As the economic foundation for nearly 140 million retirees in enterprises and institutions in the country to enjoy their old age at this stage, it is no exaggeration to say that the level of pension treatment plays an indispensable and important role in the pension service.
According to the current basic pension insurance system for urban employees, those who have participated in the insurance and paid contributions for 15 years (including the deemed payment period) and have reached the statutory retirement age can go through the retirement procedures in accordance with the regulations and receive the basic pension benefits on a monthly basis.
Generally speaking, the higher the level of pension treatment, the easier it is for the insured to be able to provide for the old, rely on the old, and enjoy the old after retirement; on the contrary, the lower the pension treatment, the insured may be difficult to maintain the pre-retirement living standard after retirement.
As an important reference index to measure the difference in the level of living security before and after retirement, at this stage, the average pension replacement rate of retirees in public institutions in the mainland system is generally higher than that of enterprise retirees, and the fundamental reason for this phenomenon is that in addition to the previous dual-track pension system, the per capita basic pension gap inside and outside the system is also an important influencing factor.
The gap between the basic pension per capita of enterprises and retirements
As we all know, the current basic old-age insurance system in the mainland follows the basic principle of paying more and paying more for a long time, and the personnel of the organs and institutions in the same overall planning area, the payment period is long, and the payment base is relatively high, and the personnel of the organs and institutions in the system can often enjoy a higher level of basic old-age insurance benefits after retirement, while the basic pension benefits of retired employees of enterprises are generally low.
(1) The monthly per capita basic pension level of retirees of government agencies and institutions
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.
(2) The average monthly basic pension level of enterprise retirees
Similarly, 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 with reference to the "2022 National Social Insurance Fund Expenditure Final Statement", the data disclosed in it 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.
Through the comparison of these two sets of data, it is not difficult to find that by the end of 2022, the per capita basic pension treatment of retirees in government institutions and institutions in the mainland system is nearly twice that of retired employees of enterprises outside the system. Under the current situation in which the personnel of government agencies and institutions and the personnel of enterprises jointly implement the same basic old-age insurance system, retirees in the system are often able to maintain their basic living standards because they can enjoy a relatively high level of pension benefits, while the vast majority of retired workers of enterprises outside the system often do not enjoy better old-age security and even find it difficult to maintain their basic livelihood because of their low pension benefits.
Normal pension adjustment mechanism
In order to ensure the basic livelihood of enterprise retirees, the mainland has established a normal adjustment mechanism for the basic pension of enterprise retirees since 2005, and since 2016, the pension adjustment method of government agencies, institutions and enterprise retirees has been unified after the basic pension system has been merged.
It is understood that in the "Decision on Improving the Basic Pension Insurance System for Employees of Enterprises" issued by the State Council in 2005 and the "Decision on the Reform of the Pension Insurance System for Employees of Organs and Institutions" issued in 2015, the state has further clarified that it will adjust the basic pension level of retired employees of enterprises and retirees of government institutions and institutions in a timely manner according to the changes in wages and prices of employees, so as to ensure their basic life.
In this policy context, the basic pension level of retirees will usher in the 19th consecutive increase in 2023 since the establishment of the normal adjustment mechanism of basic pensions in 2005, and the Ministry of Human Resources and Social Security has clarified the adjustment scope, adjustment method and overall adjustment ratio in the "Notice on Adjusting the Basic Pension of Retirees in 2023".
In 2024, the basic pension of retirees will rise for 20 consecutive years
The question is, since the basic pension treatment of retirees has established a normal adjustment mechanism, and in 2023 ushered in the "19 consecutive increases", so in 2024 will the pension level of retirees in enterprises and institutions be adjusted again on the basis of 2023? At present, the majority of retirees have a clear answer to this question.
On March 5, the State Council publicly released the government work report during the two sessions of the National People's Congress and the National People's Congress, which made it clear that in 2024, three key tasks will be carried out 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 continuing to increase the basic pension level of retirees. As soon as this news was announced, it instantly caused heated discussions, and it also indicated that the pension of retirees in 2024 will usher in "20 consecutive increases".
Pension "increase" gap
As mentioned above, since 2016, the mainland has realized the unification of the pension adjustment methods for retirees of government institutions and enterprises, that is, whether it is the retirees of government institutions and institutions in the system, or the retirees of enterprises outside the system, they have adopted a combination of fixed adjustment, linked adjustment and appropriate tilt to increase the basic pension benefits. In other words, in the context of the same adjustment method and the unification of the adjustment ratio, there will be a certain gap in the pension increase between retirees inside and outside the system.
Taking 2023 as a reference, 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, the state clarifies that the national adjustment ratio is determined according to 3.8% of the monthly per capita basic pension of retirees in 2022. It is not difficult to calculate that in 2023, the basic pension per capita of retirees in government institutions will rise by 225 yuan, and after adjustment, the monthly per capita pension level will be 6151.6 yuan, and the basic pension of enterprise retirees will rise by 114 yuan per capita, and after adjustment, the monthly per capita basic pension level will be 3108.4 yuan.
Is it feasible to withdraw more than 3108.4 yuan/month, and stop rising above 6151.6 yuan/month?
The question arises again, the basic pension level of retirees mentioned above in 2024 will usher in "20 consecutive increases", so for the pension standard is lower than the per capita level of 3108.4 yuan / month, can it be increased? and for the pension standard higher than the monthly per capita level of 6151.6 yuan / month, can it stop rising?
Let's start with the conclusion: there is a high probability that it will not work. The specific reasons are as follows:
(1) It is undeniable that the starting point and original intention of this assumption are good, which can effectively narrow the gap between the level of pension treatment inside and outside the system, but it violates the principle of fairness and justice that the basic pension adjustment has followed for a long time;
(2) When the basic endowment insurance is paid, the state encourages overpayment and long-term payment, and the linkage adjustment also follows the incentive mechanism of overpayment and long-term payment, and the pension treatment level of some retirees is mainly because the insurance payment time is long enough during the service period, and the payment base is high enough. Therefore, if the level of pension treatment is high, it will not be raised, then it will inevitably affect the enthusiasm of incumbents, and no one will choose a high payment base to participate in the insurance;
(3) Although the adjustment of the basic pension of retirees needs to be uniformly deployed by the state, specific to different provinces and cities, due to the different factors such as economic development, income and expenditure of the basic pension insurance fund and consumer price index, it often leads to different specific adjustment implementation plans formulated in different regions. Moreover, it is worth mentioning that, for example, the consumption level of some first- and second-tier cities is relatively high, and even if the pension can reach more than 6,100 yuan, it can only meet daily needs. Therefore, from this point of view, the assumption of "raising the high and low limits and lowering the high limits" is not realistic, and it is more difficult to implement in reality.
epilogue
In general, in 2024, the basic pension level of retirees in enterprises and institutions will be raised again on the basis of 2023, and it is likely that the method of combining fixed adjustment, linked adjustment and appropriate tilt will continue to be adopted, and the adjustment method of pension of retirees in government institutions and enterprises will be unified. In other words, that is, it will not stop increasing the pension benefits of retired personnel because of the high level, but will further link the proportion of adjustments, and retirees with long payment years and high pension benefits will often benefit more in the process of pension adjustment.
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