Proportion of individual accounts paying endowment insurance

The individual account of basic endowment insurance is an account established by the endowment insurance agency for each insured person to record the basic endowment insurance premiums paid by individuals and the basic endowment insurance premiums transferred from enterprises and their interest.

Individual accounts were first established on January 1, 1996. Individual contributions before January 1, 1996 were only credited to individual accounts, and unit contributions were not transferred. After January 1, 1996, the insured person will establish a personal account from the month of payment. The amount stored in the personal account shall not be withdrawn in advance, and interest shall be calculated at the prescribed interest rate every year. When employees are transferred, personal accounts will be transferred with them. According to the unified regulations of our province, before January 1, 26, the personal account was composed of 11% of the payment base of the payer. After January 1, 26, the scale of the personal account was adjusted to 8% of the payment base of the insured, and the rest all entered the social pooling fund to pay the pension for retirees.

Funds credited to personal account

(1) The payment principal of the current year, including all individual contributions and the part of the employer's contributions that is credited to personal account (from January 1, 26, the scale of personal account will be adjusted from 11% of the salary paid by the individual to 8%, all of which will be formed by individual contributions, and the unit contributions will no longer be credited to personal account);

(2) the interest generated by the principal in the current year;

(3) interest generated by accumulated storage over the years.

when an employee retires, the personal account pension of the employee in the month of retirement is calculated by dividing the total amount stored in his personal account by the number of calculation months (195 for 5 years old, 17 for 55 years old, 139 for 6 years old, and 12 for no longer unified). Personal account pension is an important part of the basic pension in the reform mode of combining social pooling with personal account. Personal account pension, basic pension, transitional pension and adjustment fund together constitute the basic pension for retirees.

The establishment of personal accounts for employees' basic old-age insurance embodies the principle that social insurance costs are shared, which increases the sources of old-age insurance premiums, and is also conducive to establishing an incentive and restraint mechanism to mobilize employees' enthusiasm for caring for and supporting old-age insurance. It is the concrete embodiment of the reform achievements of the endowment insurance system with characteristics in China.

according to Guo Fa (1997) No.26 document, the bookkeeping base of individual accounts for employees' basic old-age insurance is the salary base of individual employees, and the bookkeeping ratio is 11% nationwide. The proportion of employees' individual contributions is about 5%, and the rest is included by the unit contributions. With the increase of the proportion of individual contributions (eventually to 8%), the part included by the unit gradually decreases. When an employee retires, the accumulated amount in his personal account is divided by the number of months, which is the personal account pension when the employee retires. Personal account of employee's basic old-age insurance is one of the core contents of the enterprise employee's basic old-age insurance system which combines social pooling with personal account, and it is the concrete embodiment of deepening the reform of the old-age insurance system.

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