising prices and other factors.
Pension payments are assigned to citizens of retirement age, as well as to those categories of citizens who continue to work. The age pension is calculated when a certain threshold is reached, for women 55 years old, for men 60 years old.
To calculate the pension payment, you need to have work experience; for women it is 20 years, and for men 25 years. Payment is made monthly by state social funds, and issues are regulated in accordance with laws.
Pension payments are divided into three main types - old-age pension, disability pension and survivor's pension. In addition, there are special coefficients that are calculated additionally.
What are the benefits?
After the creation of a system of insurance contributions, which are paid to the payroll for each employee, a complex system of pension payments began to be created, which not all pensioners know about. As a result, based on the new reform, the funded and insurance parts of the pension were divided into separate types of benefits.
To date, the following pension payments are paid:
- For mandatory insurance payments. The pension is divided into two main parts - the insurance part and the funded part, which is formed at the expense of the citizen himself. But in 2014, the funded part was frozen and all contributions made to the payroll are accrued only to the insurance part. The insurance part of the pension is paid upon reaching a certain age, upon receiving the status of a disabled person and upon the loss of a breadwinner.
- Government payments. Those categories of citizens who have the status required by law and do not fall under the terms of payment of the insurance portion are entitled to them. It is prescribed to citizens subject to the required conditions - these are pilots, military pensioners, cosmonauts, officials, participants in the Second World War, the blockade and defense of Moscow, and victims of the Chernobyl accident. But if a citizen cannot qualify for this type of payment, then he is assigned a social supplement upon reaching a certain age, upon the loss of a breadwinner or due to disability.
- Non-state subsidies. If the payer wishes, a fund is created that is not associated with the state, into which regular deductions of a certain percentage of earnings are made to companies. Who have licenses to provide such services. Such funds have different programs and rules for calculating pensions.
What payments make up the total pension amount?
To find out the procedure for calculating a pension, you need to know the types of payments that are included in it. When taking into account two main components - the insurance and savings part, the formation of the final amount depends on their size. The insurance part is basic, and its size depends entirely on the contributions that the employer makes to the pension fund, and they amount to 22% of the employee’s total earnings. For citizens born before 1967 and including this year, 16% is spent on insurance.
Those citizens who were born after 1967 can independently choose where the 16% data will go. That is, funds can be credited only to the insurance part, or divided between the insurance and savings parts, at a ratio of 10% to 6%.
But in 2014, contributions to the funded part were frozen and all 16% began to accrue only to the insurance part of the pension.
What does the old-age pension consist of and to whom is it awarded?
In order for an old-age pension to accrue, a person must reach a certain age. This type of pension consists of three main components - the basic, funded and insurance parts.
When a person reaches age 80 and has no dependents and is not disabled, the basis increases. The calculation of the pension amount begins to be divided over the rest of your life. In 2013, this figure stopped at 19 years.
The formation of pension rights occurs at the expense of individual pension coefficients, or in other words, pension points. All pension rights that were generated earlier were also converted into points without any loss and are taken into account when calculating the insurance pension.
The right to receive an old-age insurance pension begins when a number of mandatory conditions are met:
- Reaching retirement age, women are 55 years old, and men are 60 years old, some categories of citizens have the right to early retirement.
- Citizens who work in government positions have an increased retirement age, which will increase by 6 months every year and stop at 63 years for women and 65 years for men.
- Availability of insurance experience, it is 15 years.
- Availability of the required amount of pension points.
The number of these points depends entirely on the amount of insurance premiums that have been accrued and paid into the system, as well as on the length of work experience.
For each year that a person worked, provided that the employer made transfers to the pension fund, pension points and the right to receive an old-age insurance pension are formed.
How is the old-age insurance pension calculated in 2019?
The legislation stipulates how the old age pension is calculated. To do this, not only the age of the pensioner is taken into account, but also contributions to the pension fund, pension capital and many other important factors.
To calculate the insurance part, the length of service up to 2002, the average salary and a special coefficient are taken into account. It is calculated by dividing the average wage throughout the country for that period.
The calculation of the funded part is carried out in the same way as the insurance part, but the amount of the basic part is fixed, it is established at the legislative level. The base part is subject to annual indexation depending on past inflation.
To calculate the insurance part of the pension, a special formula is used:
Insurance pension = the sum of accumulated pension points * the cost of one pension point at the time of payment + fixed payment.
Or in another way: SP=IPK*SIPC+FV, where:
- SP is an insurance pension.
- The IPC is the number of all pension points that have been accumulated during work.
- SIPC is the cost of one pension point at the time the point is assigned; in 2019, one point costs 87.24 rubles.
- PV is a fixed payment, in 2019 it is 5334.19 rubles, this amount is subject to annual indexation.
As a result, the following formula is used to calculate the pension:
SP=IPK*87.24+5334.19
About the individual pension coefficient
The individual pension coefficient is the sum of points that were scored in one year of work. Many people believe that its calculation is a very complicated procedure. But in fact, it is very simple to calculate, since it directly depends on the monthly contributions made by the employer. That is, if the level of earnings from which 22% is deducted is not higher than the subsistence level in the region, then 1 point is accumulated in one year. If the salary is equal to two subsistence minimums, then 2 points are accumulated in one year.
For calculation use the following formula: IPC=SV/MS*10, where:
- SV is the amount of contributions that were made in one year.
- MS is the maximum amount of salary from which deductions are made.
- 10 is the maximum points you can earn.
The cost of a point is established at the legislative level, which is subject to annual indexation. The percentage increase in cost depends entirely on the level of consumer prices over the past year.
The cost of the IPC in 2019 increased from 81.50 rubles to 87.24. It is impossible to estimate future indexations, since this requires annual calculations on a one-time basis.
It is also necessary to have a minimum length of service to receive a pension. In 2019, the minimum experience is 10 years. In accordance with the reform, this indicator will increase every year until it reaches 15 years. Along with the increase in experience, the requirements for the minimum amount of points will increase. In 2019, the requirement is 16.2 points. The amount of points will also increase every year until it reaches 30 points.
About a fixed payment to the insurance part of the pension
At the legislative level, a fixed supplement to pension payments is established, which is an analogue of the basic part of the pension. It is formed at the expense of 6% contributions from the employer and state subsidies. The increase occurs when a citizen applies for a pension; it is added to the insurance and funded part.
After indexation took place in 2019, the amount of the fixed payment amounted to 5,334 rubles. This amount is accrued not only to citizens who applied for a pension for the first time, but also to those pensioners who are already receiving this payment and do not continue to work. Some categories of citizens have the right to receive early pension payments, as well as increased additional payments, which are calculated individually.
The procedure for calculating the old-age pension includes a standard increase, which represents the minimum state guarantee of pension payments. The following categories of pensioners are entitled to receive an increased amount of fixed payments:
- Citizens who worked and lived in the Far North, or in areas with a similar climate. In this case, the work experience for men is 25 years, and for women 20 years.
- Citizens who have disabilities of groups 1, 2, or 3, when confirmed by relevant documentation.
- Citizens who have reached the age of 80 years.
- Citizens who care for minors or incapacitated dependents.
- Citizens who retired later than the period established by law, the prize coefficients that are due to the person are taken into account.
What documents are needed to apply for an insurance pension?
When a citizen knows how an old-age pension is calculated, he needs to find out what documents are needed to register it. The list of required documents is established at the legislative level.
First, a person needs to write a corresponding application to the Pension Fund and attach a package of the following documents to the application:
- Passport. The place of residence, age and citizenship of the applicant must be indicated.
- Personalized accounting card.
- Certificate of income for 2000-2001, or for the last five years until 2002.
- Birth certificates for all children are provided only by women.
- Military ID provided by men.
- Documents that confirm the presence of work experience are a work book.
Instead of a work book, the applicant can bring another document, for example, a rental agreement. If such documents are not available, then two witnesses who worked with the applicant during the same period will need to be provided.
How is the disability pension calculated and accrued?
Now let's figure out how the disability pension is calculated. Its size depends entirely on the disability group. For the first group, the accrual is 100% of the rate, for the second group 90% of the rate, and for the third group 50% of the rate. Disabled people of the second group have the right to apply for an old-age pension, but taking into account their length of service. Here, an important role is played by the moment at which the first disability was assigned.
Citizens who do not work and have group 2 disability, which was received upon reaching retirement age. And also citizens who have a third disability group and who have work experience have the right to receive an old-age pension.
Disabled people have the right to choose one of three pension programs. Accrual and calculation depends on the choice of pension. There are currently three types of disability pensions:
- Labor subsidy - awarded to citizens who have made contributions to the pension fund and have work experience.
- Social subsidy - awarded to citizens who do not have the required amount of length of service and pension points.
- State subsidy - awarded to citizens who fall into certain categories of disabled people.
In addition to pension subsidies, a disabled person has the right to benefits. If he refuses them, then they are monetized, and the disabled person receives a fixed additional payment of EDV, the amount of which depends entirely on the disability group. The amount of EDV includes the number of persons under guardianship, and it increases by 30% of the initial amount, according to the number of dependents.
At the moment (indexation took place in February 2018), the maximum amounts of EDV have been established:
- Group 3 – 2023 rubles.
- Group 2 – 2508 rubles.
- 1st group – 3539 rubles.
- Minors – 2528 rubles.
- Military pensioners and combatants - 2781 rubles.
- Veterans of the Great Patriotic War – 5054 rubles.
To calculate the disability pension, the following formula is used:
RP=IPK*CK+FD, where:
- RP is the amount of benefit.
- IPC is an individual coefficient.
- FD is a fixed additional payment.
Disability pensions are subject to indexation; in 2019, it is planned to increase the disability pension by 3.5 - 4%. The amount of EDV and labor benefits will also increase. The average pension amount in 2018 was from 9,100 rubles to 10,600 rubles. Accordingly, you can calculate the projected pension size by multiplying the average pension by the indexation percentage.
About accruals for working pensioners
It is spelled out at the legislative level how pensions are now calculated for pensioners who continue to work. The base rate is calculated in the same way as for non-working pensioners. But contributions to the pension fund must be transferred without fail.
This category of citizens is subject to compulsory insurance, and contributions are made before the 15th of each month. If the transfer occurs late, penalties will be charged, and if payment is not made, a fine of 20% of the amount of all unpaid contributions will be issued.
The employer is obliged to provide the Pension Fund with a complete statement of contributions made at the request of the pensioner. Based on these data, benefits are recalculated for pensioners who continue to work.
Survivor's pension
The procedure for calculating a survivor's pension includes two types of pension provision - labor or social pension.
The assignment of social subsidies is made by the state if the deceased person does not have the required number of points and experience, and amounts to 5,034 rubles if one parent has died and 10,068 rubles if both parents have died. In April 2018, this pension increased by 4.1%.
In 2019, it is planned to increase this pension in February and April. Depending on the region of residence, the size of the survivor's pension will be increased from 200 to 500 rubles.
The calculation of a labor pension for the loss of a breadwinner is based on length of service and contributions to the pension fund. Also, an additional payment up to the subsistence level is added to the amount received.
Who can apply for early pension payments?
There are categories of citizens who may have less experience than required by general law. In this case, the pension is calculated using a general formula taking into account all indicators. Early pension is granted to the following categories of citizens:
- Citizens who worked in harmful, difficult and dangerous working conditions, the minimum length of service for calculating a pension is 25 years for men, 20 years for women.
- With 15 years of experience in the Far North and equivalent areas.
- Mothers of many children who have raised more than 5 children or care for disabled children.
- Medical workers with 25 years of experience in rural areas and 30 years in the city.
- Teachers with more than 25 years of experience.
A new stage of pension changes has begun, which will affect everyone - both current pensioners and future ones.
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Many people are now asking a completely normal question about how the pension will be calculated and how to understand all these innovations. One good thing is that the retirement age has not been raised. Although the government did everything to ensure that citizens worked as long as possible, luring them with high bonuses.
How will all the calculations happen and what should those who have been receiving their well-deserved pension do for a long time?
Appointment procedure
A pension is assigned to absolutely all citizens of the Russian Federation when they reach a certain age. The age threshold for receiving this type of pension is established by law.
Citizens have the right to receive a pension starting from:
In addition, they must have at least 6 years of insurance experience.
Pension is divided into 2 types:
- Cumulative.
- Insurance.
At the moment, the government is focusing exclusively on insurance pensions.
There is also such a thing as early retirement. This type of pension can be assigned to persons who worked in particularly harmful or difficult conditions, disabled people and heroine mothers.
In other cases, a pension can be issued no earlier than a month before retirement age.
For registration you will need:
- passport;
- certificate of work experience (work book);
- certificate of change of surname;
- documents on the presence of dependents;
- or disability.
Video: pension calculation in a new way
New calculation formula
On January 1, 2019, a new system for calculating labor pensions appeared in Russia. It applies only to those individuals who retire in 2019.
For pensioners who receive a pension according to old calculations, it will be revised again.
If in this case the amount of payments decreases, it will be paid in the same amount. At least that's what the government says.
The insurance period required to apply for a pension according to the new formula will constantly increase:
| Year | Insurance experience |
| 2015 | 6 |
| 2024 | 15 |
The size of the old-age pension in 2019 will depend on another “innovation” invented by the government. This is the so-called pension point or coefficient.
It is with the help of such points that every year of work of an able-bodied Russian citizen will be taken into account.
If the number of points to receive a pension is not enough, then the citizen will be entitled only to a regular social pension.
At the moment, the total percentage of wages that should go to the Pension Fund is 22%. 16% goes towards the formation of the citizen’s future pension.
He has the right to divide this amount by giving:
Some people do not want to save for their old age on their own, preferring to donate all their contributions to an insurance pension.
To do this you will need to have at least:
Many retirees, including future ones, are frightened by such innovations.
In fact, it’s not all that scary - in order to get 30 points, the employer is required to pay a so-called contribution in the amount of the minimum wage for 30 years.
In addition, innovators guarantee that periods in a person’s life such as military service, maternity leave, etc. will be taken into account.
Another nuance is that this applies only to those citizens who do not leave funds in the form of a funded pension.
The law currently allows you to choose either a funded pension and an insurance pension, or only an insurance pension, but this rule is valid only until the end of the year.
It should be noted that if an employee chooses both types of pensions, then approximately the number of points that he can receive in a year will be 6.
If he chooses only an insurance pension, then this number can increase to 10.
The size of the pension will depend on the salary itself, and only the official one. If the salary is paid by the employer “in an envelope,” then no one pays insurance premiums from it.
Another advantage noted by the creators of the pension reform is that it will now become more profitable to retire later than the deadline established by law.
Then bonus points will also begin to be taken into account. The size of the insurance part of the labor pension is determined by a formula that at first glance seems quite complicated.
The formula itself looks like this:
CC = PK: M + R
Where, SCH is the insurance part.
PC – pension capital.
M is the number of months when it is planned to pay the pension (currently this number is 228).
P is the basic amount of the insurance part.
IPC = SV / MV x MPC
Where, SV are insurance premiums, 10% and 16%, respectively.
MV – insurance premiums from the maximum salary.
MPC is the maximum number of the pension coefficient.
Interestingly, all pension earned before 2019 will also be converted into points. To do this, you need to calculate using the old formula, and then divide the entire amount received by one pension coefficient (in 2019, this number is 64.1 rubles).
Many people are interested in how the old-age pension is calculated. For this purpose, the individual pension coefficient, fixed payment (FC), bonus coefficient (K) and the sum of all IPC (PC) are determined.
The formula by which the old-age pension is calculated is as follows:
SP = FV x K + PC x C x K
Main differences from the old system
The size of the pension will now depend only on the insurance premiums paid by the employer. In this case, the total length of service will no longer be of particular importance.
If previously everyone had approximately the same pension, now those citizens who intend to engage in active and long-term work have an advantage.
The government guarantees that the new pension system will not impose an additional burden either on the employers themselves or on the general federal budget.
In addition, all working citizens of the Russian Federation will be able to control the accrual of their pension points thanks to a special electronic service.
By registering, the user will receive his own personal account, in which all important information will be stored.
Representatives of the Pension Fund claim that in this way every potential pensioner will be able to keep track of both their points and insurance experience.
One of the disadvantages of the new system is that if by 2024 a citizen has not accumulated 15 years of experience, then he is unlikely to receive a normal pension.
As for the social pension, what it will be by that time is unknown. Those pensioners who, upon reaching a certain age, do not have the required length of service will have to work for another 5 years.
A working citizen of retirement age (who has not applied for a pension) will be able to count on a significant increase in the insurance pension.
How to calculate it yourself
For a year spent in the army, as well as on maternity leave to care for the first child, a disabled child, a disabled person or a person over 80 years old, there are 1.8 points.
Leave for mothers to care for their second child is considered:
It is important to know that the period of caring for the fifth child is no longer included in the total length of service.
What you need to know
- Pension amount until 2019.
- The number of points for periods when a citizen did not work (parental leave, etc.).
- Individual pension coefficient (total points) for the entire period until 2019.
- Points earned in 2019 (for those retiring in the second half of this year).
Then you need to add up points 2, 3, and 4, thereby determining your individual pension coefficient. This number is multiplied by the size of one pension point (64.1 ruble).
To this amount is added a fixed payment and, if available, a funded pension. This will be the old-age pension for the month.
Calculation example
For example, pensioner A.V. Sidorov has capital in 2019 that allows him to receive a pension in the amount of 10 thousand rubles. The insurance part of his labor pension is 3910.34 rubles.
He needs to determine his pension coefficient, that is, divide this amount by 64.1 rubles. In total, we get 95 points.
For the calculation, the formula is taken:
SP = FV x K x PC x C x K.
SP= 3910, 34 x 2, 11 + 95 x 64, 1 x 2, 32= 8250, 82 + 14127, 64= 22378, 46.
This will be your monthly old-age pension.
The legislative framework
FAQ
In connection with the new pension system, most citizens have a huge number of questions. In addition, there were both supporters and opponents of the new reforms.
Maximum old-age pension?
Representatives of the Pension Fund claim that it is not possible to calculate the size of the pension now.
When calculating an old-age pension in accordance with the innovations, a huge number of circumstances are taken into account:
- Age.
- Wage.
- Pension coefficient, etc.
Accrual methodology used?
In addition, this type of pension will begin to form for those individuals who begin their working career in 2019. In this case, not only insurance contributions will be taken into account, but also contributions for the funded pension.
Also, when calculating new pensions, only the insurance period, age and fixed payments will be taken into account.
How much will the insurance period increase?
In the future, the insurance period will increase several times. In 2019, to retire you must no longer have 5, but 6 years of experience. Over the next 9 years, this period will gradually increase to 15 years.
Is it possible to accumulate points and experience while working unofficially?
Since January 2015, another conversion of pension rights has taken place, now into pension points. For the first time since the Soviet period, the conversion of pension rights in Russia was carried out in 2002 - into pension capital.
From January 1, 2015, on the basis of laws No. 400-FZ and No. 424-FZ that came into force on December 28, 2013, the insurance and funded parts of the old-age pension became independent pensions.
We remind you that the funded pension is formed and calculated according to the old principle (it still remains relevant only for citizens born in 1967 and younger), and the insurance pension is calculated according to the new formula - based on the pension points accumulated by the citizen during his working life .
SPS = FV × PC 1 + IPK × SPK × PC 2,
where SPS is the insurance pension.
FV - fixed payment.
PC 1 - bonus coefficient for increasing the fixed payment at a later retirement.
IPC - individual pension coefficient.
SPK is the value of the pension coefficient at the time of registration of the pension.
PC 2 - bonus coefficient for increasing the individual pension coefficient if a citizen continues to work despite reaching retirement age or another condition for the emergence of the right to an insurance pension.
To understand how the old age pension is calculated according to the new formula, let’s consider what its main components are and how they are calculated: a fixed payment (the former basic part) and an individual pension coefficient, as well as who will be entitled to bonus coefficients.
So, we have become familiar with the general concepts regarding how to calculate a future pension. Now let's cover this topic in more detail.
Fixed part of the insurance pension
To calculate an old-age pension, you should know about the existence of a fixed payment (hereinafter referred to as FV) to the insurance pension established by Art. 16 Federal Law “On Insurance Pensions” No. 400-FZ dated December 28, 2013. In 2019, the payment amounted to RUB 5,334.19. This is the guaranteed minimum of the state for every Russian citizen of retirement age. Twice a year, the PV is indexed: on February 1, taking into account rising consumer prices, and on April 1, based on the income of the Pension Fund for the previous period. April Fool's compensation is stated in the legislation as possible, and the possibility is determined by the Russian government.
Fixed payment to the insurance pension for various categories of citizens, northern pension
Gr-not entitled to ATP
Number of dependents
PV size (RUB) 1
Under 80 years of age and without a disability
Those who have reached 80 years of age or disabled people of the 1st group
Under 80 years of age and without a disability, worked in the Far North for at least 15 years, insurance experience of at least 20 and 25 years for women and men, respectively
Those who have reached 80 years of age or are disabled in group 1, have worked in the Far North for at least 15 years, have an insurance record of at least 20 and 25 years for women and men, respectively
Under 80 years of age and without a disability, have worked in the Far North for at least 20 years, insurance experience of at least 20 and 25 years for women and men, respectively
Those who have reached 80 years of age or are disabled in group 1, have worked in the Far North for at least 20 years, have an insurance record of at least 20 and 25 years for women and men, respectively
Work experience in agriculture for at least 30 years, not engaged in activities with mandatory pension insurance, live in rural areas 2
1 Amounts are rounded to hundredths of a ruble
Individual pension coefficient - the basis of the insurance pension
The individual pension coefficient (hereinafter referred to as IPC) is an innovation in the practice of calculating pensions. It has become a key component in the formula for a secure old age. One might even say - the basis for a citizen who wants to provide for himself after retirement and live with dignity. The higher the pensioner’s IPC, the greater the chance of achieving this goal.
The IPC is determined at the time of registration of an old-age pension and consists of the sum of the annual pension coefficients (hereinafter referred to as the APC) or pension points accrued to a citizen annually in the process of official work with a “white” salary. That is, for those years when employers transferred insurance premiums to the future pensioner.
The new pension legislation also determined other periods for which citizens will be accrued pension points, and provided for coefficients for increasing the IPC and FV - for later registration of the implementation of pension rights.
How is the pension calculated in 2018-2019, are there any differences from the calculation in 2017
Now the formula for calculating the annual pension coefficient looks like this:
GPC = SSP / SSM × 10
Three quantities are involved in the calculation of the GPC:
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- The amount of insurance pension contributions from a citizen’s annual income (SSP).
- The amount of insurance premiums is 16% of the maximum contributory salary, established annually by resolutions of the Government of the Russian Federation (SSM).
- Multiplier 10. It was introduced for the convenience of calculating pension points. Also, 10 is the maximum number of annual pension points that can be awarded to a citizen in an accounting year.
But future pensioners will be able to receive 10 points per billing year only starting in 2021. And only those who do not participate in the formation of their funded pension.
Maximum values of the pension coefficient by year
Year of granting old-age pension
Maximum value of IPC with contributions to funded pension
Maximum IPC value without contributions to a funded pension
1 When calculating pension coefficients, values are rounded to three decimal places.
When calculating an old-age pension, pension points for all years when the employee received insurance contributions from employers to the compulsory pension fund are summed up and an individual pension coefficient is displayed. The longer a citizen worked and the higher his salary, the higher his IPC will be. Accordingly, the higher the citizen’s IPC, the higher his pension income.
IPC= GPC 2015 + GPC 2016 +…GPC 2030
where GPC 2015 is the number of pension points earned by a citizen in 2015, GPC 2016 - in 2016, etc.
Calculation of individual coefficient: which years are better to take
Let's try to calculate our pension ourselves. As mentioned above, the annual pension coefficient is equal to the ratio of insurance pension contributions from a citizen’s income for the year to the maximum insurance pension contributions established by the state in the accounting year, multiplied by 10. For clarity, we will give examples. But first, let us recall that the total amount of pension insurance contributions paid by the employer to the employee is equal to 22% of his salary. Of them:
- 6% goes to the so-called solidary part of the Pension Fund, from which a fixed payment (basic part) of the insurance pension is paid to current pensioners;
- 16% are intended for the formation of the employee’s insurance pension or, at his request, 10% of them go to the insurance part, and 6% to the funded part.
An example of calculating the CPC with a deduction for an insurance pension of 16% of income
The salary of a citizen in 2018 is 20,000 rubles. per month. The amount of insurance contributions that the employer will pay to the Pension Fund will be equal to: 20,000 rubles. × 12 months × 16% = 38,400 rub.
In 2019, the maximum contributory salary is RUB 796,000. The amount of maximum insurance premiums from an employee’s income is RUB 127,360.
GPC = 38,400 / 127,360 × 10 = 3.015
The annual pension coefficient of a citizen in 2019 will be 3.015 pension points.
An example of calculating the GIC with a deduction for an insurance pension of 10% of income
For clarity, let’s take a citizen with the same salary for 2019. His employer contributes only 10% to the insurance pension, and the remaining 6% goes to the funded pension. The amount of pension contributions to a citizen’s insurance pension for the year will be: 20,000 rubles. × 12 months × 10% = 24,000 rub.
GPC = 24,000 / 127,360 × 10 = 1.884
The annual pension coefficient of a citizen in 2019 will be 1.884 pension points.
Since the size of future pensions directly depends on the value of the civil capital complex, it is clear from the examples that the formula for calculating pension points advocates refusal to participate in the formation of a funded pension.
Additional pension points: how to check the correctness of accrual
In addition to the pension points accrued to a working citizen for the payment of insurance pension contributions by his employer, when calculating the IPC, other periods during which pension contributions were not paid to the citizen are taken into account. For each full calendar year, the GPC is accrued under the following circumstances.
- Care of one parent for a child up to 1.5 years old (no more than 6 years in total):
- for the 1st - GPC = 1.8;
- for the 2nd - GPC = 3.6;
- for the 3rd or 4th - GPC = 5.4.- Caring for a disabled child, a group I disabled person, a person over 80 years old - GPC = 1.8.
- Military service by conscription - GPC = 1.8.
Point cost
The cost of 1 pension point in 2019 is 87.24 rubles. It will increase annually:
- February 1 in accordance with the inflation rate over the past year.
- April 1, according to a formula that includes such values as the amount of revenue to the Pension Fund budget in the form of insurance premiums and federal transfers.
Premium odds
Despite the fact that in Russia the retirement age comes much earlier than in most other countries of the world, Russian legislators have not taken the path of raising the age limit for eligibility for an old-age pension. But they included tools in the pension calculation formula that encourage people to retire later of their own free will.
If a citizen, having reached retirement age and the onset of pension rights, does not encroach on receiving funds from the Pension Fund, that is, does not apply for an insurance pension, but continues to work, the legislation provides for an increase coefficient of the fixed payment to the insurance pension (in our formula PC 1) and an increase coefficient individual pension coefficient (PC 2).
Indicators of bonus coefficients for full months of voluntary deferment of receiving a pension
Number of months
IPC increase coefficient
PV increase factor
120 or more
Based on the above indicators, it is easy to calculate that if a citizen does not apply for an insurance pension within 10 years after becoming entitled to it, then the PV will increase by 2.11, the IPC - by 2.32 times. And the old-age insurance pension will accordingly increase by almost 2.5 times.
Conversion of “old” pension rights into points
Citizens who reached retirement age in 2015 or who will reach it a few years later are worried about what will happen to their pension rights, which until now have been measured in rubles, and not in points. The same question worries people who are already receiving an old-age pension - after all, its further indexation will take place on the basis of pension points, which they do not seem to have.
The new pension legislation has provided a formula according to which pension rights formed before January 1, 2015 will also be converted into points:
PC = SCh/SPK
SCH - the insurance part of the labor pension as of December 31, 2014, excluding the basic and funded parts.
SPK is the value of the pension point at the time of retirement.
The resulting sum of points will either constitute the citizen’s individual pension coefficient if he is already a recipient of an insurance pension or is retiring, for example, in 2019, or will be added together with subsequent annual pension coefficients for the withdrawal of the IPC.
How pension is calculated examples
Let's return to the new pension formula:
SPS = FV × PC 1 + IPK × SPK × PC 2
Now we know how its components are calculated, and we can find out the approximate size of the future pension.
Example 1. Retirement upon reaching retirement age
Citizen Ivanova reaches retirement age in 2017. In 2015, her pension rights were converted to 70 pension points. For 2015-2017, Ivanova will earn another 5 points.
Citizen Ivanova was on maternity leave twice for 1 year to care for a child up to one and a half years old. For her first child she received 1.8 pension points, for her second - 3.6.
By adding up all the pension points, we obtain the IPC of citizen Ivanova at the time of the right to apply for an insurance pension - 80.4 points.
Let’s assume that the minimum amount of a fixed payment (FP) to an insurance pension in 2017 will be 5,000 rubles, and the cost of a pension point (SPK) will be 100 rubles. Citizen Ivanova has no reason to use bonus coefficients, so the formula for calculating her pension looks like this:
SPS = FV + IPK × SPK
We calculate the old-age insurance pension of citizen Ivanova:
5,000 rub. + 80.4 × 100 rub. = 13,040 rub.
Example 2. Retirement after the right to an insurance pension arises
Let's try to calculate the monthly income of a pensioner from the distant future. Let's consider a conditionally ideal option for calculating a decent pension using the new formula. After all, as legislators assure us, all their efforts and reforms are aimed at achieving a decent standard of living for Russian pensioners. So, let's dream according to the new formula.
Citizen Petrov began working in 2015 at the age of 17 years. After working for a year, he was drafted into the army and served for two years. He was awarded 3.6 pension points for his military service.
Citizen Ivanov received a higher education by correspondence and worked without interrupting his insurance period until retirement age and 5 years after the right to an insurance pension became available. In total, over 48 years of insurance experience, he earned 400 pension points. Together with the “military” points, his IPC was 403.6 points.
Let us assume that by the time citizen Petrov retires in 2063, taking into account all possible indexations, the PV will be 20,000 rubles. But citizen Petrov worked in the Far North for 20 years, so his financial allowance has been increased by 30% and amounts to 26,000 rubles.
Petrov’s bonus coefficients for 5 years of voluntary pension deferment are: for a fixed payment - 1.27, for an individual pension coefficient - 1.34.
Let the cost of a pension point in 2063 be 600 rubles.
We calculate the old age pension of citizen Petrov, taking into account bonus coefficients:
26,000 rub. × 1.27 + 403.6 × 600 rub. × 1.34 = RUB 324,527.42
Of course, it is difficult to imagine what will happen to the ruble by 2063, but today it looks more than decent.
It must be said that the given calculation of the old-age pension according to the new formula is approximate. Not only in the second example, but also in the first. If you want to get a more accurate result, register on the website of the Russian Pension Fund. The Pension Fund already has all the information about the pension rights of officially working or working citizens that have been formed to date, namely the number of years and months of insurance experience and the number of pension points already earned. This information can be viewed in the personal account of the insured person. Enter additional information into the pension calculator about your current job and salary, and other periods for which pension points are calculated. Click the “Calculate” button and you will find out the size of your pension. Plan a well-deserved rest based on the result obtained, if it suits you. Or, if possible, take steps to increase your future pension. Now you know how to do this.
Can I now count on a preferential pension? If yes, how to calculate it?
Whether the new pension reform provides for preferential pension provision is of concern to those who worked in hazardous industries, in education, medicine, etc. Yes, today preferential pensions have been preserved.
It is quite natural that such citizens are also interested in how to calculate a preferential pension. Let’s say right away that you shouldn’t look for any special differences in the calculation of a preferential pension from the calculation of a regular one, since the same formula is taken as a basis, its size is directly dependent on the amount of accumulated points, which have been taken into account since 2015. Deductions are transferred to these into the compulsory pension insurance system, using the formula:
IPO/NPO x 10
IPO - the amount of individual pension contributions for the year,
NPO - the standard amount of pension contributions for the year.
However, it will be much easier not to do independent calculations, but to go to the Pension Fund website and use the pension calculator available there.
Content
A pension is a state-paid payment to citizens who have reached old age. This type of compensation can be received by people who have sufficient experience for this and beneficiaries. For example, they can be received due to disability or loss of a breadwinner. After the reform, the state made changes to the calculation of these payments. Only the calculation of pensions for those born before 1967 remained the same.
How is the pension calculated today?
For citizens over 50 years of age, the calculation of pensions for those born before 1967 is carried out in a special way. The amount consists of a mandatory fixed state part and an insurance part. The value will depend on the following factors:
- person's age;
- number of years worked, profession;
- on the amount of salary received.
The procedure for calculating pensions for those born before 1967 depends on the following factors:
- Is the person a participant in the co-financing program? Co-financing is state support in the form of additional charges to old-age compensation, allowing a citizen to increase personal contributions to his future funded share. Several parties can participate in co-financing: the citizen himself, the state (this is voluntary and is carried out on the basis of an application), the employer (this is not mandatory, but many enterprises consider this an additional motivation as part of the social package provided to them)
- Does the citizen make regular payments towards the funded portion of future compensation?
Regulatory framework
The calculation of pensions for those born before 1967 is regulated by federal legislation 400-FZ of December 28, 2013. This law deals with aspects of calculating the insurance part. The following types of insurance pensions are provided: old-age insurance, disability insurance, accidental insurance. The regulatory framework also includes Federal Law 173-FZ “On Labor Pensions”, in which you can also familiarize yourself with aspects of pension payments.
General procedure for calculating pension payments
In order for a citizen to count on receiving benefits under the insurance portion, the future pensioner must meet the following conditions:
- Men can count on compensation at the age of 60, women - at the age of 55 (some categories of people can apply for old-age compensation before this age).
- Insurance experience must be at least 15 years.
- The individual coefficients by which the IPC pension can be calculated are important. For each period of work experience, a person is awarded a certain point (coefficient). Their total must be at least 30.
If you need to calculate a pension for those born before 1967, each condition must be considered separately. Old-age labor compensation is assigned to people who have reached the age of 60 years for men and 55 years for women. There are certain categories of citizens who can count on early retirement and a well-deserved rest. These include:
- citizens who worked in certain conditions (harmful, etc.);
- having certain specialties and positions;
- having a certain length of service, labor or insurance.
These include:
- persons who worked in underground structures or in workshops with elevated temperatures, under particularly difficult working conditions;
- women who worked at high intensity or operated heavy equipment;
- railway workers;
- geological prospectors, search engines;
- working sea and river vessels;
- miners;
- aviation industry workers;
- rescuers;
- teachers;
- doctors working with the population.
- mothers of many children with five children, or two or more;
- visually impaired or injured as a result of hostilities.
Early compensation includes a preferential type of pension, which can be received by the following groups of citizens:
- If their activity involved heavy physical labor or work in unfavorable conditions.
- If the work was carried out in the Far North or in an area equivalent to the same.
- If the working conditions included a certain deadline, after which, regardless of age, it was time to retire.
People raising children alone can count on the insurance share. If the sole breadwinner had a certain period of work, then the insurance share is also calculated. To apply for any type of old-age benefits, you need to confirm that the breadwinner is absent or has died by providing a death certificate or a court decision declaring missing.
Seniority
The second condition for receiving insurance benefits is the insurance period. These are the periods of time during which a person made contributions to the Pension Fund. There are two types of insurance experience:
- ordinary– this is a type of length of service when contributions to the Pension Fund are made by citizens working under normal working conditions;
- special– unlike usual, this experience characterizes the type of work in special (for example, harmful or dangerous) conditions.
Work experience until January 1, 2002.
Calculation of length of service until January 1, 2002 is carried out in calendar order according to the actual duration of each period. Confirmation of the fact of work, military service or the period of child care, and for calculating the insurance portion, will be documents of personal storage. What a person must submit to the fund:
- work book;
- employment contracts;
- salary certificates for five consecutive years of work until 01/01/2002;
- military ID;
- child's birth certificate;
- Marriage certificate.
Only if these documents are available in the fund can he count on the timely assignment of a pension in the established amount. To record time worked, since 2002, an individual personal account with a permanent insurance number must be opened in the Pension Fund for each insured citizen. In it, government employees are required to reflect:
- data on periods of labor activity;
- information on wages up to 01/01/2002;
- amounts accrued and paid by the employer or personally insured person of insurance premiums.
Recording of hours worked since 2002
Information on periods of work and wages before 2002 in the Pension Fund is provided by the employer in 2003-2004. If during these periods the person did not work or the employer provided incomplete or unreliable information, then the fund will not have the necessary information. If the insured person doubts that all the information has been provided, then you can always contact and provide the missing information about length of service and salary until 2002. The following periods are included in the length of service:
- army, service in the police department;
- service in bodies and institutions of the criminal correctional system;
- receiving social benefits for temporary disability (maternity leave);
- child care up to 1.5 years;
- registration for unemployment;
- reassignment of a civil servant for employment in another area;
- participation in public works;
- exile or stay in prison or colony;
- caring for a disabled person;
- when a citizen reaches 80 years of age.
What periods are included in the length of service?
Based on the law, the minimum insurance period increases every month. In 2015 it was 6 years, in 2019 it will be 9 years, and in 2025 it will be 15 years. If, upon reaching old age, the minimum number of years of work has not been completed, then old-age insurance compensation will not be accrued. The insurance period is determined by entries in the work book showing the period of official employment of the employee.
If an employee’s work book is lost or some records are missing, the following documents will confirm the length of service:
- employment contracts;
- certificates issued to the employee at previous places of work;
- extracts from orders (for example, orders for hiring and dismissal);
- employee personal accounts;
- payroll statements.
Since 2019, innovations have come into effect for calculating pensions for those born before 1967 using new formulas. According to the law, people with 35 years of work experience are entitled to receive additional payment. And for those who have worked (officially) for more than forty years (40 years for women, 45 for men), when they retire, the state will pay an even larger bonus.
The third condition for receiving insurance benefits is individual coefficients. This is the number of points earned over 12 months or those periods that are included in the length of service. These coefficients are calculated depending on a person’s salary, subject to his official employment. The higher the salary, the higher the coefficients. The main condition is that before retirement the coefficients should not be less than 30.
Based on the Law “On Insurance Pensions”, increasing requirements for the minimum pension coefficient have been established. If, from January 1, 2015, old-age insurance compensation is assigned with a coefficient of at least 6.6, then with a subsequent increase in the coefficient annually by 2.4 by 2025, its maximum amount will be 30.
All periods will be included in the length of service if they included labor activity lasting at least one working day, during which deductions to the Pension Fund took place. Scheme for increasing the coefficient in the table:
Year of retirement
Minimum coefficient
from 2025 and later
Pension for those born before 1967
The Russian government is actively pursuing pension reform in 2019. The pension calculation for those born before 1967 consists of three parts. This:
- base share;
- Cumulative share;
- insurance
Basic part
Basic is a fixed compensation that every person who has reached old age receives, regardless of length of service. From January 1, 2002, the final base rate was set at 450 rubles per month. This amount is due to all citizens who have reached old age and have worked for more than 5 years. Its size is affected by a person's age.
Cumulative part of pension provision
This share is available only to those citizens who were born before 1967 and are participants in the OPS. It is formed if in the period from 2002 to 2004. The employer paid monthly insurance premiums for the funded share of labor activity in the amount of 6% of wages. It is formed on a voluntary basis for participants in the State Pension Co-financing Program and persons who allocated funds from maternity (family) capital to. The total amount going to the savings share should not exceed 463,000 rubles per year.
Based on the federal decree, paragraph 11 of Art. 31 “On investing funds to finance the funded part of labor benefits in the Russian Federation”, insured persons born before 1967, who have entered into an agreement on compulsory pension insurance and who have applied to transfer to a non-state fund (NPF), submit an application for refusal to finance the funded fund part and direction to finance the insurance part in the amount of 6 percent of the individual part of the insurance premium tariff.
Citizens can find out about their savings in the Pension Fund of the Russian Federation by writing an application in the prescribed form. Payments of state support, in accordance with clause 2 of Art. 217 of the Tax Code of the Russian Federation are not subject to taxation and are not taken into account in calculations of personal income tax, with the exception of payments if the individual has voluntary insurance of the funded part.
Insurance pension
It includes all work experience accumulated by 2002, the amount of wages and a special coefficient. Let us analyze the methodology for calculating the insurance share, which should be calculated according to the following algorithm:
- SP = PB * CB * PK1 + FV * PK2, where:
- SP is the amount of funds calculated to pay the insurance benefit;
- PB – points accumulated over time;
- Central Bank – the price for 1 point established at the time of calculation;
- PC1 and PC2 are increasing bonus coefficients for retirement at a later period;
- FV – fixed amount
Procedure for applying for a pension
Find out about the procedure, how to apply for a pension, where to apply, and what papers are needed for this. It is recommended to start processing the payment in advance in order to have time to fully prepare the paperwork. With a complete package, you must contact the authorized body for the calculation and payment of benefits. There are step-by-step instructions for calculating payments and submitting documents to the Pension Fund. The full list of documents is given below.
Deadlines for submitting documents
The second step is submitting documents to the Pension Fund of the Russian Federation. After collecting at any time after reaching old age (for women the age should be 55, for men - 60 years or more), you must contact the Pension Fund of your region to assign and calculate the amount of payments. Then the calculation of payments for those born before 1967 begins from the date of submission of the application with a complete set of documents.
Where to apply
If the Pension Fund requests additional information, the specialist accepting the documents does not have the right to refuse to submit the application. The applicant must provide the missing information within 3 months. If the deadlines are met, compensation will be accrued from the day the application is submitted. If the deadline is missed, the full package of documents will need to be submitted again, and the date of application for payment assignment will be changed. The application to the fund must be considered within 10 days from the date of submission of the full package of papers.
After calculating the payment, the moment of its receipt is important. If all documents are completed correctly and submitted on time, the amount will be calculated and issued within the 10th day. If the pensioner submitted bank card or account details, then the payment is made to it on the 10th day, and there is no need to apply anywhere. When receiving money by mail, there may be a delay of 1-3 days for the postal service to process the new application. If the amount is less than the subsistence minimum (it is 10-11 thousand rubles), contact the Pension Fund.
The last step applies to those citizens who continue to work after retirement. Payments are recalculated for them. It is necessary to submit to the Pension Fund a certificate from the place of work about the accrued wages for the year and insurance compensations made, fill out and submit the corresponding application to the fund employee. It will be reviewed within 10 days. Each person chooses for himself whether to work or immediately after reaching old age to retire.
What documents need to be provided
The first step is preparing documents. There is the following list of papers:
- passport for Russian citizens or residence permit for citizens of foreign countries;
- all forms about studies and education;
- in the original and copies - work book;
- If necessary, certificates from the employer may be required;
- insurance certificate (SNILS);
- marriage certificate;
- a certificate confirming the place of residence and existing family composition;
- copies of dependents' identification documents;
- a certificate of the average salary of the employee at his last place of work;
- details of the banking institution that will deliver payments;
- application to the Pension Fund;
- certificate of average monthly salary up to 01/01/2002 for 60 consecutive months;
- a certificate stating that no other type of payment has been assigned to the person.
How to calculate your pension
Every person who retires can calculate their pension independently, knowing the formulas and parameters for calculating it. It is possible to make an online calculation, and there are also calculators available. If you can’t make the calculation yourself, you have the opportunity to contact the Pension Fund to learn how to calculate or request information about future income.
General formula
The formula for calculation will look like this:
- P = PV + LF + MF, where
- FV – fixed share (basic);
- LF – cumulative fraction;
- SP – insurance share.
The procedure for determining the insurance part
The fixed share is set by the state. Each citizen has his own savings share. Therefore, we need to know how the insurance share is calculated. There is a calculation principle for this:
- SCh = PC/T, where:
- SCh – insurance part;
- PC – pension capital;
- T – estimated time that compensation will be paid, measured in months
From this formula we do not know the value of pension capital, which must be calculated in a new way. The capital consists of the values of the conditional pension capital (CPC) and the estimated payment (RP). Calculated using the formula:
- RP = SK * ZR / ZP * SZP, where:
- SC is the coefficient for length of service. It is equal to 0.55 (for men with 25 years of experience, women with 20 years of experience). For each year worked beyond the length of service, 0.01 is accrued, although this figure should not be more than 0.75.
- Salary/salary is the ratio of wages to the average earnings in the country. Its level should not be more than 1.2.
- SWP - the average salary is calculated by the Pension Fund in the amount of 1,671 rubles.
After calculating the estimated payment, you can find out the amount of conditional capital:
- UPC = RP – BC / T, where RP is the estimated compensation, BC is the base part, T is the estimated time of payment, measured in months.
To calculate the insurance part, we only need to know the value of PC1, which can only be found in the Pension Fund of the Russian Federation (PFR). When you know all the data, you will be able to calculate the insurance share, and ultimately calculate what benefits you can count on when you retire. The state increases pensions every year. This is affected by indexation and inflation. Indexation is an increase in the amount of payments that is made annually.
Calculation example
Citizen Sidorov Ivan Sergeevich, born in 1956, can retire in 2016. The citizen’s work experience is 29 years. His salary was 1,700 rubles per month. It is necessary to consider the calculation of pensions step by step:
- Initially, it is necessary to calculate the experience coefficient. For 25 years of experience, the coefficient is 0.55, for each subsequent year there is an increase of 0.01. The citizen's final rate will be 0.59 points.
- Divide the salary by the average salary, that is, 1700:1671 = 1.02.
- Substitute these numbers into the formula (see above) and find the pension capital indicator: 1.02 x 1671 x 0.60 - 450 (fixed payment in 2002) x 228 (approximate number of months of compensation) = 130564.66. This is how capital is calculated for 2002.
- Every year the government indexes pensions, because of this it is necessary to multiply the resulting number by the total coefficient: 130564.66 x 5.6148 = 733094.45 - this is the size of Ivan Sergeevich’s pension capital by 2019.
- A small allowance is made for the post-Soviet period of work from 1991 to 2002, it is equal to 0.1 of the amount of capital and amounts to 73,309.45.
- To all these allowances, you need to add the amount of compensation collected on the personal account, which the employer has paid since 2002. According to the Pension Fund, they amount to 856,342.10 rubles. Principle of calculation: add up all these numbers: 733094.45 + 73309.45 + 856342.10 = 1662746.00.
- Divide the amount received by the approximate period of benefit payment, so you will determine the benefit (228 months): 1662746.00: 228 = 7292.75.
- Multiply the individual pension coefficient (for contributions it was 106.393) and the cost of the point (in 2019 it was 78.28). You will receive an additional insurance portion: RUB 8,328.44.
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