How to get a one-time payment of your pension savings

Now the right to the insurance and funded part of the pension is granted after a person has submitted documents to the Pension Fund in person or by mail. The Ministry of Labor and Social Protection proposed to allow the filing of an application for a one-time payment of pension savings through an electronic cabinet on the PFR website or through multifunctional centers. The Ministry of Labor sent such a draft resolution to the interested federal authorities for approval, TASS reported on January 27.


Seniors have a choice

In 2011, a law came into force, according to which it is possible to receive pension savings in three ways: as a funded pension, as a fixed-term or lump-sum pension payment. In the first case, a certain amount will be paid monthly and for life, as part of the labor pension. The pension capital will be divided by the expected payment period. In 2021, that’s 22 years, or 264 months. Seniors can also invest in the SMSF funds or similar schemes to make lifetime assets. You can learn more about this pension fund by visiting SMSF setup costs.

In the second case, payments can be made in equal installments on a monthly basis for a certain period, but not less than for 10 years. Only those who participate in the Savings Co-financing Program can choose this procedure – personally, through an employer or at the expense of government contributions. Also, citizens who have sent part of their maternity capital to form a pension have the right to urgent payments. In this case, in the event of the death of the insured person, the balance of funds can be received by his successors.

The FIU clarified who can retire early

It is also allowed to withdraw all pension savings at once, in the form of a lump sum. But this option can only be chosen by people who have not received the right to an old-age insurance pension due to insufficient insurance experience, and who are entitled to a disability or survivor’s pension. Also, a lump sum payment was allowed to be issued to Russians, the size of the funded part of which does not exceed 5% in comparison with the old-age insurance pension.

Also read: Hire Handyman Services to Save Time and Money

The procedure for receiving funds can be simplified

To receive savings in one of these ways, you should submit an application to the territorial branch of the Pension Fund of the Russian Federation or the office of a non-state pension fund (NPF), provide a passport and SNILS, as well as a certificate of entitlement to an insurance pension. If a citizen himself cannot come and write a statement, a trusted person will do it for him. Then the employees of the fund will check the documents and make a decision on the possibility of paying the money. If this is a lump sum, then within two months after the citizen’s appeal, it will be transferred to the account or delivered in cash.

In the draft resolution, the Ministry of Labor proposes to give people the right to issue a lump sum payment of pension savings through their personal account on the website of the Pension Insurance Fund or through the MFC. This initiative concerns only funds held by the FIU. But the Ministry of Labor said that they are also considering the proposal of the Association of Non-State Pension Funds to provide an opportunity to process documents in the MFC to those Russians whose savings are in NPFs, TASS reported on January 27.

Leave a Comment