In 2015 series of events and changes will happen in the Russian pension system that will affect on all participants of the system of mandatory pension insurance: current and future pensioners, as well as Russian employers.
The new pension formula
New method for the formation of pension rights of citizens and the calculation of pensions in mandatory pension insurance system, so-called "the new pension formula" is activated on January 1, 2015. The labor pension is transformed into two types of pensions: insurance pension and funded pension.
For the calculation of pension under the new rules the concept of "individual pension coefficient" (the pension point) is introduced. The pension point evaluates each year of the citizen’s labor activity. To be eligible for appointment of insurance old-age pension, you must have 30 or more pension points. But this rule will be operational from 2025 in full, so it will be enough to have 6.6 points in 2015.
Requirements for a minimum employment period to be eligible for an old-age pension are also changed. It will rise from the existing 5 up to 15 years. However, transitional period is designated as in the case of the pension points: in 2015 required minimum employment period accounts 6 years and it will gradually increase every year by 1 year during 10 years.
It is worth noting that according to the new pension formula in addition to employment period, socially significant periods of human life will be awarded by points, such as military service, child rearing leave, disabled child rearing leave, citizen over 80 years old care leave etc.
From January 1, 2015 pension point amounts 64.1 rubles, the amount of the fixed payment to insurance pension - 3935 rubles. From February 1, 2015, the value of the points and the size of the fixed payment will be indexed (the forecast is 9.8%) for the actually existing consumer price index for 2014.
All formed today pension rights upon conversion to the pension points are saved, their size won't be reduced.
All pensions that have already been assigned upon conversion of pension rights in the points cannot be reduced.
Personal account of the insured person
In January 2015 the Pension Fund of Russia launches the new electronic service "Personal account of the insured person". It permits citizens of pre-pension age to learn about their already formed pension rights on-line. The Personal account is available on the PFR official website- www.pfrf.ru. All users who have registered in the unified system of identification and authentication (USIA) or website of government services can get access to it.
Through the Personal account a citizen can learn about the number of accumulated pension points and period of employment that are recorded on his personal account in the PFR. It is important to note that all information in the Personal account about the pension rights of citizens is formed on the date which the PFR receives from employers. Therefore, if a citizen believes that information is not taken into account or not fully taken into account, he has the opportunity to apply timely to the employer in order to clarify information and submit it to the PFR.
Also the service gives information on the amount of pension points you will be awarded in 2015. You simply need to enter your expected monthly income from employment before the deduction of personal income tax in the appropriate window. In 2015 maximum number of points – 7.39
Functions of the instantaneous formation and print notices about the status of the citizen’s personal account ("Chain letters") were provided for the convenience of users.
In addition, the service provides information on pension savings, including information on voluntary contributions to the state co-funding Program and the state funds.
You can also use an improved version of the already known pension calculator in the Personal account. From 2015 the calculator becomes personal. New version takes into account already formed pension rights in pension points.
The main objective of the calculator is still explanation of the formation of pension rights and calculation of the insurance pension as well as demonstration of how the size of the insurance pension is influenced by such factors as salary, employment period, the selected type of pension, military service, child rearing leave etc.
Increase of pensions and social benefits
The indexation of insurance pensions will be implemented through indexation of the value of pension points since 2015. The value of it will be 64.1 rubles on 1 January 2015. Expenses on indexation of coefficient value are laid in the budget of the PFR from 1 February 2015 to 7.5%, but the value of the point will be indexed on the actually existing consumer price index for 2014 - 9.8% (forecast). Fixed payments to insurance pension (the analogue of the current fixed base size) will be indexed on February 1 together with the insurance pension on the actual rate of inflation.
As a result of increase in February average size of old-age insurance pension in 2015 will be at least 12,745 rubles.
Social pensions will be indexed on actually formed growth index of living wage - not less than 12.3% on April 1, 2015. As a result, the average social pension will be not less than 8496 rubles in 2015.
Sizes of monthly cash payments (MCP) will be indexed on April 1 by 5.5%.
Maternity capital will be indexed and will amount 453 026 rubles from January 1, 2015 that is more than in 2014 on 23.6 thousand rubles. For the payment of its funds were provided 344.5 billion rubles from the budget of PFR in 2015. This is on 43.5 billion rubles more than in 2014. Direction of the maternity capital will remain the same: improvement of living conditions of the family, education and content of the children in educational institutions, mom's pension increase.
Insurance premiums and reporting
Insurance premium rate for mandatory pension insurance remains at 22% in 2015. Limiting wage fund from which premiums are paid into the system of mandatory pension insurance in 2015 will be indexed and will amount 711 thousand rubles (plus 10% in excess of this amount).
At the same time additional fee of insurance premiums for employers with jobs in hazardous industries (if the employer does not conduct estimate of working conditions) will be amounted on List №1 - 9%, on List №2 and "small lists "- 6% in 2015.
The number of employees of organizations that are required to submit reports to the PFR in electronic form is reduced from 50 to 25 people. So now if the number of employees in the company, to whom payments are made, exceeds 25 people, reports on insurance premiums are provided in the form of an electronic document with an electronic signature. At the same time almost 90% of insurers have already switched to electronic interaction with the PFR.
In 2015 the amount of premiums to the appropriate state funds, employers must determine for sure: in rubles and kopecks. The amount of premiums was determined in rubles only up to 2015.
Also pension premiums are accrued from payments to foreign citizens and stateless persons temporarily residing in the territory of the Russian Federation, regardless of the validity of their employment contracts in 2015.
Individual entrepreneurs, lawyers, notaries and other individuals who pay insurance premiums in the fixed amount of income and whose level of income exceeds 300 thousand rubles for the first time will pay 1% of the amount of the excess of income over the estimated period in 2015.
State co-funding Program
Entry into the program of state co-financing of pensions was closed on December 31, 2014. It is possible to make a first payment for its "activation" until 31 January 2015 for those who joined the program before that date.
Thus, state will provide co-financing of voluntary contributions for future pension for 10 years in case payments amount no less than 2 000 rubles annually for those who joined the Program in the period from 1 October 2008 to 31 December 2014 and made the first payment until 31 January 2015.
Selection of type of pension
Citizens born in 1967 and younger have the opportunity to choose the type of formation of pension rights in 2015: either to form insurance and funded pension, or only insurance pension.
Selection will directly affect on the amount of pension points which a citizen can gain during a year. Maximum number of points that citizen can earn in a year if he forms only insurance pensions - 10. If citizen forms insurance and funded pensions - 6.25.
It should be remembered while choosing percent ratio of formation of insurance and funded pensions that the government guarantees that insurance pension will be increased by no less than inflation. Non-state pension fund or management company, selected by a citizen, invests of funded pension savings in financial market. There can be loss from investment: the yield on pension savings depends on the results of their investment. In this case, only amount of insurance premiums that were paid is guaranteed to the payment.
It is important to note that pension rights for all citizens are formed only to insurance pension, based on the entire amount - 22% - of accrued insurance premiums in 2015 regardless of the choice of a type of pensions.
Payment of pension savings
The Pension Fund will also provide payment of the pension savings in 2015. Citizen should apply to the PFR for the relevant payment if he is already a pensioner or is eligible for a pension appointment and thus has pension savings. Citizen should apply to the appropriate non-state pension fund if he generates its pension savings through a non-state pension fund.
It is important to note that from 2015 that the timescale of the applying for the appointment for a lump sum changes. We remind that if at retirement pension savings of citizen in the total amount of his pension is five percent or less, pension savings are paid as a lump sum. Now, from 2015, if a citizen received his pension savings as a lump sum, the following lump sum payment can be made for him, not earlier than after five years. This change is primarily concerns participants of the program state co-financing pensions who are pensioners.