What is pension valorization?

It is worth starting with the interpretation of the concept under consideration. Pension Valorization - This is a special indexation system for the existing pension capital formed by our workers in the Soviet, post-Soviet times.

Basic concepts

Conversion - conversion of existing pension rights received by the insured entity as of 01.01.02, into the amount of settlement capital. To do this, it was necessary to determine the conditional value of the pension corresponding to the above scope of rights. In other words, it was necessary to establish the estimated amount of the pension.

Estimated Pension Capital - the aggregate of pension rights directly in monetary terms that were acquired by the insured citizen before 01.01.02, the amount of insurance contributions sent to the Pension Fund for it after this period.

This indicator is calculated according to a special formula, which includes information regarding work experience, wages or personified accounting data.

During the calculation procedure, each insured subject can use either specific data on the average monthly salary for 2000-2001, or personalized accounting information will be applied, or any 60 months of his working activity in a row will be included in the accounting (best earnings )

For those who have incomplete seniority (general), the amount of estimated pension capital, the calculation of which was based on the total length of service, will be reduced by a factor representing the ratio of the number of actually worked months to their number in the total length of service.

The amount of the pension capital (initial) in rubles is paid into the special individual bank account of the insured entity. Subsequently, this amount is subject to valorization.

Already indexed pension capital (initial), together with available insurance contributions, which will be subsequently systematically deducted by employers, so to speak, in favor of employees, will form a substantial capital (funded) by the time they reach the established retirement age, which is used to calculate the size of the labor pension.

The indicators used to establish the pension of a citizen of Russia until 01.01.02

There were only two of them:

1. The average salary for a specific period (2 of the most recent labor years, 5 sample years from the entire experience).
2. The duration of the entire work experience.

After 01.01.2002, the system was adjusted: the pension became directly dependent on insurance contributions to the pension insurance system, which were made upon the fact. This system worked without changes until 12/31/2014.

Deficiencies in the pension system in 2002 and ways to correct them

In view of the changes that occurred in the above period of time, citizens who worked and gained seniority before 12/31/2001 had no actual insurance contributions in fact. In addition, it became obvious that even if the pension capital established before 2002 was established in accordance with the old rules, the pension of the older generation will suffer significantly in quantity. Therefore, in order to equalize the rights of those who earned a pension in Soviet times, the first decade of the post-Soviet period, in 2009 it was decided that pension valorization should be carried out. In other words, its revaluation (indexation).

Amendments were made to article 28 of the Federal Law. They began to be implemented on 01.01.2010. New articles also appeared, in particular 30.1 - 30.3.

The scheme of the changes made is quite simple: the pension capital received by the citizen before 01.01.2002 increases by 10% and another 1% for each worked year for the period until 01.01.1991, and in order for the pension to be valorized , it doesn’t matter how many years were worked out before 2002. The only limitation is that you need to work at least 12 months.

How to calculate the valorization of pensions, it has already become clear, now it is necessary to deal with the issue of capital, which is subject to revaluation.

What pension is indexed?

And citizens who already receive it, and pensioners in the future. Those to whom it was previously drawn up before the law on the valuation of pensions came into force, immediately indexed in the same year (2010).

The remaining citizens who have reached the established retirement age (retired) between 2010 and 2014 did not actually feel the revaluation, since it was carried out at the same time as the procedure for applying for their monetary security for old age or disability.

Pension reform of the current year

The new law does not mention pension valorization. Many are concerned that indexation of these payments will be discontinued. According to official figures, this will not happen.

Despite the fact that the old Federal Law is no longer used, the provisions that serve as the basis for delineating the insurance component of the pension, given that they do not contradict the provisions of the new Federal Law, are still valid.

So, the valorization of pensions in 2015 is carried out on the same basis for pensioners of both the current year and all other years, if these persons were officially employed, they received the corresponding experience until 01.01.2002.

Pension Calculation Procedure: Example

Despite the fact that the valorization of a pension in 2015 is automatic (without the participation of a pensioner), you can independently calculate it at home.

First you need to determine the accumulated pension capital for all periods until 01/01/2002. This calculation is performed using formulas that can be taken from the Federal Law No. 173 (Clause 1.3, Article 30). Due to the fact that they are quite voluminous and require clarification of the basics of calculating pensions, according to the existing laws of 2002, it should be assumed that the value of the CDD is already known.

Then it is required to determine the amount of available pension rights received before 2002. In other words, the number of years worked until 01/01/2002, separately - until 01/01/1991. For clarity, an example is presented below.

The citizen worked for 15 years until 01/01/2002, 4 of which were for the period until 01/01/1991. As previously agreed, the NKP is the amount of pension capital that has been accumulated over the 15 years worked.

Pension valorization is calculated using the following formula:

NKP · (100% + 10% (for 15 years of work experience) + 4% (for 4 years worked until 1991)) = NPC · 114%.

Thus, the pension growth after indexation amounted to 14%, based on the estimated amount of pension capital.

It is worth paying attention to the fact that the valorization of pensions in 2014-2015. increases only part of it (what was “earned” before the previous pension reform, more precisely, until 2002). As for the insurance capital received after this year, it will be transformed into special points in 2015, the pension itself will be calculated according to the new Federal Law.

In a situation where a pensioner, while making this payment, did not know about indexation and did not indicate all the periods worked by him, he can always turn to this question with his FIU and present relevant proof of seniority (extract from the contract, certificates, certificates of employment, etc.) . To do this, you need to fill out an application for the subsequent pension recalculation already taking into account indexation. In other situations, it is not required to be served.

Valorization of pensions with harmful working conditions

For this category of citizens (for recipients of pensions on special Lists 1 and 2), there are 2 different options for the assessment of their existing pension rights, namely:

• calculation is made from the total length of service (labor);
• special experience is taken as a basis.

When indexing, the evaluation option can be replaced with a more profitable one. In the end, the calculation of the insurance component (initial) will also change.

Valorization of the flight pension

Payments of this kind that are accrued to the category of workers in question prior to the acquisition of the Federal Law on labor pensions are subject to mandatory revaluation during the course of the specified legal act.

Indexing increase

As mentioned earlier, the valorization of labor pensions is a revaluation of the monetary value of existing pension rights received by Russian citizens before the reform of 2002. Indexing is carried out for all persons (insured) who have worked prior to January 1, 2002.

Valorization of pensions in 2010 on average led to an increase in existing pension capital by 1,431 rubles. per month. The most tangible effect will be visible in people older than 80 years - 1700 rubles. for the above period. Those who are not yet 60 years old or exactly 60 - 700 rubles., Over 60, but not more than 70 - 1300 rubles., Over 70, but not more than 80 - 1600 rubles.

For convenience, the average increase in valorization is grouped based on the age criterion in the table below.

The change in the considered growth in monetary terms depending on the year of retirement can be seen from the table below.

The territorial authority of the FIU, in which the pension business of a particular recipient is located, will carry out a procedure for recalculating the amount of the pension already received on the basis of the available documents.

As mentioned earlier, the same should be addressed if there are additional documents regarding seniority, earnings not taken into account during the assessment of pension rights as of 01.01.2002 (in any other situation).

Northerners Pension Indexation

When calculating their length of service, the same periods are taken into account that were already included in the assessment of existing pension rights. The indexation value of the considered category of citizens will be calculated in accordance with the norms of the old legislation (1 year of labor activity in the Far North for 1.5 years), provided that the above assessment as of January 2002 was also carried out in accordance with the same standards.

For example, until 1991, 10 years were worked out in the Far North. Valorization of pensions (in 2014) increased the available pension capital by 25%. Of these, 10% for work experience and 15% for 10 years worked in the above region.

If the pension "does not reach" the subsistence minimum, then it is adjusted to its value in accordance with Russian law, which entered into force in 2010. This minimum income level is established in each individual region annually. In order to level these values, non-working pensioners, whose total income is less than the subsistence level, are also paid a federal social payment. First of all, this applies to recipients of labor, social pensions due to loss of breadwinner, disability (only 3 groups).

Revaluation of military pension

Only subjects receiving pensions in accordance with the Federal Law mentioned earlier will fall under valorization. Pension provision military is regulated by another law. However, if a serviceman was engaged in labor activities, and, so to speak, in a civilian for more than 5 years, and thereby acquired the right to a 2nd pension (insurance component of the labor pension), then valorization is ensured for him.

Is study, childcare taken into account in the work experience during valorization?

In a situation where the pension capital was established without taking into account the time spent on training due to the fact that this was considered the most profitable option for converting this type of rights - according to the Federal Law No. 173, taking into account the total length of service, the considered time period will not be included in the calculation of valorization. If there was another Federal Law (340), then the years of study will be taken into account when re-evaluating.

As mentioned earlier, recalculation is made relative to the length of service.As for studying at a party school, in the case when it proceeded with a margin from a specific production and, moreover, did not act as an insurance seniority, this period will not be taken into account (provided that the pension is calculated according to the option assuming the existence of an individual coefficient).

And if it is profitable for the subject to calculate the pension using a different option (according to the Federal Law No. 340), then all periods will be taken into account there, including studies both in a party school and in other universities, as well as non-insurance. However, there is a limitation - the maximum pension. In this regard, this time period can enter the calculation of valorization (most often it is not very profitable). That is why PFR experts always check the feasibility of calculating the payment in question.

The situation is similar with the period of childcare. In the course of valorization, the relevant FIU authorities checked the possibility of the transition of the subject to more favorable pension provision. For example, in some cases it was more expedient to calculate the pension capital from the total length of service, rather than special, because the revaluation amount was higher.

It is important to note that the experience gained in the previously existing Soviet republics will also enter. On the basis of the Agreement of the CIS countries (1992), the state - its member appoints a pension strictly according to the existing legislation to a person who has arrived from the above countries for permanent residence. These pensioners in our country are assessing the rights under consideration received before 01.01.2002, and the time of work in other countries is counted in the length of service when calculating the Russian pension.

Revaluation of the pension "Chernobyl"

As mentioned several times earlier, without exception, all labor pensions fall under the valorization. Persons who participated in the process of eliminating the negative consequences of the Chernobyl disaster receive a state pension in addition to the labor pension. This category of citizens also has seniority until 01.01.2002, which is subject to revaluation.

Finally, it is worth recalling once again that the valorization of labor pensions is an indexation of the pension capital accumulated by Russian citizens in the Soviet, post-Soviet times.