On the 13th, the 11th meeting of the Standing Committee of the 14th National People's Congress passed the "Decision on the Implementation of the Progressive Extension of the Statutory Retirement Age". The "Decision" makes it clear that the reform adheres to the principle of "voluntary and flexible", and clarifies the two situations of delaying the statutory retirement age. Let's take a closer look.
Extension of the statutory retirement age
Can "bounce forward" "bounce back"
"Jumping forward" is flexible early retirement. As long as employees meet the minimum payment period of pension insurance, they can voluntarily choose flexible early retirement, and the advance time is not more than 3 years, and the retirement age shall not be lower than the original statutory retirement age of 50 years old and 55 years old for female employees and 60 years old for male employees. In other words, most employees can either retire under the new statutory retirement age or choose to retire at the original statutory retirement age. For example, if a male employee born in September 1968 has a statutory retirement age of 61 after the reform, the employee can either retire at the age of 61 or flexibly retire at the age of 60.
"Playing back" is to flexibly delay retirement. If an employee reaches the statutory retirement age and the employer and the employee reach an agreement through consultation, he or she may flexibly postpone his retirement for a maximum period of no more than 3 years. If the unit hopes that some employees who need to continue to work, and some employees who have reached the statutory retirement age are also willing to continue to work, then the two parties can reach a consensus and the employee can flexibly postpone retirement.
The reform will be the statutory retirement age
Expand from fixed values to age ranges
In general, after the implementation of the postponement of the statutory retirement age, the retirement age of each employee has been expanded from the original fixed age value to an age range.
Zheng Wei, director of the Department of Risk Management and Insurance at Peking University's School of Economics, said that I think it is normal for each age group to consider its own costs and benefits, which is why this reform should leave a flexible range, that is, to give employees an independent choice to make choices according to their own specific conditions.
Will the delay in statutory retirement age pensions be affected?
The minimum payment period for receiving a basic pension on a monthly basis is closely related to the working years of employees, and we have also noticed that the postponement of the statutory retirement age is proposed at the same time to gradually adjust the minimum payment period for receiving a basic pension.
With the postponement of the statutory retirement age, the minimum contribution period for the basic pension on a monthly basis has been adjusted accordingly, gradually increasing from the current 15 years to 20 years from 2030.
At present, according to the relevant system, the pension level of retirees in mainland China is directly linked to their payment years, which means that the longer the payment period, the higher the pension level, that is, the more you pay, and the more you pay for a long time.
However, many employees who are close to the statutory retirement age and have paid or are about to pay for 15 years have a retirement life plan, how to adapt? The "Decision" clarifies that the increase in the minimum payment period will be gradually implemented from 2030. In other words, for those who retire between 2025 and 2029, the minimum contribution period remains unchanged at 15 years. For employees who retire after 2030, the minimum payment period is not a step to 20 years, but a gradual transition in place. That is, the minimum payment period will be gradually increased from 15 years to 20 years through a period of 10 years.
Lin Jia, director of the Institute of Labor Law and Social Security Law of Chinese University, introduced that in fact, it is also to cope with the aging of the population and give the elderly more security in their future lives, so that is to say, the more you pay, the higher your pension will be, and the more you pay, the more you pay, so in this sense, you pay for 20 years, then you must pay for 20 years, and the more money you will have, including the more money in your personal account, you can receive more pension after retirement, and there will be more security for your life after retirement.
Source: CCTV News, Ulanqabyun
Editor: Alatatuna Guri
Reviewer: Zhang Wenyan
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