It is sad to admit, but all of us are not getting younger over the years. Sooner or later, the moment comes when it becomes impossible to work. In this case, the mandatory pension insurance system comes into effect, which is designed to provide older people with the living conditions necessary and sufficient so as not to feel deprived. We will consider in more detail who has the right to participate in the pension insurance system and how it all works.
Who needs pension insurance and why?
As you know, life does not end after reaching a venerable age, which is why the state created a system of economic and legal measures aimed at compensating for earnings received earlier. Not only elderly people can count on such compensation, but also other categories of the population established by law. The system of compulsory pension insurance involves the following types of pension accruals:
- old age;
- by length of service for certain categories of citizens (for example, military personnel and federal civil servants);
- as a result of the onset of disability;
- in case of loss of the breadwinner;
- social pension.
Also provided are such payments:
- lump sum payment to persons who do not have sufficient work experience;
- payment to the successors of pension funds for accumulations accumulated in an individual personal account after the death of the insured person;
- one-time burial allowance.
Title Documents
The terms, amounts, procedure for calculating and paying contributions for such types of insurance are determined by the legislation of the Russian Federation. These include:
- Constitution of Russia.
- Federal Law On Obligatory pension insurance in the Russian Federation " No. 167 dated 12/15/01.
- Legislation regarding taxes and fees.
- Federal Law No. 165 regarding the fundamentals of compulsory social insurance dated 07.16.1999.
- Law No. 27 governing personified accounting in pension insurance.
- Federal Law No. 173 of December 17, 01, “On the Procedure for Accruing Labor Pensions in the Russian Federation”.
- Federal law on state. pension provision in the Russian Federation No. 166 dated 12/15/01.
- Federal Law “On the Management of State Funds” pension provision (insurance) in the Russian Federation ”, as well as other laws and legal acts of the Russian Federation.
Subjects of OPS and their functions
Regardless of the type of insured event and the time of its occurrence, the legislation distinguishes three main subjects of legal relations:
- insurer;
- the policyholder;
- the insured person;
Only one body can act as a state insurer in the Russian Federation - the Pension Fund. Obligatory pension insurance is carried out through the territorial PF management body in each specific region. At the same time, a non-state pension insurance fund may be recognized as an insurer.
Insured are individuals and legal entities that make payments to individuals (that is, all employers), as well as citizens who provide for themselves to work independently - private entrepreneurs, notaries, private detectives, lawyers and others. Moreover, in the case when the insured can be assigned to several categories, the calculation and deduction of insurance premiums are carried out separately for each type.
The insured person is any citizen of the Russian Federation, as well as foreigners, who carry out labor activities in the manner prescribed by law, namely:
- working under a labor, license, civil law or copyright agreement;
- citizens working outside of Russia, subject to the payment of insurance premiums in accordance with the legislation of the Russian Federation;
- Private entrepreneurs;
- clergymen;
- members of farms;
- family communities engaged in traditional fishing;
- other categories prescribed by law.
Policyholder obligations
Whichever of the above categories the insured belongs to, mandatory pension insurance imposes some functions on him:
- register at the territorial branch of the PF;
- keep a full, reliable and competent account of withheld tax contributions;
- monitor the timeliness of their transfer, the absence of delinquencies and debts;
- fully ensure the exercise of rights for those employees who pay additional contributions for the formation of the funded component of the pension.
What the insurer should do
Of course, most of the functions of mandatory pension insurance imposes directly on the insurer. It is he who bears the primary responsibility established by the legal acts of the Russian Federation in cases of violation of legislation relating to pension insurance. Thus, the insurer is charged with the following duties:
- represent the interests of each insured person;
- carry out control and audit checks of the activities of policyholders;
- demand timely elimination of identified violations;
- to monitor the accuracy of accrual, timing and amount of payment of pension insurance contributions;
- make a timely return of insurance amounts in cases of erroneous transfer by the insured;
- exchange information with executive services as necessary;
- provide information at the request of fiscal authorities;
- cooperate with the tax service in obtaining information on the USRIP and the USRLE;
- develop and provide justifications for the size and rates of insurance premiums;
- manage budget funds of the RF PF and control their targeted use;
- on the basis of personified (individual) accounting, accrue, recalculate and pay pension benefits;
- other obligations of the RF PF as provided by law.
Rights and obligations of the insured
A person participating in the pension insurance system has the right to access information on the amount of deductions actually transferred by the employer to the FPS, to demand their full and timely payment. It is worth noting that the insured person must submit reliable documents, and is also obliged to inform the insurer in a timely manner of all changes that may be the basis for recalculating the amount of insurance compensation.
In cases where the insured belongs to the category of citizens who are self-employed, insurance contributions of compulsory pension insurance are paid to them in the PF independently. In case of failure to comply with applicable law, all insured persons bear personal responsibility within the limits of the damage caused by them.
Tariffs
Government Decision dated 04.12.2014 No. 1316 on the maximum value of the base for calculation of insurance premiums to the Social Insurance Fund of the Russian Federation and the PF of the Russian Federation states that from 01.01.2015 the total amount of contributions will be about 30%, while the deduction to the PF of Russia within the maximum established limit of the base is 22%, to the Social Insurance Fund - 2.9%, and the Federal Fund Compulsory medical insurance - 5.1%.
The maximum permissible value of the base, on the basis of which contributions for compulsory pension insurance are withheld, is 711 thousand rubles, and when calculating deductions for temporary incapacity for work, this amount is reduced to 670,000 rubles. It is worth noting that from 01/01/2015, almost all the reduced accrued tariffs that were in effect earlier were canceled.
Pension in a new way
Obligatory pension insurance involves two components: the insurance pension itself, which is 16% of the contributions received to your account in the Pension Fund during the aggregate labor activity, and the funded part - 6% of the proceeds. The legislation of the Russian Federation provides citizens with the opportunity during 2014–2015. choose the most suitable option for calculating the pension: leave the separation of pension contributions in the above proportions or abandon the funded part and direct all funds received in the form of monthly contributions to the insurance component.
To confirm consent to the creation of the funded component of the pension, it is important not later than December 31, 2015 to apply to the territorial branch of the PF and submit an application for transfer to another insurer - to a non-state pension insurance fund or management company - and conclude an appropriate agreement with them. For those who do not have time to do this, from 01.01.2016 the generation of the funded component of the pension will be stopped, and all contributions from employers will be directed to the formation of the insurance component.
Conclusion
It is worth saying that pension coverage for some segments of the population is almost the only source of livelihood. Of course, compulsory pension insurance in the Russian Federation is far from perfect, and the main problem remains the size of pensions, which, despite a constant increase, still does not correspond to the European level. However, the pension system in Russia works rationally and stably, while it is constantly being updated and improved, which will undoubtedly lead to its improvement.
