What is maternity capital?
What is matcap?
Maternity capital is money that is issued for the birth of the second, third and subsequent children. Those who have adopted a child will also be able to receive maternity capital. But the adopted child must be at least the second in the family. Funds are issued in the form of a certificate, which can subsequently be used for certain needs.
Maternity capital is a way to increase demographics in the Russian Federation. Every year the method of obtaining, conditions and target direction of maternity capital is reviewed.
Maternity capital began to be issued in 2007. And for eight years the amount was indexed. Since 2020, the increase in the amount of financial capital has been suspended until 2020.
Matkapital for low-income families in 2020: recent changes
Starting from January 1, 2018 and onwards, until the end of the program, low-income families will receive additional support from the state for the birth (or adoption) of a second child. In the last days of 2020, the initiative of Vladimir Vladimirovich Putin was supported by the State Duma, having adopted Law FZ-418. Here are the key provisions of the Law:
- Only families living in the territory of the Russian Federation have the right to receive payments; the child and mother must have citizenship of the Russian Federation. Russian children born abroad have all rights to MK.
- The law applies only to the second baby born after January 1, 2018; accordingly, payments will be made on certificates received in 2020, 2020 and beyond.
- Low-income, needy families are those whose total income for father and mother does not exceed 1.5 times the subsistence minimum (it depends on the region (region) of the family’s residence). Per capita income is calculated over 12 months.
It is important to know: a family’s income is made up of salaries, pensions, benefits, scholarships, and business income, but in any case, for the calculation, the amounts before the deduction of personal income tax are taken, that is, “dirty”.
- Parents receive money monthly until the baby is one and a half years old.
- The amount of the monthly transfer for the second child is equal to the “children’s” subsistence minimum (ML), which was in effect last year in the second quarter. For those born in 2020, the PM of 2017 applies, for those born in 2020 - 2020, and so on. The established cost of living varies from region to region. For example, in the capital in 2020 it was 14,252 rubles, but in Chukotka it was 22,222 rubles; in many regions the amount is not impressive and fluctuates in the range of 7-8,000 rubles.
To apply for payments for the second child in the family, you must first obtain a certificate for MK. This year, everything can be done according to the same procedure as before: visit the nearest branch of the Russian Pension Fund or go to the MFC. It is better to write an application for payments from MK before the child turns six months old: in this case, accruals go from the baby’s birthday to one and a half years. If you are late with your application and formalize the receipt of money after 6 months, the countdown of the deadline will be shifted: money will begin to arrive only from this period, the total payment period will not exceed one year.
My son is playing with Lego. One very important piece rolled under the sofa. He crawls, tries to get it, but it doesn’t work... He gets up and sighs sadly: - God! Why is this world so cruel?!
Payments are not at all obligatory: if the family decides to spend the entire maternity capital on a mortgage payment or on payment for educational services, you can leave everything as is, without registering anything. The entire amount of maternity capital will not be reduced; it will remain virtually untouched.
Maternity capital in 2020
From January 1, 2020, a number of changes to the procedure for registering maternity capital come into force.
Pension Fund employees approve applications within one calendar month, and money is credited to the account no later than 10 days from the date of approval of the application. This is not very convenient for those who are buying real estate, since not all sellers want to wait that long for the money to arrive. And therefore, they want to reduce the period for issuing maternity capital by exactly half from 2020. This was stated by D. Topilin. This is still being decided and whether it will come into force is unknown.
Who is eligible to receive a certificate?
A certificate for maternity capital is received by families in which the second, third or subsequent babies are born. Those who have adopted children will also be able to receive a certificate. The child must be at least the second in the family.
A certificate for maternity capital can only be obtained once in a lifetime!
Some citizens claim that a certificate is issued for each child born, but this is a mistaken opinion. If the certificate was not received immediately after the birth of the second child, then you can receive it when the child reaches adulthood or after the birth of the third baby.
The amount of maternity capital increases every year. For example, in 2020 the amount of financial capital was 250 thousand rubles, and in 2018 the amount is 453,026 rubles.
Changes and latest news
In 2020, no significant changes are expected in the maternity capital program. The conditions for issuing a certificate and the permitted areas of use of MSK will remain the same.
However, in September 2020, bill No. 517377-7 will be considered to reduce the time limit for making a decision on issuing a certificate for maternal capital (or refusing to issue it) to 15 days from the date of registration of the application. Now this procedure takes 1 month. This innovation will allow families raising two or more children to quickly start using the funds of the MSK certificate.
It is also worth noting that from January 1, 2020, Law No. 217-FZ of July 29, 2017 on vegetable gardening and gardening for one’s own needs comes into force, which introduces several important changes:
- the concept of “dacha” is abolished at the legislative level;
- It will become possible to build a residential building on a garden plot of land, if such a structure is not a garden house or an outbuilding.
This means that in 2020, citizens of the Russian Federation will be able to legally use maternity capital to build a house on a “dacha” plot (such a plot will now be called a garden plot - SZU).
The lack of significant changes in the maternity capital program in 2019 is largely due to the large number of innovations in 2018:
- introduction of monthly payments for the second child until he turns one and a half years old;
- added the opportunity to pay for preschool education of children without waiting three years from the moment the right to maternity capital arises;
- extension of maternity capital until 2021 inclusive.
A mortgage subsidy program has also come into effect for families in which, starting January 1, 2020, a second and (or) subsequent child appeared. Parents will be able to apply for a mortgage or loan at a preferential rate of 6% per annum (at the bank’s discretion, they may offer a lower rate). Although this measure of social support is not directly related to maternity capital, its participants are MSC recipients.
Maternity capital in 2020
Documents for obtaining maternity capital
To obtain a certificate for maternity capital, you need to collect documents and submit them to the Pension Fund or MFC.
List of documents:
- Completed application
- Passport and SNILS of the applicant
- Birth certificates of children
- SNILS for children.
After submitting documents, they will be reviewed by Pension Fund employees within a month. After consideration, you can receive a certificate in your hands. The certificate can be used after the child reaches the age of three, with the exception of a mortgage loan.
What can maternity capital be used for??
What can you spend maternity capital on?
Maternity capital can be used for the following purposes:
- Buying a home
- Construction or expansion of a house
- Cumulative part of mother's pension
- Studying at a licensed educational institution
- Down payment on mortgage
- Mortgage repayment
MK size and forms of money payments to parents
The amount of maternity capital in 2020, 2020 will be 453,026 rubles. Previously, the amount of MK was indexed annually, which was tied to the inflation index (price increases) for the previous year. Since 2015, the amount of MK has not been indexed; the amount of 453,026 rubles is valid. (FZ-444). In June 2020, our Government discussed the issue of indexing the MK in 2020 and 2020, but officials settled on the decision to further freeze it until January 1, 2020, and “then we’ll see” what the financial condition of the federal budget as a whole will be and the budget capacity Pension Fund - in particular.
Important changes have occurred in terms of the form of payments of money from maternity capital funds. Previously, the law clearly prohibited cash withdrawals; all expenses from MK were made in non-cash form. The reasons for this decision are clear: the state feared that the cash would be spent by negligent parents not on their children, but on anything else.
Since January 1, 2018, the situation has changed for low-income families . Money (monthly transfers - payments) for the second newborn can be transferred to a bank card (or to a current bank account with subsequent cashing out of funds) of the parent or guardian and spent at his discretion. If a family's income is above the established threshold of 1.5 subsistence minimum per adult citizen, these changes will not affect them.
Who has the right to count on maternity capital?
According to current legislation, every family can receive a state payment after the birth of a second or more child. Those who will have their first child in 2020 will not be provided with financial support.
At the same time, there are no restrictions on receiving such payments: how many children are born, the accruals will be made so many times. This means that previously received financial support cannot become a reason for refusing to receive a similar subsidy again.
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At the same time, a special situation arises in relation to families where twins, triplets, etc. were born. Such couples, regardless of the children they already have, are entitled to only one payment for the fact of childbirth, without taking into account the number of births.
Also, the category of citizens entitled to receive maternity capital includes adoptive parents. In this case, just like with a relative, the child should be the second in the family.
Conditions for issuing maternity capital
This program covers families who have had or will have a second child between 2007 and 2021. Or subsequent children. Provided that such a right was not formalized before. You are only allowed to use it once. Adoptive parents also receive government assistance. But guardians cannot count on maternity capital.
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There are no deadlines for submitting an application for participation in the MK program.
