In 2014, the state officially opened the pension merger.
1. Why merge?
Because enterprise employees have to pay a lot of pension insurance every year, but they can't get a few dollars after retirement;
However, the staff in the system do not have to pay pension insurance, but the pension can still throw off the employees of the enterprise for several streets.
How big can the gap be?
We both worked in Beijing for 30 years and then retired, during which time we received an average salary.
The average salary in Beijing is now about 10,000 yuan.
I retired from the enterprise with a monthly pension of four to five thousand.
You retire from the system, and the pension is 9,000 yuan.
This is obviously unfair, and the opposition is loud.
Finally, in 2014, the State Council decided to start the pension consolidation.
As with delayed retirement, merger cannot be one-size-fits-all, giving a 10-year transition period.
Those who retire before the transition period are called "old people", and the pension is determined according to the length of service and job title in the original way.
People who worked before 2014 and retired after 2014 are called "middle people", who joined the work before they were merged, and retired without paying social security for a few years, so they will be given a "transitional subsidy" to connect their pensions.
Those who joined the workforce after 2014 are called "newcomers" and their pensions are calculated in the same way as after the merger.
2. How much pension can a "newcomer" receive?
The pension of "newcomers" in the system is exactly the same as the social security pension of employees.
First of all, about the payment.
Since 2014, the system has also had to pay pension insurance.
The proportion of individual contributions is 8%, and all of them go into personal accounts;
The unit payment ratio is 20%, which goes into the overall account.
Secondly, about the pick-up.
Pension = Basic Pension + Personal Account Pension
Basic pension = (local average salary of the previous year + individual indexed salary) / 2 * 1% * number of years of contributions
Personal account pension = personal account balance / number of months
Finally, the conditions for receiving a pension
Contributory contributions for 15 years + reach the statutory retirement age.
That is, the so-called merger of the two, "pension merger"
3. After the merger, will the pension be the same?
After the merger, the pension rules were unified, but the pension was still 108,000 miles apart.
First of all, the rules are the same, but the payment base is different.
Theoretically, whether inside or outside the system, the pension contribution base should be their average salary in the previous year.
Moreover, this contribution base cannot exceed 3 times the average wage, nor can it be less than 0.6 times the average wage.
Within the system, this rule will definitely be implemented.
However, most enterprises, in order to save labor costs, pay endowment insurance according to the minimum standard of 0.6 times
The difference in the contribution base will directly lead to the gap in the final pension.
Then you say, the state forces enterprises to pay social security according to formal standards, isn't it?
Theoretically fine, but the wool comes out of the sheep.
The company has already calculated that it dares to give you a salary of 30,000 yuan because it only pays you social security at 6,000.
If you have to legally pay social security in full, then you can only change your salary from 30,000 to 25,000.
The total labor cost of the company is limited, and the more you pay social security, the less it will be sent to you.
Secondly, there is not only a pension in the system
In addition to pensions, there are also occupational pensions within the system.
The occupational pension unit pays 8% and the individual pays 4%.
There will be some restrictions on the conditions for receiving it, but it is about the same as CPF No. 2.
Deduct 400 yuan from you, and the company will make up an additional 800 yuan, adding up to 1200 yuan, all of which will be given to you.
Occupational annuities have less investment restrictions than pensions, and in the end, the money is returned to the individual.
Don't look at the small contribution of the occupational annuity, but the amount received after retirement is not much less than the pension.
With the blessing of occupational annuity, retirement within the system is equivalent to receiving a double pension.
With "full payment" + "occupational annuity", these two major buffs are blessed.
The total pension after retirement in the system will still be twice as high as that of the enterprise just retired.
Take 2022 as an example:
In that year, 20.8 million retired cadres received 1,502.77 billion yuan in pensions, with an average of 6,020 yuan per person per month.
The total pension of 1.3644 retired employees is only 4,143.622 billion, with an average of 3,037 yuan per person per month.
There is still a gap of more than double that of pensions.
If you use the pension replacement rate to speak:
Before the merger, the pension replacement rate in the system was about 90%, and all of these 90% were retirement pensions.
After the merger, the pension replacement rate in the system has dropped a little, but the decline is limited, I estimate that it is at least about 80%, including 45% of the pension and about 35% of the occupational annuity.
In corporate retirement, the pension replacement rate is always about 45%.
Only when the pension replacement rate exceeds 70% can the quality of life before and after retirement remain the same.
Although this is the data of the World Bank, it is not much different from our experience
You see those old people who drink tea, dance square dances, and watch the world, basically retired from the system
Normally, the pension is divided into three parts:
The first pillar led by the state, the second pillar led by enterprises, and the third pillar led by individuals.
It is unrealistic to expect a certain pillar to complete all pension expectations.
The 10-year transition period of pension merger has passed, and the popularity of the public examination has risen instead of falling.
Because only within the system can we provide a stable two-pillar pension.
The public examination is the best way to provide for the elderly with dignity, and there is no one.
For example, if I am over 35 years old, I can't take the public exam, and the unit does not have an enterprise annuity, so I can only save money by myself.
The amount of this money, which the state has already suggested, is the total proportion of contributions to the second pillar occupational pension.
12% of annual income (8% + 4%, total occupational pension contributions)