Archive July 2019

Retirement savings: how to find out the amount on your individual account

According to the current legislation, each employer must annually transfer to the Pension Fund monetary contributions in the amount of 22% of the salary of its employees. From these contributions, the future retirement of employees is formed. The greater the amount will be transferred to the individual account of a person, the greater the number of points he will be credited. From the points scored depends on the size of the insurance part of a person’s pension. The amount of deductions will also affect the size of the funded pension (if the citizen has previously decided to send part of the insurance contributions to it).

Regularly monitor the status of your individual personal account – in the interests of each person. In this article we will tell:

  • how to check the status of your individual account;
  • what information does the Pension Fund report contain (on the number of accumulated pension points, the recorded work experience, the amount of pension savings);
  • how to use the information received.

How to get information about the state of a personal retirement account

How to get information about the state of a personal retirement account

The easiest way to get acquainted with the state of your individual personal account is to contact the portal of the State Service. To receive a report, you must enter your Personal Account on this popular site, and enter the query “accrual pension” in the search box. In the search results, the link “Check pension savings” will appear. At the next stage, you will need to go to the proposed link and click on the “Get the service” button.

Within one or two minutes you will receive a notification. It will contain files with reports from the Pension Fund in xml and PDF formats. They can be saved on your computer or sent to e-mail. This service is provided free of charge.

What information does the FIU contain?

What information does the FIU contain?

What information will you get after opening the file?

Selected option to form a future pension

The report will indicate the method of forming the pension that you have chosen. There are only two possible options. It is possible to direct all 22% of the salary that an employer deducts to the formation of an insurance pension. Or you can send a portion of this amount (6% of salary) to a funded pension.

The older generation, born before 1967, have no such choice. All their deductions come without fail on the insurance pension.

What is the pension fund different from insurance? Cumulative contributions are credited to a non-government pension fund. This fund citizen chooses. NPF invests the funds in securities. Ideally, the insured person receives additional income from these investments. Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement Retirement The amount of this pension depends on the amount of savings. The state funded pension is not indexed.

Number of retirement points and recorded employment history

Number of retirement points and recorded employment history

The second important point that is contained in the FIU report is the number of pension points accumulated by a person (the value of the individual pension ratio). Points are awarded to a citizen for each worked year. The number of points directly depends on the size of the employee’s salary (the amount of employer contributions to the Pension Fund). Pension points are collected only by those people who are officially employed. The higher the salary of a person, the more points he gets. Important: wages must be “white”, that is, not hidden from the state.

To be eligible for an insurance pension for their working life, each person must score a certain number of points. In 2019, the required minimum is 16.2 points. In the future, the minimum threshold will increase. In 2025 and in subsequent years, to receive an insurance pension, you will need to accumulate at least 30 points.

The size of the pension insurance will also depend on the size of the individual pension ratio. Pension payments are calculated according to the following formula: the number of points scored multiplied by the value of one point is added to the base fixed amount.

will increase annually. As a result, by 2024 the minimum experience will be 15 years.

Also, the document from the Pension Fund will contain information about the length of the work experience, which is taken into account for retirement ahead of time.

All information on employer contributions and accumulated pension points is presented in the report by year, starting in 2015. Since that time, began to operate a new pension law.

Separately, date on periods of labor activity of a person up to 2002, as well as from 2002 to 2014, are given. All information is presented by year, name of the employing companies, the average monthly salary, the amount of insurance contributions to the pension fund. All of the above data on the work activity of a person has been converted into retirement points. From the report you can find out how many points a person could score before the new pension legislation came into force (until 2015).How will the savings be paid? Payment of funded pension begins after retirement. In some cases, the employee is entitled to receive the entire amount of savings at once, or to pay off accumulated funds during a certain period (at least for 10 years).

How to use information about the status of a personal account?

Based on the FIU report, you can see how you earn retirement points. From them will depend on the size of your pension in old age. This document clearly shows how strongly the individual pension ratio depends on the number of years worked and on the size of the salary received.

The FIU report also reflects all recorded information about your previous work activity. It may happen that some period is not included in this report. In such a case, documents confirming the fact of employment should be collected in advance and submitted to the Pension Fund department. Based on the new information, your individual pension ratio will be revised and increased.