The demographic policy of many states is aimed at increasing the birth rate and reducing the mortality rate. In the Russian Federation, for these purposes, additional stimulating support measures are used, which include the so-called maternity capital.
What is maternity capital?
To increase the birth rate in Russia, from January 1, 2007, an additional measure of state support for families called maternity or family capital has been in effect. It provides cash payments citizens for the birth or adoption of a second, third or subsequent children who appeared in the family after 2007. Maternal capital is not handed out, but can only be directed to specific purposes if the family does not enjoy the right to additional measures of state support.
What is regional maternity capital?
Since 2011, in addition to the state stimulus payment, almost all regions of Russia have also provided for regional maternity capital. This is an additional material payment assigned from the regional or regional budget to families in which a third and subsequent, less often a second child was born. Such a program operates in 70 subjects . Regional maternity capital for a third child is sometimes called governor or regional. The differences from the federal program are:
- Payout amount. For example, in Kaliningrad it is $1558, and in the Ivanovo region it is $826.
- Method of disposing of funds. Some certificates can be cashed, while others can be used to pay for housing, education or a car.
Who can receive maternity capital?
The very essence of the program is to stimulate the natural increase of the population, so maternity capital is not paid for the first child. The following persons are entitled to receive such a certificate:
- Initially, a woman who gives birth or adopts a second child after January 1, 2007 receives mother capital. She can also receive payment for the third or subsequent children, if she has not previously exercised this right. The capital can only be obtained once.
- There are situations when the mother loses the right to use the certificate: death, deprivation of parental rights or the commission of a crime against the child. Then the right to own the money goes to the father of the children.
- If the mother and father have lost the right to maternity capital, then it is issued to a minor child or a child under 23 years old who is studying full-time. If there are several children in the family, then the amount is divided equally between them.
What determines the amount of maternity capital?
The bill clearly spells out the amount of federal maternity capital, which does not depend on the region or time of issue. This is a fixed amount, which is determined not at the time the certificate is issued, but on the day the applicant applies for the use of the funds. Since the introduction of the law, the amount has changed significantly:
- In 2007, it was $3897.
- In 2010, the government increased it to $5346.
- In 2014, the size of the certificate grew to $6686.
Is maternity capital indexed?
In the last paragraph, it was clearly shown that throughout the existence of the program, the amount of payments has changed. This increase is called indexing. It is necessary to adjust remuneration in accordance with the annual inflation rate. Indexing was carried out:
- Annually from 2007 to 2014. During this period, the amount of monetary compensation changed every year by about 5–13% and increased from $3896 to $6693.
- On January 1, 2015, the last indexation of the amount to $7060 took place. In the same year, Federal Law No. 68-FZ of April 6, 2015 was adopted in 2016, in which indexation was suspended until January 1, 2020.
There is also a concept among the people, like maternity capital for the first child. This is an additional measure of state support for families in which the first child was born after January 1, 2018, and the income of all family members per person does not exceed 1.5 of the subsistence level. That is, not everyone is eligible. Its size is indexed annually after determining the current living wage.
What can maternity capital be spent on?
The main difference between state and regional maternity capital is the fact that money is not given to parents in their hands. Instead, the mother or father receives a certificate that can be used in one of the following areas:
- Buying an apartment, building or renovating a house.
- The most popular way to use maternity capital is to pay a down payment on a mortgage loan or pay off the principal debt.
- Payment for educational services for a child in organizations with state accreditation.
- For the social adaptation of disabled children, including the purchase of the necessary goods and services.
- Mother’s retirement savings.
How to get maternity capital?
You can use the right to dispose of funds only after issuing the appropriate certificate. In the memo on how to issue maternity capital, there are two ways:
- Submit an application through the official portal of the State Service on the Internet.
- Personally apply to the branch of the pension fund at the place of residence or a multifunctional center with the required set of documents.
After applying for family equity:
- The decision on extradition is made within 15 working days. Sometimes it can be extended up to a month if there are delays from related departments when checking the submitted information.
- After the decision is made, the authorized bodies inform the applicant about it within 5 working days.
- You can pick up the certificate in person at the application office or by e‑mail.
Documents for maternity capital
Before you go to government agencies to write an application for a certificate, you must prepare a certain list of documents:
- Certificate of birth or adoption of the second or subsequent child.
- A document confirming the citizenship of the child.
- Passport and pension certificate of the mother.
- If it is not the mother who applies for the certificate, then the applicant attaches documents confirming the deprivation of her right to the certificate: a death certificate, a certificate of deprivation of parental rights, and so on.
- The procedure for using maternity capital varies depending on the purpose of its disposal, therefore the list of documents will be different. For example, when buying or building a home, this will be one package of documents, and when sending a mother to retire, it will be completely different.
How to cash out maternity capital?
The text of the bill on the measure of support for families with children says that it is impossible to cash out maternity capital. The use of funds occurs without the issuance of cash on hand for transfers to banks, a pension fund or other organizations, depending on the chosen purpose of use. You can receive money from these funds only if:
- After January 1, 2018, the second child was born in the family and the income in terms of all members is below the subsistence level. In this case, a certain amount of “shortage” is calculated, which will be paid to the mother from these funds until the child is 1.5 years old.
- Take advantage of illegal schemes offered by scammers. Their essence lies in the fictitious purchase of real estate, overpricing or registration of fictitious mortgages. For their services, scammers take a commission ranging from 10 to 70%. Sometimes their victims are left without funds at all.