Kinds of pensions and their setting conditions

The most common kind of pension in Russia is the labour pension. Today 36 million out of 40 million retirees receive labour pensions.

Labour pension comprises from insurance premiums paid by employers to the benefit of employees during all their labour service. Labour pensions are set up and paid by the Pension Fond of Russia. The person is entitled to receive labour pension if he has the labour (insurance) length necessary to set up one of the kinds of labour pensions.

There are three kinds of labour pension.

Old age labour pension is set up if the person has not less than 5 years of insurance length. To receive this pension a person has to be of the standard retirement age: for men - 60, for women - 55.

Some persons of professional and social categories defined by the law are entitled to early pension. Lists of enterprises, positions and indicators giving right to receive old age pension on preferential terms are approved by the Government of the Russian Federation. As a rule, when applying for the job giving right to receive early pension, the personnel department explains calculation of seniority as well as conditions when the person is entitled to early pension.

Disability labour pension is set up for I, II and III group disabled people independent of the reasons and time of disability. To receive this pension it is necessary to have insurance length but its length is of no importance.

Survivor's labour pension is set up for the disabled members of the family supported by the breadwinner independent of the reasons and time of his death. To receive this kind of pension the breadwinner died has to have insurance length. The length of insurance length is of no importance.

Those entitled to more than one kind of pension can receive only one kind at the person's option. But a number of citizens' categories are entitled to receive simultaneously labour pension and state basic pension (WW II veterans, survivors of siege and some other categories).

The conditions of labour pension establishment are regulated by the Federal Law of 17 December 2001 № 173-FZ "On labour pensions in the Russian Federation".

The citizens, who are not entitled to labour pensions, receive state pension security. This kind of pension is also set and paid by the Russian Federation Pension Fund. The state pension can be of different kinds.

The commonest kind of state pension security is social pension which is set up for those who do not have insurance length: for women from 60 years old, for men from 65 years old, for I, II and III group disabled people, including disabled from little up, disabled children, children younger than 18 and older, but not older than 23, who are on full-time tuition in education institutions, for those who lost one or both parents, and for children of a single mother died, for the citizens of smaller peoples of the North: men - from 60, women - from 55.

Other kinds of state pensions:

• long service pension;
• old age pension;
• disability pension;
• survivor's pension.

Setting conditions and the size of state pensions are regulated by the Federal law of 15.12.2001 №166-FZ "On the state pension security in the Russian Federation".