The pension depends on length of service. How does length of service affect the size of your pension? Labor and insurance experience

Over the years, people are increasingly beginning to think about pensions, how they are calculated and what is taken into account.

Until 2002, when calculating pensions, only the total length of service was taken into account, after which a reform took place and only the insurance period began to be taken into account. Let's look at the differences between general experience and insurance below.

Differences between insurance and general experience

The total length of service is considered to be the total work activity and periods prescribed by the Labor Code.

The insurance period is considered to be the period during which insurance payments occurred, that is, the citizen paid taxes to the Pension Fund.

Another significant difference between insurance and work experience is that work experience is not counted if the citizen worked outside of the Russian Federation. But the insurance period is considered if taxes were paid to the Pension Fund at that time.

Impact of length of service on retirement

The latest reforms have established that a citizen’s pension will be calculated from the insurance record, that is, in this case, the length of service does not affect the amount of the pension. But there is one note here. For persons who worked before 2002 (before the first reform), the length of service will be taken into account.

Let us consider in more detail the algorithm for accounting for length of service for pensions, taking into account all the reforms.

At the first stage of pension calculation, all activities before 2015 will be taken into account, taking into account the laws that were in force before.

At the second stage, labor activity will be calculated in accordance with Federal Law No. 400-FZ “On Insurance Pensions”. That is, all work activity after 2015 will be taken into account, and it will be calculated from the insurance period.

Experience requirements

A change in the structure of pension enrollment leads to a number of changes, including the length of the required length of service to receive a pension. Before the latest change was adopted (until 2015), you had to work for at least five years to receive a pension. In 2015 itself, this bar increased by a year and became six years. And every year the required minimum experience will increase until it reaches 15 years.

It is important to take into account that length of service directly affects the size of the pension, and the longer it is, the larger the pension will be. Today, having 35 years of experience and the average income in the country, you have the right to apply for a pension. But under these conditions, it will be no more than 40% of your average salary. From which it follows that another important aspect in calculating a pension is the size of the salary itself. And an increase in length of service will affect the increase in the percentage of payments from the average salary.

The pension reform encourages Russians to understand how length of service is taken into account when calculating pensions, what will happen if they do not work a certain minimum of years, and at the same time determine their chances of retiring early.

Types of experience

The length of service for calculating an old-age pension may include slightly different concepts depending on:

Positions:
- State - time spent in the service of the state.
- Insurance (labor) - labor or other activity accompanied by regular contributions to the Pension Fund.
- Special - providing the opportunity to retire earlier than the deadline. Its peculiarity is working in industries that are harmful to health, in a debilitating climate, in areas with increased radioactivity.
Continuity:
- General, which includes all periods of labor activity (with regular payment of insurance contributions to the Pension Fund), regardless of the presence and duration of breaks.
- Continuous, implying the last time period during which the employee worked (in one or more organizations) without breaks (or their duration did not exceed those established by law).

Total length of service is the total duration of periods of work and other socially useful activities before January 1, 2002.

Labor and insurance experience

A citizen’s work experience is the sum of periods of work at all places of work, periods of other socially useful activities and other periods specified in pension and labor legislation (military service, maternity leave, etc.).

The reform of the pension system has led to the emergence of a new concept - insurance experience. This is the total period of labor or other activity of a citizen during which insurance contributions were transferred to the Pension Fund of Russia.

Hence the interest in whether the pension depends on length of service or whether only the amount of insurance contributions is now taken into account.

The amount of the insurance pension benefit consists of the sum of the fixed payment and the insurance pension. The latter is determined by the individual number of pension points, depending both on the size of the salary and the period of its receipt - length of service.

The law also establishes a minimum insurance period that allows you to receive an old-age insurance pension.

Service and old age pension

How is length of service calculated?

Having determined whether the length of service affects the amount of the pension, we move on to the procedure for calculating the insurance period.

The insurance pension period, just like the previous work experience, is preserved for able-bodied citizens during special periods. Their list is written out in Art. 12 Federal Law “On Insurance Pensions” No. 400-FZ:

military or equivalent service;
periods of care for born children - no more than one and a half years for one child and no more than six years in total;
time spent caring for a disabled person of the first group, an elderly person (a person over 80 years of age) or a disabled child;
periods of being registered with the employment service and receiving unemployment benefits;
the period of residence of the wives of military personnel in areas where employment was impossible, as well as the spouses of diplomatic workers abroad;
the time of serving the sentence by persons brought to criminal liability unjustifiably.

Work experience before January 1, 2003 is confirmed by documents issued by employers, archival institutions and other organizations that have relevant information about the work and (or) activities of the citizen.

Such documents are a work book, certificates, written employment contracts and agreements with notes on their implementation, civil contracts, certificates on the period of payment of mandatory insurance contributions to the Social Protection Fund of the Ministry of Labor and Social Protection of the Republic of Belarus (hereinafter referred to as the Fund) and on the amount of wages (income) from which these contributions are paid - in cases provided for by law.

Provided that contributions to the Pension Fund are paid not less than the minimum fixed amount, the following pension period is accrued:

individual entrepreneurs;
notaries, lawyers and other persons who provide themselves with work independently;
members of farms;
other citizens mentioned in Art. 13 Federal Law No. 400-FZ.

The work experience accumulated before the pension reform of 2002 is included in the total period of pension service, and points for the specified period are calculated in the order of valorization (revaluation of value) of pension rights. The direct dependence of pensions on length of service is evident here too.

The insurance period is calculated according to the calendar duration of periods of work or other activity, summing days into months and months into years. An exception is provided in two cases:

for seasonal workers in a number of industrial sectors;
for those working on water transport during navigation periods.

These citizens are credited with a full year of experience in the calendar year in which the period of work falls.

Watch a video that will tell you how to calculate length of service and pension

Minimum experience

After we figured out that length of service matters when calculating a pension, let’s talk about how many full years of experience you need to have to receive payments from the Pension Fund at retirement age.

Before the 2015 reform, the minimum length of service to receive an insurance pension was 5 years.
Now this figure is increasing by one every year. In 2015 it reached 6 years, in 2016 – 7 years, in 2017 – 8 years.
The gradual increase will end in 2024, when the minimum length of service reaches 15 years.

Pension

There are two types of pension:

Insurance. Its value depends on the length of work experience.
Social. Accrued in case of absence or insufficient length of service.

Insurance

Officially employed citizens have the right to count on receiving an insurance pension. Currently, it is prescribed when women reach 55 and men reach 60 years of age. Early retirement is possible in case of dismissal due to staff reduction, if the employee has 20 years of experience - for women and 25 - for men. Its size increases according to the years worked. Some periods of time when labor activity was not carried out are also equated to these:

Important information

For each socially significant non-work period, a certain number of pension points is awarded. For example, a year of military service is worth 1.8 points. A year of care for a disabled child, a disabled person of the 1st group and the first healthy child is estimated at the same amount. The second child will bring parents 3.6 points per year, the third and subsequent ones - 5.4 points.

Pregnancy and raising children. Each child is allocated 1.5 years (but not more than 6 years in total).
Compulsory service in the army, internal affairs bodies.
Job search (for persons registered with the Employment Service).
Public Works.
Serving time in prison (for persons who have undergone rehabilitation).
Caring for disabled people of group I, childhood, and people over 80 years old.

These deadlines are taken into account only if there was a period of work immediately before or after them.

Social

The social pension is designed to protect the interests of persons who, due to their physical condition, difficult life situations or unofficial employment, have not acquired the required length of service. If there is no work experience, whether a pension is due depends on the following circumstances:

Having citizenship of the Russian Federation or living in the country for 15 years.
Turning 60 years old for women and 65 years old for men, with the exception of residents of the Far North. Due to the peculiarities of living in difficult climatic conditions, their retirement age is 50 years for women, and 55 years for men.

The pension in the absence of work experience is small, but is of interest to persons entitled to survivor benefits. In this case, it is possible to receive both types of payments, if the second is not related to social benefits and is assigned:

To the parents or spouse of a serviceman who died while participating in hostilities.
To family members who survived the consequences of the Chernobyl nuclear power plant accident.
Relatives of the deceased astronaut.

Details about work experience and pensions are described in the video.

Size

How the pension is calculated if there is no work experience depends on the base rate, which is 3,626 rubles. However, it is subject to annual indexation, carried out in early April to take into account inflation and the cost of living. In 2020, when recalculating, a coefficient of 1.03 is used, bringing the pension amount to 8,600 rubles. In some regions of the Russian Federation, this coefficient (and, accordingly, the minimum pension without work experience) has a higher value. But this advantage is lost if you move to another region.

The duration of work when paying funds to the Pension Fund does not affect the assignment of a pension. Only general experience is required and the requirements for it vary depending on the category of citizens and the type of pension received.

The size of pension payments cannot be lower than the subsistence level for pensioners. If such a situation arises, the missing amount is accrued as an additional benefit. The specific cost of living is set by regional authorities. In Moscow for 2016 it corresponds to 8528 rubles.
Pension benefits may be increased if:

presence of dependents;
reaching 80 years of age.

It is impossible to receive old age and disability pensions at the same time. The latter ceases to be paid from the date of retirement of the disabled person. If the pension amount is less than the disability benefit, the deficiency is compensated by additional payments.

Pension for years of service below the minimum

A citizen whose retirement experience is below the required minimum has the right to receive not an insurance pension, but a social pension, the amount of which is much lower.
If an insurance pension is assigned to men at 60 years old, and women at 55 years old, then the age limit for a social pension is exactly 5 years higher:

for women – 60 years;
for men – 65 years.

The amount of the social pension depends on the average salary in the subject of the federation where the elderly citizen lives.

Work experience after January 1, 2003 can be confirmed by individual (personalized) registration data in the state social insurance system. In particular, an extract from the individual personal account of the insured person, issued by the district departments of the Fund.

When a pension is assigned to a specific person (if he is submitted for a pension in the prescribed manner or personally applies for a pension), this extract is requested by the district (city) department (department) for labor, employment and social protection.

How does high length of service increase your pension?

Now let’s look at how work experience affects the size of the pension of a person who has worked not a small number of years, but a large one.
After achieving the minimum length of service, the pension capital, calculated in points, increases due to an additional coefficient.
The points on the account of a citizen who continues to work after reaching retirement age also grow faster.

Please note: in addition to the minimum, the law also provides for a maximum length of service that is taken into account when calculating a pension:

for women – 40 years;
for men – 45 years.

Working beyond this period will not increase your pension benefit.

Who is eligible to retire early?

Important information

The work book confirms work experience and is the main document. In the absence of it, as well as in cases where it contains incorrect and inaccurate information or there are no records about individual periods of work, certificates issued on the basis of orders, personal accounts, payroll statements and others can be accepted as confirmation of length of service. documents, written employment contracts and agreements with notes on their implementation.

Having covered the topic of how a pension depends on length of service, it remains to say under what conditions a working citizen has the right to retire early (a man under 60 or a woman under 55).

The grounds for early assignment of an old-age pension are set out in Chapter. 6 Federal Law No. 400-FZ.

Receiving an early pension is provided for persons of two categories:

on the basis of labor output of a set duration - for healthcare workers, teachers, rescuers, miners, workers of fishing vessels, etc.;
on social grounds - visually impaired and injured during hostilities, mothers of many children, as well as persons with legally established work experience in the Far North or in equivalent areas.

The “Northern” pension is due early:

at 50 years old for men / at 45 years old for women living in the Far North (FN) and having worked for 25/20 years as commercial hunters, fishermen, and reindeer herders;
at 50 years of age for women who have given birth to two or more children and have earned 12 years of experience in the RKS or 17 years in equivalent areas;
at 55/50 years old for men/women with a total experience of 25/20 years, of which 15 years have worked in the RKS or 20 in equivalent areas.

Also, early pension is assigned by the Pension Fund at the proposal of the employment service to persons of pre-retirement age who are registered with it, no earlier than two years before retirement age (Article 32 of the Law “On Employment in the Russian Federation” No. 1032-1 of April 19, 1991 .).

We are ready to answer any questions you may have - ask them in the comments

Work experience is not so important for the assignment of the pension itself, but for the amount of pension provision. Therefore, we will find out what the most valuable categories of experience are so that the pension is as high as possible.

Types of experience

The length of service for calculating pension benefits due to old age includes various ones, and they are determined by the following facts:

1. Job title:
  - state - the period of being in the service of the state;
  - labor (or insurance) – the period of activity when contributions to the Pension Fund were made;
  - special - a position that allows you to retire before the established deadlines (for example, a person worked in hazardous industries, areas characterized by increased radioactivity, etc.).
2. Continuity:
  - general - this period implies the entire working time, regardless of the presence and duration of breaks (payments to the Pension Fund are made);
  - continuous - a period when an employee worked at one or more enterprises without breaks (or their duration did not exceed the periods established by the legislation of the Russian Federation).

Total length of service is understood as the total duration of periods of labor activity and other socially useful work up to January 1, 2002.

During what periods does the pension increase?

It is known that Russian pensioners cannot “boast” of a large pension. Which is really depressing. Our task is to consider the most valuable categories of work experience, which contributes to increasing the amount of pension benefits.

Non-insurance periods

In a number of situations, when a person cannot confirm a high salary with documents, it is possible to replace the period of maternity leave, military service and other periods with pension points. For example, 1.5 years of child care equals 1.8 points. But this alternative is not always profitable, so you need to calculate everything in advance.

"Experience of the North"

This concept implies labor activity in the Far North and areas that are equivalent to it. Territorial distribution is carried out on the basis of orders of the Government of the Russian Federation.

This type of experience has several advantages. First of all, the individual pension indicator increases. Secondly, the person receives the right to increase the fixed part of the payment by 50%. Provided that the pensioner worked in the specified area for 15 years. A 30% increase is carried out in cases where a person has worked for at least 20 years in a territory equated to the Far North.

Thanks to valorization, you can get an additional increase in your pension. Thus, each retired person receives 10% of the estimated pension capital (as of 2002), and 1% for each year of work up to January 1, 1990 inclusive.

The length of service to carry out valorization is taken from the one that was used when calculating the coefficient - general or preferential.

Total work experience until 2002

The amount of pension provision is currently quite difficult to calculate. Three formulas are taken into account for certain periods. In particular, for work before the first of January 2002, from the first of January of the specified year until the first of January 2015, and from the first of January of the last specified year to the present.

The first formula contains an indicator of experience. It is determined based on the total number of years that the citizen worked until December thirty-first, 2001. Since 2002, pensions have been calculated on the basis of insurance contributions, which are transferred to a personalized account. Therefore, the dominant importance of length of service at this stage was leveled out.

The most valuable is the length of service that a person has developed before 2002. Because it is based on this that the length of service is calculated. It is defined like this:

If the stronger sex has 25 years of experience before 2002, and a woman has 20 years of experience, then the indicator is taken as 0.55.
When the work experience is less, for example, 15 and 10 years, respectively, the indicator decreases in proportion to the ratio of the required and available experience.
When the length of service is longer, for example, 35 and 30 years, then for every 12 months in excess of the required duration, the indicator increases by 0.01. However, there is a maximum increase limit, which is 0.75.

All periods of working activity are counted exclusively in calendar days; they do not include periods of higher education.

Preferential experience

This is a special experience that allows you to retire early. In addition to this benefit, a person can count on increased pension benefits. And we are again talking about periods of working activity that occurred before 2002. To calculate the length of service, you can use not only the general one, but also on preferential terms. The calculation rules are simple; they use a coefficient of 0.55.

A selection of videos about work experience

Everyone dreams of having a decent pension. Especially if a lot of effort has been put into work throughout the working years.

So, speaking about a pension, first of all it is worth determining who can count on it. The list of such persons includes: males who have reached 60 years of age and females over 55 years of age. All this is subject to sufficient pension points; length of service

Currently, the length of the insurance period required for an insurance pension is seven years, with a future annual increase of one year to 15 years. There are developed formulas for calculating the old-age insurance pension. There are even online calculators on various sites that can help answer the question.

Insurance period and periods included in it

Separately, it is worth talking about the insurance period, since the size of the future pension depends on it. According to the information, the insurance period is the time spent working, subject to the payment of insurance premiums during this period. Other periods when the person did not work will also be included in the insurance period, that is, the period was not insurance.

These include:

Military service;

The husband's service time under a contract, provided that the area did not allow employment (for wives of military personnel, and in total no more than five years);

Residence abroad of diplomatic service employees;

Temporary disability;

Leave involving child care for 1.5 years (but not more than six years in total);

Assistance to disabled people and elderly citizens (over 80 years old);

Unemployment benefit.

The total work experience will include:

periods of employment as an employee; worker;

individual labor activity;

paramilitary security;

other work when the citizen was subject to compulsory pension insurance.

Thus, when calculating pensions, length of service is of great importance. According to the new current reform, the minimum length of service for a pension is calculated based on the year of retirement.

It is the same for women and men, and for its calculation there are special formulas and calculators that work online.

What if you have no experience?

Working informally or not working, people do not think about their future pension, but when its time comes, everyone wonders whether they will be able to count on something.

In this case, when retirement age comes and there are no accumulated points, a social pension is provided. However, both men and women will have to wait five years to receive it. That is, the first will receive it at 65 years old, and the second at 60.

What were the innovations?

The question of how and how much pension will be received in the future is being asked by more and more citizens. This is due to the fact that starting from 2015, the pension amount is calculated in a new way. According to experts, such a reform will not affect the pension itself. Only the way it is calculated will change.

For certain categories of citizens, pensions may even increase slightly. Thus, they will recalculate the pension for mothers who have been on leave for a long time to care for children. The essence of the reform is that the pension capital received so far will be recalculated into points, and then, when retirement comes, returned back to rubles.

How to get a new pension?

Based on the new formula, in order to receive a pension, you need to accumulate at least 6.6 points (by 2025 - at least 30 points), plus develop length of service. Starting from 2015 – 6 years, it will increase until 2024 – 15 years.

If during the work period the work experience is not developed and points are not accumulated, then the Russian will receive a pension five years later (women - 60, men - 65 years) and will receive a social pension. Its size is about 4.4 rubles.

What needs to be done for the planned retirement?

First of all, have a clean white salary. In addition, it is desirable that it be high (the higher the salary, the more points you can accumulate). However, not everyone in Russia can boast of large official earnings, but only a few.

Alternatively, you can increase your pension if you postpone your required rest for several years. Currently, if a person does not stop working after retirement, his points will be multiplied by bonus factors. This is a thoughtful decision on the part of the government, unofficially extending the retirement age of Russians.

Refusal from a funded pension is another way to save for a comfortable old age. According to experts, contributing 6% to a funded pension may turn out to be unprofitable; it will not be indexed.

Thus, without officially extending the retirement age, the government is introducing new methods of calculating pensions that encourage women and men to work even after their retirement.

The legal significance of total length of service for pension purposes is reduced. Previously, work experience was necessary both for the assignment of a pension and for its calculation. According to the law of the Russian Federation of November 20, 1990 “On State Pensions in the Russian Federation,” taking into account the total length of service, an old-age pension was established, and in appropriate cases, a disability pension and a survivor’s pension. For example, old age pension on a general basis, it was established for men upon reaching 60 years of age and with a total work experience of at least 25 years; women upon reaching 55 years of age and with a total work experience of at least 20 years. The size of the old-age pension depended on the length of total work experience. The pension was set at 55% of the average monthly earnings with the required length of service and increased by 1% for each full year of total work experience exceeding the required one, but not more than 20%.

An example of calculating a pension: a man’s total work experience was 40 years. The pension amount as a percentage of earnings will be 55% + 15% for 15 full years of service over 25 years. Only 70% of average monthly earnings.

Currently, total length of service is not required to assign labor pensions. In accordance with the new pension legislation, one of the main conditions for acquiring the right to a labor pension is the presence of insurance experience, that is, the total duration and other useful activities during which insurance contributions were paid to the pension fund of the Russian Federation, as well as other periods counted in the insurance period . The total length of service is necessary solely to determine the size of the pension for citizens who acquired it before January 1, 2002. To understand this, you need to refer to the relevant provisions of Federal Law N 173-FZ. In particular, Article 30 of this legal act describes the procedure for converting (transforming) pension rights (the value of which is related to the length of total work experience) into estimated pension capital.

In other words, the length of the total work experience depends on the length of service coefficient. The latter is necessary for calculating the estimated size of labor pension, which would be due to the insured person under the legislation in force on December 31, 2001. Pensions are calculated using the individual pensioner coefficient. The estimated pension amount is used to determine the pension capital as of January 1, 2002, which, together with the pension capital after January 1, 2002, forms the total pension capital. Thus, pension rights acquired before 01/01/2002 are converted into monetary terms. The amount of the total pension capital divided by the “survival period” forms the insurance part of the pension, which, together with the base part, makes up the size of the citizen’s pension.