Maternity capital: what’s new in 2018

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15 march 2018

The Pension Fund reminds you that the maternity capital program was expanded in 2018 in the context of new measures of the Russian government towards demographic support for families with children. The amendments give broader opportunities for using maternity capital funds as soon as the second child is either born or adopted.

Monthly payment of maternity capital funds

First of all, families with a low income (less than 150% of the able-bodied population’s subsistence minimum per family member) have been entitled to the monthly payment of maternity capital funds in case their second child is either born or adopted after January 1, 2018. The payments can be received until the child reaches the age of 18 months. For the purpose of convenience, the payments cover the entire period since the child’s birth if the application is filed within the first six months. In case applications are filed after the six-month period, the payments will be assigned from the application date.

The payment of maternity capital funds depends on the home region of the applicants: it amounts to the children’s subsistence minimum established by the region for the second quarter of the previous year. Should a family apply for the payment in 2018; the payment will amount to the children’s subsistence minimum as of the second quarter of 2017.

Please note that the first payment period is yearlong, and the family wishing to continue receiving the payment will have to file the application anew via the PFR client service or the multi-purpose center.

Pre-school education, child care

It has always been possible to spend maternity capital on children’s education. However, in the past, the funds became accessible only three years after the child who qualified for the program was either born or adopted.

From 2018, families can receive financial support for pre-school education practically right after the child is born: from now on, maternity capital funds become accessible two months after the rights are acquired. The money can be spent on services of public and private kindergartens and nurseries, as well as on child care. In both cases, the entity receiving the funds must be licensed to provide such services.

Preferential mortgage rates for families with 2 or 3 children

Russian families where the second or third child is born in 2018-2022 are entitled to preferential mortgage rates, which can help improve their living conditions. It is possible to pay these preferential rates with maternity capital funds. A family does not have to wait until the child qualifying for the program reaches the age of three.

Preferential mortgage rates are not directly related to the maternity capital program, but it is still an important step of the government supporting families with children. The loans are given to families with two or three children at the annual discount rate of 6%. The money can be spent on buying an apartment or a house, including a house with land, as well as on participating in shared housing construction projects. Loans received earlier can also be repaid with the preferential mortgage loan money.

Please note that the period for joining the maternity capital program has been extended until December 31, 2021. This means that a child, who qualifies for the program, should be either born or adopted before December 31, 2021. There are no deadlines for the issue of the maternity capital certificate or the use of maternity capital funds.

Maternity capital amounts to 453,000 rubles in 2018.