The basic pension treatment is an important reference index to measure the living standard of retirees in their later years, under normal circumstances, the higher the pension standard, the higher the ability to guarantee life after retirement; on the contrary, the lower the pension standard, the living security level after retirement may decline sharply compared with before retirement, and it is impossible to talk about the old people having support and relying on the old.
According to the data, by the end of 2022, the total number of retirees enjoying the basic old-age insurance benefits for urban employees nationwide is about 140 million, of which the monthly per capita basic pension level of retirees in government institutions and institutions in the system is about 6,000 yuan, and the monthly per capita basic pension level of retired employees of enterprises outside the system is about 3,100 yuan.
It is not difficult to see that the monthly per capita pension level of retirees inside and outside the system still has a gap of nearly 2 times or so today, and in terms of old-age security, the retirees of institutions and institutions with a relatively high pension replacement rate are more advantageous, and they almost do not have to worry about their livelihood after retirement;
Measures for the calculation and payment of basic pensions for retirees
As we all know, before October 1, 2014, the mainland's basic old-age insurance system presented a "dual-track" operation, that is, the insured personnel of government institutions and enterprises implemented different old-age security systems; In addition, according to the provisions of the system, only when the insured person has accumulated 15 years of insurance contributions and meets the conditions of the statutory retirement age, can he go through the retirement procedures and receive the basic pension on a monthly basis.
According to the current basic pension insurance system for urban employees, the basic pension treatment of retirees in enterprises and institutions is generally composed of three parts, namely basic pension, personal account pension and 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) / 2 * cumulative insurance 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 salary of employees in full-caliber urban units in the province where the insured person retires in the previous year * deemed payment period * deemed average contribution index * transition coefficient
Normal pension adjustment mechanism
In order to allow the majority of retirees to enjoy a more substantial pension economic foundation to ensure their basic life, the mainland has established a normal adjustment mechanism for the basic pension of enterprise retirees since 2005, and after the reform of the basic pension insurance system of government agencies and institutions in 2014, a normal adjustment mechanism for the pension benefits of retirees of government institutions and institutions has been established simultaneously. It is worth mentioning that since 2016, the pension adjustment methods for retirees of enterprises and government institutions have been unified.
It is reported that in 2014, the State Council issued the "Decision on the Reform of the Pension Insurance System for Employees of Organs and Institutions", in which the state made it clear that it would make overall arrangements for the adjustment of the basic pension of retirees in government agencies, institutions and enterprises according to the increase in wages and price changes of employees, and gradually establish a normal adjustment mechanism for the pension insurance benefits of all types of personnel, share the fruits of economic and social development, and ensure the basic life of retirees.
In 2024, the basic pension will rise for 20 consecutive years
In 2023, the basic pension of retirees will welcome the 19th consecutive increase since the establishment of the normal adjustment mechanism in 2005, and from a national perspective, the overall adjustment ratio will be 3.8% of the monthly per capita basic pension of retirees in 2022. So the question is, by 2024, will the basic pension treatment of retirees in enterprises and institutions be adjusted again?
Obviously, the answer is yes, in the government work report publicly released by the State Council a few days ago, the state made it clear that it will continue to raise the basic pension standard for retirees in 2024. Although up to now, the Ministry of Human Resources and Social Security has not issued a formal notice on pension adjustment, it is basically certain that the basic pension of retirees in 2024 will meet the "20 consecutive increases".
Pension adjustment measures for retirees
Referring to the past adjustment experience, it is not difficult for us to find that while realizing the unification of the pension adjustment method for retirees in government institutions, institutions and enterprises, all provinces and cities have adopted a combination of fixed adjustment, linked adjustment and appropriate tilt in accordance with the deployment of the state, which reflects the basic principle of fairness and justice, and also highlights the incentive mechanism of overpayment and long-term payment, and will also benefit the elderly retirees and retirees in remote areas in the process of adjustment. Based on this, it is not difficult to infer that in 2024, the state may continue the pension adjustment method combining these three methods.
In 2024, can the per capita increase of enterprise retirees and retired personnel exceed 5%?
According to the predictions and historical adjustment experience of many authoritative experts, it is expected that the national adjustment ratio in 2024 will be determined according to about 3.5~4% of the monthly per capita basic pension of retirees in 2023, and the possibility of an increase of 5% is not large, for the following reasons:
(1) Although by the end of 2023, the cumulative balance of the basic pension insurance fund for employees of mainland enterprises is nearly 6 trillion yuan, which provides an economic basis for the pension increase while ensuring that the pension is paid on time and in full, but in the context of the further intensification of the aging trend of the population, the state needs to control the increase in the pension to prevent the income and expenditure pressure of the pension insurance fund from being greater;
(2) Referring to the national adjustment ratio of retirees' pensions in the past five years, they are 5%, 5%, 4.5%, 4%, and 3.8%, respectively, and the overall adjustment range is maintained at 4~5%, so it is unlikely that the per capita adjustment rate will exceed 5% in 2024;
(3) GDP growth of 5.2% in 2023 and a 0.2% increase in the national consumer price index in 2023;
Combined with the above three points, we predict that the per capita increase in pensions for retirees may not exceed 5%, and all retirees who have gone through the retirement procedures in accordance with the regulations and receive a basic pension on a monthly basis before December 31, 2023 can enjoy the treatment of this adjustment. It is worth mentioning that there is a high probability that the retirees of government agencies and institutions and the retirees of enterprises will adopt a unified adjustment method, but due to the increase in the proportion of linked adjustment and the relatively higher level of pension benefits of retirees in the system, the increase in the pension of retired personnel will be slightly higher than that of enterprise retirees.
epilogue
Overall, the basic pension level of retirees in 2024 will usher in a new round of increase on the basis of 2023, although the official notice of the Ministry of Human Resources and Social Security and the detailed adjustment plan of the provinces and cities are announced, we still do not know the specific adjustment range, but it is basically certain that in terms of adjustment methods, there will be almost no major changes. Moreover, the proportion of the peg adjustment may also be further increased in 2024, which will further benefit retirees with long payment years and high pension benefits. Therefore, from this point of view, we also call on the majority of in-service insured personnel to increase the payment base and extend the payment period as much as possible, so that they can not only enjoy a higher level of pension treatment, but also benefit more in the process of pension survey.
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