How many levels does the pension system have? Indicators and criteria characterizing pension systems. German pension system

To be or not to be

Accumulative pension system in Russia

2nd year students

bachelor's program

municipal government"

VASILYEVA Evgenia Igorevna

(signature)

2nd year student

bachelor's program

directions “Government and

municipal government"

SUMATOKHIN Alexey Sergeevich

__________________________________

(signature)

Scientific adviser:

Ph.D., Art. teacher.

GOLUBEVA Anastasia Alekseevna

"MEETS REQUIREMENTS"

_____________________________

(scientific supervisor’s signature)

"_____" _______________ 2012

Saint Petersburg

Introduction

In 2002 in Russian Federation Was held pension reform, which consisted in the transition from a distribution to a conditionally accumulative model. The previous pension reform failed to fulfill its obligations in the form of sufficient material support for people who have lost the opportunity to receive a regular income, whose number already exceeds a quarter of the population and continues to grow, which, against the backdrop of universal coverage of the population by the pension system, indicates the relevance of the problem under consideration. The fact of inefficiency influenced the awareness of the need for innovation in the pension system.

The reason for the total influence of the state on pension provision is obvious from the point of view of the definition of Russia as the legal successor of the USSR, which played a paternalistic role in the life of the population. The high social burden on the state determines the complexity and complexity of pension reform.

The purpose of our work is a retrospective analysis of the pension reform of 2002, assessment of changes in the parameters of the pension system by studying statistical information.

Pension system

Types of pension systems

The pension system or PS is a set of legal, economic and organizational institutions aimed at providing material support to citizens in the form of pensions.

A pension is a regular (usually monthly) cash benefit that is paid to the following groups of people:

1. Persons who have reached a certain (retirement) age. Upon reaching the state established retirement age persons stop making tax pension contributions and become recipients of pension payments from the Pension Fund.

2. Persons with disabilities.

3. Families who have lost their breadwinner.

Today there are three types of PS.

1. Distributive or parametric. This system is based on the principle of solidarity between generations: current pension payments are formed using pension contributions of working persons. Thus, the distribution of funds is carried out.

2. Cumulative. Pension contributions do not have an insurance part, but consist only of a funded component, with its subsequent capitalization.

3. Distribution with storage element or mixed. Pension contributions are divided into insurance and savings parts. The funded part is capitalized at a specified percentage.

PS in the world.

The very first pension system was formed in Germany. According to a law passed in the late 1880s, pensions were awarded to older people who had reached the age of 70. It was believed that by this age a person has managed to exhaust all his labor resources, after which he is deprived of the opportunity to provide for his life. Since at the end of the 19th century only a small number of people lived to be 70 years old, and even more people became unable to work even before this age, it was decided to lower the retirement age to 65.

As mentioned above, the pure distribution and accumulation model of pension accruals is extremely rare. Basically, most often you can find a mixed model.

Chilean pension system.

The Chilean PS is rightfully considered one of the innovative substations in the world. The main feature of this system was the introduction of an absolute funded pension. The sharp transition from a pay-as-you-go system to an absolute funded system in 1981 was caused by a high budget surplus and strict administrative policies of the state.

Each working citizen makes a monthly contribution to his pension account in the amount of 10% of his salary. Next, the funds are capitalized in a private management company chosen by the citizen. However, despite the funded nature of pensions, the state, the employer and the worker himself are equally responsible for pension contributions.

There are also two pension payment schemes:

1. Lifetime annuity - a person receives certain payments monthly for the rest of his life. This scheme is implemented upon reaching retirement age: 65 years for men and 60 years for women.

2. Programmed retirement – ​​contributions to the management company are calculated, as well as pension payments, according to an individually derived scheme. This scheme provides for early retirement.

Kazakhstan pension system.

After the collapse of the USSR, a decision was made in Kazakhstan to switch to a cumulative PS, the prototype of which was the Chilean PS. Since the beginning of 1998, all working citizens must make a mandatory monthly contribution of 10% of their wages to individual savings pension accounts of the pension fund.

The main goal of the pension reform in Kazakhstan is the acquisition of an additional investor in the form of pension funds, as well as the activation of the stock exchange.

The retirement age was set at 58 years for women and 63 for men. But currently there is a discussion about gender equalization of retirement age (increasing the retirement age of women to the level of men), which will affect citizens born before 1997 inclusive.

There are only five countries that practice the use of an absolute funded pension system: Chile, Kazakhstan, Bolivia, Mexico and El Salvador.

German pension system

The German PS consists of three levels:

1. Compulsory pension insurance - paid by the state in the form of joint pension payments.

2. Voluntary old-age provision – deduction of pension contributions to the enterprises where the person works.

3. A private way to ensure a decent pension is all forms of creating private capital.

Thus, Germany has a pure distributive PS, but also has a voluntary funded element.

Retirement age occurs when men reach 65 years of age and women reach 60 years of age. There is the possibility of early retirement provided that you are 35 years old length of service.

Participants of the RF PS

1. Pension fund

The Pension Fund of the Russian Federation was created on December 22, 1990 by resolution of the Supreme Council of the RSFSR No. 442-1 “On the establishment of the Pension Fund of the RSFSR.” Today it is the largest centralized state fund among extra-budgetary social funds, ensuring the formation and distribution of financial resources for the purpose of providing pensions to the population. The remaining extra-budgetary funds account for only about 25% of extra-budgetary funds.

Since the Pension Fund is an important link in the financial system of the Russian Federation, the actions of the fund are strictly formalized:

· The PF is planned by government bodies, therefore it has a strict focus, and is also controlled by them (the Government of the Russian Federation and the management of the PF)

· The fund's funds do not belong to the budget, therefore they are spent exclusively on off-budget expenses related to the pension system.

· The fund is formed from insurance premiums paid by individuals and legal entities, which are of a tax nature, that is, established by the state and are mandatory.

The Pension Fund of the Russian Federation is engaged in the assignment and payment of pensions, keeps records of funds received under compulsory pension provision (OPS), assigns and implements pension payments to certain categories of persons (disabled people, veterans, etc.), interacts with policyholders (employers), collects arrears, issues certificates for receiving and paying maternity capital funds.

2. Employers

Employers play an important role in PS. They are the ones who are required to pay pension contributions for employees. In Article 6 of Law No. 167-FZ, employers are called “insurers under compulsory pension insurance (OPI)” and classifies them as persons making payments to individuals on the basis of an employment contract.

Insurance policyholders are individuals, organizations or individual entrepreneurs (private detectives, private notaries, lawyers, etc.). The latter also play the role of the insured, since they pay contributions for themselves.

3. Workers

Rather passive participants in the PS. They have the status of insured persons, since after the policyholder pays insurance contributions to the Pension Fund, the insured persons receive the right to receive a labor pension upon reaching retirement age.

A citizen has the right to independently conclude an agreement with one of the Non-State Pension Funds. In this case, he becomes an active participant in the formation future pension, also if he is an individual entrepreneur and is engaged in deducting contributions to the Pension Fund on his own

4. Pensioners

Pensioners are a social group of people for whom a pension system has been formed to ensure a decent standard of living, recipients of the pension system.

5. Non-state pension funds

NPF is at the same time both a social and a financial institution. According to the law, these funds are created exclusively in the form of a non-profit organization dealing only with pension issues: collecting pension contributions, investing money for the purpose of growth (this function is usually managed by the management company) and, most importantly, paying pensions.

As of August 1, 2011, 313 NPFs were registered in the Russian Federation. The legislation of the Russian Federation determines the assets in which pension contributions can be invested and the structure of the investment portfolio.

Since 2004, any citizen, at his own request, can enter into an agreement with a non-state pension fund, according to which his cash savings will be redirected from the Pension Fund of the Russian Federation to the non-state pension fund.

6. Private companies managing pension savings

Typically, the management of pension accounts is transferred to the hands of private companies, which undertake to manage funds as beneficially as possible for the client.

Since 2003, in Russia it has become possible to independently choose a management company that has a license to provide this type of service and has passed a special competition. But, unfortunately, only a small number of people know about this possibility. By refusing to manage the pension by a private company or by not using your right due to ignorance, the management of the pension passes into the hands of a state company.

7. State company managing pension savings

Since 2003, Vnesheconombank (VEB) has been appointed as the state management company.

8. Infrastructure participants of the pension system

Among the infrastructure participants of the PS the following can be distinguished:

· Brokers.

NPFs are interested in buying and selling securities on the stock exchange, so they often enter into an agreement with a brokerage firm that thoroughly knows the intricacies of working on the stock exchange.

· Auditors

NPFs are required to conduct an audit once a year to confirm the accuracy of accounting and reporting.

· Actuaries

An actuary is a person who conducts an actuarial assessment of the activities of a non-state pension fund at least once a year. These specialists assess the long-term sustainability of non-state pension funds and check the consistency between pension assets and pension liabilities.

· Special depositories

These organizations provide services for recording rights to securities and their storage. They also monitor the fulfillment of obligations of management companies and non-state pension funds.

9. State regulatory bodies of the pension system

The legislative process related to innovations in the PS is carried out by the State Duma and the Federation Council. The Ministry of Labor and Social Development of the Russian Federation and the Ministry of Finance controls the implementation of legislation.

The complexity of analyzing pension reform is determined by the specifics of its object - the future income of the currently working population, and its development requires expanding the planning horizon and a thorough study of the economic landscape. A full assessment of the results will be possible in 2022 with the start of payments of the funded part.

The structural drawback characterizing the previously used model was the lack of parity between individual real contributions to the pension system and the size of the pension. This discouraged the presentation of real income by both workers and employers, which resulted in the payment of contributions only from the legal part of the salary and a reduction in the tax base: about two-thirds of income was hidden in the “shadow” of the economy. Accompanied by a decrease in the ratio of the number of active working citizens to the number of pensioners resulting from the demographic crisis, this flaw demonstrated the economic insolvency and insolvency of the egalitarian consciousness. Thus, a decrease in the “support coefficient”, which acts as one of the most important criteria pension system is a creation of demographic and economic factors. Population dissatisfaction, on the one hand, low level pensions that lag behind the pensioner’s subsistence level, on the other hand, high tax deductions, generated social and political tension, which was the reason for the deployment of pension reform.

Tasks and goals

The objectives of the pension reform were declared in the following documents:

1. Pension reform program 1998

2. Project of the Main directions of socio-economic development of the Russian Federation for the long term in 2000.

3. Action Plan of the Government of the Russian Federation in the field of social policy and economic modernization for 2000-2001.

4. Programs of socio-economic development of the Russian Federation for the medium term (2002-2004)

In the first three documents, the main task of reforming the pension system in the medium term is to achieve (maintain) financial stability and balance of the pension system, while in the last one it is to establish a close connection between the amount of the pension and previously paid contributions and increase the real level of pension provision.

The above documents also contain the goals of pension reform:

1. Strengthening insurance principles in pension provision

2. Promotion actual size pensions

3. Ensuring financial stability and balance of the pension system

4. Involving citizens’ savings in the investment process through insurance

In addition, the following are implied:

5. Increasing the volume of long-term lending in the economy

6. Legalization of labor income and stimulation of the reduction of the informal sector in the labor market through:

6.1. reducing the tax burden on the employer

6.2. increasing employee interest in paying contributions to the pension system

7. Ensuring transparency of the pension system

8. Ensuring the independence of the pension system from the influence of political factors

The essence of the pension reform that started in 2002 was the restructuring of the pension infrastructure, the transition from a distribution-equalization to a distribution-accumulation pension system, establishing a direct relationship between the level of earnings and the size of the pension. In the new model, salary accounting is carried out throughout labor activity, however, only half of the contributions (14%) accumulate in the form of state obligations to pay pensions (relevant at the time of the start of the reform).

New pension legislation was developed and almost fully put into effect in 2002-2003. Thus, institutions for compulsory pension insurance, formation and investment of pension savings within the framework of the funded part were created labor pension, the functions of the insurer for compulsory pension insurance have been denationalized. Also within its framework, the division of pensions into two categories is organized: a labor pension, the right to which is available to men who have reached the age of 60 years and women who have reached the age of 55 years, subject to at least 5 years of work experience and a pension under the state pension provision, provided to citizens in order to compensate them for earnings (income) lost in connection with the termination of the federal state civil service upon reaching the length of service established by law when entering an old-age (disability) pension; or for the purpose of compensating lost earnings for citizens from among the cosmonauts or from among the flight test personnel in connection with retirement for long service; or for the purpose of compensation for damage caused to the health of citizens during military service, as a result of radiation or man-made disasters, in the event of disability or loss of a breadwinner, upon reaching the legal age; or disabled citizens in order to provide them with a means of subsistence. A ban was introduced on the simultaneous receipt of two labor pensions; however, it is allowed for certain groups of pensioners from both categories to receive pensions at once. Innovations also include the abolition of restrictions on the maximum amount of payments and the payment of pensions to working pensioners and a focus on the “Swiss” indexation model.

PS maturity indicators

To describe the maturity of the pension system, we will calculate the economic dependence coefficient and the PS support coefficient.

· The EZ coefficient is calculated as follows:

K ez =H pence /H pl, where

K ez - coefficient of economic dependence of the pension system

It characterizes the number of pensioners per employed person. The higher the coefficient, the more mature the system becomes. On chart 1 the growth of the EZ Coefficient is clearly depicted, which may indicate the formation of a new distribution and storage substation in Russia. There has long been a trend toward an increase in the number of people employed in the labor market, which significantly reduces the burden on the pension system. However, since 2009, there has been an increase in the number of pensioners and a decrease in the working population.

· PS support ratio

This indicator is calculated using the formula:

K p =H pl /H pence, where

K p - pension system support coefficient

N pl – number of contribution payers (employed population)

H pence – number of pensioners

The PS support ratio shows how many working people there are per pensioner. This coefficient is the inverse of the previous one. On chart 1 The change in the indicator over time is also clearly presented.

IN Table 2 statistical data taken from the website of the Unified Interdepartmental Information System (EMIS) are presented and coefficients are calculated.

Table 2 “Indicators of PS maturity”

Chart 1 “Indicators of PS maturity”

Having assessed the maturity of the RF PS, we can come to the conclusion that the pension reform was effective for the first five years, but then the introduction of the funded element only increased the burden on the economy.

Double Burden

After the transition to a distributive PS with an element of accumulation, it was stated in the legislation that for people born before 1967, a distributive PS is in effect, and for citizens born from 1967 and later, a distribution-savings system will apply. This innovation can be called a “double burden”. The meaning of this concept is that the state forms savings in the pension accounts of some citizens and at the same time bears responsibility for paying joint pensions to others.

Demographic situation

Indicators of PS maturity indicate the demographic situation of the Russian Federation, namely the trend of aging of residents of the Russian Federation, which does not occur by an increase in the number of pensioners (for last years, life expectancy in the Russian Federation has decreased), and by a reduction in the number of people employed in the Russian economy.

Conclusion

Russian realities require the use of a distribution-savings pension system.

Annex 1.

“Insurance premium rates for 2012 (212-FZ “On insurance contributions to the Pension Fund of the Russian Federation, the Social Insurance Fund of the Russian Federation and the Federal Compulsory Medical Insurance Fund” dated 01/01/2010)

Appendix 2 « Comparative analysis of pension capital, insurance and savings elements,

for citizens born in 1966 and 1967 (other things being equal)"

Http://expert.ru/kazakhstan/2012/46/sistema-zavisla

Http://www.delo-press.ru/articles.php?n=5525

Http://taxpravo.ru/faq/statya-169607-tarifyi_strahovyih_vznosov_na_2012_god

Http://www.napf.ru/main_activities/napf_funds

Http://www.pfrf.ru/labor_old_age_pension

To be or not to be

funded pension system in Russia

Group analytical work

2nd year students

bachelor's program

directions “Government and

municipal government"

VASILYEVA Evgenia Igorevna

__________________________________

(signature)

2nd year student

bachelor's program

directions “Government and

municipal government"

Today, a broad legislative framework, taking into account any possible nuances, determines such an important aspect of the life of every citizen of our country as the state pension system of the Russian Federation. The reform that appeared in 2001 concerning pensions contributed to the adoption of the Federal Law on the need for pension insurance. Since 2002, the pension system has become what we know it today.

Structure of the pension system of the Russian Federation

PThe RF pension system is- is a set of laws whose task is to support and organize the regular transfer of funds for persons who have already retired.

The state pension system is divided into three main groups:

• State pension provision. The state organization responsible for paying pensions is the Pension Fund of the Russian Federation. Pensions from the state are transferred to citizens from the federal budget, distribution is carried out among narrow segments of the population.
• Mandatory pension insurance. These are payments from the Pension Fund or Non-State Pension Company. This is a labor pension provided to most working people. The accumulation of funds is carried out from mandatory insurance contributions, which are transferred by the employer to the Pension Fund.
• This system is maintained by private Pension Funds and can be individual or corporate. Any person or organization that decides to enter into a separate agreement with a non-state pension fund and ensure a higher standard of living in retirement can receive such payments. Such a service is paid for by the pension contributions of an individual or a company that provides additional protection for the funds of its employees.

In these three groups, a number of specific features can be established, each individual provision works according to certain principles, capable of providing people with a variety of security options in retirement.

It is worth paying close attention to the structure of the system for calculating and issuing pensions in the Russian Federation.

How does the state pension system work?

The purpose of state pension provision is to accrue the basic part:

• long service pensions;

State pension provision is financed from the federal budget. This is done from the amounts of the single social tax, for the transfer of which the employer is responsible.

The state pension system consists of two parts:

• state pension provision;
• state pension insurance.

Aspects of compulsory insurance

The main thing in the insurance system that ensures compulsory pension payment is the creation of a certain reserve of funds through the employer’s constant transfer of a certain amount to the employee’s personal account:

• in the Pension Fund of Russia;
• at the Non-State Pension Fund.

A citizen’s pension savings can be increased as a result of their competent management and through proper investment. In particular, by concluding an agreement with a non-state pension fund, and also as a result of independent additional pension contributions under the state pension co-financing program or additional pension provision.

So, now we can consider the funds allocated to retired persons as the sum of three components, which are the mandatory pension systems of the Russian Federation:

• Cumulative;
• Additional.

What is the essence of private pension funds?

Non-state pension provision is engaged in creating additional support for the elderly population, using money invested by interested people, as well as from payments from employers. Thus, the additional pension is formed and paid from the amounts of transferred pension contributions.

In accordance with Federal Law No. 350-FZ of October 3, 2018, Russia begins a gradual increase in the generally established age, which gives the right to receive an old-age insurance pension and a retirement pension. state provision. The changes will occur in stages over a long transition period of 10 years, ending in 2028. As a result, the retirement age will be raised by 5 years and set at 60 years for women and 65 years for men. In 2018, the retirement age for women was 55 years, and the retirement age for men was 60 years.

To gradually increase the retirement age, a long transition period of 10 years is provided (from 2019 to 2028). Adaptation to the new parameters of the retirement age in the first few years of the transition period is also ensured by a special benefit - the assignment of a pension six months earlier than the new retirement age. It is provided for those who were supposed to retire in 2019 and 2020 under the previous legislation. These are women born in 1964–1965 and men born in 1959–1960. Thanks to the benefit, pensions on new grounds will be assigned as early as 2019: for women aged 55.5 years and men at age 60.5 years.

The state pension system of the Russian Federation is the most important social instrument, thanks to which a decent life is ensured for citizens who have reached old age and have completely or partially lost their ability to work. The main principle of the system is that able-bodied citizens, with the help of tax deductions, provided for the lives of pensioners, which will also affect them themselves as their children and grandchildren grow up.

Main characteristics of the Russian pension system

The pension system of the Russian Federation - its concept, structure, features require serious additional consideration due to the fact that due to a lack of budgetary funds and the general aging of the Russian population, its radical reform is planned. Now, a citizen’s future pension is formed using three types of contributions:

• provision of a basic pension by the state;
• formation of the funded part of the pension by the employer through monthly contributions;
• additional insurance - is formed through additional voluntary contributions by citizens, which allows you to increase its size.

Important!

The pension system of the Russian Federation has a multi-stage nature, which allows it to ensure its long-term stable existence, but is now experiencing a crisis due to low labor productivity and a decrease in tax revenues.

The modern pension system in the Russian Federation is divided into two types of pension provision:

• Compulsory pension insurance - it is provided for old age or disability, in the event of the loss of a breadwinner, and the main source of payments are mandatory contributions, which are regularly paid from wages;
• Voluntary pension insurance, when an employee independently enters into an agreement with the fund and regularly deposits a set amount into the account of this organization, which in the future allows him to increase the size of his pension.

The pension system in the Russian Federation includes a central office, as well as regional and city branches that deal with issues of processing payments locally, as well as processing social benefits for disability and other social benefits.

What reforms are planned in this area?

The reform of the Russian pension system in 2018 in Russia includes several important areas at once:

• increasing access to a well-deserved old-age pension due to the emergence of an imbalance - for men up to 63-65 years old and for women - up to 58-60 years old;
• reducing the list of beneficiaries who enjoy the right to early retirement;
• working pensioners will lose the right to index payments in comparison with other categories of disabled citizens;
• from 2018, a system of individual pension savings will begin to operate in Russia, when any citizen will be able to independently form their own payments;
• introduction of a point system, when every year any working citizen will be able to independently receive required amount points, which will help increase your pension.

Important!

The regional pension system is now coming to the fore, since payments from the federal budget are often insufficient, and with the help of the country's constituent entities it will be possible to use other sources of income - personal, corporate or budgetary. It is necessary to more actively attract the personal savings of citizens to turn them into permanent investments.

What is individual pension capital?

The individual pension capital system consists of several important development vectors:

• replacing mandatory funded contributions with voluntary ones;
• stimulating citizens to take independent care of their future;
• abolition of relevant pension powers by the state and their transfer to non-state organizations.

All finances accumulated by a citizen will be evenly divided by the state for the duration of their survival, with the aim of gradually spending them. Any pension systems are ineffective if the citizen himself does not take care of his own future - this is the main idea of ​​the modern Russian state.

Important!

Pension systems of foreign countries necessarily include various social protection institutions:

• state social security;
• compulsory social insurance;
• personal pension insurance.

In their pure form, distribution or funded pension savings systems are practically not used - for example, in Britain, men over 65 years of age and women over 60 years of age will receive a mandatory basic state pension, and the potential amount directly depends on length of service. Its level there is limited; it is indexed by the state according to current inflation. The state guarantees its size at 20% of the average salary of each employee. Everyone’s labor pension will also be formed from the employee’s monthly contributions, but in half with the employer and will directly depend on the amount of payments, amounting to more than 20% of total income. The funded pension system is its main part.

Pension funds

Such organizations are divided into public and private, in which private or state management companies manage all the funds of citizens. Private companies to whom transfers are made cash, promise high returns, but there are also more financial risks. When choosing, you need to pay attention to:

• lifetime;
• who is the founder;
• profitability for the entire period of work;
• transparency of activities and availability of all necessary information;
• reputation and respectability of the pension fund;
• consistency of payments.

Important!

If a citizen has not written an application for the transfer of the funded part of the pension, then it and all subsequent payments will remain under state management.

A pension is a guaranteed monthly payment to provide for citizens in old age in the event of complete or partial disability, loss of a breadwinner, as well as in connection with the achievement of an established length of service in certain areas of work.

The pension system in the Russian Federation consists of three levels:

1. State pension provision.

Provided to disabled citizens who, due to circumstances, have not acquired the right to a labor pension - disabled people of groups I, II and III, including disabled people since childhood, disabled children, men who have reached the age of 65, women who have reached the age of 60, who do not have insurance experience; etc. Also, pensions under state pension provision are assigned to citizens to compensate them for earnings lost in connection with the termination of the federal state civil service upon reaching the established length of service; or to compensate for damage caused to the health of citizens during military service, as a result of radiation or man-made disasters, in the event of disability or loss of a breadwinner, and in a number of other cases. State pension provision is provided at the expense of the Federal Budget of the Russian Federation. 3,000,000 people receive pensions under the state pension system.

2. Mandatory pension insurance

As part of compulsory pension insurance (MPI), a labor pension is assigned and paid. Labor pension is a monthly cash payment to compensate insured persons for wages and other payments lost due to incapacity due to old age or disability, and for disabled family members of insured persons - wages and other payments and benefits of the breadwinner lost due to death of these insured persons, the right to which is determined in accordance with current legislation.

To insert - art. 39, "Constitution of the Russian Federation 1. Everyone is guaranteed social security by age, in case of illness, disability, loss of a breadwinner, for raising children and in other cases established by law. 2. State pensions and social benefits are established by law. 3. Voluntary social benefits are encouraged insurance, creation of additional forms social security and charity. A necessary condition for assigning a labor pension is at least 5 years of insurance experience. The generally established age for retirement in old age is 60 years for men and 55 years for women. The insurance period is the total duration of periods of work during which insurance contributions were paid for the employee to the Pension Fund of the Russian Federation. There are three types of pensions under compulsory pension insurance: old-age labor pension, disability labor pension and survivor's labor pension. OPS is carried out at the expense of insurance contributions from employers for their employees to the Pension Fund of the Russian Federation. 36,000,000 people in Russia receive labor pensions.

3. Non-state (additional) pension provision

Non-state pension funds serve over 20 million Russian citizens. More than 15.44 million people form the funded part of their labor pension in non-state pension funds. Almost 6.6 million people accumulate pensions in NPFs under voluntary (non-state) pension provision.

These are additional pensions paid by non-state pension funds (NPFs). To receive such a pension, a citizen must enter into an agreement with a non-state pension fund and make his own voluntary contributions for a certain time. In addition to the citizen himself, contributions to additional non-state pension provision can be made by his employer. 6,700,000 people today take part in non-state pension programs.

The additional pension is formed not only from voluntary contributions to the NPF, but also from investment income received from investing these contributions. How does the compulsory pension insurance system work? Compulsory pension insurance is a deferred part of earnings that is paid upon the occurrence of an insured event - for example, upon reaching retirement age. The more money that has been allocated to your future pension fund throughout your working life, the higher it will be. Citizens who are subject to compulsory pension insurance are called insured persons. Insured persons are citizens of the Russian Federation, as well as foreign citizens and stateless persons permanently or temporarily residing on the territory of the Russian Federation:

• - working under an employment contract or under a civil law contract (this is how most people work as employees);
• - those who provide themselves with work (individual entrepreneurs, lawyers, notaries engaged in private practice); who are members of peasant (farm) households;
• - working outside the territory of the Russian Federation in case of payment of insurance contributions to the Pension Fund of the Russian Federation;
• - who are members of tribal, family communities of small peoples of the North, engaged in traditional economic sectors;
• - clergy.

Confirmation that you have become a participant in the compulsory pension insurance system - an OPS insurance certificate (usually a green plastic or laminated card). You can apply for it yourself at the Pension Fund office at your place of residence. Since 2011, the Pension Fund of the Russian Federation begins registering all Russians in the Pension Fund system, regardless of age. Until 2010, OPS insurance certificates were issued only to persons over 14 years of age when they applied to the Pension Fund of Russia, or they were issued by their first employer. The certificate contains personal data and personal account number in the Pension Fund of Russia - SNILS.

SNILS is the insurance number of a citizen’s individual personal account in the compulsory pension insurance system. The Pension Fund of the Russian Federation has been tasked with registering in the Pension Fund of Russia system in 2011 and issuing SNILS to every minor citizen of the Russian Federation. This requires personal participation. You must fill out a special form and submit it to the Pension Fund. This is important, since SNILS becomes the only identifier of citizens’ personal data in all federal and regional departments of Russia, the identifier of universal cards. With the help of such cards you can receive a variety of government services - from medical care to discounted transport fares.