As an important part of the basic old-age pension and social security system in mainland China at this stage, the reform and improvement of the basic old-age insurance system for urban workers aims to provide more substantial basic old-age security for nearly 140 million retirees of enterprises and institutions across the country.
According to the current basic old-age insurance system for urban workers, personnel of enterprises and institutions can go through retirement procedures in accordance with laws and regulations and receive basic pension benefits on a monthly basis under the condition that they have accumulated insurance contributions for 15 years and meet the retirement age at the same time.
As we all know, as the economic basis for retirees to truly realize the old age and rely on the elderly, the level of pension can directly reflect the quality of life and happiness index of retirees. In real life, we often take the pension replacement rate as an important reference index to measure the difference in the level of living security before and after retirement.
Under normal circumstances, the higher the pension replacement rate of retirees, it often means that the personnel of the insured enterprises and institutions can maintain the basic living standard before retirement after retirement; on the contrary, the lower the pension replacement rate of retirees, the living security level of the insured personnel after retirement may decline significantly compared with that before retirement, and it is impossible to talk about the old people having support and relying on the old.
The average monthly basic pension level of retirees in enterprises and institutions
It is understood that at the present stage, the per capita replacement rate of pensions for retirees in government organs and institutions in the system is as high as 70~80 percent, that is, the standard of basic pension after retirement can reach 70~80 percent of the average monthly salary before retirement, while the average replacement rate of pensions for retirees in enterprises outside the system is only about 40 percent, that is, the standard of basic pension treatment after retirement only reaches 40 percent of the average monthly salary before retirement. It can be seen that there is still a large gap between the pension treatment standards between the two.
(1) The monthly per capita basic pension level of retirees of government agencies 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 insured retirees in mainland government institutions and institutions in 2022 was 21.131 million;
Referring to the "2022 National Social Insurance Fund Expenditure Final Statement" released by the Ministry of Finance in August 2023, the data disclosed in it shows that the basic pension insurance expenditure of government 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 retirees from enterprises outside the system
Referring to the National Statistical Yearbook (2023), the data disclosed in it shows that the total number of retirees of basic pension insurance for employees of mainland enterprises in 2022 will be 115.309 million;
Referring 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 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.
Normal adjustment mechanism of basic pension
In order to better protect the basic life of retirees and make the basic pension benefits enjoyed by retirees of enterprises and institutions adapt to the average wage growth rate and price increase of on-the-job workers, the state formally established the normal adjustment mechanism of basic pensions for retirees of enterprises and government institutions and retirees in 2014 in 2005 and 2014, and since 2016, the pension adjustment methods of retirees of government institutions and enterprises have been unified.
Taking 2023 as an example, the Ministry of Human Resources and Social Security and the Ministry of Finance officially issued the Notice on Adjusting the Basic Pension of Retirees in 2023 in May 2023, which clarified the scope of adjustment, adjustment level, adjustment method and source of funds, and at the same time continued to maintain the unity of the pension adjustment method for enterprise retirees and retirees in government institutions and institutions, that is, within the same overall plan, whether it is retired employees of enterprises outside the system or personnel of government agencies and institutions within the system, the same adjustment methods are adopted.
In 2024, pensions will rise for 20 consecutive years
In 2023, the basic pension of retirees will rise for the 19th time since the establishment of the normal adjustment mechanism in 2005 as scheduled, so is it possible to adjust it again in 2024 on the basis of 2023?
It is reported that in the 2024 government work report, the state emphasizes that it will carry out three key tasks in the field of social security, including comprehensively promoting the implementation of the personal pension system, increasing 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 attracted widespread attention from retirees, and it also indicated that the basic pension of retirees in 2024 ushered in "20 consecutive increases" is almost a certainty.
Since May, the pension of 3 types of people has been "suspended", take a look at you?
Through the above introduction and the adjustment experience of previous years, it is not difficult to speculate that all retirees of enterprises and institutions 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 can enjoy a new round of adjustment treatment in 2024, that is, the treatment level of the basic pension will show different ranges of increase. However, it should be emphasized that from May 2024, the pensions of the following three types of retirees may be "suspended".
Category (1): Before the end of April, some retirees who have not completed the qualification certification of pension benefits
The state stipulates that retirees who are eligible to receive basic pension insurance benefits shall be certified for pension benefits at least once within one year, and the certification interval shall not exceed 12 months. Assuming that a retiree was last certified at the end of April 2023, then if the retiree wants to receive the basic pension benefits normally, he or she needs to complete the certification at least once before the end of April 2024, otherwise the pension benefits will be temporarily suspended from May.
Taking Fuyang, Anhui Province as an example, the local social security bureau issued the "Notice on the Suspension of the Payment of Benefits to Unqualified Personnel Receiving Pension Insurance Benefits at the Municipal Level in Fuyang City" on April 1, 2024, which clarifies that some retirees who have not completed the qualification certification of pension insurance benefits should complete the certification before April 25, if the certification is not overdue, then the issuance of pension insurance benefits will be suspended from May 2024, and the pension will be resumed after completing the qualification certification procedures for receiving social security benefits.
Category (2): Retirees of enterprises and institutions who died in April
The fundamental purpose of retirees applying for basic pension insurance benefits is to ensure their own living needs, and the level of pension benefits mainly depends on the number of years of payment and the amount of contributions when they are on the job. According to the current pension policy, the pension insurance benefits enjoyed by retirees will cease to be paid from the next month after the death of the recipient, and their children or immediate family members need to bring relevant materials for registration and filing, and then apply for funeral subsidies and family pensions.
That is to say, if the retirees of enterprises and institutions who enjoy the basic pension insurance benefits unfortunately pass away in April, then their basic pensions will stop being paid from May. Moreover, it is worth mentioning that if there is a balance in the personal pension account after the death of the retiree, it can be inherited by the children in accordance with the law, and then withdrawn in accordance with the regulations.
Category (3): Some retirees who receive basic pension insurance benefits repeatedly
At this stage, there are two sets of basic old-age insurance systems in parallel in the mainland, namely the basic old-age insurance for urban workers and the basic old-age insurance for urban and rural residents. According to the regulations, the personnel of enterprises and institutions are required to pay monthly social security (including endowment insurance, medical insurance, etc.), of which the basic endowment insurance has been paid for 15 years and has reached the statutory retirement age, and they can retire to enjoy the basic pension treatment of urban employees. Similar to the personnel of urban enterprises and institutions, urban and rural residents can also voluntarily choose whether to pay basic pension insurance according to a certain payment level, and only need to pay once a year, and they also receive pension benefits after retirement at the age of 60 after 15 years.
However, some people pay both employee social security and urban and rural residents' pension insurance, and want to receive two pensions at the same time after retirement at the age of 60. As everyone knows, this method will not work! The "Social Insurance Law" stipulates that after retirement, everyone can only enjoy one pension benefit, which can be identified by their personal ID number, and they can only handle it once after retirement, and they can only receive one pension.
epilogue
Generally speaking, as an indispensable and important part of the mainland's social security system at the present stage, the continuous reform and improvement of the basic old-age insurance system enables the retirees of enterprises and institutions to enjoy a more adequate economic foundation as a guarantee for enjoying a happy life in their old age.
Therefore, from this point of view, we call on the majority of insured workers to follow the basic principle of overpayment and long-term payment, and increase the payment base of basic pension insurance as much as possible and extend the payment period as much as possible within the scope of their own economic conditions, so as to ensure that they can enjoy a higher level of pension treatment after retirement, but also be able to benefit themselves more in the process of general adjustment of basic pension every year.
Finally, the author would like to emphasize one more point, that is, retirees who are enjoying pension insurance benefits must also pay attention to the time of their last treatment qualification certification, and do not miss the certification cycle, otherwise it may affect the normal receipt of pensions.
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