Russia has experienced many pension reforms, each of which completely changed the approach to the procedure for calculating and calculating pensions. Currently, Russian pensioners receive one of two types of pensions: social or insurance. At the same time, the old-age insurance pension is paid only if there is a length of service.
When calculating pensions, starting from 2002, the concept of insurance period is taken into account - periods during which the citizen himself or another person (most often the employer) paid insurance contributions to the Pension Fund for him. The procedure for calculating and accruing length of service is regulated by the law “On Labor Pensions in the Russian Federation”.
QUESTION ON THE TOPIC: What is the difference between the insurance period and the length of service when assigning a pension →
Contributions are paid to the Pension Fund not only during the citizen’s labor function, but also during the periods:
- military service;
- temporary disability;
- child care;
- caring for disabled people of groups I and II;
- care for people over 80 years of age;
- receiving unemployment benefits.
Does the pension depend on length of service?
The influence of the length of work experience on the size of the pension should not be overestimated. We should talk about it only in cases where we are talking about a really long period of work. You can count on the provision of additional payments and upward recalculation only if you have 40 years of experience.
The size of pension provision is influenced to a much greater extent by another indicator. This is the amount of deductions from the salary that the employer constantly makes. The amount of transfers depends on the salary received by the employee.
Considering the criterion for length of service, it should be noted that the supplement to the regular pension depends on:
- categories of work performed;
- location of the employing organization;
- receiving bonuses.
The rates are different for women and men. Thus, 30 years of work experience for a woman and 35 years of work for a man give the right to one point in the additional payment system. If they worked for 40 and 45 years, respectively, then each has the right to receive 5 additional points.
In 2021, one point corresponds to 78.58 rubles. The Russian government, taking into account the inflation process, promises a regular increase in the value of pension points. This is how the state maintains guarantees for pensioners.
It is important whether the citizen continues to work. In recent years, pension supplements for non-working pensioners have remained at the same level. For those who continue to work, this indicator also does not change. In the near future, it is planned to increase the amount of allowances for citizens who have not stopped working.
The amount of the assigned pension can be increased slightly if you apply for it later. In this case, points accrued for the period when the citizen could receive a pension, but did not apply for it, will be taken into account. Accrual with their calculation will make the amount of security higher.
Questions and answers
Question: Good afternoon, tell me what impact 11.5 years of work experience will have on the state. service from 1976 to 1987 on old-age pension?
Answer: The minimum work experience in the civil service is 16.6 years (in 2021). The pension amount is 45% of earnings. Thus, your existing service does not have any impact on pension payments.
Excerpt from Article 14 of the Federal Law of December 15, 2001 N 166-FZ (as amended on December 27, 2018) “On State Pension Security in the Russian Federation”
Question : My husband worked for 48 years. Is he entitled to a pension bonus for his length of service? Is it important that he carried out his work duties in the agricultural field?
Answer: Fulfilling work duties in the agricultural industry cannot be the reason for increasing pension payments or creating preferential length of service. The length of work experience has a direct impact on the amount of the pension, and the longer the length of service before January 1, 2002, the greater the pension payments will be.
Question : My work experience is continuous, reaching 37 years. I work from August '75 to February '12. Should I receive a pension supplement?
Answer : They should. An increase in pension payments to non-working pensioners in our country will begin in February 2017. Percentage – 5.4. In addition, payments have been increased by 0.4% since April. That is, if you are retired and not working, the increase percentage will be 5.8. Looking at specific figures, we can say that the pension will be 13 thousand 700 rubles, which means an increase of 500 rubles.
Question : I am a military retiree. After retirement he worked for more than 24 years. For some reason, the Pension Fund calculated that I was 16 years old with a few months. Are such actions legal? My second pension was taken into account from this length of service. Will the amount of my pension increase if I take into account my actual work experience in civilian life?
Answer : You should have had your entire insurance period calculated. Visit the Foundation again, asking for an explanation. You must make adjustments to the calculation.
All work experience must be taken into account
What length of service is taken into account when calculating?
During the Soviet period and until 2002, pensions were assigned based on the length of the employee’s total length of service. In 2002, a new procedure prescribed that calculations should be based on the amount of insurance contributions to the fund.
Currently, the Federal Law “On Insurance Pensions” N 400-FZot dated December 28, 2013, applied since 2015, is in force. He introduced a different procedure for calculating payments to citizens, different from the previous one.
The basis of the new policy was the delimitation of the total length of service from the insurance period.
Their difference is as follows:
- total length of service is the summed time of the citizen’s activity period, during which the employer made contributions to the Pension Fund;
- insurance period is all the periods during which the organization contributed the necessary amounts to pension insurance. This also includes periods when the citizen did not work, but payments were made. It is important to take into account not only the period of work on the territory of Russia, but also activities outside its borders, accompanied by the transfer of contributions.
The longer the period of regular contributions, the higher the assigned pension.
The concept of total length of service is no longer of decisive importance. This indicator applies only to persons who worked before the introduction of pension reform in 2002.
To find out the size of the pension, you will have to calculate the length of service.
This is done as follows:
- First, the person’s work activity in the period up to 2015 is considered. To calculate the length of service, the rules in force at that time period are applied, using existing benefits;
- Next, the citizen’s working time from the moment Law No. 400-FZ came into force is considered. A new order is used here.
Know! Certain types of activities provide employees with additional guarantees. For example, they allow you to receive pension benefits earlier than others. Example: having teaching experience.
Conversion of pension rights: what is it?
Conversion of pension rights is the correction of estimated data relating to a citizen’s length of service and earnings as of January 1, 2002. It was then that pension reforms began. For conversion into accounting, only that time period of a person’s labor activity up to the named date is taken.
After the start of the pension reform, all citizens performing work duties began to receive insurance contributions (they were made by their superiors). Until that moment, work experience had a fairly noticeable impact on the amount of the pension, as well as the average monthly salary for 2 years. But then this data ceased to be so important. Therefore, the authorities were faced with a problem, because it was necessary to sum up insurance payments with the money accrued to the citizen before the reform. The solution was to convert pension rights, which made it possible to obtain real cash capital.
Important ! In 2010, the increase was 10%; for employees who performed their duties until the 91st year, a percentage was added for each year of work experience.
In connection with the pension reform that began in 2002, it is now mandatory to take into account the frequency and amount of pension contributions made by a citizen
Requirements for length of service when calculating pensions
Until the Law of the Russian Federation No. 400-FZ began to be applied, to receive a pension it was enough to have 5 years of experience. The new rules tighten existing requirements, constantly increasing the minimum duration of work.
In 2015, the mandatory length of service to receive a pension was recognized as 6 years, in 2021 it increased to 7 years, and in 2018 to 8 years. This figure will grow every year and by 2025 will increase to 15 years. At this point it is planned to stop making changes.
Today, the conditions for pension provision are as follows. If a person’s work experience is at least 35 years, and the salary level is close to the national average, the citizen has the right to apply for a labor pension.
Its minimum amount will be 40% of the average salary. The exact size of the applied coefficient is determined by the length of service.
Important! The more experience a person has, the higher the coefficient when assigning a pension. Also, the later a citizen applies for its assignment, the higher the size of the pension.
Periods of incapacity that are taken into account
The insurance period includes some periods when the person did not actually work.
They are taken into account in the simultaneous presence of the following circumstances:
- the citizen worked before or after the end of the specified “non-work” period;
- During this time, contributions to the Pension Fund were regularly paid.
These time periods include:
- service in the Armed Forces;
- caring for a citizen with group 1 disability;
- caring for a disabled child under 18 years of age;
- care for a citizen over 80 years of age;
- for military wives - the time when they were forced to stay at their spouse’s place of service, where there was absolutely no opportunity for employment;
- for spouses of employees of consulates and other diplomatic institutions - time spent in another state. It is important to stay outside Russia due to business needs;
- the time when the person was officially recognized as unemployed and was registered with the Employment Service with the corresponding benefits accrued;
- the period of serving an illegally imposed sentence associated with deprivation of liberty. Official recognition of the wrongful conviction of a citizen is necessary.
Watch the video. About the rules for calculating pensions:
Changes for 2021
The Pension Fund website has a category dedicated to the changes that occurred as a result of the latest reform.
You can view the page here.
In particular, the section contains the following information:
- the procedure for indexing pension payments from 01/01/2019;
- preferential conditions and guarantees provided to “pre-retirement people”;
- system for confirming the status of a citizen who has reached pre-retirement age;
- transition period due to an increase in the retirement age;
- categories of citizens whose retirement age is not subject to change;
- description of changes for pensioners;
- increasing pension payments for pensioners from rural areas;
- age conditions for retirement of northerners;
- payments to health workers, teachers and artists;
- age pension plan for civil servants;
- procedure for registration and payment of social pensions;
- new conditions for early retirement;
- procedure for paying out savings.
Note 7.
The retirement age will be raised gradually over the next 10 years and will end in 2028.
Selected cases of employment
The law obliges the following periods of work to be included in the length of service that affects the calculation of a pension:
- during the probationary period when applying for a job. Art. 79 of the Labor Code of the Russian Federation indicates that it does not matter what type of contract was concluded during employment;
- working time on a part-time basis. A citizen’s employment does not matter; he has the right to work at 0.5 or 0.3 wages. The main thing is to regularly make contributions to the fund;
- if a person works part-time, only information about the main place of work is included in the length of service. But if contributions were transferred by two employers, their amount is summed up. Increasing contributions also increases your pension. Also in this case, the presence of special types of experience is taken into account.
State payments
In the article, we have already noted the fact that the pension consists of a main part (fixed rate) and one that depends on the number of years worked and the level of wages during the entire period of working activity.
Fixed rate
is the same for both men and women, and does not depend on the number of working periods.
This benefit is received by citizens who have retired due to their age; it is paid for by the state from the Federal budget
.
As for the additional part of the pension, there are specifics. The employer's side is obliged to contribute funds to the state fund (pension) for each of its employees. This happens monthly.
The volume of deductions is 22%. What it consists of:
- 6% – the amount used to provide for people already in retirement;
- 10% – funds transferred to a personal account;
- 6% – money representing the funded part.
Note 5.
The actual pension coefficient depends on the 10% share.
Among the workers there are also those who do not have sufficient official work experience to receive benefits, are not employed on generally accepted grounds (within the framework of the law), and belong to the category of self-employed citizens. They can also open a savings account,
and then receive monthly payments.
Important! All contributions to the savings account grow thanks to investment profits: funds are not just stored, but work, bringing income to the holder of the details.
Then, when a person retires, the entire available amount is distributed over 224 months and is paid every month in equal amounts.
Continuity of experience
The previous procedure for calculating payments took into account the criterion of continuity of service. This term means the period of work of a person in one or more organizations, if the period between dismissal from the previous place and placement in a new one was no more than a certain interval. It ranged from 30 to 90 calendar days and was applied depending on individual situations.
Previously, having continuous work experience made it possible to receive a higher pension. Now this indicator is practically unimportant, since only transfers made to the Pension Fund are taken into account.
