On April 21, 2022, the General Office of the State Council issued the Opinions on Promoting the Development of Individual Pensions, and the individual pension system was officially implemented.
So what exactly is a personal pension? How do I contribute? How to invest? How do I claim it? Today, let's take everyone to figure it out at once by the small exhibition!
01 What is a personal pension?
At present, the mainland has initially established a "three-pillar" endowment insurance system including basic endowment insurance, enterprise and occupational pension, and individual commercial endowment insurance. However, the third pillar has a low degree of development, making residents lack access to pension investment channels with stable and sufficient returns. The individual pension is the system that realizes the supplementary function of the pension insurance, which is supported by government policies, voluntarily participated by individuals, and market-oriented operation.
The opinions are clear that the individual pension implements a personal account system, and the contribution is completely borne by the individual participants, and the full accumulation is implemented.
Participants establish personal pension accounts through the personal pension information management service platform, and use the personal pension paid to purchase financial products at financial institutions that meet the regulations or their sales channels entrusted in accordance with the law. The personal pension fund account is closed, and its rights and interests belong to the participants, and unless otherwise specified, they may not be withdrawn in advance.
02 How to participate?
According to the opinions, workers who participate in the basic old-age insurance for urban workers or the basic old-age insurance for urban and rural residents in China may participate in the individual pension system. By the end of 2021, the number of people insured by the national basic pension insurance has reached 1.03 billion.
The opinions stipulate that the upper limit of the annual payment of individual pension is 12,000 yuan, and the Ministry of Human Resources and Social Security and the Ministry of Finance adjust the upper limit of payment in a timely manner according to the level of economic and social development and the development of multi-level and multi-pillar pension insurance systems.
The State formulates preferential tax policies to encourage eligible persons to participate in the personal pension system and receive personal pensions in accordance with regulations.
03 How is this money invested?
According to the opinions, the funds in the personal pension fund account are used to purchase financial products that meet the requirements of bank wealth management, savings deposits, commercial endowment insurance, public funds, etc., which are safe, mature and stable, standardized, and focus on long-term value preservation to meet the preferences of different investors, and participants can choose independently.
The financial institutions and financial products involved in the operation of individual pensions are determined by the relevant financial regulatory departments and released to the public through the information platform and the financial industry platform.
04 How do I claim it?
According to the opinion, the participants meet the following circumstances
△ Age of receipt of basic pension
△ Complete incapacity to work
△ Settle abroad (border).
△ Have other compliance with national regulations
After the information platform verifies the conditions for receiving the payment, the personal pension may be received on a monthly, divided or one-time basis, and the method of payment must not be changed once it is determined.
When receiving, the personal pension should be transferred from the personal pension fund account to the bank account of the social security card. Upon the death of a participant, the assets in his or her personal pension fund account may be inherited.
The opinions require that the Ministry of Human Resources and Social Security and the Ministry of Finance strengthen guidance and coordination, implement it step by step in combination with actual conditions, and select some cities to try it for 1 year first, and then gradually push it forward. In addition, each relevant department will also formulate specific policy measures to implement the opinions in accordance with the division of responsibilities.