According to the current basic old-age insurance system for urban employees, the insured personnel of enterprises and institutions who have paid contributions for 15 years and meet the retirement age conditions at the same time can go through the retirement procedures in accordance with the regulations and receive the basic pension benefits on a monthly basis.
Based on the basic principle of overpayment and long-term payment, the level of pension treatment mainly depends on the length of the payment period and the amount of contribution. Generally speaking, in the same overall area, the higher the payment base and the longer the payment period, the higher the level of basic pension insurance benefits after retirement, and vice versa, the level of pension benefits will be relatively low.
As the economic basis for the retirees of enterprises and institutions to ensure the basic life in their later years, the higher the level of pension treatment, the higher the quality of life and the higher the happiness index after retirement; on the contrary, the lower the level of pension treatment, it is not easy to truly provide for the elderly, rely on the elderly, and enjoy the old after retirement.
Basic pension calculation and payment method
Based on the policy basis of the "Decision on Improving the Basic Pension Insurance System for Enterprise Employees", it is not difficult for us to know that the basic pension treatment of enterprise retirees mainly includes two parts, namely the basic pension and the personal account pension; Specifically, the formulas for the three parts are as follows:
(1) Basic pension = average monthly salary of employees in full-caliber urban units in the province where the insured enterprise employee is located at the time of retirement * (1 + average contribution index) / 2 * cumulative insurance payment period (including deemed payment period) * 1%
(2) Personal account pension = the cumulative amount of personal pension account storage / the number of months of pension calculation and issuance when the employees of the insured enterprise retire
(3) Transitional pension = average monthly salary of employees in full-caliber urban units in the province where the insured enterprise employees are located at the time of retirement * deemed payment period * deemed average contribution index * transition coefficient
The monthly per capita basic pension level of retired personnel
As mentioned above, enterprise retirees who enjoy basic pension insurance benefits can apply for basic pension on a monthly basis, referring to the National Statistical Yearbook (2023) released by the National Bureau of Statistics According to the data disclosed, the amount of expenditure on basic pension for enterprise employees in 2022 will be 4,143.622 billion yuan. From these two data, we can calculate that the monthly per capita basic pension of enterprise retirees who implement the basic pension insurance system for urban employees in 2022 is 2994.6 yuan, which is less than 3000 yuan per month.
As we all know, the mainland has established a normal adjustment mechanism for the basic pension of enterprise retirees since 2005, and will achieve the "19 consecutive increases" of the basic pension of retirees in 2023 as scheduled. In the "Notice on the Adjustment of the Basic Pension of Retirees in 2023" issued by the Ministry of Human Resources and Social Security and the Ministry of Finance in May 2023, the state clarified that the national adjustment ratio of the basic pension of retirees in 2023 is 3.8% of the monthly per capita basic pension of retirees in 2022, and as a basis for calculation, it is not difficult to calculate that the monthly per capita basic pension of enterprise retirees nationwide in 2023 will be 3108.4 yuan.
In 2024, the "20 consecutive increases" of pensions have been set
On March 5, during the convening of the National People's Congress and the National People's Congress, the State Council issued the "Government Work Report", which made it clear that in 2024, it will focus on three tasks in the field of social security, including comprehensively promoting the implementation of the personal pension system, raising the minimum monthly payment standard of basic pension for urban and rural residents by 20 yuan, and further improving the basic pension level of retirees. At this point, the basic pension of retirees will usher in a new adjustment on the basis of 2023, and the 20 consecutive increases can be said to have been basically finalized.
In late April, the official adjustment notice may be revealed
According to the experience of previous years, the circular issued by the Ministry of Human Resources and Social Security and the Ministry of Finance in April or May each year on adjusting the basic pension of retirees can be regarded as a sign of a further increase in the pensions of retirees in the current year. In the notice, the state will clarify the scope of adjustment, the level of adjustment, the method of adjustment, the source of funds and how to organize the implementation, and then in June and July, the provinces and cities will successively issue specific adjustment plans.
It is understood that in 2020 and 2021, the Ministry of Human Resources and Social Security will issue the basic pension adjustment notice for retirees in April, and in 2022 and 2023, the Ministry of Human Resources and Social Security will issue the basic pension adjustment notice for retirees in May. Therefore, it is not difficult to predict that the time node of the Ministry of Human Resources and Social Security to officially issue the notice of basic pension adjustment for retirees in 2024 may also be in late April or May, and then all provinces and cities will combine the actual situation of the region and introduce a detailed adjustment plan under the unified deployment of the state, and begin to implement it after submitting it to the Ministry of Human Resources and Social Security and the Ministry of Finance for the record. It is worth mentioning that according to the adjustment experience and schedule in 2023, the increase in adjustment will be issued before the end of July.
How much can a retired employee with 35 years of service increase every month?
If nothing happens, the adjustment of the basic pension of retirees in 2024 will continue to adopt the method of combining fixed adjustment, linked adjustment and appropriate inclination, and continue to maintain the unity of the pension adjustment method of retirees of government institutions and enterprises.
Specifically, the so-called quota adjustment, that is, retirees within the adjustment range in the unified overall planning area will determine the monthly increase in the basic pension according to the fixed amount, for example, the monthly increase in the quota adjustment in Shandong Province in 2023 is 41 yuan per person per month; The so-called inclined adjustment mainly benefits the elderly retirees and retirees in remote areas, and on the basis of the fixed adjustment and linked adjustment, the adjustment level will be appropriately increased, for example, in 2023, the Shandong inclined adjustment will mainly benefit the elderly retirees aged 70 and above.
So the question is, for 35 years of service of enterprise retirees, after the adjustment in 2024, how much will the basic pension rise every month?
Assuming that the pension level of retirees of an enterprise in Qingdao, Shandong Province is 4,000 yuan/month, the actual insurance payment period + deemed payment period is 35 years, and the age is 65 years old. Then, referring to the "Notice on Adjusting the Basic Pension of Retirees in 2023" issued by the Shandong Provincial Department of Human Resources and Social Security, we can calculate that the monthly increase in the pension of the retired personnel of the enterprise is 139 yuan, namely:
41 + 4000 * 1.25% + 15 * 1.2 + 10 * 1.4 + 10 * 1.6 = 139 yuan. Judging from the increase, the proportion is 3.475%.
One point that needs to be emphasized here is that different provinces and cities have different pension adjustment programs, under normal circumstances, areas with a higher level of economic development, the adjustment of the basic pension of retirees will be relatively higher, and the area with a lower level of economic development will often adjust the increase in the range of issuance. Therefore, for retirees with the same contribution period and the same pension level, the monthly increase in pension adjustment may be different, mainly depending on the detailed adjustment plan of each province and city.
epilogue
Through the above introduction in this article, it is not difficult for us to come to a simple conclusion, that is, the basic pension treatment of retirees in 2024 will usher in "20 consecutive increases", which is almost a sure thing. However, the official adjustment notice has not yet been officially issued, and we still do not know the national adjustment ratio.
However, based on various factors such as the national GDP growth of 5.2% in 2023, the growth of per capita wage income of residents in 2023 of 7.1%, and the growth of the national consumer price index of 0.2% in 2023, many professionals currently predict that the national adjustment ratio of the basic pension of retirees in 2024 may remain at about 4%, which is not much different from 2023.
Therefore, for retirees who have gone through the retirement procedures in accordance with the regulations and receive the basic pension on a monthly basis before December 31, 2023, what they need to do now is to wait patiently for the official adjustment notice and the release of the local detailed adjustment implementation plan.
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