Daria Nikitina

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If in the last article we briefly talked about the opportunities that state pension co-financing program, then today we’ll look at the other side of this program.

The essence of the program

Let us remind you that, starting from 2009, those who wish can take advantage of the state’s offer and deposit from 2 to 12 thousand rubles into their pension account, and the state will double this amount. And this can be done every year. This money will be placed in low-risk instruments with low returns (pension savings cannot be risked!) and it is assumed that by old age an amount will accumulate that will provide additional monthly income to the pensioner.

This seems very attractive, but only at first glance. If you dig a little deeper, interesting nuances will emerge. More on them later.

In this article:

How does the state co-finance pensions?

Let's look at a specific example

Yuri Venediktovich is now 50 years old and over the next 10 years he plans to take part in the state pension co-financing program. Every year he saves 12,000 rubles from his salary and transfers it to the pension fund, and there this money doubles. In addition, the pension fund invests this money at 10% per annum in order to at least protect against inflation, and at most increase it. And so every year.

As a result, after 10 years, Yuri Venediktovich’s account will accumulate 420,000 rubles. Calculations are shown in Table 1.

Table 1 - Increase in the funded part of the pension with annual contributions of 24,000 rubles and a rate of 10% per annum

Explanation of the table: for example, Yuri V. put aside 12,000 + 12,000 from the state = 24,000 by the end of the year. By the end of next year, taking into account interest, the amount will be 26,400 (24,000 + 24,000 * 10%), plus the annual contribution of 24,000 will be 50,400 rubles, etc.

Well, Yuri Venediktovich has saved up 420 thousand rubles. Now let’s calculate what the monthly pension supplement will be when he reaches his well-deserved retirement. The amount of the bonus is calculated as the amount of savings divided by the so-called pension payment period, which is equal to 19 years, that is, 228 months (this is stipulated in the law).

Monthly pension supplement = 420000 / 228 = 1842 rub.

How much will the same 420,000 rubles deposited in a bank at 10% per annum yield?

420000 * 10% / 12 months = 3500 rub.

Yep, 90% more (almost 2 times) than pension fund payments! And this despite the fact that the deposit amount remains with you (at your disposal), while it will not be possible to withdraw this amount from the pension fund.

But here the state “helped” with its annual contribution (a total of 120,000 rubles over 10 years).

An alternative option for receiving a pension supplement

Let’s now calculate what Yuri Venediktovich’s monthly “addition” will be if he simply puts aside 12,000 rubles every year and deposits it in a bank at 10% per annum.

Table 2 - Increase in the deposit amount with an annual contribution of 12,000 rubles and a rate of 10% per annum.

In 2009, a state pension co-financing program began to operate in Russia. It is a process based on the fact that each citizen voluntarily deposits funds into his insurance account. In 2016, the program was extended again. The minimum contribution amount remains the same - 2,000 rubles, maximum – 12,000 rubles. The role of the state in the project is that it deposits a similar amount into the account of the policyholder.

As a result of mutually beneficial cooperation between a citizen and the state, the amount in the citizen’s account doubles.

The total amount is added to the capital from which the future pension will be calculated. Upon retirement, a citizen will receive an increased supplement to his pension thanks to his voluntary transfers and state assistance. The program was suspended at the end of 2015.

There are no restrictions for participation in the project. All future pensioners who wish to increase the size of their upcoming pension payments could take part in it. In order to join it, you had to contact the Pension Fund with an application.

The application must be accompanied by documents: passport and SNILS. They can be provided personally or through the enterprise where the citizen works, if it has entered into an agreement with the insurance fund. The role of funds can be taken on by banks, post offices, or non-state pension funds.

Any adult working resident of Russia can take part in this program. The algorithm of his actions:

1. Applying to the Pension Fund with a statement. After this, you can start depositing money from the current month.
2. Depositing money into an insurance account. The minimum deposit is set at 2000 rubles. If the contribution amount is less, the state does not double it.

Contributions are made monthly. The maximum contribution in 2016, as before, remained at 12,000 rubles. If an amount is deposited that exceeds the established maximum, the state does not double it.

There is a special right for persons who continue to work after reaching retirement age. His enrollment increases manifold. This creates an incentive to continue working.

Credits to the account are made for 10 years. During this time, the state undertakes to deposit into the account amounts similar to those deposited by Russians.

About the prospects for co-financing in 2016

Taking into account the experience of the project on state co-financing, the Russian government plans to resume it in 2016. Changes will be made to it to improve the insurance accumulation system.

Interesting fact: Having ceased to operate at the state level, the program continues to operate at some large enterprises, as well as in business structures that are interested in attracting qualified personnel.

The Russians were wary of the new project and did not rush to stand in line to take part in it. But those who participated actually increased the insurance part of their future pension. The government did not deceive; the funds were transferred in good faith to the accounts of the policyholders.

Today the program, operating in some structures, is gaining popularity.

According to statistics, more than 8 million people voluntarily invest their funds in commercial pension funds, taking part in co-financing.

Therefore, by government decision, the program will continue to operate this year. It is currently being finalized.

As before, it is planned to co-finance the invested funds in a 1:1 ratio. That is, the state’s investments will correspond to the contributions of future retirees.

Beneficial exceptions are provided for pensioners who have reached retirement age, but have not issued a pension and continue to work. Government investments are planned into their accounts in an amount equal to five times the size of the citizen’s investment.

There will be no restrictions on participation— non-working pensioners can also take care of increasing their pension by joining the program.

The choice of fund for depositing funds depends only on the wishes of the policyholder. Foundations can be public or private. The funds have the right to invest all funds in various projects, shares, and promising financial projects. Their goal is to increase their investment. Citizens have the right to request information about the status of their account at any time.

Guarantees for program participants:

• All savings can be inherited.
• The policyholder can choose how the payment will be made: in the form of a set amount throughout life or payment of all funds for 10 years in equal parts monthly.
• All money paid will be tax deducted.

Another interesting aspect of the program– the employer can take part in it. The funds he can contribute are not limited in any way. The employer’s capabilities and desires regarding the amount of amounts contributed do not depend on the conditions that the state has established for itself. At the same time, the state interests him in participating in the project by providing various benefits.

Thus, the meaning of the state co-financing program is to form the basis of a future pension. The partners in the co-financing process are the citizen and the state.

To date, over a million Russian citizens from 33 regions have taken part in the pension co-financing program. The total amount of money transferred towards the funded pension is 340 million rubles. In 2016, those who “activate” it for themselves by making a payment before the end of January 2015 will be able to become a full participant in the pension co-financing program.

The essence of the program

The state pension co-financing program began operating in Russia back in 2009. Under the terms of this program, it was necessary to make the first payment by the beginning of October 2013. This program is also called “1000 by 1000”. Its essence is that a citizen independently makes a certain contribution to the funded part (minimum 2,000 rubles) and further doubles this amount at the expense of public funds. Accordingly, the state can additionally transfer a minimum of 12 thousand rubles per 12 months to a personalized account.

Co-financing is an element of the pension “collection” program, making additional payments that go into the funded part of the payment. The insurance part is not easy to calculate today, but it is guaranteed to be available to any citizen who has a certain insurance period and has retired. And the funded pension (since 2015) consists of those payments that are withheld by the enterprise or paid by the taxpayer independently.

Co-financing is carried out by NPFs (non-state pension funds) or management organizations. They act as intermediaries between future pensioners (and currently working citizens) and the Pension Fund: they transfer money to Pension Fund branches. At the request of the applicant, the funded pension can be paid immediately in full, divided into certain parts for payment, or transferred to the pensioner in equal parts along with the insurance payment. How to receive a payment under the pension co-financing program depends on the wishes of the pensioner.

The state invests the funds contributed by the citizen. The Pension Fund, as the holder of a funded pension, can place funds on deposits in banks, and subsequently receive and/or capitalize the profits received. Intermediaries - banks and non-state funds - also receive investment profits at the expense of citizens' money.
Conditions

Features of receiving payments

The state pension co-financing program in 2015 has the following nuances:

• Privileges are granted to persons who have reached the age limit suitable for receiving a payment (55 and 60 years old in the general order), but have not applied to the Pension Fund for accrual of the due payment. State co-financing in this case involves increasing the contribution by 4 times, but in an amount not exceeding 48,000 rubles annually.
• Pensioners who continue to work officially after retirement cannot become participants in this program.
• A benefit is provided - the amount generated under the program is suitable for filing a personal income tax deduction.
• The heirs of a deceased person are entitled to a funded pension in two cases: death occurs before withdrawal and payment is made, or the deceased has declared an urgent payment (for a period of at least 10 years) and has reached the established age.

The pension program is available to all Russians: they can take part in co-financing their pension. To participate in it, you must contact the nearest PF branch with the following documents:

• . passport;
• . statement;
• . pension insurance certificate.

Submission of documents is acceptable in one of the following ways:

• through the employer;
• independently in the PF;
• through the management company, non-state pension fund, as well as any institution that has entered into an agreement with the pension fund (bank, branch of Russian Post).

The contribution is paid by receipt at bank or post office branches. You can get a sample of it with completed details at your local PF. The contribution can be made personally or through the employer. The latter in this case acts as an intermediary, forming the funded pension of its employees.

In this case, the amount of transfers from the employer must be equal to the amount of the employee’s contribution. Example: an employee transfers 5 thousand rubles to the Pension Fund. 15 thousand rubles are automatically credited to his account - 5 is his personal contribution, 5 is contributed by the employer and another 5 is co-financed by the state.

Benefits for citizens

The main advantage for future retirees is a twofold increase in the funded part of the pension. Upon reaching the age to retire, a citizen can further increase this amount without making payments.

In addition, most often citizens today turn to non-state pension funds, which allows them to receive guarantees of timely transfer of payments to the pension fund. The application for cooperation can be submitted in person or online.

Those born after 1966 benefit most from the program. They are not entitled to the formation of a funded pension through contributions from the employer, and therefore participation in the program is a real chance to increase their future pension.

Mutually beneficial cooperation between citizens and the state in terms of pension accumulation has the following advantages:

• small minimum monthly payment - 2 thousand rubles (maximum - 12 thousand);
• voluntary transfer of funds;
• doubling the amount accumulated in the citizen’s account;
• flexible payment schedule - once a month, quarterly, and so on.

There are also negative points:

• the opportunity to receive funds only upon reaching the age of retirement - 60 or 55 years;
• reduction in actual payment due to inflation.

In 2015, there were some changes in the operation of the pension co-financing program: now contributions made by current pensioners or employees will not be co-financed. If a pensioner managed to become a member before 2013, this innovation does not apply to him. Military retirees also cannot become participants in the program. A lump sum payment can now be paid not once every 12 months, but only once every five years.

The program of state co-financing of pensions began in Russia since October 2008 and was originally designed until October 2013. Over the five years of this program, more than 15 million Russians became its participants. This indicator of the activity of our citizens was one of the reasons for its extension.

Taking into account the changes made to the current legislation, it became possible until January 2015, subject to making the first voluntary contribution no later than January 31, 2015. Now take part in the co-financing program it is forbidden.

What is “co-financing”?

Concept "co-financing" was introduced by Law No. 56-FZ of April 30, 2008. “On additional insurance contributions for funded pensions and state support for the formation of pension savings”.

Co-financing is state support in the form of additional charges, allowing citizens to increase personal contributions to their future funded pension.

Can participate in the co-financing program several sides:

• the citizen himself;
• state;
• employer.

The participation of the latter party is not necessary, but in many enterprises such a step is an additional motivation for employees as part of the social package provided to them.

State co-financing is voluntary and is carried out on the basis of a personal application from a citizen.

State support for the formation of pension savings

The principle of participation in the co-financing program is that the citizen transfers additional insurance premiums (DSI) for your future funded pension and its proportionate increase by the state.

The right to receive funds from the state under the co-financing program are insured persons who have completed two conditions:

• filing a corresponding application in the period from 10/01/2008 to 12/31/2014.
• payment of the first installment no later than January 31, 2015 in the amount of at least 2,000 rubles per year.

It is important that for citizens who have paid a smaller amount, co-financing is not provided.

This program is valid (continues to be valid for those who join it) for 10 years. Consequently, it will last until 2025. The increase in the personal contribution of a citizen with the help of state support begins with next year after paying the first installment.

Co-financing of pension savings of citizens is carried out by translation Money from the federal budget to the Pension Fund budget on the basis of a corresponding application generated by the Pension Fund before April 20 of the year following the payment of the DSA.

Although this program is often criticized, it also has a number of undeniable advantages:

• state participation in the formation of a citizen’s future pension;
• the right to receive a tax deduction from the amount of contributions paid by a citizen;
• receiving investment income while effectively managing your savings, including funds from the state;
  inheritance of pension savings.

However, after the extension of the program in 2014, some of its conditions became not available to all participants. However, a guaranteed increase in a citizen’s personal contributions on a thousand-for-thousand basis makes such investments one hundred percent profitable.

It is important that insured persons participating in the program are provided with benefits in the form of a tax deduction, that is, the opportunity to return 13% of the contributions paid.

The amount of contributions under the pension co-financing program and the procedure for increasing them

According to Art. 13 Federal Law No. 56 of April 30, 2008, the amount of the contribution under the state co-financing program is established depending on the personal contribution paid by the citizen in the previous year and does not exceed 12,000 rubles per year.

The increase in personal contributions for participants in the co-financing program is carried out in the following order:

• a citizen deposits money into his individual personal account using his pension insurance certificate number (SNILS);
• the state doubles this money and transfers the received amount to the insured person also to his personal account.

Direct calculation of the contribution for each citizen is carried out by the Pension Fund on the basis of individual personalized accounting data.

It should be borne in mind that you can transfer over 12,000 rubles to your account, but the state will double the money only within this amount.

Payment of contributions through an employer or bank

Payment of contributions can be made two ways: through an employer or through a bank.

• In the first option, the citizen needs to contact to the accounting department of your organization and write an application for voluntary entry into the co-financing program indicating the specific amount of the monthly contribution or percentage of your salary. In the future, the citizen has the right to change the amount by submitting a corresponding application to the accounting department.
• In the second option, the citizen needs contact the bank yourself and transfer money to your personal account at the Pension Fund. The necessary payment details can be obtained in several ways:
  • in the territorial body of the Pension Fund;
  • in the bank itself;
  • using Internet resources.

Contributions can be transferred either in equal amounts throughout the year or in one-time payments. It is important to keep a copy of the payment document when paying yourself to reconcile payments with the Pension Fund and to receive a tax deduction.

A tax deduction is provided to the insured person up to 12,000 rubles, transferred by him as additional contributions to the funded pension.

You can receive a deduction by choosing one of the following methods:

• submit an application to the accounting department;
• submit documents to the tax office.

Is the program valid in 2018?

The opportunity to join the program is clearly limited by the current law - this is the period from October 1, 2008 to December 31, 2014. Therefore, become a member this year does not seem possible.

• As for citizens who have already entered into legal relations, the program continues for them in 2017.
• The contributions paid by the personally insured person this year will be doubled by the state and transferred to his individual account in 2018.

Taking into account the fact that state support is designed for each citizen for 10 years from the year following the year of payment of the first voluntary contribution, its maximum effect for those who joined in the last days of possible entry into the program will last until 2025.

Participation in the program does not depend on the pension option chosen by the citizen. By refusing to form a funded pension under compulsory pension insurance, you can continue to pay voluntary contributions, receive co-financing from the state and income from investments.

Co-financing a pension: how can pensioners get money?

Pension savings accounted for in the individual account of the insured person are paid together with the investment income received only when the citizen retires. There are several options for receiving this money:

1. lump sum payment- savings are paid in a lump sum, provided that the cumulative payment is less than 5% of the amount of the insurance pension, including the basic payment, and the amount of the funded pension as of the day of its appointment;
2. urgent payment- the duration of such payment is determined by the pensioner himself, but cannot be less than 10 years;
3. funded pension- the amount of such payment will be lower than for urgent payment, since it will be calculated based on the expected payment period (in 2018 - 246 months), but will be paid for life.

It is worth noting that as a result of the extension of the co-financing program, it has undergone a number of changes regarding:

• rights of pensioners- voluntary contributions will be co-financed by the state only for those persons receiving pension payments who entered the program from 10/01/2008 to 09/30/2013;
• lump sum payment- since 2015, savings are paid once every five years, and not every year, as was previously the case.

Procedure for receiving payments and required documents

If the right to payment from pension savings arises, a citizen may Anytime apply for her appointment. An application for such payment can be submitted in person or through a legal representative in several ways:

• through the territorial body of the Pension Fund;
• by mail;
• through a multifunctional center (MFC);
• through the Internet.

To apply for payment you must submit following documents:

• proof of identity and place of residence;
• pension insurance certificate (SNILS);
• a set of documents necessary to establish an insurance payment (work book and other documents on length of service, earnings, presence of dependents, as well as clarifying additional circumstances).

If an insurance pension has already been assigned, then there is no need to re-submit the documents available in the pension file.

The processing time for an application depends on the type of payment and is:

• no more than 10 working days - when assigning a funded pension or urgent payment;
• no more than 30 days - if a lump sum payment is assigned.

As a result of checking the submitted documents, a decision is made to assign or refuse payment, indicating the reason. In case of a positive decision, a lump sum payment is paid within two months from the date of the decision.

Special conditions for co-financing pension savings

According to Art. 13 Federal Law No. 56 of April 30, 2008, special conditions for co-financing pension savings are provided for some insured persons. To do this, citizens must meet the following requirements:

• there is a right to insurance payment in accordance with Art. 8 Federal Law No. 400 dated December 28, 2013;
• There is no application to the Pension Fund for any type of pensions or payment of pension savings.

If the above conditions are met, a citizen can count on an increase in his contributions fourfold. The amount of state co-financing cannot exceed 48,000 rubles per year.

Thus, by transferring 12,000 rubles per year to the account of his future funded pension, a citizen can replenish his savings by 60,000 rubles, taking into account 48,000 rubles from the state.

Payment of funds after the death of the insured person

The funds accumulated by a citizen during participation in the co-financing program are inherited by the legal successors of the insured person in the event of his death in the same manner as pension savings in the compulsory pension insurance system (MPI).

Pension savings are inherited only if death occurs:

• before payment is processed or until it is recalculated taking into account additional contributions;
• after the appointment of an urgent payment(you can receive the unpaid balance);
• after it was appointed, but lump sum payment not paid.

If a citizen has not determined in advance the legal successors of his pension savings, then the heirs can be divided into two lines:

• in the first - children, spouse, parents;
• in the second - grandfathers, grandmothers, grandchildren, brothers, sisters.

To receive funds accumulated by a citizen, his relatives need contact to the territorial body of the Pension Fund of Russia no later than six months from the date of his death. A missed deadline can only be restored through court proceedings.

To apply for payment of funds after the death of the insured person, the following documents must be submitted:

• identification of the applicant;
• confirming family relations with the deceased;
• death certificate.

The decision on payment is made within the seventh month from the date of death of the citizen, a copy of this decision is sent to the heirs within 5 working days. Direct payment of funds is carried out no later than the 20th day of the next month from the date of the positive decision.