The pension fund is what? Main functions and principles of work
Alas, but in this mortal world there are manyprocesses, which are not yet subject to man. And one of them is aging. To alleviate the inconvenience, a lot of different schemes were invented, one of which is a pension. But what organization is responsible for ensuring that when the time comes, a person receives material assistance? The pension fund is a financial body created specifically for these purposes. Funds are public or private, but each performs a set of important functions in society.
What is a pension fund? Does he manage all the consolidated funds?
Initially, we must determine what we areNow we are dealing. A pension fund is an organization that provides socially significant services to the population of a particular state (or countries). When a person reaches a certain age, he is paid appropriate payments, and it is the fund that produces them. Simply put, the PF manages the resources of the pension system (all or part depends on the state). Specifically, in our case, the fund guarantees the fulfillment of the rights of citizens of the Russian Federation to receive appropriate payments.
Pension funds and legislation
This organization was created according to theDecree of the Supreme Soviet of the RSFSR No. 442-1 "On the organization of the Pension Fund of the RSFSR". At the moment, its budget is approved by the State Duma of the Federal Assembly by a separate law during the adoption of the main financial document of the Russian Federation. At the moment, there are more than 40 million pensioners and 20,000,000 beneficiaries in the country who receive payments from it (despite the fact that there are 128 million citizens in the Russian Federation). As you can see, at the moment the Pension Fund of Russia is experiencing significant workloads.
An important reason for the existence of the RF Pension Fund is the fulfillment of social functions. Among the obligations that this organization performs are:
- The appointment of pensions to citizens, based on their experience and working conditions, followed by the payment of the relevant amounts.
- The Pension Fund of Russia takes into account insurance funds, which are received on compulsory pension insurance.
- Assign and implement social payments for certain categories of citizens: disabled people, veterans, people awarded high awards.
- Carrying out of the account of all participants which consist in system of obligatory pension insurance.
- Work and interaction with employers whopay premiums. In particular, the Pension Fund of Russia is engaged in collection of arrears. Consequently, some law enforcement functions are assigned to it.
- The Pension Fund of Russia is engaged in the payment of funds, which are issued as maternity capital.
- Manages all the funds that are available to the pension system throughout the country.
- It implements the program of state co-financing of voluntary savings. It is also known as the "Thousand Per Thousand" initiative of the Russian Federation.
- Administers insurance funds, which come under compulsory pension and medical insurance.
- The Pension Fund of Russia establishes federal social co-payments to bring the total income up to the size of the subsistence minimum.
The State Pension Fund
In this case, the Pension FundRussia. Conditionally the mechanism of this security can be formulated as follows: the current generation of able-bodied citizens works, receives material benefits. Some of them are transferred to modern pensioners who receive maintenance from the state for their former labors. When the generation of the able-bodied age becomes older, and the matured youth comes to take its place, this scheme will act, as before, only with other participants. And those who used to fill the Pension Fund of Russia will be paid security. This is a cyclical shift. The negative side of this order is a gradual decrease in the purchasing power of a pension, which is due to a number of reasons. Therefore, in the absence of additional sources of income, old age can be a very unpleasant part of life. After all, in most cases, the amount paid by the Russian Pension Fund is not much different from the subsistence level.
You should also indicate the difference in the hierarchy. So, after the state-wide level of the organization, the Pension Fund of the region follows. He is working on all the issues that arise in this administrative unit. The pension fund of the district, in turn, collects information.
Private pension funds
The main problem, namely, impoverishmentpensioners, are often offered to decide with the help of private pension funds. They are owners of means that can be mobilized. So, PPF act on the principle of investment funds: citizens give them money, management organizations decide where to invest them, and people receive pensions from the received interest. Thus, money does not lose its purchasing power by increasing its mass. But such a good and attractive scheme has its drawbacks.
This type of pension securitypopularity on the territory of the United States of America, so about the features of the system will be told on the example of this country. So, a fairly problematic issue is the question of honesty and return of funds in the event of the destruction of the PPF. Another problem is that they operate in a market economy, where it is impossible to guarantee that everything will turn out as planned. Therefore, money can be lost (in most cases a fixed percentage is charged, but even if it does not help the ruin of a private pension fund). Such negative aspects of the Pension Fund of Russia does not have, but it has its drawbacks.
Importance in society
As you can see, these organizations are important in order,so that people can feel support on time, when they themselves can not fully follow their own self. Often the Pension Fund actively interacts with social services. It is also worth noting that the practice of monthly payments, although partially, but allows you to free children from the need to provide their parents with financial assistance. Therefore, the Pension Fund of the Russian Federation is important from the point of view of increasing the effectiveness of social institutions.
Contributions as the main source of income
The main source of replenishment of funds, whichhas the Pension Fund of the Russian Federation, are contributions received from active employers. The standard rate is 22%, which are taken from the wage fund. Since 2009, it has become possible to make voluntary contributions, which go to the funded part of the pension. It stipulates that both the state and the employer shall be entitled to a pension in equal quantity (the state has a limitation for this rule - the amount of payment must be at least 2 thousand rubles and not more than 12). This option is beneficial for each of the participants in this relationship. So, the employer receives a tax deduction from the amount of earnings in the amount of up to 12 thousand rubles. Also part of the obligations, which has the Russian Pension Fund, was transferred to the National Welfare Fund.
As you can see, the pension fund is not difficult, and inthis organization is very easy to understand. In conclusion, it should be said that the availability of timely contributions is important, because they allow you to keep the entire system afloat. Also important is the presence of white wages (which is not affected by the contribution to the state budget). After all, the Russian Pension Fund works for the benefit of any citizen of the Russian Federation.