In 1995, the Ministry of Labor and the Ministry of Finance issued the first notice on adjusting the basic pension of enterprise retirees, and it has been 30 years since then. In addition, since 2016, the state has implemented a unified adjustment of pensions for retirees in enterprises, government agencies and institutions, and 2024 will also be the ninth year.
The government work report in March made it clear that pensions will continue to increase this year. According to the law of pension adjustment in recent years, the time for the announcement of the pension adjustment notice is generally in late May of each year. Since the pension notice has made it clear that the implementation plans of various places should be reported to the Ministry of Human Resources and Social Security and the Ministry of Finance for the record before May 31, the pension adjustment notice for retirees will definitely be announced before the end of May.
How much can an individual increase in pension adjustment?
Generally speaking, the national pension adjustment notice for retirees does not specify how much money can be raised by each individual. The national pension adjustment notice is mainly to clarify some requirements for pension adjustment. For example:
(1) The time when the pension adjustment started in 1995 was from July 1, and from 2008 onwards, it started from January 1 every year.
(2) The scope of pension adjustment is mainly for the elderly who have gone through retirement procedures before December 31 of the previous year and receive pension benefits on a monthly basis.
(3) The level of pension adjustment. This component has been the most varied over the years, and until 2008 it was linked to a percentage of local wage growth. After 2008, the state will adjust the level uniformly. In 2008~2015, the adjustment level was 10%. Since 2016, it has decreased from 6.5% to 3.8% in 2023.
Generally speaking, the level of pension adjustment should take into account the growth of average social wages and the level of price growth, as well as the affordability of pension insurance funds. Judging from the current situation, the adjustment level in 2024 is likely to be between 3.6% ~ 3.8%.
(4) Adjustment method. The pension adjustment notice will generally clarify some basic principles. For example, since 2016, the basic principles have been three parts: quota adjustment, peg adjustment, and appropriate tilt. The quota adjustment can reflect the principle of fairness, and the linked adjustment can reflect the incentive of paying more and paying more for a long time, and the adjustment level can be additionally increased for the elderly and retirees in difficult and remote areas.
In addition, there are requirements for the source of funds and the principle of time, etc.
How to calculate how much does the pension increase?
Generally, the specific pension adjustment plan of each province will make clear provisions on the specific increase in pension, which is mainly linked to the number of years of payment and pension level, and will also take into account the age and the location of retirement.
Take Shandong Province's adjustment plan last year as an example:
(1) The fixed adjustment part is to increase the basic pension by 41 yuan per person per month. We must know that after retirement, everyone will no longer pay pension insurance premiums. The original overpayment and long-term payment have been reflected in the calculation of pensions. Therefore, pension adjustment should reflect fairness.
(2) Adjustment according to the payment period, mainly for the elderly with long payment years, additional pensions. Shandong Province divides the payment period into 5 grades, within 15 years, 16~25 years, 26~35 years, 36~45 years, 46 years and above. The standard for the increase in the annual payment period corresponding to each grade is different, which is to increase the basic pension by 1.2 yuan, 1.4 yuan, 1.6 yuan, 1.8 yuan and 2.0 yuan.
When calculating, it does not mean that 40 years of service is calculated according to 1.8 yuan/year. Instead, it is calculated according to the sum of 1.2 yuan× 15 years + 1.4 yuan× 10 years + 1.4 yuan× 10 years + 1.8 yuan × 5 years, and the final result is 57 yuan.
(3) According to the adjustment of the pension level, it is to increase the basic pension of the person by 1.25%. The higher the level of pension, the more money will be added, but relatively this only accounts for a part of the pension adjustment, which is also a manifestation of the principle of national adjustment.
In fact, the high level of pension not only reflects the role of the payment base, but also reflects the length of the payment period, historical pension adjustment policies and other factors.
(4) For the elderly over 70 years old, the basic pension will be increased by 15 yuan, 30 yuan and 60 yuan per person per month. The older you get, the more money you have. Therefore, the most cost-effective principle of participating in pension insurance is longevity. In addition, Shandong Province has an additional part of the pension increase for the elderly who have reached the age of 70, 75 and 80 in the previous year, which is to take into account the balance of the previous historical policy.
It is estimated that the pension adjustment plan in 2024 will not change much, and for people with pensions of less than four or five thousand yuan, at most it will change by four or five yuan on the basis of the pension adjustment amount of the previous year.
You can get a glimpse of last year's situation through the following warm collection of 31 provinces and provinces' pension adjustment plans.
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