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Russia - PFR and FSS will be merged into a single Social Fund

Russia (bbabo.net), - The Ministry of Labor proposed to merge the Pension Fund (PFR) and the Social Insurance Fund (FSS) into a single organization. A bill to this effect is posted for public comment.

It is planned that by January 1, 2023, a single Pension and Social Insurance Fund will appear in Russia, which will accrue to citizens all social payments, including pensions, temporary disability benefits, as well as in connection with industrial accidents and occupational diseases. To this end, a single digital platform has been created that unites the information systems of different departments.

On the one hand, this will simplify and improve the quality of the provision of benefits and payments to citizens. Many support measures will be assigned proactively according to the principles of "social treasury", on the other hand, it will reduce the cost of maintaining extra-budgetary funds by refusing to maintain a disparate IT infrastructure and optimizing the property complex.

The Ministry of Labor notes that the association of funds will not affect the recipients of benefits. "All rights of citizens will be preserved and guaranteed in full," the department stressed. At the same time, it will be easier for people to process new payments or get advice on them, because all the services currently provided by the PFR and the FSS will be available in single client services. For all questions, you can also contact the single contact center.

All valuable personnel of both funds after the merger will remain at their jobs. "Employees who have accumulated vast experience in the field of compulsory social insurance will be retained," the Ministry of Labor said in a statement.

Together with the unification of funds, a single tariff for insurance premiums will be introduced, it will be transferred in a single payment. Now employers pay separate contributions to the FSS and PFR for their employees. The circle of insured citizens also differs. If contributions to the Pension Fund are received from all employees (for employees employed both under labor and civil law contracts), then contributions to the Social Insurance Fund for compulsory social insurance in case of temporary disability and in connection with motherhood are deducted only for citizens employed under labor contracts. Because of this, paid sick leave is not allowed for citizens who work under a civil law contract.

The Ministry of Labor proposes to introduce compulsory social insurance for employees with whom a civil law contract has been concluded. The amount of the single contribution will depend on the category of the payer. Three preferential categories are defined. For small and medium-sized businesses, the tariff will be 15% of payments above the minimum wage, for residents of special economic zones, charitable and socially oriented organizations, Skolkovo, IT organizations and multipliers - 7.6%, ship crew members - 0%. That is, all existing preferential regimes will be preserved.

At the same time, from 2023, the taxable base will increase from wages of 86 thousand rubles per month and above, the maximum load will be 16 thousand rubles per employee per year.

Thanks to this, social benefits will increase by 1.5 times. For example, by 2025, the maximum amount of the monthly allowance for child care will be 57.4 thousand rubles (now - 37.9 thousand rubles). This allowance is paid in the amount of 40% of the average salary, but not more than the insured earnings. The maximum amount of benefits for pregnancy and childbirth (for 140 calendar days) will be 660.9 thousand rubles (under the current model - 435.9 thousand rubles). The maximum amount of temporary disability benefits with an experience of 8 years or more is 143.5 thousand rubles (according to the current model - 94.7 thousand rubles), with an experience of 5 to 8 years - 114.8 thousand rubles (according to the current model - 75, 7 thousand rubles), with an experience of up to 5 years - 86.1 thousand rubles (with the current model - 56.8 thousand rubles).

In addition, the introduction of a single tariff will reduce reporting, will allow setting one date for filing a single reporting form - before the 15th day of the month. Those data that are now submitted once a quarter will continue to be submitted once a quarter, but already as part of a single form.

It is noted that the activities of the fund will be accountable to the Supervisory Board. It will include 7 people: a representative of trade unions (a coordinator from the trade union side in the Russian tripartite commission for the regulation of social and labor relations), a representative of employers (the coordinator from the employers’ side in the Russian tripartite commission for the regulation of social and labor relations), a representative of the State Duma, a representative of the Council Federation, representative of the Government (coordinator from the Government in the Russian tripartite commission for the regulation of social and labor relations), coordinator of the RTK, as well as the chairman of the joint fund.

Russia - PFR and FSS will be merged into a single Social Fund