What is the pension fund

Pension is a monthly cash payments to citizens who have reached the retirement age, which have received the status of a disabled person who lost the breadwinner, other means for its ensuring are formed in the Pension Fund. Pension funds can be public and private.

At the state level, the Pension Fund is an extrabudgetary state institution, as well as a federal system for the provision of public services in social security in the Russian Federation. One of the main functions of the Pension Fund is to provide compulsory pension insurance of state citizens. In addition to her, there are many equally important tasks.

The financial basis of the Pension Fund is extrabudgetary funds, which are formed by paying each working citizen of insurance premiums (a certain percentage of their own wages). Pension Fund of the Russian Federation is a state mechanism for managing retirement funds.

The main functions that the State Pension Fund of the Russian Federation performs:

keeping accounting for insurance funds that come in accordance with the rules of compulsory pension insurance;
appointment and accrual of various types of pensions: labor pensions, social, for civil servants, servicemen, etc.;
calculations and the implementation of social payments to certain categories of citizens (veterans, disabled, etc.);
conducting personalized accounting of participants in the entire system of compulsory state pension insurance;
implementation of interaction with employers who carry out insurance premiums;
providing certificates for family capital;
regulation, control, distribution of funds in the pension system.

Special attention deserves the function of the Pension Fund to ensure the implementation of the Pension Co-Financing Program. In accordance with this program, a citizen has the right to make additional payments to the Pension Fund to increase the accumulative part of the future pension. At the same time, the state doubles the amount deposited if it does not exceed 12 thousand rubles. There are certain benefits associated with this program: if the tax deduction is made according to the income tax, the citizen has the opportunity to get 13% of the amount of additional contributions.

Similar functioning also have non-state pension funds, which, being non-profit organizations, carry out accumulation, investment, accounting of retirement funds, as well as the appointment and accrual of labor pension.

Payment of insurance premiums and additional amounts to the Pension Fund is a kind of investment in the future, namely, ensuring payments in case of an insured event on compulsory pension insurance.