Since 2002, a compulsory pension insurance system has been introduced in Russia. The future pension according to the new formula consists of insurance contributions that the employer must pay for his employee to the Pension Fund.
How the pension is calculated
Since 2014, employers have paid 22% of the employee's wage bill for the year. Of this amount, 6% refers to the solidarity tariff, 16% to the individual tariff.
The solidarity tariff is intended for the accumulation of funds for the payment of the basic pension, that is, the insurance contributions of working citizens are directed to pay current pensions.
The individual tariff is taken into account on the personal account of the insured citizen for the formation of a future pension. These funds are not received for the payment of current pensions. At the choice of the future pensioner, the money is sent to a non-state pension fund (NPF) or is entrusted to a management company for investment operations.
Types of pensions
Starting from 2015, the state pension insurance system will have two types of pensions - insurance and funded. Any citizen born in 1967 or younger in 2014-2015. you must choose a pension option.
A future pensioner can direct his insurance payments towards the completion of an insurance pension or to the formation of the insurance and funded parts of pension savings.
The insurance pension is created in pension points. The value of points is set by the authorities, and each year it rises to a level not lower than inflation in the previous year. The pension is increased by increasing the value of the points.
The funded part of the pension depends on the investment results. Losses are possible as a result of financial transactions. In this case, the payment of insurance contributions for the funded part of the pension is guaranteed by the state. The funded part of a citizen's pension is not protected from inflation.
Output
The more insurance contributions are made to a personal account with the Pension Fund of Russia, the more pension payments will be in the future. The amount of insurance premiums depends on the amount of the official salary. You can get advice on the amount of the pension and the procedure for its formation in the Pension Fund at the place of residence or through the portal of public services.
