Valorization of the calculated pension capital - Social Security Law

Calculated Retirement Capital Valorization

The value of the calculated pension capital of the insured person, calculated in accordance with Art. 30 of the Labor Pensions Act, is subject to valorization ( increase).

The amount of valorization is 10% of the calculated pension capital plus 1% of the calculated pension capital for each full year of total length of service acquired before January 1, 1991.

With the valorization of the settlement pension capital, the OTC includes the same periods of labor and other activities and in the same manner as when assessing pension rights in accordance with Art. 30 of the said Law. The duration of TSS for the valorization of the calculated pension capital is not subject to restriction.

With the valorization of the calculated retirement capital of retirees receiving both the MF labor pension for old age and the long service pension (disability pension) under the Law on Pensions for Military Personnel, the OTN does not include periods of military service that preceded the appointment of a disability pension, or periods military service, work and other activities, taken into account when determining the amount of retirement pension.

Determining the size of the MF labor pension for old age, the size of the labor pension for disability and labor pension on the occasion of loss of a bread-winner to citizens who first applied for a labor pension after January 1, 2010, is made taking into account the amount of valorization.

For pensioners from January 1, 2010, the size of the MF labor pension for old age, the size of the labor pension for disability and the size of the labor pension for the loss of the bread-winner is determined taking into account the amount of valorization:

П = Б + П1 + (СВ/Т/КН) х times; K,

where П - the size of MF labor pension (old age, disability, on the occasion of loss of the bread-winner); B - fixed base amount of the insurance part of the labor pension (old age, disability, loss of the bread-winner); P - the size of the MF labor pension (old age, disability, survivor) as of December 31, 2009; CB is the sum of valorization; Т - number of months of the expected period of payment of labor pension; KN - number of disabled family members; K - the total index of indexation and additional increases in MF labor pension, held in the Russian Federation for the period from the date of appointment of a labor pension to a citizen of the MF until January 1, 2010

The amount of the labor pension (the insurance part of the old-age labor pension), calculated taking into account the amount of valorization, is subject to recalculation in cases of granting:

1) additional documents confirming the OTN and (or) experience in the relevant types of work, acquired prior to January 1, 2002, which was not taken into account when assessing the pension rights of the insured person when assigning a labor pension;

2) additional documents confirming the average monthly earnings of the insured person, which was not taken into account when assessing pension rights in accordance with Art. 30 of the Law on labor pensions with the appointment of a labor pension;

3) additional documents confirming OTC before January 1, 1991, which was not taken into account when implementing valorization.

The size of the labor pension is recalculated on the basis of pension documents in case the pensioner chooses another option to determine the estimated amount of the labor pension when assessing pension rights.

When recalculating the amount of labor pension, the number of months of the expected period of payment of the old-age labor pension (T) is determined on the day immediately preceding the day of allocation.

In case of submission of additional documents, the recalculation of the amount of labor pension is made from January 1, 2010 when the insured persons appeal to the territorial bodies of the FIU as of December 31, 2010 inclusive.

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