The transformation of enterprises as a whole into public institutions was a reform task jointly carried out by many departments of the state in the late 90s in accordance with the needs of the reform of state-owned enterprises. Some of the social functions undertaken by state-owned enterprises, or social undertakings, such as various schools and hospitals run by state-owned enterprises, and other parts with social functions, are placed under local management as a whole.
For quite a long time in the past, some of the mainland's large central enterprises, provincial enterprises, and some third-tier construction enterprises spent a great deal of manpower and material resources to set up schools and hospitals for the needs of their children's education and medical treatment because they were located in relatively remote areas.
However, with the development of the market economy, some state-owned enterprises have to bear relatively large social functions and have to bear the costs of undertakings other than their operations, which does not conform to the reality of state-owned enterprises' participation in market competition. Beginning in 1995, the relevant departments of the state jointly issued a circular on the "Opinions on the Separation of Enterprises in Several Cities to Divert Surplus Personnel from Social Functions", which placed the schools, hospitals, and other units and personnel of the nature of public social functions established by some enterprises under local management as a whole.
After the schools and hospitals run by state-owned enterprises were transferred to local management as a whole, their nature changed from that of the original enterprises to local institutions, and the employees under them also changed from the former employees of the enterprises to the staff of the establishment of the enterprises. With the change of the status of employees, their wages and benefits and social insurance have also undergone major changes.
The basic old-age insurance for employees of enterprises in the mainland has been implemented since 1992 in most places, and some employees under the labor contract system have been paying the old-age insurance since 1986. After the overall transformation into a public institution, the pension insurance of the public institution was only implemented in October 2014, so after the overall transformation of the enterprise into a public institution, how to determine the payment period of the employee?
The employees of this part of the overall transformation of the unit, before the transformation has reached the statutory retirement age, is in accordance with the provisions of the basic pension I insurance system for enterprise employees to handle retirement, after retirement enjoy the pension treatment of enterprise employees, retirement unit is still the original enterprise.
After the restructuring, the staff who are included in the establishment of public institutions as a whole and retire before September 30, 2014, although these people have many years of actual payment years before retirement, because they are career staff at the time of retirement, they are still retired according to the elderly of public institutions, and the pension enjoyed by the elderly of public institutions is treated at the time of retirement.
The pension consists of a basic pension and retirement allowances and allowances. The number of years that an individual has paid for the pension insurance in the enterprise is calculated as the working years of the institution, and the part of the personal account of the pension insurance paid is refunded to the person in many places.
After the restructuring, the whole is classified into public institutions, and the pension insurance for the staff of government agencies and institutions begins to be paid after October 2014, and the length of service before the implementation of the enterprise pension insurance system is calculated as the deemed payment period, and the payment period of the basic pension insurance for employees actually paid in state-owned enterprises is calculated as the actual payment period; the working years between the overall public institution and September 2014 are calculated as the deemed payment period, and the actual payment period after October 2014 is calculated as the actual payment period.
Those who retire after October 2104 and before October 2024 shall retire according to the retirement of public institutions, and the pension shall still be implemented according to the calculation method of retirement in the ten-year transitional period. That is, the old and new methods are used to compare and calculate, and the low limit is high. The new method is still higher than the old one, and is still calculated and issued in proportion to the 10-year transition period.
However, since before 2014, these personnel had both the deemed payment period and the actual payment period, when calculating the cumulative payment period, the deemed payment period is cumulative, and the actual payment period is also cumulatively calculated, and the calculation method of the deemed payment index is still implemented in accordance with the calculation method that has always been the staff of the career department. However, due to the decrease in the number of years of deemed contributions, the transitional pension will be lower than that of the staff who have been in the career department, but the personal account pension will be higher than that of the staff who have been in the career department.
For those who retire after October 2024, the pension will be calculated in full accordance with the new measures. Since there are both deemed payment periods and actual payment periods, the pension includes three parts: basic pension, personal account pension and transitional pension, and occupational annuity must also be calculated. There is not much difference between the pension calculation method and that of a staff member who has always been a career member.
However, due to the fact that the deemed payment period is shorter than that of other staff members, and the actual payment period is higher than that of other staff members, the transitional pension is still lower than that of other staff members, and the pension in personal accounts is higher than that of other staff members.
To sum up, since the status of the staff who have been transformed from an enterprise as a whole to a public institution has been converted into a staff member of the public institution, as long as their status before retirement belongs to the public institution staff, they will be retired in accordance with the provisions of the pension insurance system for the staff of government organs and institutions, and the pension calculation method shall be implemented in accordance with the provisions of the pension insurance system of public institutions. However, in accordance with the provisions of Document No. 28 issued by the Ministry of Human Resources and Social Security (2015), the actual payment period of employee pension insurance cannot be calculated as the deemed payment period, but can only be calculated as the actual payment period.