The Ministry of Human Resources and Social Security recently held a meeting to start the personal pension system. The meeting announced a list of 36 cities and regions with personal pension as the first cities, and Shenyang and Dalian in Liaoning Province were selected as the first cities. On November 29th, the Department of Human Resources and Social Security of Liaoning Province interpreted the hot issues concerned by netizens. What is a personal pension? Personal pension is a supplementary old-age insurance system supported by the government, voluntarily participated by individuals and operated by the market. Individual pension shall be subject to individual account system, and the payment shall be entirely borne by the participants themselves. They shall independently choose to purchase financial products such as savings deposits, wealth management products, commercial endowment insurance, Public Offering of Fund, etc. that meet the requirements, implement complete accumulation, and enjoy preferential tax policies in accordance with relevant state regulations. Why establish a personal pension system? Promoting the development of individual pension system is conducive to improving the multi-level and multi-pillar pension insurance system, meeting the diverse needs of the people for the aged, actively coping with the aging population and promoting economic and social development. Participating in personal pension is beneficial for participants to add a pension accumulation on the basis of the first and second pillars of pension insurance, and further improve the income level and quality of life of the elderly. What is the coverage of personal pension? Participants in individual pensions should be laborers who participate in the basic old-age insurance for urban workers or the basic old-age insurance for urban and rural residents in China. What are the personal pension policy supports? In the payment link, the part that does not exceed the upper limit of payment of 12, yuan per year can be deducted before personal income tax by withholding the comprehensive income of personal income tax or making final settlement in the following year. In the investment link, personal income tax will not be levied on the investment income obtained for the time being. When participants receive personal pensions, they pay personal income tax at the rate of 3%, regardless of the method and amount of collection. How to establish a personal pension account? Establish individual pension accounts through national unified online service portals (national social insurance service platform, national people's social affairs service platform, electronic social security card, "Pocket 12333APP", etc.) or commercial banks determined by China Banking and Insurance Regulatory Commission. Choose a commercial bank that meets the requirements to open or designate my only personal pension fund account, or designate it through other qualified personal pension product sales organizations. After the two accounts are opened, you can pay to the capital account and buy personal pension products, with an annual payment limit of 12, yuan. Which institutions can offer personal pension services? The first batch of 61 financial institutions offering personal pension services include 6 large state-owned commercial banks, 12 joint-stock banks, 5 city commercial banks, 11 wealth management companies, 14 securities companies, 7 independent fund sales organizations and 6 insurance companies. What are the personal pension products? Personal pension products include savings deposits, wealth management products, commercial pension insurance and Public Offering of Fund financial products. According to the List of Individual Pension Funds published by CSRC and the List of Individual Pension Insurance Products published by China Banking and Insurance Regulatory Commission, * * * includes 129 pension target fund products and 7 commercial pension insurance products from 6 insurance companies. Savings deposits and wealth management products will also be released to the public one after another. Participants can go to the personal pension information management service platform and the financial industry platform to inquire about the qualified personal pension products and choose to participate voluntarily. What are the conditions for individual pension? Participants can only receive personal pensions when they reach the age of receiving basic pensions or completely lose their ability to work, go abroad (settle down) and meet other circumstances stipulated by the state. You can receive personal pension on a monthly basis, in installments or at one time, and the way of receiving it cannot be changed once it is determined. After the death of the participant, the assets in his personal pension fund account can be inherited.