The procedure for transferring savings
Pension funds can be transferred back to the Pension Fund of the Russian Federation:
– at the request of the person (insured);
– in connection with the emergence of such an obligation for the NPF.
This procedure is established by subparagraph 3 of paragraph 1 of Article 31 of the Law of July 24, 2002 No. 111-FZ, Article 36.2, paragraph 1 of Article 36.6 and paragraph 1 of Article 36.8 of the Law of May 7, 1998 No. 75-FZ.
Situation: is it possible to transfer part of pension savings back to the Pension Fund of the Russian Federation, and leave part in a non-state pension fund?
Answer: no, you can't.
A non-state pension fund (NPF) is obliged to transfer all a person’s pension savings to the Pension Fund of the Russian Federation. Their size is determined in accordance with Article 36.6-1 of the Law of May 7, 1998 No. 75-FZ. As a rule, these are all the funds that the NPF took into account in the person’s funded pension account. The law does not provide for the transfer of only part of pension savings. This procedure follows from paragraph 2 of Article 36.6 and paragraph 4 of Article 36.12 of the Law of May 7, 1998 No. 75-FZ.
In subsequent years, savings transferred to the Pension Fund can be:
– transfer to another management company;
– invest in another investment portfolio without changing the management company;
– transfer to NPF.
This procedure follows from paragraph 1 of Article 31 of the Law of July 24, 2002 No. 111-FZ.
Deadline for processing the transfer
Choosing the right fund will help you better provide for your old age
. To complete the registration, the application must be submitted from January 1 to December 1. Until December 31, a person can change his mind and withdraw the submitted documents. The transfer of funds must be completed by March 31 of the following year. One month is given for NPFs to transfer funds to the Pension Fund.
Deadlines for submitting a transfer application
First of all, you need to decide how to transfer savings from the NPF to the Pension Fund: in the general manner or ahead of schedule.
1. General procedure
In general, the transfer of a pension from a non-state pension fund to the Pension Fund is carried out in the year following the year in which the five-year period expires from the year of filing the application (paragraph 36 of article 3 of the Law of May 7, 1998 No. 75-FZ).
That is, when submitting an application to transfer to the Pension Fund of the Russian Federation in 2015, the NPF will transfer your savings only in 2021.
2. Early order
In case of early transfer from a non-state pension fund back to the Pension Fund of the Russian Federation, the citizen’s pension savings will be transferred in the year following the year of filing the early application (paragraph 37 of article 3 of the Law of May 7, 1998 No. 75-FZ).
That is, if you submit an application for early transfer to the Pension Fund in 2015, the NPF will transfer your savings in 2021.
What is the essence of the five-year period? The fact is that if you stay with one insurer for at least five years, you will be paid the average investment income if the insurer operated at a loss at the end of the five-year period. But if you transfer early (stay with the same insurer for less than five years), you don’t need to count on investment income. In this case, only the nominal value of pension savings without investment income will be transferred to the Pension Fund of the Russian Federation.
This follows from Article 36.6-1 of the Law of May 7, 1998 No. 75-FZ.
And now directly about the timing of the transition to the Pension Fund of the Russian Federation.
Thus, within the framework of the “Pension Company 2015”, your choice must be made before December 31, 2015, regardless of the procedure for transferring from the NPF to the Pension Fund: in the general manner or ahead of schedule. That is, before December 31, 2015, submit to the Pension Fund of the Russian Federation an application for transfer (early transfer) from the NPF to the Pension Fund of the Russian Federation.
This follows from paragraph 3 of Article 36.8 of the Law of May 7, 1998 No. 75-FZ.
For information about which branch of the Pension Fund of the Russian Federation residents of Moscow and the Moscow region should apply to, see the table.
Options for demonstrating an employee’s choice regarding pension savings
If an employee does not belong to the “silent” category and intends to make a conscious choice to invest his 6%, he has several options for possible manifestation of will:
- continue to contribute them to the Pension Fund, but change the extended investment portfolio to a basic one;
- having retained the Pension Fund as a fund, change the management company that will manage the funds, choosing, in his opinion, one of the more profitable ones that has a contractual relationship with the Pension Fund;
- transfer funds from the savings portion to a non-state pension fund (this is possible for 5 years, starting in 2016);
- funds previously allocated to the care of NPFs will be returned to the State Pension Fund.
Let's consider each option in more detail.
Not an extended, but a basic investment portfolio
An employee has the right to think about the reliability and profitability of his investments, while choosing where exactly to invest them. More precisely, the management company of Vnesheconombank will choose if the funded share of the pension is sent there. A working person has the right to choose whether to use an expanded investment portfolio, as is done by default, or whether it is better to limit himself to more reliable, from his point of view, investment objects provided by the basic portfolio.
You can change your investment portfolio only until December 31 of each current year by writing a corresponding statement, according to which VEB Management Company will invest only in securities of the state and issuers of the Russian Federation.
We are changing the management company
The Pension Fund of Russia has concluded agreements not only with VEB Management Company; its partners are about 12 other management companies, and citizens can choose any of them to manage their funds. Information about all “subsidiary” management companies is contained on the official website of the Pension Fund. Data on the annual profitability of management companies, also published on the website, will help you make a decision. Unfortunately, in some years they also showed losses. Nevertheless, workers have this choice.
IMPORTANT INFORMATION! If the management company did not make a profit, but entered into a state of loss, this does not mean that pensions are lost for citizens. They will be able to receive their savings contributions made to the Pension Fund under any circumstances under the guarantee of the state. But inflationary processes are partially compensated only for the insurance part of the pension.
Pros and cons of Pension Funds and Non-State Pension Funds
If you need to decide whether to give your hard-earned money to a state or non-state pension fund, you should first study the positive aspects and pitfalls of both options. The good news is that this decision will not be irreversible - you can always transfer your funds from one fund to another.
Arguments for the Pension Fund:
- the reliability of deposits is guaranteed by the state;
- loss of license or bankruptcy is impossible;
- inflation is partially compensated by indexation of funds;
- Savings in the Pension Fund are not subject to taxes.
Disadvantages of the Pension Fund:
- low interest rate, hence the low yield - 7% per annum in ruble equivalent;
- investment restrictions (you can only invest in assets permitted by the state).
Opinions in favor of NPF:
- relatively free investment activity;
- the ability to choose more profitable investment properties;
- the average income is higher than in the Pension Fund (approximately 10% per annum in rubles and foreign currency and higher);
- additional guarantees provided (for example, payment of funds by the heir of a deceased investor, etc.);
- the right to distribute funds over time and receive them at a time upon request.
Possible disadvantages of NPF:
- high interest rates may turn into “floating”;
- profitability is unstable and may change over time and market conditions;
- The NPF may go bankrupt or lose its license, in which case the investor will receive back only the money invested, without interest or indexation;
- the need for the investor to constantly monitor the stock market and be ready to change the fund in emergency situations.
Having assessed the pros and cons of state and non-state structures involved in pension accounting, insurance, accumulation, investment and payment, every working citizen of the Russian Federation can make a responsible and informed decision.
Filling out an application for transfer
Complete the application for transfer and application for early transfer from the NPF to the Pension Fund of the Russian Federation in accordance with the Instructions and Instructions for Early Transfer, which were approved by Resolution of the Pension Fund Board of May 12, 2015 No. 158p.
An application for transfer (early transfer) from a non-state pension fund to the Pension Fund of the Russian Federation can be submitted:
- on paper;
- electronic.
The application drawn up on paper, in particular, indicates:
– applicant’s details (full name, date of birth, insurance certificate number);
– details of the non-state pension fund from which pension savings are transferred (name, address, license number and date);
– number and date of the agreement on compulsory pension insurance with the NPF.
This procedure is established by Article 36.8 of the Law of May 7, 1998 No. 75-FZ.
Situation: is it possible to submit an application for transfer (early transfer) from a non-state pension fund to the Pension Fund of the Russian Federation, handwritten, typed on a typewriter or computer?
Answer: yes, you can.
However, it is necessary to proceed from the application forms approved by Resolution of the Pension Fund Board of May 12, 2015 No. 158p:
- application for transfer;
- application for early transfer.
The main thing is to list all the necessary details and take into account the location of this data in the original form.
This follows from the provisions of paragraph 2 of the Instructions for filling out an application for transfer and paragraph 2 of the Instructions for filling out an application for early transfer from a non-state pension fund to the Pension Fund of the Russian Federation, which were approved by Resolution of the Board of the Pension Fund of May 12, 2015 No. 158p.
An example of submitting a paper application for early transfer from a non-state pension fund to the Pension Fund of the Russian Federation
P.A. Bespalov decided to transfer his pension savings for 2016 from the NPF “Zashchitnik” to the Pension Fund of the Russian Federation, to a state management company. At the same time, he chose an investment portfolio of government securities.
To do this, he filled out an application for early transfer from the NPF and personally submitted it to the branch of the Pension Fund of the Russian Federation at his place of residence on October 21, 2015 (i.e., before the deadline of December 31, 2015).
Application methods
You can submit an application for transfer (early transfer) from a non-state pension fund to the Pension Fund of the Russian Federation on paper:
– personally;
– through a representative (legal or authorized);
– through a transfer agent;
– through an organization (employer);
- by mail.
This is established by paragraph 3 of Article 36.8 of the Law of May 7, 1998 No. 75-FZ.
The services of a transfer agent are free for the applicant - they are paid for by the Pension Fund of the Russian Federation (Section 7 of Appendix 1 to Order of the Ministry of Finance of Russia dated August 21, 2003 No. 79n).
If you bring an application to the Pension Fund of the Russian Federation in person, through a representative or employer, agency employees are required to issue a receipt indicating that they received it. The form of the receipt was approved by Resolution of the Board of the Pension Fund of the Russian Federation dated May 2, 2007 No. 101p.
An application for transfer (early transfer) from a non-state pension fund to the Pension Fund of the Russian Federation can be submitted electronically via the Internet by filling out an interactive form on the Unified Portal of State and Municipal Services or in your personal account on the website of the Pension Fund of the Russian Federation www.pfrf.ru.
This follows from the provisions of paragraph 4 of Article 32 of Law No. 111-FZ of July 24, 2002, Decree of the Government of the Russian Federation of July 7, 2011 No. 553, Order of the Ministry of Labor of Russia of September 20, 2013 No. 472n, Instructions for filling out an application for transfer and Instructions for filling out an application for early transfer, which were approved by Resolution of the Pension Fund Board of May 12, 2015 No. 158p.
The conditions that must be met for one or another application method are given in the table.
Is it possible to transfer from a non-state pension fund back to the Pension Fund?
A citizen can choose any management company to which he transfers his money. Such organizations are public and private. In the latter case, it is important to conclude a trust agreement with the Pension Fund. Investing savings and contributions from the employer are the main sources of income for such situations.
Are transitions limited?
No, you can change your pension fund as many times as you want throughout your life. Just keep in mind that such changes are possible only once a year; no one will allow you to transfer from fund to fund every month. The fact is that any financial organization puts your funds into circulation. If you unexpectedly decide to take them away, this will create money for the company, so it insures itself in every possible way against such situations.
Most often, the agreement that you enter into with a non-state pension fund contains a clause on early termination of the agreement. Including transfer to another fund. In this case, I can only return your funds to you, without accruing income. The settlement period for the funds is five years. That is, this is a mandatory period for which your savings must be in the PF accounts, otherwise the organization will simply apply its own sanctions to you and deprive you of the income that was accrued on your investments. This is a kind of deposit: you give money and do not have the right to withdraw it in advance, which is why the bank pays you interest for using your funds.
Where to go to apply for a funded pension
When you decide to decide on your retirement savings, you can consider the following options:
- Pension Fund and will need to choose a management company. It can act on behalf of the state or be private.
- You can also contact the NPF.
When your savings are with the management company, then the payment of the funded pension will take place through the Pension Fund, but if you contact a non-state pension fund, then it will handle this.
Savings are formed through mandatory insurance contributions, which each employer is obliged to transfer for each of its employees, from voluntary contributions, or by investing these funds. Speaking of insurance premiums, the employer transfers them in the amount of 22% of the salary the employee receives. This mandatory condition must be met by all law-abiding employers in our country.
Consideration of the application
Having received an application for transfer (early transfer) from a non-state pension fund, the Pension Fund of the Russian Federation can:
– satisfy the application;
– refuse to satisfy the application;
– leave the application without consideration.
For reasons for refusing to approve or consider an application, see the table.
The Pension Fund must notify the person and his NPF about the decision made.
Deadline for this:
- March 31 of the year following the year in which the application for early transfer was submitted;
- March 31 of the year following the year in which the five-year period expires from the year in which the transfer application was submitted.
This procedure follows from Article 36.10 of the Law of May 7, 1998 No. 75-FZ.
Situation: what to do if the Pension Fund of the Russian Federation unlawfully refused (left without consideration) an application for transfer from a non-state pension fund back to the Pension Fund of the Russian Federation?
Submit a written complaint to the department of the Pension Fund of the Russian Federation that refused to satisfy the application (leaving it without consideration), or to a higher division of the Pension Fund of the Russian Federation (Articles 2 and 8 of the Law of May 2, 2006 No. 59-FZ).
You can file a complaint:
- on paper;
- electronic.
This is stated in paragraph 1 of Article 4 of the Law of May 2, 2006 No. 59-FZ.
Regardless of the method of filing a complaint, state the current situation and give your arguments.
When filing a complaint electronically, be sure to include the following:
– your last name, first name and patronymic (if any);
– your postal or email address (depending on which of the specified addresses you want to receive a response to).
Please attach to your complaint:
– an application for transfer (early transfer) from a non-state pension fund, which was submitted to the Pension Fund of the Russian Federation;
– notice of refusal to satisfy the application (about leaving the application without consideration), which was sent by the Pension Fund of the Russian Federation;
– other supporting documents and materials if necessary.
When filing a complaint on paper, attach these documents as copies.
If the complaint is submitted electronically, submit the documents:
– in electronic form along with the complaint;
– separately on paper in the form of copies or originals.
This procedure is established in Article 7 of the Law of May 2, 2006 No. 59-FZ.
The Pension Fund of the Russian Federation is obliged to respond within 30 days from the date of registration of the citizen’s written appeal. In exceptional cases, the period may be extended by no more than 30 days with notification to the applicant. This procedure is provided for in paragraph 3.1 of the Instruction, approved by Resolution of the Pension Fund Board of November 2, 2007 No. 275p, Article 12 of the Law of May 2, 2006 No. 59-FZ. In addition, the Pension Fund of the Russian Federation, based on the results of consideration of the appeal, must take measures if the applicant’s rights have been violated (clause 1 of Article 10 of the Law of May 2, 2006 No. 59-FZ).
Situation: what to do if the Pension Fund of the Russian Federation did not notify the person about the decision he made on the application to transfer a pension from the NPF to the Pension Fund?
Contact the fund with a request for the reason for non-notification.
The Pension Fund of the Russian Federation must notify the person and his NPF about the decision made:
- until March 31 of the year following the year in which the application for early transfer was submitted;
- until March 31 of the year following the year in which the five-year period expires from the year in which the transfer application was submitted.
This follows from the provisions of paragraph 5 of Article 36.10 of the Law of May 7, 1998 No. 75-FZ.
The Pension Fund of the Russian Federation may not notify the person about the decision made on the application, for example, if:
– the application was not received by the Pension Fund;
– the applicant’s data is incorrect (it is unknown to whom and where to send the notification);
– the sent notification was lost during forwarding.
To find out the reason why the Russian Pension Fund did not notify you of its decision, contact it with a request in writing or electronically.
In your request, state the current situation and attach copies of:
– an application for transfer (early transfer) from a non-state pension fund, which was submitted to the Pension Fund of the Russian Federation;
– receipts for the transfer of documents to the Pension Fund of the Russian Federation.
This follows from Articles 2 and 7 of the Law of May 2, 2006 No. 59-FZ.
The Pension Fund of the Russian Federation is obliged to respond within 30 days from the date of registration of a person’s written appeal. In exceptional cases, the period may be extended by no more than 30 days with notification to the applicant. This procedure is provided for in paragraph 3.1 of the Instruction, approved by Resolution of the Pension Fund Board of November 2, 2007 No. 275p, Article 12 of the Law of May 2, 2006 No. 59-FZ. In addition, the Pension Fund of the Russian Federation, based on the results of consideration of the appeal, must take measures if the applicant’s rights have been violated (clause 1 of Article 10 of the Law of May 2, 2006 No. 59-FZ).
In addition, a person has the right to submit a request to his NPF (clause 8 of the Rules approved by Decree of the Government of the Russian Federation of February 6, 2004 No. 55). Perhaps the Pension Fund of the Russian Federation provided the necessary information to him (clause 5 of Article 36.10 of the Law of May 7, 1998 No. 75-FZ).
If the Pension Fund of the Russian Federation satisfied the application
If the Pension Fund of the Russian Federation has satisfied the application, the NPF must transfer the pension savings accounted for in the funded pension account back to the Pension Fund of the Russian Federation:
- until March 31 of the year following the year in which the application for early transfer was submitted;
- until March 31 of the year following the year in which the five-year period expires from the year in which the transfer application was submitted.
This procedure is established by paragraph 4 of Article 36.6, paragraph 4 of Article 36.5, paragraph 5 of Article 36.10, paragraph 4 of Article 36.12 of the Law of May 7, 1998 No. 75-FZ.
The Pension Fund of the Russian Federation, within a month from the moment the pension savings were transferred to it, invests them in a management company chosen by the person.
This procedure is established by paragraph 1 of Article 34 of the Law of July 24, 2002 No. 111-FZ, Article 36.8 of the Law of May 7, 1998 No. 75-FZ.
After the transfer of pension savings, it is the responsibility of the Pension Fund to annually inform the client upon his request about the results of the investment (including the income received). To do this, within 10 days from the date of the person’s application, the Pension Fund of the Russian Federation must send him a notice (subclause 2 of Article 36.2 of the Law of May 7, 1998 No. 75-FZ). Its form was approved by order of the Ministry of Labor of Russia dated October 31, 2012 No. 505n.
Obligation of NPFs to transfer savings
A non-state pension fund is obliged to transfer pension savings back to the Pension Fund of the Russian Federation if:
- NPF lost its license;
- the person who allocated funds (part of the funds) of maternal (family) capital to form a funded pension died;
- the person refused to direct funds (part of the funds) of maternity capital to form a funded pension;
- the contract on compulsory pension insurance is terminated due to the court recognizing it as concluded by improper parties;
- The arbitration court declared the NPF bankrupt and decided to open bankruptcy proceedings.
This is stated in paragraph 1 of Article 36.6 of the Law of May 7, 1998 No. 75-FZ.
If the NPF license is revoked
The reasons why the Bank of Russia has the right to cancel the license of a non-state pension fund are listed in paragraphs 1, 2 and 11 of Article 7.2 of the Law of May 7, 1998 No. 75-FZ.
If the license has been revoked, the NPF must:
– notify the person of the termination of the compulsory pension insurance agreement within a month from the date of receipt of the decision to revoke the license;
– send (hand over) to the person a statement about the status of his pension account and the amount of pension savings to be transferred to the Pension Fund of the Russian Federation;
– transfer a person’s pension savings to the Pension Fund of the Russian Federation within three months from the date of the decision to revoke the license.
Within a month from the date of receipt of funds from the NPF, the Pension Fund of the Russian Federation will notify the person about the amount of insurance funds received into his account from the previous insurer.
This procedure is established by paragraph 2 of paragraph 13 of Article 7.2 and subparagraph 12 of Article 36.2 of the Law of May 7, 1998 No. 75-FZ.
Transfer of maternity capital funds
The NPF is obliged to transfer pension savings back to the Pension Fund, consisting of funds (part of the funds) of maternity capital, within 30 days from the date:
– receiving a notification from the Pension Fund of the Russian Federation about the transfer of funds in connection with a person’s refusal to send funds (part of the funds) of maternity capital for the formation of a funded pension;
– receipt by the fund of information about the death of the insured person. In this case, you can transfer not only the funded part of the pension to the PRF, but also the income from their investment.
This procedure is provided for in paragraphs 5.1 and 5.2 of Article 36.6 of the Law of May 7, 1998 No. 75-FZ.
Is it possible to terminate an agreement with a non-state pension fund?
The rights of depositors are protected by Federal legislation. A citizen can write an application to transfer his funds, but certain rules must be met. When making such a decision, you need to understand that the NPF puts the money invested into circulation and a sudden withdrawal of funds will be unprofitable for the fund.
The fund operates on the basis that the money will be invested for five years. To protect itself, the company usually applies the following procedure:
- If a citizen withdraws funds before the period expires, the money will be transferred without any profit received from the investment.
- In the event that he receives money after the expiration of the five-year period, both his funds and the investment tax will be issued.
When transferring pension savings, you need to choose the advantageous option.
Termination of the contract occurs upon application. The document can be submitted from January 1 to December 1. A person has the right to refuse an application, but to do this he must submit an application before December 31.
An application for transfer of funds can only be submitted once during the year. A second such document will be refused. However, if you write a refusal to your first application, the second will be accepted for consideration in the usual manner.
It must be taken into account that it is unacceptable to divide funds between funds: it is impossible to send one part to the Pension Fund and the other to the Non-State Pension Fund.
