An expert explained the algorithm for managing funded pension funds

Questions of competent money management often cause difficulties and anxiety because they require financial knowledge. The management of funded pension funds is also among such issues. Kirill Savin, Director of Legal Projects at SberNPF, revealed all the pitfalls of transfers and transitions of these funds in a conversation with Izvestia on November 19.

Funds of the funded pension can be transferred to the long-term savings program (LSP), and also - to transfer them to another insurer - they can be non-state pension funds or the Social Fund of Russia. "Transfer" and "transition" are different procedures that work according to different rules. That is why it is so important to understand exactly what action you are doing with your funded pension funds, the expert explained.

He reminded that from January 2024, Russians can transfer funded pension funds to the PDS. A person can open a long-term savings contract in any non-state pension fund (NPF). However, it is easier and faster to transfer funded pension assets to a PDS within one NPF. To do this, it is necessary to first conclude a long-term savings agreement. After that, it is necessary to submit an application for the transfer of funded pension funds to the program. The money will be transferred to the PDS account already next year, and all investment income will be retained.

"Slightly more steps and attention will be required if funded pension assets are kept in one fund, and a person has opened a long-term savings program in another NPF. In this case, first there is a transition, that is, the change of insurer, and then - the transfer, that is, the movement of money in the program of long-term savings," - said Savin.

He specified that first it is necessary to conclude a long-term savings agreement with the selected non-governmental pension fund. After that it is necessary to conclude a contract on compulsory pension insurance (CPI) also with a new NPF. Here it is important to take into account the type of transfer, because if you choose the wrong one or transfer in the wrong year, you may lose investment income. There are also time restrictions: you can conclude a contract on compulsory pension insurance (PPI) no later than December 1. By the same date, you must submit an application to the Social Fund of Russia to confirm your intention to change funds. If this is not done, the money will remain in the same place. You can submit such an application in person at the nearest branch. If everything is in order with the documents, the SFR will approve the transition, and the money will go to the chosen fund.

"The third step is to apply for the transfer of funded pension funds to your program. However, this can be done only after the OPS contract comes into force and your money will be in the chosen fund," the expert pointed out.

Savin explained that a person who has formed the means of funded pension has a fixing every five years. This means that all earned investment income is "fixed" on his account. The year when this happens is called the fixing year. It depends on when a person entered into a contract with the current NPF or when there was a fixing year in the Social Fund of Russia (SFR). You can find it out, for example, by getting a statement on "Gosuslugi", in the branch of the SFR, MFC or NPF (if the funds of the funded pension are located there).

"Transitions - ways to change the insurer with which your funded pension funds are kept - are different," he said and listed the pitfalls they carry.

Early transition. Funds of funded pension will go to the chosen fund at the beginning of the next year. At the same time, a person may lose part of the accumulated investment income. Losses can be clarified with the current insurer - NPF or SFD.

Early transfer in the year of fixing. Funds of the funded pension will be transferred to the chosen fund at the beginning of the next year. In this case, the person will retain all earned investment income.

Normal transition. The funded pension assets will go into the chosen fund five years after the year of application. For example, if you applied for a transition in 2024, then, if the application is considered favorably by the SFD, the transition of your funds and investment income will be completed in 2029.

"If we talk about transitions - changing the insurer with which your funded pension funds are kept - in my opinion, it is optimal to keep your investment income and use an early transition in the year of fixing or a regular transition at any time. It is also important not to forget to apply to the Social Fund of Russia and carefully check all the documentation, because even because of a minor error in the transition can be denied, "- said Savin.

In late October, it was reported that in 2024, Russians can take their pension savings at once, if their amount does not exceed 351 thousand rubles. Next year, the maximum amount will increase by 17%, up to 412 thousand, told "Izvestia" in the press service of the Ministry of Labor. It was about the funds frozen in 2014. They can either be taken away in one payment, if a person has accumulated no more than the threshold amount, or choose a monthly supplement to the pension.