It is common to encounter retirees comparing pensions and length of service with each other, and listening to their words seems to be very important. What's going on here? What exactly does retirement service have to do with pensions?
<h1 class="pgc-h-arrow-right" > the origin of retirement service. </h1>
Retirement has a long history. As early as 1951, the state promulgated the Labor Insurance Regulations. In the "Labor Insurance Regulations", the system of retired pension is clarified. In the detailed rules for the implementation of the Labor Insurance Regulations, the chapter on "length of service" is also specifically specified.
At that time, the length of service was divided into general length of service and the length of service of the enterprise, and the conditions for retirement and old-age care were related to these two years of service. However, the level of pension treatment is mainly related to the working age of the enterprise.
The Scope of Participation in the Labor Insurance Regulations itself is enterprises with more than 100 people, and does not include government agencies and institutions. In 1957, the state promulgated the Interim Provisions on the Retirement Treatment of Workers and Employees, which unified the treatment of employees of government agencies and enterprises. The definition of "continuous length of service" is clearly defined, and the calculation is based on the length of service of the enterprise.
Those who have worked continuously for more than 5 to 10 years will receive a retirement pension of 50% of their basic salary before retirement. 60% of those with 10 to 15 years of continuous service and 70% of those with more than 15 years of continuous service will be received. In the old system, the timing was critical, and sometimes the retirement fee changed by 10% in a month's time. Therefore, it is also said that the retirement fee is 5 to 10 years.
<h1 class="pgc-h-arrow-right" > reform of the pension insurance system. </h1>
After the implementation of reform and opening up in China, it has gradually begun to promote the reform of the pension insurance system. Prior to this, only workers and cadres in enterprises, organs, public institutions, and people's organizations owned by the whole people could enjoy retirement benefits. In 1991, The reform of the pension insurance system implemented in China will include private and foreign-funded enterprise employees and urban individual industrial and commercial households, who can enjoy pension insurance treatment through insurance contributions.
As a result of our implementation of the employment market, enterprise employees may change their units or be unemployed and laid off at any time. Pension insurance contributions are obvious, and the continuous payment model cannot be implemented. Although before 2005, we still implemented the provision of pushing forward the social equal wage for the interruption of pension insurance contributions, but there is no such provision now.
At present, the conditions for enjoying pension insurance benefits are stipulated in the Social Insurance Law, and the statutory retirement age is reached, and the accumulated contribution of pension insurance is 15 years.
The provisions on pension calculation are based on the method of basic pension plus personal account pension specified in Guo Fa No. 38 document in 2005.
The basic pension is linked to the number of years of contribution, the average contribution index of the person, and the average social salary of the previous year of retirement. Among them, the payment period includes the deemed payment period and the actual payment period. Before the implementation of the endowment insurance system, the fixed workers of state-owned enterprises and the employees of organs and public institutions whose continuous length of service can be determined on the basis of the employees' files may be regarded as payment. The social insurance costs during the deemed contribution period are borne by the government, and individuals do not need to pay contributions. Therefore, the deemed payment is not unpaid.
Individual account pension is mainly the amount accumulated after the implementation of the pension insurance system combining pooled accounts and individual accounts in various places from 1992 to 1997.
The implementation of personal account pensions, the previous years of contribution and the deemed years of contribution, generally according to the local regulations of the transitional pension calculation formula to calculate the level of pension. The formula for calculating transitional pensions varies from place to place.
After the implementation of the pension insurance system, each year's payment period, and even each month's pension insurance payment period, has a very important role, can improve the pension treatment. In fact, according to the current payment base, in the case of a social average salary of about 6,000 yuan, the pension insurance pension of one month more can be increased by 6 to 8 yuan. In the future, the average wage of the society will be high, and the corresponding pension will be higher. In fact, our pension is the accumulation of pension generated by the pension insurance paid every month.
In general, the concept of "length of service" has now been renamed "years of contribution". If it is only work, but the unit is in arrears or does not pay, the pension will not be calculated. When calculating pensions, the number of years of contribution is an important factor in determining the level of pensions. However, other factors affecting pensions include the contribution base, retirement age, social wages and so on. Compared with the current pension calculation formula, it is more scientific and easier for everyone to accept.