Contributions to the Pension Fund of the Russian Federation

Until early 2002, contributions to the Pension Fund in our country were part of a single tax, which is levied on the population. And then there was Law No. 167-F3, the essence of which is that now this kind of pension contributions is paid as an individual individual payment.

In more detail, the operation of the law means the following: a person pays both a social tax that is uniform for all, and payments for compulsory insurance of his future pension, which imply the existence of a funded, as well as an insurance part. Proceeding from this, the share of the social tax, which was previously enrolled in the PFRF, now goes to the federal budget and is allocated only part of the base rate of labor pension.

To date, the legislation clearly determines that contributions to compulsory pension insurance are paid by payers on a reimbursable basis. Their main purpose is to ensure the citizens' rights for future payment of pensions, which on average equals the amount of contributions recorded on their personal accounts.

Thus, pension payments are different from paying taxes by their reimbursement and repayment. After receipt of the Pension Fund in the budget, they are recalculated on an individual basis and accounted for in individual accounts that are open to each person insured in the FIU. In this case, the part that is accounted for in the individual account, creates the amount of insurance payment, and it can be paid in the event of an accident related to insurance. The amount of future pension does not depend on this. In this case, the law takes into account the contributions to the Pension Fund made by a person for all of his work.

Individual entrepreneurs also make payments to the Pension Fund and are obligatory insurants on two grounds, which are prescribed in the relevant Law in Article 6:

- as persons who make payments to other citizens;

- as individual entrepreneurs.

Since the IP refers simultaneously to two types of policyholders, contributions to the Pension Fund are also paid for each category separately. Every citizen who has concluded a contract for hiring is insured and registered with the Pension Fund of the Russian Federation. Therefore, according to the current law No. 167-F3, Article 28, he must pay on time and in full the payments to the Pension Fund, which are fixed, according to the same act of legislation. Thus, payment is considered mandatory and does not depend on the taxation system.

The fact that individual entrepreneurs were assigned to persons subject to mandatory pension insurance entitles them to implement the principle of providing all citizens with a pension, regardless of their social belonging or work activity. Contributions to the Pension Fund ensure everyone's right to have a working pension in the future. In addition to all of the above, IP after retirement or old age, or for disability can continue to operate as an entrepreneur. For them, an annual recalculation of the pension insurance part is provided, taking into account individual contributions paid by them to their personal account . This makes it possible to increase the size of the pension received.

Individual entrepreneurs who are already pensioners are not exempt from fixed payments for the maintenance of the funded and insurance parts of the labor pension. That is, the law provides that a citizen who is an IP must pay a payment in any circumstances - regardless of whether he has reached retirement age or not.

The terms of payment of pension contributions and the procedure governing them are determined by the Russian government, while Resolution No. 148 of 2003 is used. Their amount is considered by dividing the insured value by 12. Therefore, in the event that the monthly payment is not higher than a fixed payment, its payment is collected in the minimum amount.