What payments and benefits are due upon retirement?

Leaving a job is always a difficult decision. Therefore, the legislation provides for special measures that allow you to retire without doubt. In order not to be deceived in the process of dismissal from work, it is necessary to carefully study the employment contract, which is the basis for certain payments, as well as the legislation in this area. Because, using well-founded arguments and references to articles of the Labor Code or other legal acts, it is easier to defend your rights.

Payments and benefits

Employees of retirement age are workers just like everyone else. The legislation does not provide for them certain working conditions and payments. Consequently, when such an employee leaves work, he is entitled to the same payments as the rest of the staff, but with certain features. So, upon dismissal, a calculation is provided consisting of the following payments:

• salary for hours worked;
• compensation for missed vacation;
• severance pay;
• other payments provided for in the employment contract or collective agreement at the enterprise.

Thus, we can conclude that the procedure and types of monetary payments are established by labor legislation, as well as local regulatory and legal acts of the law firm. Both are required to be paid. The differences between these financial transfers are that the benefits established by the Labor Code apply to all workers, while the latter apply only within one organization.

Attention

Income tax is not withheld from payments approved at the legislative level, but from compensation approved by local acts of the company, income tax is withheld.

Features of processing payments for pensioners of law enforcement agencies

Pension benefits for former military personnel are assigned in a different manner than payments upon retirement to civilians. A law enforcement officer must be registered with the commissariat at the place of registration and permanent residence. Payments upon retirement to a military pensioner are made from the federal budget and are assigned through the ministries and departments in which he served.

A retired serviceman has the right to continue working in civilian life. If, due to old age and service, he becomes entitled to receive insurance and social benefits, the payment of the military pension will not stop. To establish a second pension, the following requirements must be met simultaneously:

• work experience:

1. its availability at civilian enterprises by 2021 is 9 years;
2. and by 2024 – reach 15 years;

• age:

1. 60 years – for men;
2. 55 years – for women;
3. if the conditions for early assignment are met, payments are accrued before the pensioner reaches the standard age limit;

• points:

1. from 2021 – the individual pension coefficient (hereinafter referred to as the IPC) must be equal to 13.8 or higher;
2. it should grow and reach 30 by 2025;

• Availability of pensions from law enforcement agencies.

Salary for hours worked

The salary is calculated and paid for the last days worked by the employee who wrote the resignation letter. The last day of work is also included in the calculation.

Attention

The calculation of the wages due depends on the form of remuneration established by the employment contract (hourly wage, piecework, salary, percentage, etc.).

It is made on the last working day in the general manner: to the personal account of a bank card or in cash at the cash desk. This rule regarding the timing of payments is established by Article 140 of the Labor Code.

Errors when indexing pensions

Currently, all recalculations are carried out on the basis of completed SZV-M forms, which are provided by the employer when submitting the report to Pension Fund employees. Here are the typical mistakes companies make when submitting these reports:

1. Not including all employees in the list. Because of this, those who were forgotten to include do not receive pension points for the specified period. Since all information is often copied by accounting employees from the previous report, there is a high level of risk that when filling out the next one, this person will not be entered into the database again.
2. Not including retirees who continue to work in the report. As a result, Pension Fund employees will index the pension. If the employee later appears on the list again, corrective entries will be made and the indexation will be cancelled. Moreover, the employer or pensioner will be forced to return the money that was paid in excess of the norm, as this is considered illegal enrichment.

SZV-M

If the salary information provided is incorrect, then accruals will be made accordingly. Therefore, it is recommended for a citizen to obtain a salary certificate upon dismissal and apply for recalculation in person.

Compensation for missed vacation

The procedure for providing compensation for unpaid leave is described in Article 127 of the Labor Code.

It is determined based on average earnings (per day) and the number of days of unused vacation. The latter is calculated by multiplying the number of vacation days (per month) by the number of months of work. In this case, days already taken off are excluded from the calculation.

Information

The amount of vacation pay per year is generally 28 days (other options are possible). So, for example, disabled workers are given 30 days of vacation, workers in hazardous industries are given 35 days, etc.

The calculation itself is based on the average salary based on the amount of vacation pay

How long will it take to get a job after indexation and will the increase be removed?

Recalculation after dismissal is carried out on the basis of information received from the employer. If a pensioner resigns, the employer will stop paying insurance premiums for him and will not include him in reporting to the Pension Fund.

Therefore, in order for a pensioner to be recalculated, it is necessary that he be unemployed for one whole month - from the first to the last day . For example, if he quit in May, then he can get a new job no earlier than July 1.

If it starts working earlier (for example, in mid-June), then it will be included in the reporting for both May and June. Consequently, recalculation and indexation will not be performed.

According to Part 8 of Art.

26.1 of Law No. 400-FZ, if a pensioner gets a job again , he will be paid the amount of pension that was assigned on the day before the day he resumed work. That is, no additional payments from recalculation will be withdrawn , and the payment amount will not decrease.

However, when the next indexation is carried out, this citizen will no longer receive any increase as long as he continues to work.

The next indexation is scheduled for January 1, 2021, the increase will be 6.3%.

• In order for a working pensioner to receive an increase as a result of this indexation, he can resign before the end of December (before 12/31/2020), and get a new job as early as 02/01/2021. In this case, in the reporting for January he will already be listed as unemployed, and This means that the Pension Fund will carry out a recalculation.
• In this case, the payment will, of course, be delayed, since information about the dismissal will be received by the Pension Fund with a delay. But all amounts underpaid from 01/01/2021 will be paid along with the indexed pension, which will arrive around April 2021.

Severance pay

Severance pay is paid by the employer only in certain cases, which include:

• liquidation of the company;
• staff reduction;
• dismissal due to medical reasons;
• refusal to transfer to another location;
• reinstatement of the employee who previously performed this work;
• refusal to transfer to another job required by the employee in accordance with a medical report;
• refusal to continue working due to changes in the terms of the employment contract.

Attention

The legislative procedure for establishing and providing severance pay is reflected in Article 178 of the Labor Code.

In essence, it represents some kind of compensation for the fact that the citizen was left without work and, accordingly, without a basic income. This benefit is intended to provide financial support for a citizen during his period of incapacity.

The size of the payment varies from average earnings for two weeks to average earnings for three months. To receive the third month's payment, you will need to register with the employment center within two weeks. Since pensioners cannot be classified as unemployed, the maximum amount of severance pay that they can count on when the factors described above occur is the average earnings for two months.

Important

Upon dismissal, by agreement of the parties, severance pay can be paid: its minimum and maximum amounts are not regulated by the Labor Code of the Russian Federation. It is paid if the parties, the employer and the employee, have stipulated and agreed upon its payment upon termination of the employment relationship.

Full list of severance pay depending on the reason for dismissal:

Important

When dismissed due to reduction or liquidation, seasonal employees receive a one-time severance pay in the amount of two weeks' earnings.

Regulatory framework

Both the procedure for terminating an employment contract with an elderly person and the subsequent payments associated with this event upon retirement are clearly regulated by the legislation of the Russian Federation (hereinafter referred to as the RF). Summary table of legal norms with explanations:

Other payments

Many successfully developing companies provide additional benefits for their employees upon dismissal. As a rule, such norms are fixed by a collective agreement drawn up by a meeting of shareholders or by the sole owner of the company. These measures are being taken in order to attract as many competent specialists as possible to our staff.

For example, a collective agreement may establish a monetary incentive for excellent work upon an employee’s retirement. The amount or calculation of such compensation is also determined by this local regulatory legal act.

Registration of dismissal due to retirement

A citizen reaching retirement age cannot be a reason for dismissal. According to the law, this is the right to assign a state social benefit to a person. The Labor Code of the Russian Federation does not regulate the time period between an employee’s termination of an employment contract at his own request and his registration of pension benefits.

An employer does not have the right to refuse to terminate a pensioner’s employment contract or to set work periods. The step-by-step procedure for dismissal due to retirement looks like this:

1. The employee writes a statement.
2. The employer issues a corresponding order.
3. Authorized persons of the enterprise organize the formation of payments upon retirement.
4. The necessary entries are made in the work book of the dismissed employee.

To terminate an employment contract, a pensioner must, on his own initiative, draw up a corresponding application in writing and in accordance with the procedure established by the Labor Code of the Russian Federation. The document must contain:

• position and surname, first name, patronymic (hereinafter – full name) of the employer;
• directly a request for dismissal indicating the desired date of termination of the employment relationship;
• position and full name of the pensioner;
• the date on which this document is submitted, the signature of the applicant.

To avoid potential conflict situations, the pensioner should make a copy of the paper. The application must be submitted to an authorized employee, asking the latter to indicate the number and date of the incoming document on the copy. A sample of it might look like this:

After an employee submits a letter of resignation, the employer, after reviewing it, draws up a corresponding order. The document must contain the following information: the serial number of the employment contract and the date of its termination. After the order is issued, a corresponding entry is made in the work book. It includes the date of dismissal and its reason. The data entered into the work book must completely coincide with the information contained in the order.

Working out a 2 week period

A citizen's retirement is a special type of voluntary dismissal. According to the law, a pensioner has the right not to notify the employer 2 weeks in advance of his decision to leave service. In a statement of desire to terminate the employment contract, the subordinate must indicate the appropriate reason. It will give an elderly person the opportunity to take advantage of the benefit guaranteed by the Labor Code of the Russian Federation - to quit without working in connection with retirement.

Taxation of payments and benefits

Benefits and other monetary payments provided for by the Labor Code are not subject to taxation in the established amounts. Thus, severance pay is not subject to personal income tax in an amount not exceeding the average earnings for three months.

Attention

The exception is an increase in the coefficient in cases specified by law - benefits upon dismissal from work in the far north, from the position of a civil servant or judge.

If the amount of the benefit is increased at the request of the employer company and is determined by the internal rules of this organization, then the excess amount is subject to personal income tax in the general manner.

If the benefit is established and paid in accordance with the internal regulations of the company, then it is subject to 13% tax.

Attention

Taxation of the remaining salary and compensation for unpaid vacation is carried out in accordance with the general procedure.

All the rules described above apply to the calculation and payment of insurance premiums.

How to find out what your pension will be after dismissal

Determine how much the pension will increase if the pensioner resigns in 2021, possibly by ordering a certificate (extract) in your Personal Account on the website of the Russian Pension Fund. For this you will need to have a registered and verified account on the State Services portal.

To get help, you will need to follow these steps:

1. Log in to your Personal Account on the website of the Russian Pension Fund.
2. In the “Pensions” section, select the “Order a certificate (statement) about the amount of pension.
3. In the window that opens, click on the “Request” button. The result of the request can be viewed in the “Request History” section.

The received certificate contains information about the amount of the insurance pension (the amount of the insurance and its fixed parts) that is accrued to the pensioner, as well as the amount of payments due to the citizen while he is working. Below we present a sample of such a certificate from the Pension Fund.

From the example extract it is noticeable that a citizen receiving disability insurance payment:

• a pension was assigned in the amount of 11,000.25 rubles, where the insurance part is 8,157.12 rubles and a fixed payment of 2,843.13 rubles.
• in fact, only 8455.24 rubles are paid, where the insurance part is 6263.44 rubles, the fixed part is 2191.80 rubles.

Thus, if a pensioner resigns, he will receive the full pension amount - 11,000.25 rubles, that is, 2,545.01 rubles higher.

The same certificate can be ordered by any pensioner who has access to his Personal Account, and from it he can understand what pension he will receive after dismissal. It is also possible to obtain this document by contacting the customer service of the Russian Pension Fund - it will be issued immediately on the day of application.

What to do if payments are not paid

Since the list of required payments is approved by law or a local act, which is an official document, therefore their payment is mandatory in the territory of the country or one enterprise, respectively. Violation of this mandatory condition leads to adverse consequences and ultimately to the payment of due funds. The main thing is not to leave the situation unattended and act clearly and competently in accordance with all the rules and regulations of the law.

So, to protect the rights of workers, including former workers, you can contact the labor inspectorate with a complaint. This department, based on an application from an employee, will conduct a review of the legality of payments upon dismissal of an employee and, based on its results, will make a decision.

Additionally

If an appeal to this department does not yield results, then you can go to court.

How is a pension recalculated after the dismissal of a working pensioner?

Recalculation of pensions after the dismissal of a working pensioner is done by the Russian Pension Fund automatically based on information received from the employer. Therefore, there is no need to contact the Pension Fund with an application for recalculation.

• Recalculation does not imply compensation for all amounts not received during the years of work experience, which means that the pension will be recalculated taking into account the values ​​of the FV and SPK valid on the date of recalculation. Let's say, in 2021, the PV was 6044.48 rubles, and one pension point was equivalent to 98.86 rubles.
• After the recalculation, the pensioner will have the opportunity to get a job again, and the amount of his pension will not be reduced. However, when the next indexation begins (and it is already scheduled for January 1, 2021), his pension payment will not be indexed.

The legislation determines that the indexed pension is paid from the 1st day of the month following the month of termination of employment. Moreover, the increased payment will not arrive immediately, but with a delay of several months. However, all unpaid amounts during the delay period will be compensated.

Who is entitled to bonuses and what kind?

A retiring pensioner must be accrued:

• salary increments and bonuses for fulfilling the monthly target, in proportion to the time worked. Usually they are accrued based on the results of work for the month. To receive full allowances and bonuses, you must work a full month;
• quarterly bonuses or compensation based on the results of the year, paid under the terms of the collective agreement, in accordance with the time worked. These payments are made after summing up the results of work for the quarter or year.

Before leaving for a well-deserved rest, you should carefully read the regulations on remuneration in force at the enterprise and the labor collective agreement.

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How is the storage part formed?

In recent years, changes have been taking place in the system for determining insurance and length of service, and in the principles for calculating pensions.

Therefore, sometimes older people cannot independently figure out what insurance periods are established at a certain moment, what the amount of retirement benefits will be, and whether they are entitled to an urgent payment from a savings account. Another pressing question is what is the funded part, pension.

To form a funded pension, an individual account is created. Amounts from investment income and insurance premiums are transferred to it. These amounts can be transferred for years; the longer, the greater the amount of funds collected.

According to the law “On Labor Pensions in the Russian Federation”, they can also collect the funded part, or count on a pension only from the insurance part:

1. Workers born before 1967 may not have time to form the funded portion. The state has developed an opportunity for them to transfer funds to the funded part with the help of maternity capital, with the help of co-financing a pension.
2. Funds from the funded portion are paid within 20 years (no longer) after reaching retirement age. You may not immediately apply for an additional part of the pension; in this case, the period for paying money from the funded part will be shorter, and the monthly amount will be greater.