From January 1, 2002, the old-age labor pension paid by the state may consist of the following parts: basic, funded and insurance. For people born before 1967, the pension consists of a basic and an insurance part, while younger citizens also have a funded one. Despite the fact that in recent years people have been provided with a lot of information regarding pension savings, it may not be clear to everyone what constitutes the basic part of a pension.
The basic part of all the components of the pension is the smallest. Its size in 2002 was 450 rubles per month, but since then it, of course, has grown significantly. The amount changes every year and depends on several factors. Its main function is to provide a person with a certain social basic guarantee, which is where the name came from.
When can you receive the basic part of your pension?
The amount of the basic part of the pension is due to all persons who have reached retirement age and have a work experience of at least five years. Increased rates of the basic part of the pension can be established for disabled people, for citizens over eighty years old. The basic part combines the minimum pension, compensation allowances and additional payments.
In order for both the basic and funded parts of the pension to grow, a constant increase in financial resources to the Pension Fund must be ensured. During the course of the pension reform, the Russian government has specially developed and incorporated into the state system an additional mechanism for savings, which will help those wishing to independently form the size of their future pension.
Where do the funds come from to pay the basic part of the pension?
Formally, the base is funded by contributions paid by the employer. In fact, payments are made at the expense of the federal budget and do not depend on what the specific amount of contributions is. The state undertakes not only to provide citizens with this minimum, but also to gradually bring its size to the level of the subsistence minimum established for pensioners.
Gradually, the basic part of the pension is actually increasing. Its size is indexed by the state annually, taking into account the rate of price growth. The size is determined within the limits of funds allocated for this purpose in the PFR budget, the federal budget.
The capital recorded in the individual account of a person with the FIU is not real money. You can describe it as a right to a certain amount of money. Contributions that go to an individual pension account at the present time are only recorded for the copyright holder, and real money goes to the PFR budget to pay the insurance part of the pension to current pensioners. In the future, real money will be credited to a person for the amount of such rights. But their amount will be determined based on what the state budget will have at that time. It will be paid from the contributions of the future generation. Depending on the demographic and economic situation, this amount may be more or less.
