Insurance length of service for a pension - how to calculate the minimum length of service

The concept of total work experience

The total length of service, which includes all periods of work, as well as socially useful activities of a citizen, plays a special role in taking into account the periods of work before 01/01/2002 in the calculation of pensions.
After this date, in connection with the entry into force of the Law “On Labor Pensions in the Russian Federation” dated December 17, 2001 No. 173-FZ, this concept is replaced by the definition of “insurance period”, information about which begins to accumulate directly in the Pension Fund. For information about how the Pension Fund receives information about the insurance experience and income of each person, read the article “From what year was personalized accounting introduced?”

Fundamentally, these 2 types of length of service are distinguished by the fact that in the general work experience the periods of labor and socially useful activities carried out by the citizen are taken into account, and in the insurance period the periods of payment of contributions from his income to the Pension Fund are taken into account. With the introduction of Law No. 173-FZ of December 17, 2001, the size of the pension began to depend on different values ​​depending on the period of labor activity:

• for the period before 01/01/2002 - on the duration of the total length of service and the amount of average monthly earnings;
• for the period from 01/01/2002 - from the amount of contributions paid to the Pension Fund and the presence of a minimum insurance period.

The new and old algorithms for calculating pensions turned out to be incomparable. Pension rights earned by a citizen before 01/01/2002 could not be taken into account when applying the new rules without appropriate data linking. For this purpose, paragraph 1 of Art. 30 of Law No. 173-FZ of December 17, 2001 provided for the possibility of recalculating these rights into an amount comparable to the new rules: the estimated pension capital accumulated on the date of the change in legislation. The formula for calculating this capital includes the value of the estimated size of the labor pension, which can be determined by one of 2 algorithms given, respectively, in clause 3 or clause 4 of Art. 30 of the law of December 17, 2001 No. 173-FZ.

How to calculate length of service using a work book

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The total length of service is the total duration of all periods of a citizen’s work activity.

Information about all periods of work of an individual is reflected in the work book, which is the main document for calculating length of service.

Work experience is calculated on a calendar basis, taking into account the following mandatory conditions:

• every 30 days are taken as a full month;
• every 12 months equals 1 year.

Algorithm of actions for carrying out the calculation:

1. Write down all periods of work from the work book in order.
2. Calculate each individual period of employment as the difference between the date of dismissal and the date of hiring. Add one day to the final result, since the day of dismissal is considered a working day.
3. Calculate the total length of service by summing up all periods of work activity.

A convenient and quick way to calculate total length of service (TS) is to use the following formula:

For clarity, here is an example of calculating seniority in two ways:

• using the formula;
• by simple arithmetic calculation.

Example of calculating work experience

The employee’s work book reflects three periods of work:

1 way:

1. Let's sum up all the periods when work began. activities:

01.09.1997 + 15.01.2001 + 18.10.2010 = 34.20.6008.

2. We sum up all periods of the end of labor. activities:

30.12.2000 + 30.09.2010 + 28.02.2018 = 88.23.6028.

3. Find the difference: 88.23.6028 – 34.20.6008 = 03.0020

4. Convert: 54 days = 1 month 24 days.

We get the result: 20 years 4 months 24 days.

5. We add 3 days, since we have 3 periods and we need to count the days of dismissal.

The total length of service of the employee is: 20 years 4 months 27 days.

Method 2:

1. Duration of the first labor period. activities:

1. Duration of the second labor period. activities:

1. Duration of the third labor period. activities:

1. Let's sum up the total values ​​of all periods:

The result of the arithmetic calculation was the same: 20 years 4 months 27 days.

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Discussion: 5 comments

1. Olga:
   06/30/2019 at 08:27

   There is an error in the very first OTS formula = the sum of the dates of dismissals minus the sum of the dates of hires. But you have it written the other way around.

   Answer

2. Alla Alexandrovna:

   11/12/2019 at 12:56 pm

   What is included in the work experience and what is not?

   Answer

3. Vladimir Fomich:

   12/11/2019 at 15:27

   It’s the 21st century, and the calculation is given for people wearing oversleeves and using an abacus. The mathematical calculation is incorrect. According to the condition, month = 30 days, year = 12 months. Our year is equal to 365 (366) days, and not 360 days as in the calculation. We get 1 period = 1217 days. ,2 period=3546 days. 3rd period=2691 days Total=7454 days. or years = [7454/30/12] = 20, months = remainder_of_division ([7454/30]/12] = 8, days = remainder_of_division (7454/30) = 14. The difference in calculations is 3 months 17 days. This is called cheating

   Answer

   Robert:

   04/29/2020 at 18:34

   Yeah, from 09/01/1997 to 02/28/2018, exactly 20 years and 6 months passed, of which 16+17 days were non-working days. How can the length of work experience be MORE than the calendar period for this period, mug? In principle, if you work only in February, April, June, September, November (exactly 5 months of experience), then you can get free ((365/12)-30) * 4 + 2 days in February = 3.66 days per year to experience and vice versa.

   Read also:  Organizational assets in the balance sheet

   Answer

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Types of total length of service that affect the calculation of pensions

Differences in establishing the estimated size of a labor pension are not limited to the difference in the formulas for their calculation: the lists of periods that form the total length of service involved in them also differ.

For calculations according to clause 3 of Art. 30 of the law of December 17, 2001 No. 173-FZ, the total length of service consists of the periods:

• any types of work (including creative activities) in the Russian Federation or abroad;
• military service;
• illness that occurred during work, or disability of 1-2 groups related to work;
• unjustified excessive detention;
• registration with the employment service in connection with unemployment.

For calculations according to clause 4 of Art. 30 of Law No. 173-FZ of December 17, 2001, the total length of service, in addition to the above periods, additionally includes the time:

• vocational training;
• caring for a disabled person;
• maternity leave and child care up to 3 years (but not more than 9 years);
• lack of opportunity to work for the wives of military personnel staying with their husbands at the place of service, and the wives of persons sent to work abroad. In the latter case, this period should not exceed 10 years;
• being in the occupied territories, in concentration camps or in besieged Leningrad during the Second World War.

See also “Is military service included in seniority (nuances)?”

Minimum requirements for retirement in 2021

As a result of the pension reform carried out in 2021, the age for receiving a pension has been raised to 60 years for women and 65 for men. The increase is smooth, with a transition period.

2020 falls into a transition period. According to the new rules, in the first half of the year, women who have reached the age of 50.5 years will be able to apply for a pension, men - 60.5 years. In the second half of the year, according to the approved age increase schedule, no one will be able to retire.

In addition to age, a prerequisite for receiving payments is at least 11 years of work experience and 18.6 pension points.

If there is no required length of service or the required number of IPCs, a social pension is assigned. The retirement age for social pension is 65 for women and 70 for men.

Who is entitled to early retirement?

The list of persons having this right is quite wide. It depends on many factors, the duration of work, profession, number of children. These are workers in dangerous and difficult jobs, train drivers, bus drivers carrying passengers, and others. In total there are more than 30 categories of citizens defined in Article 30 of Law No. 400 Federal Law.

What is included in the length of service and how to calculate the periods?

The periods included in the total length of service are taken into account in this calculation according to their actual calendar duration by summation (clauses 3–4 of Article 30 of Law No. 173-FZ of December 17, 2001). However, there are a number of exceptions, according to which the corresponding intervals are taken into account in an increased amount. For example, for both options for determining the total length of service for a full year, the time worked during a full season in seasonal industries is taken.

In calculating the length of service under clause 4 of Art. 30 of the Law of December 17, 2001 No. 173-FZ additionally increases the time:

• work in the Far North, in areas equivalent to it, in the zone of the Chernobyl accident - 1.5 times;
• conscript service in the army, work in leper colonies, anti-plague institutions, work during the Second World War (except for areas of occupation), living in besieged Leningrad, being in a concentration camp - 2 times;
• participation in hostilities and service in the zone of the Chernobyl accident, treatment of war injuries, work in besieged Leningrad, unjustified detention in places of detention - 3 times.

Explanations from officials about the order in which periods of conscription service in the army and periods of study at universities are included in the general length of service and insurance experience are available in the ConsultantPlus system. Get trial access to K+ for free and proceed to conclusions.

The right to choose a calculation formula and, accordingly, to evaluate the total length of service is reserved by law to the insured person. However, in practice, such a calculation is made by the Pension Fund based on the documents it has, choosing from 2 options the most profitable for the pensioner.

The length of service is assessed in years, months and days. In this case, 30 calendar days are taken for a full month, and 12 months for a year (clause 47 of the Government of the Russian Federation Resolution No. 1015 of October 2, 2014 and clause 35 of the previous Government Resolution of the Russian Federation dated July 24, 2002 No. 555).

How to confirm the calculation of total work experience?

The work book is used as the main document confirming the total work experience. If it is lost, contains defective records or is missing, the length of service can be confirmed:

• certificates;
• extracts from the employer's accounting documents;
• employment contracts;
• archival documents;
• testimony of witnesses.

Read more about the rules for filling out entries in a work book in the material “Instructions for filling out work books.”

What is insurance experience

The insurance period is understood as the period during which a person performed labor activity. All types of activities are included, including service, author, production or entrepreneurship. An employee has the right to support from the state during the following periods of life:

• upon reaching retirement age - old-age labor pension;
• registration of disability, regardless of group;
• the loss of a person who is the breadwinner of the family.

According to the law, pension compensation is assigned to a person in the case when there is a period of time during which payments of contributions to the Pension Fund and the social security service were made. In this case, we are talking about pensions accrued when a person reaches retirement age. It differs for men and women (60 and 55 years old, respectively). The presence of work experience is confirmed by entries made in the work book. For women, it is possible to calculate a pension for children, or rather, include the time of caring for a baby for up to 3 years in the working period.

The legislation clearly defines the list of periods that must be taken into account when calculating

Read how to check whether your pension is calculated correctly here.

Results

Determining the total length of service is of particular importance for taking into account, when calculating the amount of a pension, the rights to it acquired before the entry into force of Law No. 173-FZ of December 17, 2001, which established a new procedure for its calculation. There are options for recording this length of service, in the choice of which the insured person himself has the right to participate. The experience must have documentary evidence.

Sources:

• Federal Law of December 17, 2001 N 173-FZ “On Labor Pensions in the Russian Federation”
• Decree of the Government of the Russian Federation dated October 2, 2014 N 1015
• Decree of the Government of the Russian Federation of July 24, 2002 N 555

You can find more complete information on the topic in ConsultantPlus. Free trial access to the system for 2 days.

What is the difference between work experience and insurance experience?

According to the Federal Law of December 15, 2001 No. 166-FZ “On State Pension Provision in the Russian Federation” (Article 2), length of service is the total duration of periods of work and other activities taken into account when determining the right to certain types of pensions under state pension provision, which are counted towards the insurance period for receiving a pension provided by Federal Law of December 28, 2013 No. 400-FZ “On Insurance Pensions”.

In accordance with the Federal Law of December 28, 2013 No. 400-FZ “On Insurance Pensions” (Article 3), the insurance period is the total duration of periods of work and (or) other activities taken into account when determining the right to an insurance pension and its amount, for which insurance contributions were accrued and paid to the Pension Fund of the Russian Federation, as well as other periods counted towards the insurance period.

Thus, from the definitions it follows: