For the vast majority of employees of enterprises and institutions who participate in employee social security, after their retirement at the age of 60, the basic pension insurance treatment, that is, pension, is the main source of income to maintain daily life. It is no exaggeration to say that the level of pension can directly determine the quality of life and happiness of retirees to a large extent.
According to incomplete statistics, the current mainland system in the institutions and institutions of about 50 million personnel, since October 2014 the state launched the basic pension insurance system of organs and institutions, the "dual-track" operation of the basic pension insurance system officially bid farewell to the historical stage, the system of retirees pension formula is completely in line with the enterprise.
Then, in October 2024 and beyond, the 10-year transition period of pension integration will officially end, and how will the pension benefits of retirees in government organs and institutions in the system be affected at that time? What does pension integration mean? Is it true that the pension benefits of retirees in the system are "unkept"? This article will focus on these issues in detail.
What is Pension Merger?
The so-called integration of the pension system refers to the implementation of the same basic old-age insurance system by the personnel of government institutions and enterprises, that is, the basic old-age security model that combines social pooling and personal accounts.
In 2015, the State Council publicly issued the "Decision on the Reform of the Pension Insurance System for Employees of Organs and Institutions", which clarified that from October 1, 2014, the payment method of basic pension insurance for personnel of organs and institutions and the calculation and distribution method of pensions will be reformed, and the pension insurance system will be established with the same pension insurance system as enterprise employees.
Before the reform of the basic old-age insurance system for the personnel of government institutions and institutions, the pension system of the dual-track system was implemented inside and outside the system, that is, the personnel of government institutions and institutions implemented the basic old-age insurance of organs and institutions, without insurance contributions, and could receive a monthly pension after retirement at the age of 60, and the highest standard could reach 90% of the average salary level before retirement, and it was completely borne by the state finance.
The employees of the enterprise implement the basic endowment insurance system that combines social pooling and personal accounts, and the insured employees and the employer jointly bear the endowment insurance costs. Among them, all the fees paid by enterprises are included in the overall fund, and the part of individual contributions is included in the personal account, and the basic pension is received on a monthly basis after the retirement procedures, and the main source of funds is the social security fund.
In other words, that is, the enterprise personnel need to bear part of the pension insurance costs during their employment, and the level of pension treatment after retirement is directly linked to the payment base and payment period;
As a result, the difference in the pension insurance system has created the "unfairness" of the basic pension treatment inside and outside the system. In addition, due to the relatively late establishment of the basic pension insurance system for employees of mainland enterprises, and the fact that many employers do not pay the basic pension insurance premiums in full for their employees, this will lead to a generally low level of pension benefits for retired employees of enterprises.
The data shows that before the merger of the pension system, the per capita standard of pension in the system was once as high as three times the per capita basic pension of retired employees of enterprises outside the system. Between the two, the unfair level of pension treatment has caused a wide range of public opinion, and all sectors of society have called for the cancellation of the dual-track system of the basic pension system. Based on this background, the state has launched the reform of the basic pension insurance system of government institutions and institutions, and at the same time, in order to ensure the smooth and reasonable connection of the two systems, a "10-year transition period" has been established for the merger of the pension system, and by October 2024, the transition period will end, and the pension system will be officially merged.
Who will be affected by the pension merger?
The question is, after the pension system is merged, how will the pensions of retirees of government agencies and institutions be affected? Will the level of treatment become higher or lower?
In fact, judging from the results of the 10-year transition period, the impact on the level of pension benefits of retirees in the system can be said to be almost "negligible". In addition, in the "Decision on the Reform of the Pension Insurance System for Employees of Organs and Institutions", the state also further clarified that in order to ensure that the level of treatment before and after the reform is connected and to achieve a smooth transition between the two pension insurance systems, the personnel of the organs and institutions in the system are divided into three different types according to the difference in working hours and retirement time, namely the retired elderly, the retired and the retired.
(1) Retired "elderly", that is, before the reform on October 1, 2014, has retired government personnel and institutions, whose pension benefits are still calculated and paid according to the old method after the reform, and at the same time implement the basic pension adjustment method;
(2) Retired "middle people": refers to the work before the reform on October 1, 2014, but retired after the reform of the government and public institutions, the pension insurance benefits will be issued in accordance with the new and old treatment standards of the comparison, that is, the minimum guarantee limit is high, if the new measures are higher than the old methods, the higher part will be issued in a 10-year transition period, will be issued in a way that increases year by year.
Taking Hebei as an example, the local government stipulates in the "Measures for the Calculation and Payment of Basic Pensions for Employees of Organs and Institutions in Hebei Province" that 10% of the excess will be paid to retirees from October 1, 2014 to December 31, 2015, and 20% of the excess will be paid to retirees from January 1, 2016 to December 31, 2016, and so on, and 100% of the excess will be paid to retirees from January 1, 2024 to September 30, 2024.
It is worth mentioning that after October 1, 2024, the comparison calculation of the treatment standards of the new and old methods will no longer be implemented, and the basic pension will only be calculated according to the new methods.
(3) Retired "newcomers": refers to the personnel of government agencies and institutions who participated in the work after the reform on October 1, 2014 and retired after that, and their basic pension benefits are calculated and paid in full accordance with the new measures.
It is not difficult to see that the level of pension treatment of retired "old people" has not been affected by the reform, and is still calculated and paid according to the old method; while the retired "middle-aged people" and "newcomers" will be affected by their pension benefits, and it is almost certain that if they are calculated and paid in full accordance with the new methods, the level of pension benefits of retired "newcomers" may be reduced.
However, for the "middle-aged people" who retired during the 10-year transition period, the level of pension treatment has not been reduced, but is higher than the standard of treatment under the old method. As a simple example, suppose that Lao Zhang, a retired "middle-aged person" in the system, retires in 2023, and the pension is 6,000 yuan/month according to the old method, and the pension is 7,000 yuan/month according to the new method. Moreover, if you retire in October 2024 or later, the pension will be calculated and paid according to the new measures, and the treatment standard will reach 7,000 yuan/month. Therefore, from this point of view, the pension treatment of retired "middle-aged people" has been improved.
After the end of the 10-year transition period, will the pensions of retirees of government agencies and institutions in the system really be the same as those of enterprise employees?
Let's talk about the conclusion first: it is different, and there will still be a large gap in the level of pension treatment between the two.
(1) the pension system is on the same track, although the system is unified inside and outside the system of different insured personnel payment methods and pension calculation and distribution methods, but because the institutions and institutions will generally pay the pension insurance in full according to the real wage level, it will lead to the pension treatment after retirement is still relatively high;
(2) According to the current method for calculating and distributing the basic pension of retirees in enterprises and institutions, the length of the payment period is also an important factor affecting the level of pension benefits. In the "Decision on the Reform of the Pension Insurance System for Employees of Government Institutions and Institutions", the state clarifies that for the personnel of government agencies and institutions with the deemed payment period, on the basis of the basic pension and personal account pension, the transitional pension will be issued according to the length of the deemed payment period;
(3) At the same time as the reform of the basic pension insurance system of government institutions and institutions, the state has also established an occupational pension system at the same time. Government agencies and institutions shall pay 8% of the total salary of the unit, and individuals shall pay 4% of the salary paid by themselves. After retirement, staff members receive occupational pension benefits on a monthly basis as an effective supplement to basic pension benefits. The enterprise annuity system is voluntary, and the vast majority of enterprises, especially small enterprises, do not pay occupational pensions for their employees at all, which will lead to a further increase in the level of pension benefits for retirees of organs and institutions within the system and retired employees of enterprises outside the system.
Therefore, in combination with these three points, the integration of the pension system refers to the pension insurance payment method of the organs and institutions in the system and the basic pension calculation and payment method to the enterprise employees, but this does not mean that the pension treatment level of retirees in the system is really the same as that of enterprise employees. On the contrary, the pension treatment in the system will still maintain a certain advantage relatively speaking.
epilogue
In general, the merger of the pension system will not have much impact on the basic pension insurance treatment level of the personnel of the organs and institutions in the system, on the contrary, compared with the retired employees of the enterprise, although the payment method of the two and the pension calculation and distribution method can be consistent after the merger, but the gap between the level of pension treatment still exists. Therefore, for the majority of employees of in-service insured enterprises, if they want to narrow the pension gap between themselves and retirees of government institutions and institutions, the most effective way is to increase the payment base and extend the payment period as much as possible.
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