In 2015, the next pension reform was adopted, in which new concepts and principles for calculating pensions were introduced. If earlier the calculation was carried out on the basis of pension capital, then at present the pension coefficient has begun to influence the amount of future payments. Payments to the FIU are now converted to retirement points.
The concept
For each year of work a citizen is awarded a certain number of points. They are counted based on the amounts that the employer periodically transfers. Thus, retirement points are accrued only with official employment.
The Law on Insurance Pensions No. 400-ФЗ states that the pension coefficient is defined as an indicator, due to which the right to payment is reflected taking into account the following components:
- Length of service insurance.
- Age at the time of payment.
- Amounts of contributions to the fund.
Since the transfer is carried out by the employer, for the employee he acts as the insured. In the case of an individual entrepreneur, the policyholder and recipient of the pension may be the same person.
An individual pension coefficient (in short - IPC) is one of the main values used in the formula for calculating insurance payments. Citizens have a natural desire to know about accumulated points, as well as the receipt of funds transferred by the employer to the fund. And such an opportunity is provided to them.
Where to find information about IPC
Check the accumulated points with the receipt of official notice is possible in one of the following ways:
- By applying to the multifunctional service center.
- Filing a request for an extract on the electronic portal of State services.
- Obtaining relevant information on the PFR website.
- In addition, the employee can personally contact the territorial branch of the FIU to find out the relevant information.
In the extract provided to the applicant, in addition to the accumulated points, the total amount of funds is indicated, as well as the length of service. However, information about a period earlier than 2000 will not be displayed in the document.
If desired, the employee can independently calculate his pension coefficient. But for this you need to consider many factors. For example, in the period until 2002, from 2002 to 2014 and from 2015, different formulas are used for calculation.
By contacting the State Service electronic portal or another virtual resource, you first need to go through the registration procedure and gain access to your personal account. The site has an online calculator where, by entering the requested data, you can immediately get the calculation. But these data are approximate. To obtain accurate information, you need to order an extract for a specific year of work.
Legislation
The legislative acts that govern this issue include the following:
- Law "On Insurance Pensions" No. 400-ФЗ.
- The law "On labor pensions" in the Russian Federation No. 173-FZ.
- Law “On funded pension” No. 424-ФЗ.
These legal acts establish the procedure for accrual of points, their amount, as well as options for retirees to receive payments when they reach the appropriate age.
Coefficient value
The pension coefficient for the year is an indicator that is established annually and is used to assess the citizen's labor activity taking into account the total insurance experience. The effect of the coefficient on retirement is explained by the fact that the calculation takes into account the salary that a citizen received at work. Based on the size of the salary, the employer makes contributions to the Pension Fund.
The number of accumulated points is converted into rubles.Therefore, in order to accumulate a sufficient amount of pension points, it is necessary to strive to work officially and receive a “white” wage.
Coefficient for assignment of pension
This year, in order for an insurance pension to be assigned, the individual coefficient on the employee’s account should be at least 13.8. In connection with the ongoing reform, this indicator will grow annually until it reaches 30. This will happen in 2025. And in 2019, the minimum amount of pension points will increase to 16.2. If a person who has reached retirement age has a coefficient below the established mark, then the Pension Fund will refuse to grant him a pension. This rule applies both to the standard procedure for going on well-deserved rest, and in the case of the right to early retirement.
Payment
With each year of work, the future pension changes (individual coefficient). The calculation of the next amount of pension points is carried out at the end of the year after accrual of the latest contributions to the FIU.
The formula for calculating the number of points for the past year is as follows:
IPC = (CER / NCCV) * 10, where
IPKg - coefficient for the year;
CER - the amount of insurance premiums for the year;
NIRS - the amount of the relevant contributions from the maximum base, which is taxed.
The last indicator has a different size, which is set every year. If in 2016 it was equal to 796,000 rubles, and in 2017 - 876,000 rubles, then in 2018 it amounts to 1,021,000 rubles.
Since the points were introduced in 2015, the pension contributions of employers in the earlier period were also converted into points.
Currently, to calculate the total number of IPC, a special formula is used, which has the following form:
IPK = (IPKs + IPKn) * PC, where
IPs - contributions paid by the employer until 2015;
IPKn - points accumulated after this period;
PC - increasing factor (used in some cases).
The maximum value of the coefficient
When calculating the total number of points, restrictions apply. For example, if the citizen’s annual income is more than 1 million rubles, then the maximum coefficient for calculating the pension, which cannot rise above the established level, is taken into account.
In connection with the ongoing pension reform, this indicator changes from year to year. At the end of the reform (in 2021), it will be equal to 10. At present, only 8.70 can be obtained per year.
Example
Suppose a person retires in 2018, and over the entire period of work he has accumulated 80 points. The fixed part of the insurance pension in this period is 4,982.90 rubles, and the cost of one point is 81.49 rubles. By simple calculations it turns out: 4 982.90 + (80 * 81.49) = 11 502.10. This is the amount that a person will receive if he has filed an application after reaching retirement age.
If he has reached retirement age in 2013, and he filed an application 5 years later, then an increase factor of 1.34 is added to this formula. As a result of this, the pension automatically increases to 15,412.81 rubles.
Unearned period
To find out what the pension coefficient will be, you need to take into account that some periods during which the citizen did not work are also included in the experience. Consequently, pension points are accrued. These periods include the following:
- Service in the armed forces of the Russian Federation on conscription. At the same time, a citizen receives 1.8 points for 1 year.
- Finding a woman on maternity leave and caring for a small child up to one and a half years. When caring for the first child, the coefficient is 1.8, for the second - 3.6, for the third and next - 5.4.
- Caring for a legally incompetent citizen (a disabled person of group 1, a child - a disabled person or a citizen whose age is more than 80 years).
North ratio
When moving to permanent residence in the northern region of Russia, citizens will receive a pension in a larger amount. In this case, the minimum requirements for the appointment of an insurance pension must be observed.These include the age of the citizen, the minimum length of service, as well as the required number of points. So, under these conditions, the pension of an elderly person living in the north will be about 14 thousand rubles. excluding premiums at the regional level.
Reducing coefficient in the Ministry of Internal Affairs
In relation to employees of the Ministry of Internal Affairs, a decreasing pension coefficient was previously applied. This situation remains in 2018. At the moment it is 69.45%, but in the future it will be increased to 71%. In addition, employees of the Ministry of Internal Affairs can count on various allowances, especially in the case of service in the bodies for more than 20 years. As for the military, the military pension ratio in 2018 increased to 72.23%.
1 retirement point
The cost of a retirement point changes annually. In 2018, it is 81.49 rubles. The calculation takes into account different parameters. For example, the value of the IPC depends on the amount of points that were earned before 2015 and after this period. But when calculating the value of a pension point, inflation is taken into account. This level is calculated annually and is expressed as a percentage. They are repelled from this value when determining the value of a pension point. However, these values do not have to match. For example, in 2017, inflation was at 3.2%, while the cost of the point increased by 3.7%.
Funded pension and points
Until 2015, citizens were given the opportunity to decide whether to form future pension rights solely from an insurance pension, or to transfer part of the funds to a funded one. Currently, such a question is not posed, since a moratorium has been imposed on funded pension. Therefore, all funds are transferred to an insurance pension.
It is believed that by concluding an agreement with a non-state pension fund (non-state pension fund) on transferring a funded pension in the future, a pensioner will be able to significantly increase the amount of pension payments. However, at the same time, it is necessary to take into account the risks in which it is possible to lose all possible income in the event that the investment of NPFs is unsuccessful.
In addition, when transferring funds to a funded pension, fewer pension points will be credited. If the maximum number of points for an insurance pension at the end of the reform is 10 per year, then for an insurance and funded pension it will be only 6.25.
Conclusion
Now it’s clear how important the pension coefficient is. The calculation of the pension will show a higher value if a higher coefficient is applied, for example, for residents of the North, as well as a lower value (as for the employees of the Ministry of Internal Affairs). In general, only time can show how successful a system with retirement points is.