On April 28, 2024, May Day is approaching, and many retirees are paying attention to the pension adjustment in 2024. According to the content of the document, the pension adjustment notice on April 27 was not announced as scheduled, and it is expected that it will take until May or even later to be officially released. So, how much difference will there be between the specific increase of enterprise retirees and public institution retirees?
First of all, we need to understand the current state of pension levels for retirees. Generally speaking, the average pension level of retirees in government institutions is about 6,000 yuan, while the average pension level of retirees in enterprises is relatively low, about 3,000 yuan. The reason why there is such a gap is mainly because the retirees of government institutions and institutions have a higher insurance payment base and pay more pension insurance premiums, so the final pension level is naturally higher. However, due to their relatively poor participation conditions and relatively low contribution base, the final pension level is also low.
In view of this gap, in recent years, the mainland has been vigorously promoting the integration of the pension insurance system for retirees of government institutions and enterprise units, and gradually realized the merger adjustment between the two since 2016, so that the retirees of enterprise units and retirees of government institutions and institutions have achieved the same level of pension treatment. But even so, due to the difference in the base, there is still a certain gap between the two in terms of specific increases.
According to the situation in previous years, there will be differences in the pension adjustment process in different regions. Some regions may have a higher quota adjustment, while others may adopt more pegged adjustments. However, no matter what method is adopted, the ultimate goal is to narrow the gap between the pension level of retirees in enterprises and retirees in government institutions and institutions, so that the two can truly achieve equal treatment.
Although the 2024 pension adjustment notice has not been announced for a long time, retirees need not be overly anxious. Because no matter when the adjustment notice is issued, the adjusted pension benefits will be put in place on time from January 1, and will be repaid in a lump sum. Therefore, the timely announcement time is not important for retirees, the important thing is to be able to get the pension they deserve in the end.
Of course, for the majority of retirees, they are undoubtedly more concerned about how big the specific adjustment will be. According to the situation in previous years, the overall adjustment of pensions in mainland China in recent years is about 5%-8%, which is also more reasonable. However, given the current economic situation and the price level, the adjustment may be slightly higher this year. However, even so, the differentiated adjustment model also means that the final increase of retirees in different regions and different units will be slightly different.
In general, the 2024 pension adjustment plan announced in May or later will bring more tangible sense of gain and happiness to the majority of retirees. For the retirees of enterprises, although there is still a certain gap in the adjustment range between them and the retirees of government institutions and institutions, with the continuous advancement of the merger work, this gap will be further narrowed, so that all retirees can enjoy the due old-age security.
2. What is the reason for the pension treatment gap?
In order to deeply understand the reasons for the gap in pension treatment between retirees of enterprises and government institutions and institutions, the key lies in the large differences between the two in terms of insurance payment and calculation and payment methods.
First of all, the difference in the insurance contribution base is an important factor leading to the gap in pension benefits. Generally speaking, the salary level of the staff of government agencies and institutions is relatively high, and the base of insurance contributions is also correspondingly high. However, the salary level of employees in enterprise units is relatively low, and the payment base is also low. This means that under the same payment period, the final pension level of retirees of government institutions will naturally be higher.
In addition to the difference in the insurance payment base, there are also some differences between the two in terms of pension calculation and payment methods. Specifically, the pension calculation and payment of retirees in government institutions and institutions are more likely to adopt the method of end compensation, that is, the basic pension level is relatively high, and it is increased and adjusted year by year. The pension calculation and payment of retirees in enterprises is more in the form of linked adjustment, that is, the basic pension level is low, but it is appropriately adjusted every year according to the economic and social development.
This differentiated calculation and payment model has led to a large gap between the final pension levels of the two types of retirees. In addition, the difference between the two in the pension insurance system has exacerbated the expansion of this gap.
However, it is worth noting that in recent years, with the continuous advancement of the reform of the pension insurance system in the mainland, this gap is gradually narrowing. Especially since 2016, the mainland has comprehensively promoted the integration of the pension insurance system for retirees of government institutions and retirees of enterprises, making the two tend to be consistent in terms of pension planning and payment methods and adjustment mechanisms, which effectively narrows the pension treatment gap between the two.
Of course, due to the differences in basic factors such as historical problems and insurance bases, it is still difficult to completely eliminate the pension gap between the two in a short period of time. However, we can see that through measures such as merger reform and differentiated adjustment mechanism, this gap is gradually narrowing, and we believe that retirees in the future can truly realize the fairness and reasonableness of pension treatment.
3. How will the pension adjustment plan in 2024 be different from previous years?
In recent years, the mainland's pension adjustment has remained relatively stable, but with the changes in the economic environment and the increasing demand for retirees, the adjustment is also increasing.
Since 2019, the overall adjustment of pensions in mainland China has exceeded 6%, and it has basically remained in the range of about 6%-8% in the following years. This adjustment has basically met the basic pension needs of the majority of retirees, and also ensured that the pension level can match economic development and price changes.
It is predicted that the overall magnitude of the mainland's pension adjustment in 2024 may increase slightly, possibly reaching about 8%. This is mainly because the mainland's economic development momentum has been good since 2023, and the consumer price index has also risen simultaneously, providing a more favorable economic environment for pension adjustment. At the same time, with the implementation of the Individual Income Tax Law, the tax burden on retirees has also decreased, further increasing their real purchasing power.
In addition to the possible increase in the overall adjustment range, there may also be some new changes and attempts at the specific implementation level of the pension adjustment plan in 2024. First of all, in terms of the adjustment mechanism, it may be necessary to further improve the method of differentiated adjustment, increase the tilt towards retirees in enterprises, and narrow the gap between them and retirees in government agencies and institutions. At the same time, it may also pilot the implementation of a phased "one-time repayment" model in some areas, so that retirees can receive the adjusted pension as soon as possible.
In addition, in terms of information disclosure and transparency, the adjustment plan in 2024 may also be improved. For example, after the adjustment plan is introduced, the relevant departments can timely announce the specific adjustment ratio and other policy measures affecting retirees to the public, so that everyone can have a clearer understanding of the specific situation of the adjustment. At the same time, it is also possible to establish a sound reporting and complaint mechanism to facilitate retirees to report problems in a timely manner and safeguard their legitimate rights and interests.
In general, although the pension adjustment notice in 2024 has not yet been issued, we have reason to believe that the new plan introduced at that time will be more innovative and improved in terms of adjustment strength, adjustment mechanism, public participation, etc., so that the majority of retirees can truly feel the country's attention and care in old-age security.
4. How to ensure that the rights and interests of retirees of enterprises and retirees of public institutions are equally protected?
For a long time, due to the differences in system design, insurance basis and other factors, there is indeed a certain gap between the pension treatment of retirees of enterprises and retirees of public institutions. This not only affects the sense of gain and happiness of the majority of enterprise retirees, but also violates the principle of fairness and justice of the mainland pension security system. Therefore, how to ensure that the rights and interests of the two types of retirees are equally protected has always been the focus of the common concern of relevant departments and the majority of retirees.
In view of this problem, the mainland has adopted a series of targeted policy measures in recent years. First of all, it is necessary to comprehensively promote the integration of the pension insurance system for retirees of government organs and institutions and retirees of enterprises. Since 2016, the two have achieved unification at the institutional level in terms of pension planning and payment methods and adjustment mechanisms, which has greatly narrowed the treatment gap between the two.
At the same time, in the specific pension adjustment process, we are also constantly exploring ways of differentiated adjustment. For example, in some areas, the adjustment range of retirees from enterprises will be appropriately increased, with the hope of narrowing the gap with retirees from government agencies and institutions as soon as possible. In addition, the relevant departments will flexibly determine the adjustment plan according to the actual situation of different regions and different units to ensure that the interests of all parties are balanced.
In addition, in order to further safeguard the legitimate rights and interests of the vast number of retirees, the mainland has also continuously improved the relevant supervisory mechanisms and complaint channels. On the one hand, after the announcement of the adjustment plan, all localities will be required to fully disclose the adjustment standards and specific conditions, and accept the supervision of all sectors of society. On the other hand, it has also established a convenient channel for reporting and complaints, so that retirees can report problems in a timely manner and protect their own rights and interests.
Of course, to completely solve this problem, long-term institutional construction and policy support are needed. For example, we can further improve the payment base of employees of enterprise units and the mode of pension calculation and distribution, and gradually narrow the gap between them and the personnel of public institutions. At the same time, it is also necessary to strengthen the support for enterprise units, provide support and help for them to undertake more social responsibilities, and finally realize the true equality of the rights and interests of enterprise retirees and public institution retirees.
In short, through a series of measures such as continuous system improvement, differentiated adjustment, and protection of rights and interests, the mainland is building a more fair and just old-age security system for the majority of retirees, especially those in enterprises. It is believed that in the near future, all retirees can truly feel the attention and care of the state in terms of old-age security.