The pension fund did not take into account work experience in Kazakhstan
Should periods of work of citizens in foreign countries be taken into account when retiring in Russia?
Issues of pension provision in connection with raising the retirement age have become particularly relevant.
This is especially true in cases of early retirement on preferential terms. Thus, a citizen who had worked as a miner for over 20 years contacted Pravovaya Osnova LLC. According to Russian laws, he is entitled to an early pension. However, he worked part of his work experience in the Republic of Kazakhstan. The Pension Fund of the Russian Federation refused to take into account periods of work as a miner in the Republic of Kazakhstan. Is this legal?
Russia is a party to the CIS Agreement of March 13, 1992 “On guarantees of the rights of citizens of the CIS member states in the field of pension provision.” According to the Agreement, states must take into account when assigning a pension the length of service acquired in the territory of another state party to the Agreement.
At the same time, the Pension Fund refused to take into account the citizen’s length of service, citing the fact that in Kazakhstan preferential pensions for miners were abolished in 1998, which means that the periods of time when he worked as a miner in Kazakhstan should not be taken into account when assigning a pension in the Russian Federation.
As a result, the citizen went to court on his own. The court of first instance supported the citizen and satisfied his claims, recognizing the actions of the Pension Fund as illegal. However, the Pension Fund appealed the decision to the regional court, which sided with the government body. After this, the citizen contacted our firm for legal advice.
We believe that it is impossible to agree with the decision of the appellate court. This decision was wrong, and the court of first instance was right when it satisfied the citizen’s demands.
The fact is that in its appeal ruling, the judicial panel referred to the Letter of the Pension Fund dated January 17, 2017. This letter instructs institutions subordinate to the Fund not to count periods of service in states that have abolished the institution of early retirement. However, from the point of view of law, the unpublished Letter of the Pension Fund regarding the constitutional rights of citizens should not have legal force.
Moreover, there is the above-mentioned international treaty, which guarantees the rights of citizens in such situations.
What does judicial practice say on this issue?
Unfortunately, judicial practice on this issue in Russia today is not clear-cut. There are decisions that are made in such situations in favor of citizens.
So, for example, by the appeal ruling of the judicial panel of the Novgorod Regional Court dated March 22, 2017 in case No. 2-8092/16-33-521/17, the decision of the district court, by which the claims were satisfied, was left unchanged, and the complaint of the Pension Fund - without satisfaction.
According to the circumstances of this civil case, the Pension Fund refused to grant the applicant an early pension, since it did not count the periods of work as a teacher in the Republic of Kazakhstan, since preferential pensions for teachers were abolished in Kazakhstan.
At the same time, both the court of first instance and the judicial panel of the Novgorod Regional Court indicated that pension provision for people living in the Russian Federation at the time of applying for a pension is carried out in accordance with the legislation of the Russian Federation. In the legislation of the Russian Federation, the institution of early pensions continues to operate. Consequently, to establish the right to a pension, the periods of work of the applicant in the territory of the Republic of Kazakhstan must be taken into account.
But there are also opposite situations when the courts side with the Pension Fund of the Russian Federation. An example of this is the above-mentioned appeal ruling of the Omsk Regional Court.
Lawyers of Pravovaya Osnova LLC, at the request of a citizen, prepared a supervisory complaint to the Supreme Court of the Russian Federation. We believe that in this situation it is also possible to appeal to the European Court of Human Rights. This court considers similar cases involving Russian citizens and very often satisfies their demands.
Types of pension payments
The main types of pension contributions are presented in the table.
| Type of pension | Description |
| Basic | All Kazakh pensioners receive it, regardless of their length of service and deductions. The size of the basic pension today is 15.2 thousand tenge/30 calendar days. |
| Solidarity pension in Kazakhstan | Paid to those Kazakhs and representatives of other nationalities whose work experience before 1998 was 6 months. |
| Cumulative | This is a new type of pension, which Kazakhstanis began to receive in 2014. Payments of savings occur either once or every year or month. In the first case, the maximum amount should not exceed 249 MCI. |
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Seniority nuances when paying sick leave
Important
SS are not involved. Thus, the SS is equal to 3 years 10 months. What documents are used to calculate length of service for the Social Insurance Fund? Work experience for sick leave is calculated according to the employee’s work book. If a document is missing or contains incorrect information, the following are taken into account:
- labor agreements formalized by law;
- certificates issued by the employer;
- personal accounts;
- extracts from orders.
All documents must contain:
- number and date of issue;
- F.
Acting employee;
- employee's date of birth;
- place of work;
- job title;
- work period.
The papers are transferred to the accounting department at the insured person’s place of work. If an insured event occurs and the employee cannot provide the necessary documents to calculate the insurance period, then information about the employee’s salary and length of service should be requested from the Pension Fund of the Russian Federation.
Is sick leave included in work experience?
To correctly calculate an employee’s insurance period for calculating sick leave, you can use free software by downloading it from the Internet. Let's consider the algorithm for calculating the CC using an example. Example 1 Efimova A. Yu. On February 20, 2017, she provided the accounting department of Versailles LLC with a sick leave certificate for 14 days of incapacity for work (from February 6, 2017).
to 02/19/2017). The period of work in this company is from 06/01/2015, that is, 1 year 8 months. and 5 days (calculation from 06/01/2015 to 05/31/2016 - 1 year, from 06/01/2016 to 02/05/2017 - 8 months and 5 days). The work book contains the following entries: 07/17/2014 to 03/31/2015 - Garant LLC; 01/15/2013 to 07/16/2014 - Azimuth LLC. Let's calculate the total SS. Now we add up the obtained indicators: 1 year 6 months. + 8 months 15 days + 1 year 8 months. 5 days = 2 years 22 months. 20 days. 22 months convert to a full year, that is, 1 year 10 months. 2 years 20 days + 1 year 10 months. = 3 years 10 months 20 days.
What is included in the insurance period for sick leave?
Documents and periods confirming the insurance period are commented on by Yulia Busygina, head of accounting training, presenter of the webinar “Errors in calculating wages and average earnings”: Calculation of the insurance period for sick leave Calculation of periods of work (service, activity) is carried out in calendar order based on full months (30 days) and full year (12 months). In this case, every 30 days of these periods are converted into full months, and every 12 months of these periods are converted into full years (clause 2, section III of the Rules for calculating and confirming the insurance period). If the periods of work (service, activity) included in the insurance period coincide in time, one of such periods is taken into account at the choice of the insured person, confirmed by a statement indicating the period selected for inclusion in the insurance period (clause
How to calculate the length of service for a foreigner’s sick leave?
This procedure should also be applied to citizens of states that are members of the Eurasian Economic Union, despite a special agreement that largely equates citizens of these states with Russian citizens in terms of labor relations. This conclusion follows from Part 5 of Article 11 of the Labor Code of the Russian Federation. Similar explanations are given in the letter of Rostrud dated June 15, 2005 No. 908-6-1. Details in the materials of the Personnel System: 1. Magazines and books: Personnel Business Magazine, No. 12 December 2011 Sick leave: how to correctly fill out the form and calculate the employee’s length of service Commentary from accountant Natalya POTAPKINA, salary calculation expert at PF SKB Kontur CJSC ( G.
How pension payments are calculated
The size of pensions in Kazakhstan is gradually increasing. A recalculation of the amount awaits those who receive a basic pension.
Increasing labor pensions in Kazakhstan
You can find out the approximate size of the minimum pension calculated using the new formula using an online calculator.
Read on our website: average pension in European countries.
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Calculation of basic pension
Today, the size of basic pension payments is 50% of the monthly minimum. After the increase, its percentage will vary from 53 to 100% of the PM.
Social benefits will be accrued on the basis of work experience that was developed before 01/01/98. Also, the calculation will take into account the period of receipt of pension contributions to the funded part of the PS after 1998.
With ten years of work experience, the pension in Kazakhstan will be 54% of the monthly salary. For every 12 months over ten years of experience, 2% will be added.
The basic pension is calculated based on the total length of service.
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Calculation of joint pension
The calculation of the joint pension is carried out on the basis of 2 indicators: length of service and average monthly income.
Amount of joint pension in Kazakhstan
You can calculate the second indicator for 36 months of work by dividing the total income for all 3 years by 36.
The size of the joint pension is calculated at 59% of the average monthly profit of a citizen of the Republic of Kazakhstan for any 36 months from 01/01/95.
In accordance with the new calculation of pensions in Kazakhstan, every 12 months. length of service, pension payments will be recalculated and increased by 1%. You should know how much it will be in the end: the average pension in the Republic will be 74%.
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Minimum and average size
In accordance with the law on pension provision, an indirect minimum of joint pension payments was determined. It's called the "minimum wage". This is the lower guaranteed limit for Kazakhstanis who have the required work experience.
The minimum pension today is 38,636 tenge. Considering that pensions in Kazakhstan are now calculated according to a new scheme, after summing up all the coefficients, the average pension amount is 85 thousand tenge. The maximum pension after indexation is 117 thousand tenge.
Moreover, according to the new calculation of pensions, both basic and joint payments will be taken into account.
For those Kazakhstanis who are already on a well-deserved retirement, in 2020, in accordance with the new procedure for calculating pensions, the increase in the basic benefit will be made automatically. No special certificates are required to be submitted to the state pension payment center.
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Indexation of other payments
In accordance with the law of the Republic of Kazakhstan “On social benefits for disability, loss of a breadwinner and age in the Republic of Kazakhstan”, benefits for the loss of a breadwinner in the country are assigned and paid to disabled members of his family.
First of all, this concerns children with disabilities of groups 1, 2 and 3.
Survivor's benefits are provided for the entire period during which a family member of an untimely deceased person is considered incapacitated.
A person applying for benefits must present a photocopy of any document that confirms a family relationship with the deceased:
- Marriage certificates.
- Document establishing paternity (maternity).
- Identity cards.
More detailed information can be obtained by contacting the state pension payment center. It will also be possible to clarify whether payments will increase in the near future.
Another point where you can get reliable information is the Department of Control and Social Protection of the Population. You must apply strictly at your place of stay.
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Payments to military and police
The increase in pensions in the country will also affect former military personnel and employees of the Ministry of Internal Affairs.
Before the pension reform, benefits for former military personnel were paid from the age of 45. This is also the case today. Pensions in Kazakhstan for military and former employees of the Ministry of Internal Affairs will be calculated in accordance with:
- length of service;
- disability;
- having mixed experience.
The amount of benefits for this category of citizens is gradually increasing from 2020.
Providing military housing in Kazakhstan
In 2020, the year worked will be assessed separately. This is due to the introduction of the GPC - the annual pension coefficient.
In addition to the basic benefit, former military and police officers can count on additional funds. The amount of the pension supplement is indicated in the tablet.
| Category | Supplement amount |
| WWII participants under 80 years of age | 31% |
| WWII participants over 80 years old | 41% |
| Disabled people over 80 years old | 100% |
| Non-working persons of retirement age with dependents | 33–100% |
The total indexation volume in 2020 was 7–8%.
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Sick leave for former compatriots
According to current legislation, the amount of the benefit directly depends on the employee’s SS: the higher it is, the greater the percentage of average daily earnings. The table will tell you how much benefits to pay: Cause of disability % of average daily earnings depending on length of service Up to 5 years 5–8 years More than 8 years Illness of an employee, caring for a sick relative (outpatient), caring for a sick child (inpatient) 60% 80 % 100% Injury sustained during production 100% 100% 100% Caring for a sick child on an outpatient basis 60% for the first 10 days of illness and 50% for the next 80% - 10 days and 50% after 100% - 10 days and 50 % - all subsequent days of illness Benefit for labor and health 100% 100% 100% Child care up to 1.5 years 40% 40% 40% Within 30 days after dismissal 60% 60% 60% If the insurance period for paying sick leave is less than 6 months, then the calculation is carried out based on the minimum wage.
