Many citizens may behow is the pension calculated? What does it consist of and what kinds of it are available? What are the advantages and disadvantages of state pension funds and their non-state counterparts. There are other equally important issues.
Every citizen has the right to rest, toespecially if it is a question of retirement. This means that working at an enterprise that a person is engaged in throughout his or her working life should provide it for the rest of his life. There is no question that the enterprise must provide for it itself, this is done through a pension fund, where each employer implements mandatory contributions. In the Russian Federation, the formation, calculation, payment of a pension is carried out with the mandatory observance of the law "On labor pensions in Russia". If we talk about how a pension is paid, then it should be mentioned that it can be not only mandatory, but it can be supplemented with a voluntary pension, which indicates the possibility of using savings that are placed in a non-state pension fund. There are several types of compulsory pension, you can name each of them: a disability pension, survivors' benefits, and a classical old age pension. The labor pension includes three components: basic, insurance, accumulative.
Base part of pension
Each organization and enterprise in mandatoryorder to pay to the state compulsory insurance fund, about half of these funds are transferred to the pension fund. All these funds are not nominal, that is, they are simply transferred to the fund, where they are used for current payments to existing pensioners. It is this part that is the basic part of the pension, the size of which is determined depending on the subsistence minimum, budgetary funds and inflation. The basic part is completely independent of the length of service, the amount of wages, it can be paid to foreigners and persons who do not have citizenship, who permanently reside on the territory of Russia.
How to get a pension: the insurance part
The insurance part differs significantly from the basicthe fact that it has a link to a particular person, and its size depends on the period of anticipated payments, as well as on the amount of accumulated contributions. Each employer implements mandatory contributions in the amount of 8-14% of the amount that is taxed for a single employee, it is customary to include not only the salary itself, but also other funds expended by the enterprise on a single employee.
How is the old age pension accrued: funded pension
The calculation of this part is carried out in a similar way,how the insurance part is calculated, but the pension capital in this case is replaced by the amount of savings. These savings for each citizen are indicated in a special part of the personal account. A distinctive feature of the funded part is that it is placed on various investment tools, it can be transferred to various funds to implement management, as well as the ability to invest in various instruments, including securities. Every working person can independently manage his funded part of the pension, which gives him the right to refuse or agree to cooperate with a certain management company or fund.
Advantages of using non-governmentalfunds are quite obvious. First of all, it is worth talking about the possibility of effective investment of funds, which will ensure an effective growth of pensions. State funds choose for investment such instruments, which are considered highly reliable, however, this negatively affects their profitability.
So, now it should be clear how the pension is calculated.
