Basic pension = (average monthly salary of local employees in the previous year when the insured person retires + my average indexed monthly contribution salary) ÷ 2 × individual cumulative payment years × 1% my average indexed monthly payment salary = when the insured person retires

The average monthly salary of employees in the province in the previous year × my average contribution wage index my average contribution wage index = (al/Al+a2/A2+?+an/An)÷NIn the formula, al and a2?an are the retirement of insured persons

The amount of wages paid by the individual in the previous 1, 2, and n years; Al, A2, and An are the average wages of employees in the province 1, 2, and n years before the insured person retires; N is the actual basic pension insurance premium paid by the enterprise and employees

of years.

Extended information: According to the pension financing method, in practice, the pension financing methods formulated by enterprises can be divided into retirement methods with deposited funds and retirement methods without deposited funds.

1. Retirement method of deposited funds: Enterprises withdraw retirement funds and hand them over to independent trust institutions, such as banks or insurance companies, for safekeeping and use. When employees retire, the trust institution pays pensions from the retirement funds.

An enterprise shall not withdraw pension funds unless it has fully fulfilled its pension payment obligations.

2. Retirement method without depositing funds. The enterprise has not withdrawn the retirement funds and handed them over to the trust institution for safekeeping and use. Or, although the enterprise has withdrawn the retirement funds, it keeps and uses them by itself instead of handing them over to the trust institution for safekeeping and use. When employees retire, the enterprise must raise funds on its own.

Funds to pay retirement benefits.

Compared with the retirement method of depositing funds, this method lacks protection for employees’ pensions.