Pension Fund of Russia becomes online: work record book's death and pension indexation

Payment increase of insurance pension indexation

This year, monthly cash payments have been indexed and pensions of working pensioners have been recalculated. As a result, old-age pensions have increased by more than 1,000 rubles, reaching an average size of 14,623 rubles, the average size of all pensions was 13,865 rubles. More than 60,000 non-working pensioners of Tatarstan, who live in rural areas and have worked in agriculture for more than 30 years, have increased their income by 1,333 rubles since January of this year thanks to the recalculation made by employees of the Pension Fund. Also, all non-working pensioners, whose total income did not reach the regional living wage of the pensioner (8,232 rubles), were paid up to this amount.

In total, pensions and allowances totaling 205 billion rubles have been paid in Tatarstan in 2019.

From 1 January 2020, insurance pensions for non-working pensioners will be indexed again — by 6,6%. The size of the fixed payment after indexing will be 5,686 rubles a month, the cost of the pension point — 93 rubles. From 1 April 2020, the amount of state pensions, including social pensions, will be increased by 7%.

Employment record book to become virtual

Since the new year, the usual paper workbooks will disappear — they will become online. In the system of personalized accounting, the individual personal account will be supplemented with the new section 'The information about employment'.

Those who already have such document can choose online employment record book voluntarily, but those who first get a job in 2021 will not have a choice between online and paper.

If a citizen needs to make an extract from the online work record, he can ask the employer or make a request in the offices of the Pension Fund, on its website, in the MFC and on the portal of public services.

Deputy Prime Minister Leila Fazleeva raised the issue of reliability and security of the system at the board meeting of the Pension Fund Department in the Republic of Tatarstan. The Pension Fund assures that failure or hacking with subsequent changes or destruction of data is impossible. Information on personal accounts is recorded in distributed storage systems, which eliminates the risk of data loss.

The advent of e-labor imposes new responsibilities on employers. They will have to provide information about their work to the Pension Fund every month until the 15th. And from January 1, 2021, information about the admission and dismissal of employees must be transmitted no later than the next day after the order is issued.

Maternity capital will be increased

From January 2020, the maternity capital will be indexed, its size will be 466,617 rubles.

According to the executive of the republican branch of the Pension Fund of Russia Eduard Vafin, 16,200 state certificates were issued and 23,300 applications for the commitment of maternity capital funds were satisfied in 2019.

As usual, most families use it to improve their living conditions, but every year more and more people want to use it for children's education. This increase is due to the amendments made last year to remove the three-year limit on the use of funds for pre-school education.

In the near future, it is planned to consider a draft law on reducing the terms for the commitment of the maternity capital twofold if the funds will be used for the initial payment of the mortgage, the interest rate on which the state subsidizes, as well as for the payment of such a loan.

Pension Fund electronic services

In Tatarstan, 87,7% of citizens have applied for the services of the Pension Fund remotely this year. The creation of service centres of the Unified identification and authentication system (ESIA) in all the Fund's offices in the republic has increased the share of citizens who received services online, without visiting the offices of the Pension Fund. About 695,000 people registered in the system.

The Pension Fund's e-services are available on the Pension Fund's website, on the public services portal, and in a mobile smartphone app. Besides, the fund's services can be requested not only in 54 client services, but also in a network of 578 multifunctional centres.

Next year, the Pension Fund's database should also include pre-pensioners — it is planned to establish an electronic exchange of data on this category of citizens with the tax service, employment agencies, other authorities and employers.