What can you spend maternity capital on? Will maternity capital disappear after a year?
The Pension Fund reminds that since 2018, the maternity capital program has been expanded taking into account new demographic measures adopted by the Government of the Russian Federation to support Russian families with children. In accordance with the approved changes, families, in particular, are given greater opportunities to use maternity capital immediately after the birth or adoption of a second child.
Monthly payment from maternity capital
First of all, families with low incomes (less than 1.5 times the subsistence level of the working-age population per person in the family) received the right to a monthly payment from maternity capital in the event of the birth of a second child from January 1, 2018. The payment is provided until the child reaches 1.5 years of age. For the convenience of families, you can submit an application for payment within 6 months from the birth of the child - the funds will be paid for all the time that has passed since that moment. When submitting an application after 6 months, the payment is assigned from the date of application.
The amount of payment from maternity capital depends on the region of residence of the family and is equal to the child’s minimum subsistence level established there for the 2nd quarter of the previous year. That is, for families who applied to the Pension Fund in 2018, the payment amount will be equal to the child’s subsistence level for the 2nd quarter of 2017. It should be remembered that the monthly payment is set for one year and after this time the family must re-apply to the Pension Fund client service or multifunctional center to submit a new application for funds.
Preschool education, child care and supervision
Maternity capital has always provided for the disposal of funds for educational services for children. Previously, it was possible to use money for these purposes only three years after the birth or adoption of a child for whom maternity capital was issued.
Starting in 2018, families receive financial support for preschool education almost immediately after the birth of a child, since now maternity capital can be used within two months from the date of acquiring the right to it. You can use the funds during this period to pay for kindergartens and nurseries, including private ones, as well as to pay for child care and supervision services. In both cases, a necessary condition is that the organization has a license to provide the relevant services.
Preferential mortgages for families with two and three children
Russian families in which in 2018-2022 If a second or third child appears, they will be able to take advantage of preferential loan terms to improve their living conditions. Preferential mortgages can also be repaid using maternity capital. It is not necessary to wait until the third birthday of the child who gives the right to a certificate.
Despite the fact that preferential lending conditions are not directly related to the maternity capital program, this is, nevertheless, an important step by the state to support families with children. Loan funds are allocated to families with two and three children at a preferential rate of 6% per annum. They can be used to purchase an apartment or house, including a plot of land, as well as housing under construction under an agreement of participation in shared construction. Previously issued loans and loans for the purchase of housing can also be repaid using preferential mortgage funds.
It is also worth recalling that the opportunity to join the maternity capital program has been extended until December 31, 2021. That is, to obtain the right to maternity capital, it is necessary that the child who gives the right to the certificate be born or adopted before December 31, 2021. At the same time, the receipt of the certificate and the disposal of its funds are not limited by time.
The amount of maternity capital in 2018 is 453 thousand rubles.
Starting from January 1, 2018, a number of significant changes have occurred in the maternity capital program. Read our article about the latest news about maternity capital 2018.
On January 1, 2018, Federal Law No. 432-FZ of December 28, 2017 came into force, according to which the maternity capital program is extended until December 31, 2021. The same document is the basis for another area of using the certificate - receiving monthly cash payments from maternity capital in the amount of one subsistence minimum upon the birth of a child after January 1, 2018. Payments can be received until the child reaches 1.5 years of age; the amount is set individually in each region (the average payment in Russia is 10 thousand rubles).
At the same time, the new law on maternity capital 2018 provides for the use of social support funds in one more area - the possibility of paying with a certificate for services for the supervision, care and maintenance of a child up to 3 years of age in a preschool educational organization. It is allowed to transfer state support funds to the current account of any educational institution, regardless of its accreditation.
Just like last year, the amount of maternity capital in 2018 is 453,026 rubles. The certificate is issued once at the birth/adoption of a second or subsequent child.
Important! The established amount of maternity capital of 453,026 rubles will not be indexed until January 1, 2020 (in accordance with the provisions of the Law of December 19, 2016 No. 444-FZ).
Today, the period for registering maternity capital is not defined by law; accordingly, parents have the right to receive a state certificate for its intended use even after the program expires, until the child reaches adulthood.
Maternity capital 2018: what can you spend state support funds on?
In accordance with the Federal Law on Maternity Capital No. 256-FZ, state support funds can be used in the following areas:
- Improving living conditions:
- home purchase
- construction or reconstruction of an individual housing construction project
- compensation of costs for repair and construction work
- as a down payment on the purchase of a home with a mortgage
- depositing funds under an equity participation agreement when purchasing residential real estate
- to repay the principal debt and pay interest on a mortgage loan or loan for the purchase of an individual housing construction project/
If the recipient of the certificate has several mortgage loans, maternity capital funds can be used to pay off all of them at the same time.
If a positive decision is made on the use of maternity capital funds for a specific purpose, the funds must be transferred to the account of the certificate holder no later than 1 month.
- Educational services:
- payment for paid educational services in institutions with state accreditation
- keeping children in any preschool educational organization, regardless of accreditation
- payment for accommodation in the dormitory of an educational organization
- Mom's pension
Maternity capital funds can be used in three areas of pension payments:
- urgent, with a duration of at least 10 years;
- accumulative, with the transfer of funds to the Pension Fund branch;
- one-time, if the amount of the funded pension is 5% or less relative to the amount of the old-age insurance pension.
The child’s mother, who is the holder of a certificate for receiving maternity capital, has the right to independently choose an insurance company, as well as transfer investments from a non-state fund to a state institution.
- For the social adaptation of disabled children in society
In order to use a certificate for maternal capital in this direction, you must complete the following steps:
- undergo examination by medical and social experts;
- submit an application to the ITU to enter evidence into the IPRA for the provision of goods or services (together with the application, the child’s personal document, a referral to the ITU, SNILS, a certificate confirming disability, the child’s IPRA are submitted);
- purchase the necessary goods or receive a service, all payment documents must be saved;
- contact the district social protection department with an application to receive an inspection report for the Pension Fund.
The list of goods and services that are intended for social adaptation and integration into society of disabled children, compensated from maternity capital, are prescribed in a separate section in the IPRA.
Maternity capital funds can be spent on the adaptation of any child in the family who is disabled. Maternity capital funds can be used as compensation for rehabilitation programs carried out for a disabled child, taking into account the following features:
- payments are made after parents provide receipts confirming expenses for the purchase of goods and services;
- compensation is paid in respect of the child to whom the IPRA is assigned;
- maternity capital will not be able to compensate for funds that were spent on paid medical services, as well as other activities established by the List of Federal Law No. 181-FZ;
- The certificate allows you to purchase technical means that facilitate the socialization of a disabled child in society (bed lifts, ramps, bathtubs, etc.) that are not provided under government programs.
Maternity Capital Law 2018: what cash payments you can count on
The recipient of a maternity capital certificate in 2018 has the right to receive monthly payments for the maintenance of a child up to one and a half years old, taking into account the following factors:
- Parents can count on these payments if a child is born after January 1, 2018;
- if the total income in the family is no more than 1.5 subsistence minimum per month per person;
- the maximum amount of payments will be no higher than the subsistence level per child determined in each individual region.
It is worth noting the importance of parents’ timely application for monthly payments from maternity capital. So, if the recipient of the certificate applied before the child turned 6 months old, the amount of payments is recalculated in full from the moment the baby is born. If you apply with this question after the child reaches six months of age, social benefits will be assigned directly from the date of application.
Maternity capital in 2018: what will remain unchanged
- The amount of maternity capital this year will remain 453,026 rubles.
- Parents will not be given the opportunity to receive a one-time payment of 25 thousand rubles from maternity capital funds, regardless of their financial situation.
- The government of the Russian Federation rejected in the first reading a law allowing the use of state support funds for the purchase of a car.
- The proposal that was so sensational in the spring of 2017 about the possibility of receiving an additional payment to maternity capital in the amount of 250 thousand rubles was not confirmed.
- Also, the proposal to pay maternity capital in the amount of 1.5 million rubles at the birth of a third child remains unchanged.
- The state support program in the form of a certificate for receiving maternity capital will not be replaced by monthly payments for children under the age of 18.
Maternity capital for a second child in 2019 will be provided according to slightly different rules than previously. The main changes are additional opportunities for spending money. Already from January 1, you can receive monthly payments in the amount of the subsistence level from maternity capital. In addition, money can now be spent on paying for the services of nurseries and kindergartens, without waiting until the child turns 3 years old. The amount of maternity capital and the conditions for receiving it remained the same.
Who is entitled to receive maternity capital?
Maternity capital for the 2nd child (and not only) in 2019 can be received by:
- women who gave birth/adopted a second child;
- women who gave birth/adopted a third child or subsequent children, if they had not previously enjoyed the right to maternity capital;
- men recognized as the sole adoptive parent of the second child or subsequent children.
Women have the priority right to maternity capital. If a woman cannot exercise such a right (deprived of parental rights, died, declared dead), then it passes to the male parent or adoptive parent. Finally, if such a man cannot take advantage of the right to maternal capital, then it passes to the child (children in equal shares). A child can apply for maternity capital both as a minor and as an adult, but only up to 23 years of age and subject to full-time education.
Amount of capital and options for spending it
The amount of maternity capital is 453,026 rubles. The amount has remained the same since 2017, and so far there is no talk of indexation.
You can use funds for the following purposes (directions):
- Improving housing conditions (purchase of an apartment, house, its construction, including on bank lending terms).
- Payment for the education of the child(ren).
- Transfer to mother's funded pension.
- Purchasing goods and services for disabled children.
- Receiving a monthly payment in the amount of the regional subsistence minimum for an able-bodied citizen.
As a general rule, you can manage maternity capital funds only after the child turns 3 years old. However, legislation is gradually moving towards allowing the spending of money immediately after the birth or adoption of a baby. In 2019, it is necessary to wait for a child to turn 3 years old only for the purpose of forming a funded pension or buying an apartment or house without using credit funds.
Immediately after issuing the certificate, you are allowed to send money to:
- for monthly payments (the specific expenditure of funds is not controlled, so the goals can be any);
- to pay the down payment and repay a loan related to the purchase or construction of housing;
- for preschool (nursery, kindergarten) education of the child;
- for the purchase of goods and services for a disabled child.
It is permissible to spend maternity capital simultaneously on different purposes or change them as needed. There is only one important condition - to spend for permitted purposes and within the limits of available funds.
How to apply for maternity capital: where and how to apply
All issues related to the registration of maternal capital are dealt with by the Pension Fund (PFR). You must contact your local branch. Services can be obtained through the MFC or through the website (personal account) of the Pension Fund. But most citizens prefer a visit to the Pension Fund, believing that it will be more reliable and faster.
Until recently, the overwhelming number of people spent maternity capital funds on improving their living conditions - more than 90%. And the leader in this direction is mortgage lending. Due to the emergence of new opportunities from January 1, 2018, it is expected that the number of people wishing to receive monthly payments will increase sharply. However, this is unlikely to have a serious impact on other areas, given the permissibility of spending funds for different purposes.
Formally, participation in the maternity capital program involves going through two procedures: issuing a certificate and obtaining the right to spend funds in the chosen direction. However, the Pension Fund of the Russian Federation allows, if there is such an opportunity and desire, to combine these two procedures into one - to simultaneously submit applications and the entire necessary set of documents.
To obtain a certificate, you must submit to the Pension Fund:
- application in the prescribed form;
- passport of the person for whom the certificate should be issued (hereinafter referred to as the applicant);
- SNILS of the applicant;
- birth certificates of all existing children;
- court decision(s) on adoption;
- documents confirming the termination of rights to maternal capital of the mother (parents) - death certificate, court decision, etc. (to issue a certificate for a man or child (children)).
It is possible that the Pension Fund will require additional documents. This is usually due to controversial situations or the need to document certain facts.
An application for a certificate is usually completed on site with the help of an employee of the Pension Fund or MFC. After reviewing the documents, you will be notified when you will need to come to receive your certificate. The standard period is within a month.
If, at the same time as issuing the certificate, the issue of obtaining permission to spend funds is being decided, then it will be necessary to submit a corresponding application (the form is available in the Pension Fund and on the website) and additional documents. The list depends on the chosen direction and reflects its features.
When receiving funds, for example, for a down payment on a mortgage, loan repayment (payment and (or) interest), you will need a loan agreement, schedule, and a bank certificate in the established form. In addition, you will need title documents for housing (extract from the register of rights, agreement, acceptance certificate, etc., depending on the current status of the property).
To receive monthly payments you need:
- Documents evidencing family income - for each family member - for the 12 months preceding the submission of the application. The following are taken into account: wages and other remunerations at the place of work (certificate provided by the employer), income of individual entrepreneurs and other commercial income (declarations, certificates), pensions, benefits, scholarships and similar payments (certificates provided at the place of receipt of payments). The average per capita income, including the second child, should not exceed 1.5 times the regional subsistence minimum established for the working-age (adult working) population.
- Confirmation of Russian citizenship for the recipient of the payment and the child (passport, birth certificate).
- Documents with details or simply bank and account details where payments should be transferred.
Documents for payment can be submitted along with documents for issuing a certificate:
- immediately after the birth of the child;
- until the child is 6 months old - in this case you can receive the amount for the time elapsed since the birth of the baby;
- after 6 months before the child turns 1.5 years old - payments will be assigned only from the date of application.
If a different direction for spending maternity capital funds is chosen, it is necessary to submit documents confirming the right to such targeted spending. For example, if you plan to spend money on the education of a child (children), an agreement with an educational institution is required.
One-time cash payments from maternity capital, which, as an exception, took place in 2015 and 2016, helped many Russian families. Nothing like this happened in 2017, but this does not mean that the payment practice cannot be repeated in 2018. Will there be one-time payments from maternity capital in 2018 of 25,000 rubles or some other amount, is it possible to somehow cash out maternity capital in 2018.
Is it possible to cash out maternity capital in principle?
The rules of the maternity capital program do not provide for the payment of maternity capital funds (and in 2018 this is 453,026 rubles) in cash to the child’s parents. The essence of the program is not for the family to simply eat up this money, but for the children or their mother to have something more significant for the future from maternal capital. Better living conditions, high-quality paid education or an increased pension for the mother (which is beneficial for the children themselves - they will have less to help their old mother in the future), etc.
The practice of 2015-2016 was indeed an exception to this rule. Let us recall that in 2015 families could withdraw 20,000 rubles from maternity capital funds, and in 2016 - 25,000 rubles in cash. Provided that the remaining capital was equal to or greater than this amount. If the balance was smaller, you could simply take it and say goodbye to the maternity capital as such.
This money was not given automatically; those wishing to receive these payments had to write an application to the Pension Fund of the Russian Federation, after which the payment was issued.
Those payments were a way to support families in the difficult economic situation in which the country found itself in 2013-2014. Quite difficult times have come for Russians; it has been especially difficult for pensioners and families with small children. Payments of 20-25 thousand rubles then helped families at least slightly pay off possible debts, prepare children for school, etc. It’s clear that you can’t go wild with such sums, but still.
In 2017, there was no such payment, including because the situation in the economy became more prosperous, and at least inflation slowed down, which means that prices for food and non-food products did not rise so actively. In addition, the state has prepared some surprises for maternity capital holders on the eve of the new year, 2018.
Monthly payments from maternity capital funds for new certificate recipients since 2018
In 2018, a rather unprecedented event occurred - maternity capital was allowed to be cashed out completely officially, withdrawing small amounts from it (on average about 10 thousand rubles) every month. True, not all holders of a maternity capital certificate can do this.
In order to take advantage of this option, the family must meet two main requirements:
- the second child must be born after January 1, 2018,
- Each family member, including this child, should have an income of no more than 1.5 times the subsistence minimum for the region in which the family lives.
As for the second point, you need to focus on the cost of living for an able-bodied resident of your region, and for the second quarter of the previous year.
What does this income limit mean in practice? The cost of living varies in different regions, but on average in Russia in the second quarter of 2017, this value for an able-bodied resident was 11,163 rubles. One and a half of these values is 16,744 rubles. Considering that when calculating a family's right to monthly cash payments, children, including a newly born child, are taken from maternity capital funds, it turns out that parents should earn on average no more than 66,976 rubles per month for two. Then they will be entitled to payments. The amount of this payment is the cost of living per child in your region for the same second quarter of the previous year. In 2018, this is 10,160 rubles on average across the country. Somewhere less, and somewhere more.
67 thousand rubles for two - not all Russians earn that much, especially officially, so the new payment will be affordable for many families in the country.
A certain injustice that is outraged by those whose second child was born before 2018 and who do not know what to do with a certificate for maternity capital is precisely the restriction that the new measure applies only to parents of children born today. There is nothing you can do about it - the measure was introduced as a way to encourage families to have new children, and those who had children a little earlier were left out of the program.
Will there be a one-time payment from maternity capital funds in 2018 for those who are not included in the new program?
Of course, such a decision would be relatively fair. If people cannot receive monthly payments from maternity capital in cash just because their second child was born before 2018 (this is especially offensive for those whose children were born in the last weeks and even days of 2017), then they could be given at least a one-time payment payment, preferably more than 25,000 rubles, 2016 model.
However, for now we can only guess about the likelihood of such a payment.
As always happens in Russia, the authorities do not particularly consult with the people about their decisions, especially publicly. The maximum that the Kremlin and the government can rely on is closed sociological surveys. What public discussion of government decisions is, in Russia, if they once knew it, they have completely forgotten it. Decisions come down as a fait accompli; only those who participate in their development know about them in advance.
Thus, you can wait for anything, but it’s better not to rely on one-time payments, especially not to plan such an income in 2018. If the payment happens, the more pleasant you will always find something to spend it on.
The maternity (or family) capital program will undergo serious changes in 2018. At the initiative of Russian President Vladimir Putin, a law was adopted that supplemented the list of purposes for using maternal capital funds, as well as extending the program itself until 2021. The government began implementing the new law on January 1, 2018.
We'll tell you what the program to help families with children is, how long it will last, how much maternity capital will be in 2018, and what other changes await the program.
What should you know about maternity capital?
Matkapital is an instrument of state support for Russians who have more than one child, in the form of a one-time cash payment from the budget to a special account. The payment has a strictly intended purpose. The procedure for providing maternity capital is regulated by Federal Law No. 256-FZ “On additional measures of state support for families with children”:
- You can use the right to maternity capital once (for example, if a family has already received a subsidy for a second child, then with the birth of a third child it cannot apply for assistance from the budget under this program; if a third child appeared in the family during the implementation of the state program and his parents did not use the mechanism of state support earlier, the question of whether the maternity capital will be paid will be resolved positively);
- Personal income tax is not withheld from maternity capital, this has been the case for all 10 years of the program’s implementation - maternity capital is also not subject to taxation in 2018 - no changes are provided for in the Tax Code of the Russian Federation in this regard;
- the amount is issued for the intended purpose;
- cashing is prohibited;
- Depending on the purpose, the funds can be used either after three years from the birth of the child (regardless of whether the program is canceled in the year of application or it is extended), or immediately after the birth (for example, to pay off a mortgage debt).
The legislative act also provides for the intended purpose of family capital. It can be spent on:
- purchase of an apartment, including through borrowed funds, and other real estate transactions,
- aimed at improving living conditions;
- for children's education and training;
- increasing the mother's funded pension (the most unpopular method - lawyers do not recommend using it due to the unreliability of the Russian pension system; the funded part of the pension has been “frozen” for several years);
- for adaptation of disabled children into society.
According to statistics from the Russian Pension Fund, appointed executor of the program, the vast majority of maternity certificate holders used the opportunity to improve their living conditions: almost 5 million families purchased living space or changed their existing one to a more spacious one. In total, since the beginning of the program, 8.5 million families have received a certificate (data as of the end of 2017).
Will the program be extended?
The birth rate-stimulating measure was launched in 2007 and had a ten-year implementation period. Upon expiration, its validity was extended for two years – 2017 and 2018. With the end of the program implementation approaching, the question arose: will maternity capital be extended?
In November 2017, the country's president spoke in favor of increasing the period of application of the state aid mechanism until the end of 2021. The State Duma accepted the proposal of the head of state at one of the last meetings of the autumn session of 2017. The law will come into force on January 1, 2918.
- for the introduction of monthly payments to needy parents whose first child was born after January 1, 2018;
- expanding the purposes of using maternity capital - needy parents who received a certificate after the birth or adoption of a child in 2018 will be able to receive benefits from these funds when the child reaches one and a half years of age;
Maternity capital amount
When the program was launched, the payment amount was 250,000 rubles. Over the next eight years, due to annual indexation, the amount of state aid almost doubled - to 453,026 rubles. In 2016, due to unfavorable economic conditions, the amount of maternity capital was frozen. There has been no indexing since then.
From January 2018, the law (No. 444-FZ dated December 19, 2016) comes into force, suspending the indexation of family capital until 2020. Consequently, the amount of maternity capital in 2018 will not be increased: the amount, as in the previous three years, will be 453,026 rubles.
In the year of freezing maternity capital, certificate holders were allowed to receive part of the funds (25,000 rubles) for the needs of the family. The law providing for a one-time payment (No. 181-FZ of June 23, 2016) did not apply to the following year. There were no legislative initiatives to apply a similar measure in 2018.
Is it possible to pay extra for maternity capital?
In the spring of 2017, rumors appeared that the authorities were thinking about a way to encourage Russian women who gave birth to a second child under the age of 35. Such a measure was called an additional payment to maternity capital in the amount of 250,000 rubles. This information was not confirmed by the government, where the initiative allegedly originated. A similar bill has not been submitted to the State Duma for consideration (there is no project on an additional payment of 250,000 to maternity capital in the database of the lower house of parliament).
Another project concerning family capital was to increase the amount of payment to 1.5 million rubles (it was introduced by regional deputies in 2014) legislators considered. The document did not pass beyond the first reading, as did the proposal made in 2017 by a group of deputies to allow recipients to use the money provided under the program.
Maternity capital in 2018 - changes
Latest news - for 2 children born after January 1, 2018, it will be possible to receive a benefit from maternity capital funds (paid once a month) in the amount of the child’s subsistence minimum in the subject of the Russian Federation where the recipient lives. This norm, as mentioned above, is contained in the law “On monthly payments to families with children,” which came into force on January 1, 2018. At the same time, the program has been extended until 2021.
The amount of the payment will remain the same, but from December 4, 2017, the Ministry of Labor has adjusted the procedure for receiving the subsidy. The new rules will affect citizens who received the right to maternity capital in 2018. The changes concern the conditions for submitting an application to the Pension Fund:
- SNILS was excluded from the package of accompanying documents;
- in the absence of confirmation of registration at the place of residence, applicants have the right to name their actual address of residence.
If the recipient of the maternity capital decides to use the funds differently than indicated in the application, he needs to submit another one - to cancel the first one. This must be done within 10 working days after a positive decision on the appeal is made. Before the new rules came into effect, the procedure was required to be completed before the money was transferred and no later than two months from the date of receipt of the application.
