Retirement Benefits

The content of the article

• Grounds for dismissal of a pensioner
• Regulatory framework
• Retirement in connection with retirement
• 2-week deadline
• What are the payments
• Salary for the current billing period
• Cash compensation for unused vacation
• 13th prize
• Retirement Benefit
• Who should
• Size and calculation procedure
• Compensation for retirement to employees of the Far North and equivalent territories
• Features of registration of payments for senior citizens of law enforcement agencies

A person who has reached a certain age gains the right to quit of his own free will, go on a well-deserved rest and receive social benefits. Such an employee, upon termination of his own initiative on a labor contract, is entitled to financial payments upon retirement. At the same time, a citizen has the right to remain in office and continue to conduct activities in the organization that hired him, and after completing the documentation for receiving old-age insurance benefits.

Grounds for dismissal of a pensioner

The employer has the right to dismiss a pensioner only on general grounds or with his consent. The old age of a subordinate – 55-60 years – alone cannot be a reason for terminating a work contract. There can be several legitimate reasons for a legitimate dismissal:

• liquidation of an organization;
• the employee’s own desire;
• mutual agreement of the parties;
• change of ownership of corporate property (this may concern the head of the company, his deputies, chief accountant);
• Reasons directly related to the subordinate:

1. non-compliance of the employee with the position or work performed due to insufficient qualifications, confirmed by the results of certification;
2. repeated failure to fulfill subordinate professional duties without good reason, if he has a disciplinary sanction;
3. gross violation by the employee of labor duties;
4. absenteeism;
5. the appearance of an employee at the workplace in a state of alcohol or drug intoxication;
6. disclosure of state, commercial or official secret, which became known to the employee in the performance of his professional duties – this information also includes personal data of third parties;
7. theft, intentional damage or destruction of another’s property;
8. embezzlement;
9. violation by the employee of labor protection requirements;
10. committing guilty acts by an employee who serves wealth;
11. providing subordinate employers with fake documents when concluding an employment contract;
12. commission by an employee of an immoral act, which cannot be compatible with the continuation of professional activity (if he performs educational functions);

• Reasons directly related to representatives of the management team of the organization (chiefs, their deputies, chief accountant):

1. adoption of an unreasonable decision that entailed the unlawful use of property of the company or causing damage to it;
2. gross violation of an employment contract or official duties.

Regulatory framework

Both the procedure for terminating the employment contract with an elderly person, and the subsequent payments related to this event upon retirement are clearly regulated by the legislation of the Russian Federation (hereinafter – the RF). A summary table of legal norms with explanations to them:

Retirement in connection with retirement

A citizen’s attainment of retirement age cannot be the reason for dismissal. According to the law, this is the right to receive state social benefits. The Labor Code of the Russian Federation does not regulate the time between the termination by an employee of an employment contract of his own free will and the execution of his pension provision.

An employer does not have the right to refuse to a pensioner the termination of an employment contract or to set deadlines. The step-by-step procedure for dismissal in connection with retirement looks like this:

1. The employee makes a statement.
2. The employer issues an order.
3. Authorized persons of the company organize the formation of payments upon retirement.
4. The necessary entries are made in the workbook of the dismissed employee.

In order to terminate an employment contract, a pensioner must, on his own initiative, draw up a corresponding application in writing and in accordance with the procedure established by the Labor Code of the Russian Federation. The document must contain:

• position and surname, name, patronymic (hereinafter – full name) of the employer;
• directly a request for dismissal indicating the desired date of termination of employment;
• position and name of the pensioner;
• the date on which this document is submitted, the signature of the applicant.

To avoid potential conflict situations, the pensioner should make a copy of the paper. The application must be submitted to an authorized employee, asking the latter to indicate the number and date of the incoming document on the copy. His sample might look like this:

After the employee submits a letter of resignation, the employer, having become acquainted with him, draws up an appropriate order. The document should contain the following information: serial number of the employment contract and the date of its termination. After ordering, an appropriate entry is made in the work book. It includes the date of dismissal and its reason. The data entered in the work book must completely coincide with the information that the order contains.

2-week deadline

A citizen’s retirement is a special kind of dismissal of his own free will. According to the law, a pensioner has the right not to warn the employer for 2 weeks about his decision to leave the service. In a statement of desire to terminate the employment contract, the subordinate must indicate the corresponding reason. It will provide an opportunity for an elderly person to take advantage of the benefits guaranteed by the Labor Code of the Russian Federation – to quit without working out in connection with retirement.

What are the payments

A retiring pensioner is entitled to the same payments as any other employee in a similar situation. In addition to the salary, a citizen who has decided to go on a well-deserved rest has the right to count on receiving compensation for unused vacation. If the company’s management dismisses an employee due to staff reduction, he is entitled to a severance pay, the amount of which should correspond to the size of his average monthly salary.

In accordance with the current legislation of the Russian Federation, a citizen who decides to retire is entitled to apply for:

• salary for the current billing period;
• payment for unused vacation;
• 13 bonus compensation – paid by those institutions in which labor contracts provide for material incentives for employees at the end of the year;
• severance pay.

Salary for the current billing period

The final calculation upon termination of labor relations with a pensioner must be made within strictly established terms in accordance with the legislation of the Russian Federation. As a rule, it is carried out on the last day of work. If a worker was not present at his place on the date of dismissal, but his position was retained, payments upon retirement should be made no later than the day following the requirement for final settlement indicated by that citizen.

Layout of monthly income payments upon dismissal:

Russian employers use unified form No. 61 to document the calculation of salaries and other compensations for dismissal. After deducting all due payments, the calculation of wages for retirement will be calculated according to the following formula: З (ОСТ) = OKL / RD x OD – D, where:

• OKL – the monthly salary of the worker;
• RD – the number of working days in the month for which the salary balance is calculated;
• D – employee debts to the employer;
• Z (OST) – salary (balance on it);
• OD – the number of unpaid days worked (including the day of dismissal).

Cash compensation for unused vacation

If a retiring pensioner has unused vacation days, they are calculated according to the following formula: BUT = GG x 28 + 28/12 x M – O, where:

• BUT – compensation for unused vacation;
• GG – the number of complete years worked in the organization;
• M – the number of months in part-time years of work in the company;
• О – the number of compensated vacation days at the time of dismissal.

If a pensioner has worked at the enterprise for a full 11 months from the date of the employment contract, it is considered that he worked for a full year. When the length of service does not exceed the eleven-month period, a simplified formula is used to calculate the number of vacation days: BO = 28/12 x M – O. If the retiring pensioner worked in the organization from 5.5 to 11 full months, and the termination of the employment contract is due to:

• company liquidation;
• staff reduction;
• temporary suspension of work or reorganization;
• calling an employee for military service in the army;
• unsuitability;

BUT indicator will be calculated by the formula: BUT = 28 – O.

Compensation for unused vacation will be calculated according to the following formula: VNO = NO x SZ, where:

• VNO – payment of compensation for unused vacation;
• SZ – the average daily salary;
• BUT – unused vacation.

The average daily earnings are calculated according to the formula SZ = B / OD, where B is all payments that are taken into account in the billing period (1 year or less, starting from the date of concluding the labor contract and until the day of going on leave or dismissal), and OD is the number worked out dumb days. To get the OD indicator, the following formula is applied: OD = M x 29.3 + ODNM / KDNM x 29.3, where:

• M – the number of full months worked .;
• ODNM – the number of days of labor activity in incomplete months of the billing period;
• KDNM – the number of calendar days in incomplete months. work.

13th prize

Payment of 13 salaries after dismissal is a separate procedure. Only the employee who has a bonus clause in his work contract is entitled to claim this type of compensation. The presence of the conditions stipulated by the contract is relevant if:

• the results of labor activity were satisfactory, and profit was observed at the enterprise during the billing period;
• retiring voluntarily pensioner under the contract does not lose the right to receive a bonus.

In exceptional cases, claims for financial incentives in the form of 13 salaries are not satisfied, for example, when workers are reduced due to unprofitable production. The right to bonus, as a rule, is stipulated by a number of documents – any of them gives the worker the opportunity to claim this type of compensation:

• collective contract;
• regulation on remuneration;
• bonus act;
• personal employment contract.

The premium is paid immediately before retirement, along with the other compensations. If the employer provides for quarterly and / or annual financial incentives, the legislation of the Russian Federation obliges the employer to pay even to those employees who left earlier, since they were related to the organization receiving profit for the specified time period.

The calculation of the bonus amount is carried out according to the following rules (for the specified period):

• The total percentage of incentives is calculated;
• The total employee income is calculated
• if the billing period (quarter or year) was not worked out in its entirety, only the number of full months is taken into account;
• the percentage of payments should be multiplied by the current income of the worker – this is the amount of incentive;
• from the premium received, they deduct and pay 13% of the personal income tax to the federal budget (hereinafter – PIT).

Retirement Benefit

The additional payment provided on the last working day to the resigned specialist is called severance pay. This type of financial support is provided by the employer only in certain circumstances. These include:

• reduction of the organization’s staff due to changes in technological working conditions;
• recruiting an employee for military service;
• liquidation of the enterprise;
• a situation in which the employee refused to be transferred to another place for medical reasons, confirmed by the relevant certificate;
• reinstatement of the employee who previously held it;
• recognition of an employee as legally incompetent on the basis of a medical examination;
• if the subordinate refuses to move to another locality;
• depriving an employee of the right to engage in relevant labor activities by a court judgment;
• lack of the necessary educational certificate required to continue professional activities in this position;
• the employee’s refusal to continue to work in the organization due to changes in the terms of the contract.

Who should

Retirement benefits are provided to pensioners on a general basis – the legislation does not allocate them to a special category and does not provide for additional cash payments for them. The most common reasons for dismissal, which involves the accrual of this type of compensation, are:

• downsizing of the organization;
• liquidation of an enterprise.

Size and calculation procedure

The minimum severance pay is equal to the two-week average monthly salary. Relevant retirement benefits are due upon termination of the employment contract in the following cases:

• in case of refusal of a subordinate to be transferred to another job due to unsatisfactory state of health and in the presence of an appropriate medical opinion;
• due to conscription;
• upon reinstatement of a former employee;
• if the employee refuses to move to the territory of the organization’s transfer;
• due to the recognition of an employee as legally incompetent on the basis of a medical examination and opinion;
• in case of refusal of a subordinate to conduct professional activities in the conditions of changing the rules of the employment contract.

The right to receive compensation may be reserved for the employee who was dismissed from the layoff until his subsequent employment, but not more than 2 months. In some cases, the payment period can be extended up to 90 days. This is relevant for a citizen who has registered with the regional employment center within 2 weeks from the termination of the work contract and due to the lack of a suitable vacancy, he was never employed.

For retirees by age, this rule does not apply. Employment authorities register only unemployed people, and citizens who are eligible to receive benefits for long service or old age cannot be recognized by them. Provided that the state of health does not prevent him from working, a disabled pensioner can rely on a three-month allowance upon dismissal due to staff reduction. The payout amount will be calculated taking into account the following points:

1. compensation applies only to business days;
2. when calculating severance pay sick leave, vacation pay and all types of material assistance are not taken into account;
3. the wage system should not affect the final amount of this type of compensation;
4. the billing period includes the month / month of the employee’s dismissal.

To calculate the amount of severance pay, the following formula is used: P = DG / OD + Fibreboard, where:

• DG – annual income, the salary of the worker for the year that preceded the day of dismissal;
• P – severance pay;
• OD – the total amount of days worked for 12 months;

• Fiberboard – the number of days payable by severance pay.

Compensation for retirement to employees of the Far North and equivalent territories

Citizens who were professionally dismissed in the Far North, areas equated with them and employees of certain closed-type institutions (for example, the Ministry of Internal Affairs of the Russian Federation) who were laid off for reduction can be extended for up to six months with temporary problems with finding a job. For this category of persons, early retirement and increased “northern” allowance are provided..

Features of registration of payments for senior citizens of law enforcement agencies

Pensions for former military personnel are assigned in a different manner than payments for retirement to civilians. The security officer must be registered with the commissariat at the place of registration and permanent residence. Payments upon retirement to a military pensioner are made from the federal budget and are assigned through those ministries and departments in which he served.

The resigned serviceman has the right to continue to work on the “citizen”. If, due to old age and working out, he will have the right to receive insurance and social benefits, the payment of a military pension will not stop. To establish a second pension, one-time fulfillment of the following requirements must be observed:

• work experience:

1. its presence in civil enterprises by 2019 is 9 years;
2. and by 2024 – reach 15 years;

• age:

1. 60 years old – for men;
2. 55 years old – for women;
3. subject to the conditions of early appointment, payments are calculated before the pensioner reaches the standard age limit;

• points:

1. from 2019 – the individual pension coefficient (hereinafter – the IPC) should be equal to 13.8 and higher;
2. it should grow and by 2025 reach the mark of 30;

• availability of pensions from law enforcement agencies.