Answers to frequently asked questions about employee pensions
In practice, situations often arise in which it is not always clear how to correctly calculate an employee’s retirement savings. The Pro business portal collected questions from employers. Answers are given by Svetlana Ushkurova, Head of the Occupational Pension Insurance Department of the Minsk City Administration of the Social Protection Fund of the Ministry of Labour and Social Protection of the Republic of Belarus.
In 2021, a commercial organization hired an electric and gas welder to work in “harmful” working conditions. Until that time, he had not an employment relationship. Does the employee have the right to a salary supplement in accordance with Decree of the President of the Republic of Belarus No. 441 dated September 25, 2013?
Considering that the electric and gas welder does not have a special length of employment, he has the right to receive a monthly salary supplement instead of paying professional pension insurance contributions (at least 6 percent).
According to sub-clause 1.2 of clause 1 of Decree No. 441 “On Certain Issues of Occupational Pension Insurance and Pension Provision”, employees, who are subject to occupational pension insurance, whose special (preferential) length of employment before January 1, 2009 is less than half of the amount required for assigning a pension by age for work in special working conditions or pensions for years of service (or in the absence of special length of service), at their choice, are granted the right to:
– professional pension insurance,
– monthly salary supplement.
By choosing a salary supplement, the employee receives additional current income.
To receive a salary supplement, an employee applies to his employer with a written application in which he indicates information about periods of special length of employment before January 1, 2009 or about its absence.
The salary supplement amount is determined by the employer and cannot be less than the amount of contributions to the employee’s occupational pension insurance. It depends on the accrued wages for work in special working conditions and the amount of professional pension insurance contributions for a certain category of employees.
Payment of salary supplement, as well as contributions to professional pension insurance, are made until the employee reaches the generally established retirement age.
For more than 10 years, the athlete was a member of the national team of the Republic of Belarus in dance sports. Does this give him the right to an occupational pension: early or supplementary one?
Athletes involved in dance sports do not have the right to professional pensions.
Since January 1, 2009, Law of the Republic of Belarus No. 322-З dated January 5, 2008 “On professional pension insurance” (hereinafter referred to as the “Law”) introduced professional pension insurance under which contributions made by employers to professional pension insurance (hereinafter referred to as contributions to PPI ) for employees working in special working conditions and involved in certain types of professional activities are used to pay them pensions in connection with special working conditions.
With the introduction of the professional pension insurance system, such a type of pensions as professional pensions (early and supplementary ones) appeared. Occupational pensions are paid from the sum of the pension savings of the insured person. Retirement savings are formed from the PPI contributions made and income from their placement in an authorized bank.
An early professional pension is assigned and paid to the insured person until he/she reaches the generally established retirement age. Additional pension – after he/she reaches the generally established retirement age.
According to sub-clause 1.14 of clause 1 of Article 5 of the Law, athletes involved in activities in the field of professional sports (according to the list of sports) are subject to professional pension insurance.
The list of sports for the purposes of professional pension insurance for certain categories of athletes involved in professional sports was approved by Decree of the Council of Ministers of the Republic of Belarus No. 1490 dated October 9, 2008 “On Certain Issues of Professional Pension Insurance” (hereinafter referred to as the List). The list does not include “dance sport”.
Based on the foregoing, athletes involved in this sport are not subject to professional pension insurance, and employers do not make PPI contributions for such employees. Thus, dance sports athletes have no right to assign and receive professional pensions.
The workplace is subject to occupational pension insurance. Instead of forming a professional length of employment and making contributions to professional pension insurance, the employee chose a supplement to wages. In 2022, the employee reaches the generally established retirement age, however, continues to work in the same “harmful” working conditions. Is it necessary to pay a salary supplement after assigning an old-age pension to an employee if he/she continues to work in a workplace that is subject to PPI?
In this case, no salary supplement is paid. Payment of salary supplement, as well as contributions for professional pension insurance, are made only until the employee reaches the generally established retirement age (clause 3, article 12 of Law of the Republic of Belarus No. 118-З dated July 15, 2021 “On contributions to the budget of the state extra-budgetary fund for social protection of the population Belarus”).
The employee applied for a monthly supplement to wages for working in special working conditions. By January 01, 2009, she had reached as a medical worker more than half of the special length of employment required for assigning a long service pension, which amounted to 19 years. Currently, she works under the conditions of List No. 1. Does the insured person have the right to a salary supplement based on sub-clause 1.2 of clause 1 of Decree No. 441?
No, she doesn’t have. According to sub-clause 1.2 of clause 1 of Decree No. 441, employees, who are subject to professional pension insurance, whose special length of employment before January 1, 2009 is less than half of the length of employment required for assigning an old-age pension for working in special working conditions or a long service pension for in accordance with articles 12, 13, 15, 47−49, 492 of Law of the Republic of Belarus No. 1596-XII dated April 17, 192 “On Pension Provision” (hereinafter referred to as the “PO Law”), at their choice, are granted the right to a monthly salary supplement.
Considering that the employee’s special length of employment before January 1, 2009 amounted to more than half of the length of employment required for assigning a labour pension in accordance with Article 48 of the PO Law, there is no right to a monthly supplement. And it does not matter that the person is currently employed in the jobs provided for by List No. 1.
In accordance with Decree No. 441, an employee employed in jobs provided for in List No. 1, instead of professional pension insurance, from March 1, 2022, chose the method of compensation for working in special working conditions in the form of a salary supplement. Will he get the right to an additional occupational pension if occupational pension insurance contributions were paid for him for the period between March 2015 and February 2022?
In accordance with Article 17 of the Law on PPI, an additional professional pension is assigned to insured persons who have reached the generally established retirement age, if they have pension savings on the professional part of their personal account. Thus, in this case, having reached the generally established retirement age, the insured person has the right to an additional professional pension.