Pension reform in the Russian Federation has forced many people to ask themselves the question: “Is it worth transferring the funded part of the pension to non-state pension funds?” This topic is very important, because the financial future directly depends on such a decision. If you rely solely on the state, then not every citizen can enjoy all the benefits of the retirement period. Therefore, a logical alternative is to transfer funds to non-state pension funds.
Relevance of the decision
Of course, the townsfolk, who for many years have been accustomed to considering the state as a source of payments, the question: “Is it worth transferring the funded part of the pension to an NPF?” Leads to some confusion.
To clarify the situation, initially it is worth deciding what the funded part is. We are talking about those funds that are in a special account of the Pension Fund. The formation of these payments occurs on the personal account of each individual in the state Pension Fund, and not only. An interesting fact is that the size of such charges may differ even for those people who have the same income level. This is explained by the possibility of regulation of accumulative funds by the payer himself.
Initially, an employer pays funds to an account with an accumulative function. But nothing prevents an individual from carrying out additional injections of resources, thereby increasing the size of a future pension.
An interesting example of working with the non-insurance part of savings is Sberbank. Here you can transfer the funded part of the pension to your own organization of this banking structure with the associated interest accrual. This significantly increases the size of savings. In principle, a similar scheme is used by other funds. That is, citizens are invited to entrust the funds of a particular organization that will use them and charge pleasant interest for this. When the time comes to receive payments, the amount of savings will be more than the total amount of payments. This is beneficial and attractive for those who intend to comfortably spend their retirement years.
What does the law say about the transfer of savings
So where to transfer the funded part of the pension? Initially, you need to familiarize yourself with the legislative framework relating to this issue.
If we pay attention to Law No. 111, which was adopted in 2002, it becomes clear that the state allows citizens to independently determine where the funded part of their retirement savings will be stored.
The very existence of this type of funds is explained by the fact that the Pension Fund quite often experiences a budget deficit and, as a result, is not able to fulfill its obligations to pensioners on a stable basis. For this reason, it was decided to change the accrual scheme. This means that citizens leaving for a well-deserved rest will receive payments from their own savings, and not from those resources that were received from people making contributions to the Pension Fund.
At the same time, of course, it is allowed not to transfer funds anywhere and trust the state program. But if you look at the situation in terms of commonplace benefits, then this option is not the best. Non-state companies not only store money, but also charge a certain percentage on it, thereby increasing the size of payments.
Therefore, it is worth considering thoroughly where to transfer the funded part of the pension.
How do NPFs work?
At the moment, you can find many offers from non-state pension funds. In fact, we are talking about commercial organizations that provide certain services in the field of insurance and private pension provision. This is an important point that you must pay attention to when considering the question: "Where to transfer the funded part of the pension?"
The activity of such structures has 3 main areas:
- obligatory retirement insurance;
- professional;
- non-state pension coverage.
The last paragraph should be understood as the process of collecting private pension funds of individuals with their subsequent placement in financial funds and the payment of pensions.
How funds are monitored
Initially, it should be understood that the activities of all non-state pension funds should be subject to the current legislation of the Russian Federation, and the relevant authorities make sure that it is so. Therefore, do not be afraid of amateur performances on the part of such commercial structures.
But that is not all. Any NPF is controlled by a number of organizations. We are talking about the Federal Service for Financial Markets, the Audit Chamber, independent audit companies and, of course, the Pension Fund of the Russian Federation. This means that you can safely think about where to transfer the funded part of the pension, since the selected fund will carry out its activities strictly within the framework of the law.
Additional verification methods
In order to gain full confidence in the positive fate of the invested funds, it makes sense to use auxiliary methods to verify the reliability of the selected organization.
First of all, pay attention to the license of the fund and evaluate the level of profitability, as well as the number of customers of the selected structure. It does not hurt to look at the rating provided by agencies that can be considered authoritative.
How to transfer the funded part of the pension
In general, this procedure is simple and looks as follows:
- You must personally contact the local FIU branch. The appeal should be in the form of an application, which sets out a request for the transfer of the funded part of the pension to a specific non-state pension fund.
- You can do without visiting the department, taking advantage of the possibilities of the State services site. A letter of application can also be delivered by proxy or mail.
- The next stage is the registration in a special journal of the fact that the application was accepted. As a result, the applicant receives an appropriate receipt.
Next, everything is done by state workers. Before deciding where to transfer the funded part of the pension, you need to take into account one important nuance: this procedure can be carried out only once a year.
You also need to be aware of the reasons why the application may be rejected. We are talking about the lack of a passport or document with the specified number of the insurance certificate. If the applicant forgets or loses the certificate itself, it is also unlikely to obtain approval for the transfer of funds.
The most popular NPFs
This information is key for those who decide where to transfer the funded part of the pension. The rating of the most reliable and profitable NPFs is as follows:
- "Promagrofond".
- JSC "Surgutneftegas".
- Defense Industrial Fund.
- JSC "European Pension Fund".
- JSC "NPF Sberbank".
- Lukoil Garant et al.
To obtain more specific data, it is better to use the website “Pension Market Navigator”. This resource contains detailed information about each fund. But do not ignore other resources. It is always better to use several sources to get an objective picture, especially when it comes to rating.
Conclusion
Having decided on why to transfer the funded part of the pension, it is important to remember that the choice of a particular fund will largely determine the fate of the accumulated funds. Therefore, you need to remember the selection criteria for NPFs.These are profitability statistics, reviews (help forums), reputation, customer base growth dynamics and the total duration of the fund’s activity. Do not forget that the rate of return should be higher than inflation. Otherwise, you will have to put up with a minimum level of actual profit from the use of the accumulated funds by the fund.
If you take these principles into account and do not spare the time for a qualitative selection of non-state pension funds, then by the time of retirement it will be possible to calmly look to the future, realizing that the financial issue will not become a problem.
