Indexation of maternity capital - how does it happen?
Those who are about to become parents or are just planning pregnancy and childbirth, are concerned about the logical question - how the state will support the family with the appearance of their second child. In the Russian Federation, a program of material support for families has been operating for many years - maternity (family) capital. And if it's not so difficult to figure out where to spend the money received, then not everyone knows what the indexation of maternity capital is.
Maternity capital is a certificate for a certain amount of money that is issued by the state to parents. Its goal is to support motherhood and childhood, as well as to improve the quality of life of large families.
Not only couples who have a second child, but also couples who have adopted a second and subsequent children can receive the payment.
What is maternity capital indexation?
Indexation is the recalculation of the amount depending on price changes and the economic situation.
There are two reasons for the indexation of maternity capital:
- Due to the rise in inflation, the standard of living observed with the same income is significantly declining;
- There is a risk of depreciation of this cash support.
In order not to create unnecessary queues in municipal bodies, specialists increase subsidies without involving citizens in this process, that is, in an automatic mode.
The amount of payment is approved by members of the Ministry of Labor, as well as social protection of our state. So, in 2007, when the issuance of maternity capital to parents of two or more children had just started, it was 250,000 rubles. In 2015, this amount was 453,026 rubles (and has not changed anymore).
Maternity capital increased in direct proportion to the currently identified level of increase in the number of paper money circulating in the country: the higher it is, according to experts' forecasts, the higher the index coefficient.
Over the course of the program, the amount of payments increased in different proportions. The highest increase was in 2009 - 13% (slightly more than 300,000 rubles). But in 2016 and after the indexation was not carried out, because the government decided to freeze the amount until 2020due to the difficult economic situation in the country.
Is maternity capital indexed upon receipt?
When this subsidy is issued for the first time, the recipient sees on the certificate a figure equal to the amount of the subsidy set for the current year. This fact can provoke a false judgment that the amount cannot be changed.
Not all parents use the money received immediately after issuing the certificate. Moreover, some of them deliberately postpone the translation process, waiting for the next increase in the subsidy. Such a decision is quite justified: the date when the certificate itself was received is not important in the indexation process, because the money will be transferred from the state budget to the FIU only after the future recipient has submitted a written application there.
For example, if the certificate was issued in 2014, when the amount of the subsidy was about 430,000 rubles, and was used only in 2017, the family will receive a large amount - namely 453,026 rubles. Therefore, the number indicated on the certificate is a conventional figure and serves only as a guide. There is also no need to change this document to a new one, since even if the maternity capital is increased, it will be a legal basis for obtaining the indicated amount.
Is the parent capital balance indexed?
It often happens that parents who received a certificate do not use the entire amount received at once, but only a part. The next question arises: will the balance of funds remain the same, despite the annual indexation, or will it continue to grow.
The answer is simple: the balance of the total amount of maternity capital is also subject to indexation according to the same rules as the whole subsidy.
Let's look at an example. The family in 2014, when the amount of capital was 429,408 rubles, spent 120,000 rubles from the subsidy to pay off part of the mortgage debt for the house. The balance was 309,288 rubles. The following year, these funds, like maternity capital across the country, increased by 5.5%, which is why the balance amounted to 452,900 rubles.
You can calculate for yourself how the amount of the balance will change if you find out by what percentage the subsidy will increase next year. To do this, you can contact the consultants of the Pension Fund. Nevertheless, until 2020 this issue remains irrelevant, since the indexation of maternity capital is frozen until this date.
Benefits of the subsidy
Despite the fact that both the size of maternity capital, and the purposes for which it can be used, and the procedure for obtaining are often criticized, we can safely say that thanks to the program that started more than ten years ago, many families were able to implement , which would be difficult to implement without government support.
- Using the funds received, improve housing conditions, pay for tuition or kindergarten services, ensure social adaptationfor children with special needs;
- Pay off a tangible part of the mortgage or invest a large start-up capital in the construction of new housing.
Today it is difficult to imagine planning a second and subsequent children without the state support necessary to ensure their life. The only thing future parents need to take care of is the timely execution of all formalities, such as paperwork and writing an application for the sale of funds.