The President of Russia Vladimir Puttin signed the Federal law, according to which certain changes are introduced into the Maternity Capital Program. The amendments provide for increase of the sum of the state support, for new ways of use of the maternity capital, make disposal of the funds easier and more convenient, and extend the program validity.
Maternity Capital for the First Child
One of the main innovations brought through this law is payment of the maternity capital for the birth of the first child in the family. All families in which the first child is born or adopted starting from 1st Jan. 2020 are entitled to obtain the maternity capital amounting to RUB 466, 617.
Increase of Sum of Maternity Capital for the Second Child
All families in which the second child is born or adopted starting from 2020 are entitled to supplement of RUB 150,000 and thus, the maternity capital becomes RUB 616, 617 . The same amount is provided for the birth of the third, fourth and each additional child , born or adopted starting from 2020 , if earlier such family was not entitled to obtain the maternity capital (for instance , if the first child and second child were born prior to going into effect of the Maternity Capital Program).
Reduction of Time of Maternity Capital Formalization and Disposal of Funds
Beginning with 2021 the time of formalization of the maternity capital and obtaining possibility of disposal of its funds will be reduced even more. According to the new order the Maternity Capital Certificate should be issued within five working days, and the application on disposal of the funds should be considered within ten working days. In some cases when it is required to obtain supplemental information from other authorities the time period may be extended up to fifteen and twenty days.
However, till the end of 2020 the current norms remain in force: the Maternity Capital Certificate is issued within fifteen working days, and the application on disposal of the funds- within one month. Practically, major part of the territorial offices of the Pension Fund is already performing respective state services in the accelerated manner.
Issue of Maternity Capital Certificate in Proactive Manner
Starting from the middle of April the Pension Fund is ready to begin issue of the Maternity Capital Certificates in a proactive manner in order to speed up processing and reduce efforts connected with obtaining of the Certificate. This means precisely that the Maternity Capital Certificate will be issued automatically after the child birth and the family will be able to dispose of the funds without the need to apply for it, since the Pension Fund is ready to perform all necessary things by its own.
Information about the child birth, entitling the family to obtain the maternity capital, will come to the Pension Fund directly from the State Birth Register. At the present moment testing of the said procedure is carried out and the volume of required information about the parents and child is determined.
The fact of issue of the Maternity Capital Certificate is entered into the information system of the Pension Fund and is delivered to the personal cabinet of the child mother on the site of the Pension Fund or the portal of state services.
For the families adopting the child the previously existing order of applying for the Maternity Capital Certificate remains in force, since only adoptive parents are able to submit the required documents and information.
Disposal of Maternity Capital via Banks
The approved amendments provide for more convenience in disposal of the maternity capital with the purpose of improvement of the living conditions, which appears to be in great demand among the families. To speed up the procedure of the loan repayment using the maternity capital it becomes possible to submit the respective application directly to the bank which is going to grant the loan. So, now there is no need to submit two applications – to the Pension Fund and to the bank, it is sufficient to deal with the bank where the loan is issued and application for loan payment is submitted.
Once, more agreements on the issue will be concluded between the banks and the Pension Fund, this service is going to be more available.
Maternity Capital for Construction of Residential House on the Garden Plot
The approved amendments provide for use of the maternity capital for construction of a residential house on the garden plot. As before, availability of the documents confirming the right of ownership for the land plot and of the construction permit is the specified requirement.
Prolongation of Maternity Capital Program
The Maternity Capital Program has been prolonged for five years – till the end of 2026. All families in which children will be born or adopted starting from 2020 shall be entitled to the measures of state support made available in the form of the maternity capital.
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Implementation of the above amendments of the Maternity Capital Program in 2020 will call for increase of the respective budget expenditures by the Pension Fund amounting to almost RUB 112 billion from RUB 316.4 bln. to RUB 428.3 bln. In 2021 additional expenditures of the Pension Fund related to the maternity capital will amount to RUB 193.1 bln. , in 2022 – RUB 282.7 bln.