As an important part of the mainland's social security system at the present stage, the level of basic old-age insurance benefits directly determines the quality of life of retirees in their later years and whether they enjoy an adequate economic foundation to a large extent.
Generally speaking, the higher the level of pension benefits, the basic living standards before and after retirement are not much different; the lower the level of pension benefits, it is not easy for retirees to truly provide for the old and rely on the old.
According to the current basic old-age insurance system for urban employees, employees of insured enterprises and institutions who have reached the statutory retirement age and have accumulated 15 years of insurance payment (including deemed payment period) can go through retirement procedures and receive basic pension on a monthly basis, and the level of treatment mainly depends on two factors, namely the amount of payment and the length of the payment period.
Basic pension calculation and payment method
It is reported that in 2005, the State Council promulgated the "Decision on Improving the Basic Pension Insurance System for Enterprise Employees", which reformed the basic pension calculation and payment method for enterprise retirees; after the reform of the basic pension insurance system of government organs and institutions in 2014, the "pension merger" was realized, and the insured personnel inside and outside the system uniformly implemented the basic pension insurance model combining social pooling and personal accounts, and simultaneously reformed the basic pension calculation and distribution method for retirees of organs and institutions within the system.
After the reform, the basic pension of retirees in enterprises and institutions is generally composed of three parts, namely the basic pension, the personal account pension and the transitional pension, and the corresponding calculation and payment formula is as follows:
(1) Basic pension = average monthly salary of employees in full-caliber urban units in the province where the insured person retires in the previous year * (1 + average contribution index of the insured person) / 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 insured person retires
(3) Transitional pension = the average monthly wage of employees in full-caliber urban units in the province where the insured person retires in the previous year * deemed to be insured and paid for the period * deemed average contribution index * transition coefficient
It should be particularly emphasized that the current transitional pension calculation and payment method has not been unified across the country for the time being, and for retirees who have the same number of years of payment, how to calculate and distribute their transitional pension should be subject to the actual situation.
Enterprise retirement VS retirement, the monthly per capita pension gap
As we all know, the reason why the state started the merger of the basic pension system is mainly because under the previous two different pension insurance systems, the pension treatment level of retirees in institutions and institutions in the system is significantly higher than that of enterprise retirees. Therefore, in order to eliminate the gap in pension treatment between enterprises and institutions, and reflect the fairness and impartiality of the basic pension insurance system, the state has reformed the insurance payment method for the personnel of government agencies and institutions and the calculation and distribution method of basic pension insurance benefits. However, it should be noted that there is still a big gap between the pension treatment of enterprise retirees and the retirees of government institutions and institutions.
(1) The average monthly basic pension level of retirees in enterprises outside the system
Referring to the National Statistical Yearbook (2023), the data disclosed in it shows that the total number of retirees of the basic pension insurance for employees of mainland enterprises in 2022 is 115.309 million, and the data disclosed in the "2022 National Social Insurance Fund Expenditure Final Statement" shows that the expenditure of the basic pension insurance fund for enterprise employees in 2022 is 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.
(2) The monthly per capita basic pension level of retirees in institutions and institutions within the system
Referring to the National Statistical Yearbook (2023) released by the National Bureau of Statistics in July 2023, the data disclosed in it shows that the number of retirees insured by mainland government agencies and institutions in 2022 is 21.131 million, and the 2022 National Social Insurance Fund Expenditure Final Account released by the Ministry of Finance in August 2023 shows that the basic pension insurance expenditure of government agencies and institutions in 2022 is 1,502.77 billion yuan. From these two data, we can calculate that in 2022, the average monthly basic pension per capita of retirees from government institutions and institutions implementing the urban employee pension insurance system will be 5,926.4 yuan.
Through the comparison of these two sets of data, it is not difficult to find that as of the end of 2022, the monthly per capita basic pension level of retirees in government institutions and institutions in the system is still nearly twice that of the monthly per capita basic pension of retirees in enterprises outside the system.
Normal pension adjustment mechanism
As we all know, in order to further improve the level of pension benefits of retirees and ensure that they are compatible with the growth rate of the average wage of on-the-job workers and the rise in prices, the state has established a normal adjustment mechanism for the basic pension of enterprise retirees since 2005, and at the same time, after the reform of the basic pension insurance system of government institutions and institutions, the adjustment mechanism has also been established simultaneously, and the two have realized the unification of adjustment methods since 2016.
It is reported that in the "Notice on Adjusting 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 is 3.8% of the monthly per capita basic pension of retirees in 2022 Based on this value, we can conclude that in 2023, the monthly per capita basic pension level of retirees in government institutions and institutions in the system will reach 6151.6 yuan, while the monthly per capita basic pension level of retirees in enterprises outside the system will reach 3108.4 yuan in 2023. Comparing the two sets of data, it is not difficult to find that there is still a difference of nearly 2 times between the two.
Official tone: 2024 retiree pension "20 consecutive increases"
In 2023, the basic pension treatment of retirees will usher in 19 consecutive increases, and the retirees of the majority of enterprises and institutions are full of expectations for the 20 consecutive increases. So, is it possible for the basic pension benefits of retirees to welcome the 20th consecutive increase since 2005 in 2024? A clear answer was given in the government work report released by the State Council a few days ago.
During the convening of the National People's Congress and the National People's Congress on March 5, the State Council released the 2024 government work report, which clearly focused on three key tasks in the field of social security, namely, 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 increasing the basic pension level of retirees. From this, it is not difficult to see that the basic pension of retirees in 2024 will rise for 20 consecutive years.
If the enterprise retirement and the retirement are raised by 5%, will the pension treatment gap be narrowed?
So the question is, what will be the national adjustment ratio of the basic pension of retirees in 2024? Up to now, the official notice of the Ministry of Human Resources and Social Security has not been issued, but based on the following two points, some professionals have made relevant predictions.
(1) Referring to the national adjustment ratio in the past five years, which are 5%, 5%, 4.5%, 4% and 3.8% respectively, it is not difficult to see that the adjustment level is basically maintained at about 4~5%;
(2) The GDP growth rate of the mainland in 2023 will be 5.2%, the per capita wage income of residents in 2023 will increase by 7.1%, and the national consumer price index will increase by 0.2% in 2023.
The question arises again, if the national adjustment ratio of pensions for retired and retired personnel is raised by 5% in 2024, can the gap between the two treatment levels be narrowed?
Let's start with the conclusion: the gap between the monthly per capita basic pension benefits of retirees in the system and those outside the system will not be narrowed, and may even be further widened. Referring to the data calculated above, the per capita pension gap between enterprise retirees and retirees in 2023 will be 3043.2 yuan/month, and if both are raised in 2024 according to 5% of the monthly per capita basic pension of retirees in 2023, the gap between the two will reach 3195.3 yuan. It is not difficult to see that under the premise of unifying the pension adjustment methods for retirees of government agencies, institutions and enterprises, the treatment gap between the two will continue to exist.
epilogue
Through the above introduction in this article, it is not difficult to see that the basic pension of retirees in 2024 is likely to usher in 20 consecutive increases. Moreover, if nothing else, the proportion of the linkage adjustment will be further increased, and this move will be more beneficial to the retirees of institutions and institutions with a high contribution base and a high level of pension benefits, after all, in the same overall area, the adjustment methods adopted by the two are the same.
Based on this, we also call on the majority of in-service insured employees, if the economic conditions allow, then it is recommended to try to choose a higher payment base, and as far as possible to extend the payment period, so that not only can improve the level of basic pension treatment after retirement, but also can enjoy a higher level of adjustment benefits in the process of pension adjustment.
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