Changes in the appointment of occupational pensions

On January 17, 2020, the President of the Republic of Belarus signed Decree No. 15, based on which, as of January 1, 2020, the approach to granting preferential pensions has changed, and as of January 1, 2021, the rates of contributions for professional pension insurance will increase.

The Decree applies to individuals who are establishing their right to pensions for work in special working conditions and in connection with employment in certain types of professional activities. These include, in particular: flight and engineering and technical personnel of civil aviation; female workers of textile production; female tractor drivers and male tractor drivers of agricultural production; drivers of passenger transport; female operators of livestock and pig-breeding complexes and mechanized farms, as well as milking machine operators; certain categories of artists; workers of expeditions, parties, detachments; athletes engaged in professional sports; certain categories of medical and pedagogical workers.

Until the Decree came into force, the period of professional service accumulated since January 1, 2009, in accordance with the norms of the Law of January 5, 2008 No. 322-Z "On Professional Pension Insurance" (hereinafter referred to as the Law on PPS) played a significant role in granting preferential pensions to the above-mentioned categories of workers.

For reference: professional service is the duration of work in special working conditions of an employee (insured person), during which the employer paid contributions for professional pension insurance for them. The amounts of insurance contributions and the income from their investment accumulate in the professional part of the insured person's personal account.

As of January 1, 2020, the situation has changed for the specified category of workers. Now, the existence of general work experience in adverse working conditions, the majority of which falls on the period before January 1, 2009, grants the right to an old-age labor pension for work in special working conditions or for length of service under the Law on PPS.

pension provision, regardless of the period of professional service accumulated after January 1, 2009.

Here are a few examples. First: for a female driver of urban transport (tram, trolleybus, bus), labor legislation provides for a total preferential service record of at least 15 years for the appointment of an early retirement pension. If the majority of this period, at least 7 years and 6 months, falls before January 1, 2009, then such an employee can count on an old-age pension for length of service earlier than the general retirement age by 5 years according to the pension provision law. Second: if a man working as a tractor driver-machinist in agricultural production, directly involved in the production of agricultural products, for whom legislation provides for a total preferential service record of at least 20 years, the majority of which, at least 10 years, falls before January 1, 2009, then this employee can also apply for an old-age pension for length of service.

For reference: for those employees who carried out their work activities full-time in difficult and particularly difficult working conditions at certified workplaces - according to the lists of industries, jobs, professions, positions and indicators, employment in which gives the right to an old-age pension for work in special conditions according to List No. 1 and List No. 2, a similar approach in determining the right to an early professional pension was provided for by Decree of the President of the Republic of Belarus No. 441, and has been applied since October 1, 2013.

The departments for labor, employment and social protection of district (city) executive committees are responsible for the appointment of old-age pensions for work in special conditions or for length of service under the Law on Pension Provision.

As for employees wishing to exercise their right to early pension provision, who have no special service record before January 1, 2009, or whose record is less than half of the full preferential service record established by legislation, then

they will be entitled to the appointment of an early professional pension in accordance with the Law on PPS. In this case, all norms provided for by Article 11 of the Law on PPS must be observed: reaching the required age and having professional work experience.

It should be noted that such employees can also, instead of professional pension insurance, exercise the right to receive monthly surcharges, in the amount of at least the contributions for professional pension insurance due for payment to the budget of the state off-budget social protection fund, in accordance with the tariffs approved by the legislation.

Employees who have more than half of their preferential service period worked before January 1, 2009 are not entitled to the surcharge.

The appointment of early professional pensions is handled by the district departments of the Social Protection Fund. Decisions on surcharges instead of professional pension insurance are made by employees jointly with the employer.

If contributions for professional pension insurance were made for an employee, and they did not exercise the right to an early professional pension, as well as to a surcharge instead of professional pension insurance, then upon reaching the generally established retirement age, they can apply to the bodies of the Social Protection Fund for an additional professional pension. The period of payment of such a pension is determined based on the amount of pension savings available in the professional part of the insured person's personal account on the day of application. The monthly amount of payments is the subsistence minimum budget per capita, in effect in the month for which the payment is made (in February 2020, it was 239.87 rubles).

From January 1, 2021, the Decree also provides for an increase in the contribution rate for professional pension insurance. The list of tariffs is given in the Decree of the President of the Republic of Belarus of January 10, 2009 No. 23 "On tariffs of contributions for professional pension insurance" (as amended by Decree No. 15).

The increase in the tariff will allow

increase pension savings in the professional part of the individual personal account of insured persons, consequently, the amounts of early pensions or supplements instead of them will also grow, and for additional professional pensions the period of their payment will increase.

Vitebsk Regional Department
Social Protection Fund of the Ministry of Labour and Social Protection of the Republic of Belarus.