The Pension and Social Insurance Fund of the Russian Federation is one of the state extra-budgetary funds. Created by federal law of 14.07.2022 No. 236-FZ "On the Pension and Social Insurance Fund of the Russian Federation" by reorganizing the Pension Fund of the Russian Federation with the simultaneous accession of the Social Insurance Fund of the Russian Federation to it.
The EME was created for the implementation of state compensation support, compulsory pension insurance, compulsory social insurance in case of temporary disability and in connection with motherhood, compulsory social insurance against accidents at work and occupational diseases, social security, provision of social protection measures (support) to certain categories of citizens. The date of creation of the Fund is considered January 1, 2023.
The functions and powers of the founder of the EME are exercised by the Government of the Russian Federation.
Structure
The management bodies of the Fund are the Chairman of the Fund and the Board of the Fund. Organizational, technical and documentation support for the activities of the Fund's management is carried out by the central office of the Fund. The structure of the Social Fund also includes territorial Branches of the SFR in the constituent entities of the Russian Federation, as well as institutions subordinate to the Fund, including rehabilitation centers.
Functions
Among the socially significant functions of the Social Fund (as of January 2023):
- the appointment and payment of pensions for compulsory pension insurance and state pension provision;
- the appointment and payment of state benefits, security for compulsory social insurance and other types of security;
- organization of individual (personified) accounting in the systems of compulsory pension insurance and compulsory social insurance;
- organization of investment of pension savings funds;
- actuarial assessment of the financial condition of the systems of compulsory pension insurance and compulsory social insurance, long-term forecasting of their development;
- provision of state guarantees, measures of social protection (support), social services to certain categories of citizens, including as part of the provision of state social assistance;
- organization of measures in the field of medical, social and professional rehabilitation of insured persons.
Performance indicators
2023:2023: Record deficit - 593 billion rubles
In May 2024, it became known about the results of the work of the Social Fund of Russia for 2023. In the first year of its existence, the fund ended the year with a deficit of 593 billion rubles.
According to RBC, the reason for such a deficit is due to the fact that the federal transfer to the fund's expenses was transferred at the end of 2022, and it was designed for 2023. The maximum deficit of the Pension Fund (its income and expenses form the bulk of the SFR budget) was recorded in 2015, then it amounted to 543.7 billion rubles. In 2022, a record surplus of 1.1 trillion rubles was observed in the Pension Fund. According to the Federal Treasury for 2021, the expenses of the Pension Fund would account for 88% of the total expenses of the Pension Fund and the Social Insurance Fund.
The revenue part of the budget of the Social Fund is formed at the expense of insurance premiums and federal funding. Insurance premiums go to provide insurance payments, and federal budget funds go to expenses that are not covered by insurance premiums, and to compensate for lost income. In 2023, the EME received 13.26 trillion rubles, which is 3.3% less than planned.
The increase in income on insurance premiums is associated with an increase in salaries in 2023. Average monthly wages in Russia increased by 14.1%. The total expenses of the Social Fund of Russia in 2023 compared to the budget law increased by 317 billion rubles. This is due to an increase in salaries and indexation of pensions by 4.5%. Pension expenses increased by 1.2% or 121 billion rubles, for the provision of maternity capital, on the contrary, decreased by 95 billion rubles.
Balances in the fund's accounts have increased significantly. As of January 1, 2023, they amounted to 1.73 trillion rubles, and as of January 1, 2024 - 1.13 trillion rubles. The difference went to cover the fund's budget deficit.[1]
Digitalization
2023: How the digitalization of the Social Fund of Russia is taking place
In early September 2023, the head of the Social Fund of Russia (SFR) Sergei Chirkov, speaking at one of the forums in Moscow, spoke about the digitalization of the fund. According to him, the EME provides 44 services, within the framework of which 116 electronic services have been created.
 | We go to the "figure" only for those who are comfortable with it. A person can come to any client service that is preserved in each district and receive a service, - said Chirkov. |  |
He stressed that the Social Fund, by virtue of its functions, serves the entire population of the country. The agency is actually a single window for providing all federal social support measures, ranging from benefits to pregnant women to old-age pensions.
| | Without digitalization, it would be difficult to serve so many people. Digitalization has changed the philosophy of our services. From the thesis that citizens themselves collect documents, we eventually came to the conclusion that the fund should do all this, - said Sergey Chirkov. | |
According to him, the next stage in the digital transformation of the social sphere will be the launch of a single platform. It will allow you to collect all the information about the person necessary for proactive and non-explicit service. Information will accumulate into statuses that are updated throughout your life.
In 2024, it is planned to launch the first stage of a single digital platform. Its implementation will make it possible to even more actively provide services on the principles of the social treasury, that is, to understand in advance in what life situation a person is in order to offer support measures, without waiting for his appeal to the fund.
| | The digital platform is not just a tool for quickly prescribing measures, it is actually a change in the paradigm of the social sphere, - said the head of the Social Fund of Russia.[2] | |
History
2022
The number of Russians who transferred from the Pension Fund of the Russian Federation to the NPF reached a historic minimum over the
Level of transitions from the Social Fund of Russia (EMF; until 2023 - the Pension Fund of Russia) in non-state pension funds (NPFs) in 2022 fell to 9.2 thousand people, according to data from the Bank of Russia. This is the minimum figure for the history of calculations. The previous record low number was recorded following the results of the 2020 transition campaign (then 15.8 thousand citizens returned to the FIU), Frank Media notes. Read more here.
Appointment of Sergei Chirkov as head of the Social Fund
In mid-December 2022, Prime Minister Mikhail Mishustin signed a decree appointing Sergei Chirkov as chairman of the Pension and Social Insurance Fund (Social Fund), which was formed as a result of the merger of the Pension Fund and the Social Insurance Fund. Read more here.
Putin signed a law on the merger of the FIU and the FSS
In mid-July 2022, the president Russia Vladimir Putin signed a law on the merger Pension Fund (PFR) Social Insurance Fund (FSS) into a single Pension and Social Insurance Fund (Social Fund of Russia).
The reorganization will take place on January 1, 2023, but the transition period may stretch for a couple of years. After the funds are combined, citizens will continue to receive all the due payments on time, and they will be able to apply for advice at the same addresses, but now to unified client services.
The initiative was prepared in order to implement the strategy for the long-term development of the pension system of the Russian Federation - according to the authors, the authorities will be able to centrally manage social payments and provide them more quickly.
As explained in the Ministry of Labor and Social Protection of the Russian Federation, the decision to unite is made taking into account the introduction in the Russian Federation of a single digital platform for administering payments, the introduction of a single tariff of insurance premiums (will be transferred in a single payment), the definition of a single window for applying for support measures (Public services), a single center for advising citizens on the provision of all support measures (a single contact center).
The department added that the fundamental innovation is the creation of a new governing body, and the activities of the fund will be accountable to the supervisory board, consisting of 7 people who represent trade unions, employers, the State Duma, the Federation Council, the government and the chairman of the combined fund.
The presidential decree emphasizes that during the transformations, the dismissal or reduction of employees of the Pension Fund and the Social Insurance Fund is "unacceptable" - all of them should have a place in the new structure. In mid-July 2022, Vladimir Putin also approved amendments to the Budget, Labor, Tax Codes and other legislative acts related to the merger of the FIU and the FSS.[3]
Mishustin instructed to create a single pension and social insurance fund
On April 26, 2022, it became known about the order of Prime Minister Mikhail Mishustin to create a single pension and social insurance fund. According to the press service of the Cabinet, combining the functions of the Pension Fund and the Social Insurance Fund will make receiving social payments faster and more convenient for citizens.
Prime Minister Mikhail Mishustin instructed the Ministry of Labor to submit to the Cabinet of Ministers a schedule for the development and adoption of by-laws to implement the federal law on the creation of a single Pension and Social Insurance Fund by May 5, 2022.
In parallel, the issue of introducing a single rate of insurance premiums will be worked out. It is assumed that they will be transferred to the fund in a single payment.
The legal, organizational and technical readiness of the fund's work should be ensured by January 1, 2023. All rights of citizens in the process of reorganization will be preserved and guaranteed in full, indicated in the Cabinet.
The reform is being carried out as part of a project to create a social treasury in Russia. It will be based on a digital platform that will unite all information systems existing in the social sphere. As a result, the state will be able to centrally manage all social payments, provide them as quickly as possible, conveniently and targeted.
In January 2022, it became known that the government plans to reorganize the Pension Fund and the Social Insurance Fund into a single organization - the Social Fund. An important change was that the organization will receive a new organizational and legal status "extra-budgetary fund."
According to the head of Sberbank, German Gref, Russia needs to reform pension legislation. He pointed out the importance of non-state funds being able to offer their clients competitive programs and investment programs with interesting strategies and additional services.[4]
Notes
- ↑ The Social Fund ended the year with a technical deficit of almost ₽600 billion
- ↑ center/ ~ 2023/09/05/254190 Sergey Chirkov: A single digital platform will allow more active transition to the social treasury
- ↑ Putin signed a law on the merger of the FIU and the FSS
- ↑ Mikhail Mishustin gave instructions to create a single Pension and Social Insurance Fund
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