Do I need to switch to a non-state pension fund? Is it worth switching to a non-state pension fund?

When it comes to ways to ensure a decent old age? Of course, this issue is of priority importance for middle-aged people today. And a certain part of them have no illusions that the state will provide all possible assistance in solving this problem. Yes, in difficult, from an economic point of view, conditions, power structures declare social guarantees, but people still need to prepare the ground in advance so as not to experience need when they retire. But how to do that?

One of the solutions to the problem

In order to improve the well-being of older citizens, they were created. Of course, they did not appear yesterday, and many of us know about their existence.

At one time, there was even a large-scale advertising campaign, the purpose of which was to attract as much investment as possible into the above structures. People began knocking on the door of pensioners and inviting them to become participants in the new program. That’s when the question arose: “Is it worth moving to?” To figure it out, let’s first decide what this legal entity is.

Concept

As you know, a pension savings account is opened for each person. We work, we receive a reward for this, part of which goes to the Pension Fund, which distributes the material asset, again, partially accumulating it for the funded part of the pension. This is how a person secures his old age through his own efforts.

NPF is a legal structure that is controlled most carefully by the state. Moreover, all deposits that fall into it are insured. Therefore, if it suddenly happens that NPFs disappear from the market, their monetary assets will automatically be transferred to the deposits of the state Pension Fund. However, the following should be taken into account: NPFs carry out competent investment of depositors’ funds in securities, state corporations, bank deposits, accounts with credit institutions, etc.

Naturally, the citizen becomes richer as a result of such investments.

To be or not to be?

When considering the question of whether it is worth moving to a pension, it is important to understand the following: the amount of social benefits for people who will retire in the future consists of three parts. Basic (6%) - forms benefits for older citizens (men after 60 years and women after 55 years). Insurance (14%) - accumulates on the employee’s personal account, but over time it is “eaten up” by inflation. Cumulative (2%) - aimed at providing a high-quality financial basis for the future pensioner. It is the last of the above parts of social benefits that is of primary importance. Naturally, a rate of 2% is clearly not enough for a person to feel financially confident when he goes on a well-deserved vacation. As for the NPF, its base rate is not 2%, but 6%. Of course, this detail clarifies the question of whether it is worth moving to a non-state pension fund. And yet, when deciding it, there are both pros and cons. Let's list the main ones.

pros

Some experts, when asked: “Is it worth moving to a non-state pension fund?”, confidently state: “Yes!” Why?

Firstly, the monthly payment amount will be made up not only of contributions from individuals, but also of the income portion, which is formed by assets obtained through investing the money supply. However, when deciding whether it is worth switching to a non-state pension fund and what benefits can be obtained from this, it is important to consider the following: in rare cases, the agreement fixes the amount of profit, so as to predict under what scenario the economy will develop on the world market, and what the profit will be The results of the game on the stock exchange are very difficult.

An important advantage of the old-age program under consideration is that it provides for the safety of invested assets: if some projects turn out to be unprofitable, then this will not decrease the amount of money in clients’ accounts, since the structure compensates for the damage from its own reserves.

Do you doubt whether you should switch to NFP? Perhaps you will be given confidence by the fact that if any change in the financial market occurs, the structure will not ignore this and will adjust the investment plan for the year, taking into account the emerging trends.

Minuses

However, there is also a share of experts who answer the question: “Is it necessary to transfer to a non-state pension fund?” without hesitation, answer in the negative. Why?

Firstly, if the financial year turns out to be unfavorable, then there can be no talk of any stability of income.

Secondly, if the above structure for some reason loses its license, then the prerogative to transfer funds to another NPF and finance this procedure falls on the shoulders of the investor. Yes, these disadvantages cannot be called significant, and yet they cause some discomfort, but there are still more advantages. Of course, everyone must decide on an individual basis whether they need to transfer to a non-state pension fund.

Features of the procedure

For many, the question remains unclear: “Is the transition from the Pension Fund to the Non-State Pension Fund a right or an obligation?” Naturally, no one can force anyone to undergo this procedure, since it is voluntary. Moreover, you can write a corresponding application for transfer to a non-state structure at any time of the year; this is done once every 12 months. The document must necessarily indicate the legal entity where the funded part of the pension will be accumulated.

Procedure for carrying out the procedure

You don’t know how to switch to a non-state one. You need to do the following:

1. Determine the structure you trust most. Analyze reviews of people who have invested money in a particular NPF, check how many years it has been on the market, and read the company’s legal documentation.

2. Conclude an agreement providing for compulsory pension insurance and study its text in detail. The document must clearly state in what amount and with what frequency contributions must be made. Before signing the document, it would be a good idea to develop an individual pension plan with your employees, which will indicate approximate figures with the option of adjusting them, depending on the financial capabilities of the future pensioner. Flexible replenishment of savings is one of the beneficial conditions for the client.

4. Wait for written notification of the decision.

Now you have an idea of ​​how to transfer to a non-state pension fund.

Methods for submitting documentation

You can submit your application personally to a Pension Fund employee. Be sure to take your SNILS and passport with you. And do not forget to request the appropriate receipt when accepting documentation.

You can also send an application for transfer to a non-state pension fund through the MFC system.

It is not prohibited to address the above document by mail. In this case, you will have to use a registered letter with attachment and notification.

The envelope will need to be sealed with an application filled out on a special form, photocopies of SNILS and passport.

Conclusion

Many people are interested: will it be troublesome and difficult to register a pension in a non-state pension fund? Is the game worth the candle? This is what else worries future retirees. Regarding the first, we can say with confidence that the transition process will not take much effort and nerves from the client. As for the second, everyone must decide for themselves, having previously analyzed all the pros and cons.

Experts' opinions on this issue are divided: some argue that non-state pension funds are an excellent option to lay a good financial foundation for old age. The only difficulty is to find a reliable company that will competently manage your finances. Otherwise, the pension will not be secure. Others recommend taking your time and considering other investment options, of which there are many today. For example, you can invest monetary assets in securities, real estate, use a PAMM account, etc. To transfer or not to transfer a pension to a non-state pension fund? Decide for yourself!

A non-state pension fund is a special form of non-profit organization that manages funds without access to citizens' accounts. In essence, NPF is an alternative to the state investment fund Vnesheconombank. They also invest the savings of future retirees in stocks, bonds and other securities in order to generate income.

What is the point of the 2013 pension reform? Today, every employer makes contributions to the pension fund, 16% of earnings goes to the insurance part, 6% to the funded part. According to the reform, all contributions from Russians who do not want to transfer the funded part of their pension to a non-state pension fund will be used to pay the current ones (for the insurance part), and the funded component. In the Pension Fund of Russia such Russians are called “silent people.”

Benefits of NPF

By the end of 2013, more than 24 million Russians younger than 1967 spoke in favor of transferring pensions to NPFs. The reasons why citizens prefer NPFs are related to a number of its competitive advantages in relation to Vnesheconombank:

This is the only opportunity to preserve the funded part of your pension - with proper investment, it can significantly increase your future pension;
- the income received from investing pension money at NPFs is higher than at Vnesheconombank; in 2013, the latter’s profit was almost equal to the inflation rate;
- the funded part of the pension implies greater flexibility in its management (for example, it can be bequeathed to any person);
- NPF clients always have the opportunity to monitor the status of their personal account through their account.

Thanks to the inspections of the Central Bank scheduled for 2014 and the corporatization procedure, the reliability of the funds should increase. By law, even if a non-state pension fund goes bankrupt, it is obliged to transfer all savings to the Pension Fund, which insures their clients against the risk of losing pension money.

The advantage of a government fund is stability due to the ability to invest only in government securities. While NPFs have access to investments in shares and other securities, which makes their pension management more risky. At the same time, the flexibility of NPF investments leads to higher returns.

How to transfer your savings to NPF

The first thing you need to do is decide on a non-state pension fund. When choosing, you should take into account such parameters as the experience of NPFs in the market, the total volume of funds under management and the amount of own assets, the total return of the fund over several years, as well as reliability.

To transfer to a non-state pension fund, you must conclude an agreement with the fund (in 3 copies), write an application for transfer from the Pension Fund to the non-state pension fund. The client will need a passport and SNILS. It is worth noting that until the funds undergo the corporatization procedure and are verified by the Central Bank of the Russian Federation, the acceptance of new clients is temporarily suspended.

According to the new pension reform, every citizen can independently manage their financial savings in the Pension Fund. One option is to invest the accumulated money, which is intended to pay a pension, in a non-state pension fund. Such an investment has both advantages and disadvantages. Therefore, before deciding whether it is worth moving to the Non-State Pension Fund or not, you need to consider this issue from different angles.

Who will benefit from this?

Citizens who want to ensure a decent income after retirement can transfer funds to the Non-State Pension Fund (NPF). Investing in such a Pension Fund is beneficial for the category of the working population whose monthly income exceeds 43,000 rubles. In this case, the difference in the amount of payments after termination of employment will be noticeable, since the pensions paid by the state cannot be more than 40% of the average monthly salary.

The question arises: why limit your income? Today, the Non-State Pension Fund is endowed with such powers, thanks to which it can not only preserve savings, but also profitably shape the amount of pension payments to investors. Among the main advantages of this investment method are:

1. The non-state pension fund guarantees the reliability and safety of your investments, since it is responsible for all contributions made. If his income goes negative, according to current legislation, the client will be reimbursed for all losses from insurance reserves.
2. The ability to adjust the investment program, depending on trends and changes in the financial market.
3. The amount of payments is calculated based not only on monthly deductions, but also on accruals that are formed after investing reserves. Investing money in a Non-State Fund is a procedure similar to a regular bank deposit, when you open it you can invest funds for a long period at a high interest rate.

As you can see, the conditions offered by a non-state fund are much more favorable for a certain category of citizens than those offered by a state PF. Therefore, for a large part of the population, it is worth seriously thinking about this type of investment.

Which fund to invest in

If the increase in the insurance part of pension contributions occurs at a level exceeding inflation, then the funded part of the funds in this case will not be subject to indexation. Therefore, for most citizens it is important to switch to a private fund, as this will allow them to receive a higher level of income after retirement. However, it is important to choose the right organization in order to prevent possible negative consequences and not lose your savings. When choosing, you need to pay attention to a number of factors:

• period of activity of the fund and its history;
• who is the founder;
• what is the volume of the property fund;
• ability to access services to control account status.

It is worth giving preference to funds that have been operating in the pension market for a long time. The founder must be a large well-known corporation, such as Lukoil-Garant or NPF Sberbank. About 7 percent of the insurance market today is occupied by Gazfond. In any case, the selected fund must provide its client with access to a personal account on the official website of this organization so that the investor can regularly check the status of the account and receive free advice from qualified employees if any questions arise.

If for any reason you have forgotten which branch your contributions are made to, you can contact your local PF branch and provide employees with an insurance certificate. His number will provide you with all the necessary information. In addition to the certificate, you will need to take your citizen's passport with you. After 10 days (maximum), you can get the necessary information by visiting the PF office again or by requesting a postal notification.

You can also contact the accounting department at your place of work. The person responsible for pension contributions will provide you with the necessary information about the fund into which part of your income is transferred annually. You can find out where your savings for pension payments are located via the Internet by registering on the “Unified Portal of State Services” website.

Disadvantages of non-state pension funds

To understand whether transferring savings to a Non-State Pension Fund will really be profitable, you need to consider the disadvantages of such an investment. First of all, it should be borne in mind that the transfer of funds will be carried out at the expense of the depositor, and not the employer. In addition, since the NPF cannot receive reliable data on how successful the next financial year will be, there is a high probability that the fund's activities will be unstable. If the NPF you have chosen is deprived of its license, you will have to transfer your savings again to another fund, which will require not only a lot of time, but also additional financial costs. In addition, if an agreement with a non-state fund is terminated, the profit from investments will be counted for an incomplete financial year. You will also be charged 13 percent tax on your investment. However, if after termination of the contract you transfer money to another NPF, no tax will be charged.

Since 2002, a law came into force that radically changed the entire pension system in the country. Citizens must receive support from funds that the employer contributed to the Pension Fund of the Russian Federation throughout their entire working career (No. 173-FZ of December 17, 2001). From the moment of the reform to the present day, amendments have been systematically made to the law.

Contribution structure for future old age benefits

Today, the provision is formed from mandatory contributions paid by the employer as a percentage of wages, as well as voluntary contributions from citizens to the account of their future pension.

The employer is obliged to transfer 22% of wages to the Pension Fund on a monthly basis.

These funds are distributed as follows:

• 16% goes to the insurance pension account.

  It is formed according to the insurance principle, and is payable when grounds for retirement arise. The insurance share is formed only from funds paid by the employer.

• 6% – funded part.

  A citizen has the right to dispose of savings funds at his own discretion within the framework of the law, and it can also be increased through additional contributions.

Since 2014, a moratorium has been introduced on the formation of pension savings in the Pension Fund of Russia, premiums are automatically transferred to insurance. A citizen has the right to transfer savings to a non-state pension fund.

Reference. If a person has not entered into an appropriate agreement with a non-state pension fund, all money is accumulated in accounts in the pension fund and is subject to annual indexation by the state by the percentage of inflation.

Cumulative part of pension

It is savings contributions that are of greatest interest to citizens. The savings part represents savings in a person’s separate account.

Its value will be an increase to the pension upon reaching the right to it.

Until 2014, these funds were generated in the accounts of the Pension Fund.

After changes are made to the legislation (Federal Law on funded pensions, Article 18), savings are automatically transferred to the insurance share account, however, a person has the right to send this amount to a non-state pension fund.

Article 18. Entry into force of this Federal Law

1. This Federal Law comes into force on January 1, 2015.
2. The funded parts of old-age labor pensions established for citizens before January 1, 2015 in accordance with the legislation of the Russian Federation in force before the entry into force of this Federal Law are considered funded pensions from that date.
3. Non-state pension funds, before April 1, 2015, notify insured persons of the corresponding change in the name of payment from pension savings provided for in contracts on compulsory pension insurance.

   Which are concluded between non-state pension funds and insured persons before the entry into force of this Federal Law, by posting information about this change on the website of the non-state pension fund on the Internet and (or) publishing it in the media.

A person can independently increase savings by additionally transferring money to the appropriate account. The funded part can be inherited. This can be very beneficial for the future of a particular person.

Is it necessary to transfer it to a non-state pension fund and why should this be done?

Here we will tell you in more detail whether it is necessary to transfer contributions to a non-state pension fund and why this should be done? Since 2014, the so-called non-state pension funds have received the right to manage savings (Law No. 410-FZ of December 28, 2013). These are organizations that manage savings funds without access to the personal accounts of their owners. Non-state pension funds can invest money in securities, various projects to receive income, etc.

Such institutions are interested in the money generating income, since they receive their commission from the profits received and some bonuses from the state.

Thus, the income of a non-state pension fund directly depends on the growth of savings in the accounts of its depositors.

The law does not oblige citizens to transfer their pensions to such funds.

However, NPF has a number of advantages over a government institution: