The General Office of the State Council recently issued the "Opinions on Promoting the Development of Individual Pensions", which has been highly concerned by the people. Is it mandatory, how to buy, and who regulates it? At the state council policy briefing held on the 25th, the relevant departments made an authoritative response.
Is the purchase mandatory? What is the difference with a basic pension?
"Unlike basic old-age insurance, which is compulsory by the state, individual pensions are voluntarily participated by individuals." Li Zhong, vice minister of the Ministry of Human Resources and Social Security, said that enterprise annuities and occupational annuities are established and jointly paid by employers and their employees, but personal pensions are only paid by individuals.
According to the opinions, the individual pension system belongs to the supplementary pension insurance system supported by government policies, voluntarily participated in by individuals, and operated by the market. Workers who participate in the basic endowment insurance can participate in the personal pension system, and the state gives preferential tax policy support.
Data Chart (Xinhua News Agency)
According to Li Zhong, the mainland's multi-level endowment insurance system is mainly composed of three aspects. The first pillar is the basic endowment insurance, which is the main part, and as of the end of March, the number of insured people has reached 1.03 billion. The second pillar is the enterprise annuity and occupational pension, and as of the end of March, 72 million employees participated. The third pillar of personal pension and other personal commercial pension financial business, there was no corresponding institutional arrangement before.
"The implementation of the individual pension system this time is an inevitable requirement to adapt to the main contradictions and changes in mainland society and meet the people's multi-level and diversified old-age security needs, which is conducive to increasing the accumulation on the basis of basic endowment insurance, enterprise annuity and occupational annuity, and being able to have one more income after retirement and further improve the living standards after retirement." Li Zhong said.
He said that the contributions of personal pensions are all collected into personal accounts and fully accumulated. After the participants meet the conditions such as the age of receiving the basic pension, they may decide to receive the personal pension on a monthly, divided or one-time basis, and transfer it to the social security card bank account and use it freely.
Participants can use personal pensions to purchase financial products such as bank wealth management, savings deposits, commercial endowment insurance, and public funds that meet the regulations, and bear corresponding risks. "What to buy and when to buy are independently chosen and decided by the participants." Li Zhong said.
On March 20, 2022, in Wuxin Village, Guanshan Subdistrict, Longli County, Qiannan Buyi and Miao Autonomous Prefecture, Guizhou Province, elderly people chatted with villagers at the Elderly Mutual Aid Center. Xinhua News Agency (Photo by Huang Xiaohai)
How do I open an account and pay fees? How to choose an investment product?
How to pay personal pensions, how to see the income, personal accounts are the key.
According to the system design, two accounts need to be opened to participate in the personal pension. One is to open a personal pension account on the information platform for information records, inquiries and services, etc., and the other is to open or designate a personal pension fund account in the bank for payment, purchase of products, collection of income, etc., and the two accounts uniquely correspond to each other.
Participants can open through multiple channels such as the national social insurance public service platform, the national human resources and social security government service platform, the electronic social security card, the pocket 12333, and the commercial bank, among which the two accounts can be opened at one time through the commercial bank.
"The implementation of the personal account system can facilitate individual operation, more intuitively reflect the rights and interests of individuals, and provide complete records and services for participants." Nie Mingjun, director of the Pension Insurance Department of the Ministry of Human Resources and Social Security, said.
He said that buying one or buying multiple financial products, and what kind of portfolio to implement, can be completed in this capital account, without running multiple financial institutions. Each contribution, investment and other information of the participants is recorded by the personal pension account; the enjoyment of preferential tax policies and the transfer of personal pensions when receiving them are also based on the personal pension account and can be queried in real time.
On February 27, 2022, at the Huangjiayu Village Pension Service Center in Hushan Town, Lanshan District, Rizhao City, Shandong Province, the elderly were eating lunch. Photo by Xinhua News Agency reporter Guo Xulei
In terms of amount and investment cycle, participants can choose whether to participate in the whole process or part of the annual participation. The upper limit of annual payment in the initial stage is 12,000 yuan, as long as it does not exceed this amount, the participants can decide how much to pay, and can choose to pay it in one lump sum or multiple times during the year.
Nie Mingjun revealed that with the development of economy and society and the increase in per capita disposable income of residents, the upper limit of payment will be gradually increased in the future. In the next step, the Ministry of Human Resources and Social Security and relevant departments will issue implementation measures for personal pensions and other supporting documents to further clarify and refine the operation process and participation standards.
Who regulates? When will the policy land?
The reporter learned from the briefing that the Ministry of Human Resources and Social Security and the Ministry of Finance formulated specific policies and operated supervision on the setting of personal pension accounts, the upper limit of payment, the receipt of benefits, etc., and the financial regulatory department supervised the risk of personal pension-related business activities and products.
"We will select some cities to try it for 1 year first, and then summarize and promote it." At the same time, we will work with relevant departments to formulate corresponding supporting policies and do a good job in the docking test of the information platform. Li Zhong said.
A series of supporting policies are being formulated intensively.
Wang Honghe, second-level inspector of the Life Insurance Department of the Banking and Insurance Regulatory Commission, said that the CbRC is studying and formulating the administrative measures for the personal pension business of commercial banks and the relevant policies for insurance institutions to carry out personal pension business, etc., and clarifying the rules for capital accounts and the management requirements for related financial products.
"The purpose of the personal pension account is to reflect the pension attribute and make the individual invested funds really used for pension security." Wang Honghe said that the regulatory authorities will encourage financial institutions to launch more products that are conducive to the steady appreciation of pensions, and explore providing reasonable returns for participants through long-term investment and value investment. At the same time, it will also strengthen the supervision of relevant financial business and severely crack down on violations.
Lin Xiaozheng, deputy director of the Institutional Department of the CSRC, said that the CSRC will pay close attention to the introduction of supporting rules and systems for individual pension investment public funds, improve the industry infrastructure platform, continue to strengthen the supervision of institutions and practitioners, promote the improvement of manager management capabilities and standardized operation levels, strengthen investor protection, ensure the safety and standardization of pension investment operations, and promote the high-quality development of personal pensions.
"While promoting the implementation of the personal pension system as soon as possible, we will firmly adhere to the bottom line of ensuring that the basic pension treatment is issued in full and on time." Guo Yang, deputy director of the Department of Social Security of the Ministry of Finance, said that this year will continue to increase the basic pension level of retirees and the basic pension level of urban and rural residents. Efforts are being made to ensure that the increased benefits are distributed as soon as possible.
Source/Xinhua Viewpoint (Reporters: Jiang Lin, Tan Moxiao, Liu Hui)
Editor-in-Charge/Chen Xiaobing
Review/Zhifei
Producer/Xi Shujun
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