How is a social pension different from an insurance pension?
Both insurance and social pensions are types of payments, but there are certain differences between them.
The insurance pension is one of the most popular in the world. It is a regular monetary compensation for the income that a citizen had while being able to work. The right to it is enjoyed by people who, during the period established by law (insurance period), made cash payments to the Pension Fund. Today it is equal to 7 years, but over the course of 8 years it will rise to 15. Payments are made in accordance with the accumulated points.
The presence of this length of service suggests that the employee regularly made savings to receive a pension in the future. The employer can make payments, which is most often done in practice. By law, a private entrepreneur is given the opportunity to make regular payments to the account of the Pension Fund.
Social pension is called the minimum payment established by the state. This type of pension is established for persons who, for various reasons, are unable to work and do not meet the criteria necessary for calculating other types of pensions. Social pension does not apply to the main form of compensation for lost earnings. She has no dependence on work or insurance experience, payments depend on the age of the recipient and have a minimum amount.
Types of insurance pensions
There are 3 types of insurance pensions: in connection with old age, disability and loss of a breadwinner. The amount of the payment will depend on its type.
- The most common type is old age pension. Upon reaching retirement age, a citizen must submit an application to the Pension Fund for the calculation of payments. The basis is a certificate of compulsory pension insurance.
- insurance pension due to disability are appointed if a person has received a disability regardless of the group. In this situation, insurance experience is also required. Given that it is the same for any type of pension, the importance of paying regular contributions should be emphasized. It is necessary to provide such documents: applications for accrual of pensions, passports, certificates of payment of insurance premiums, extracts from a document on a medical examination recognizing disability, a certificate of disability.
- Insurance includes income compensation payment assigned to family members, which disabled and lost a breadwinner. It is available provided that they were in the care of a deceased relative. These norms of the law include children, grandchildren who have not reached the age of majority. These may be relatives under the age of 23 and studying in one of the educational institutions. Parents, husband or wife of a breadwinner who has reached retirement age or is disabled are also granted this right.
If the relatives were not supported by the deceased, but his death deprived them of the necessary means of life, a minimum allowance may be assigned. Similar circumstances apply to adoptive parents and adopted children. It is necessary to provide documents confirming the fact of death, the absence of conditions for an independent existence of a relative.
An insurance pension can be assigned earlier than the statutory age for her is reached (men - 60, women - 55 years).
The right to early retirement is used by people belonging to certain professions and having social benefits.
The legislation establishes a pension coefficient, the size of which is 6.6 (since the beginning of last year), the indicator is planned to be increased to 30 in 2025.
Types of social pensions
The number of people receiving a social pension varies between 2-5%. By law, persons with such benefits are divided into three categories.
Citizens who receive a pension with the onset of old age. This type of beneficiary is the most common. These include 60-year-old women and 65-year-old men. A prerequisite is the total duration of the insurance period and payments to the PF account over a 5-year period. This type of benefit applies to peoples living in the Far North (at 50 and at 55 years old). There are two conditions for payment: