The implementation measures for personal pensions are as follows: the role of personal pensions, conditions for participating in personal pensions, opening a personal pension account, use of personal pension account funds, policies for participating in personal pensions, conditions for receiving personal pensions, and personal pension
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1. The role of personal pensions Personal pensions are the institutionally arranged part of the third pillar. They are a supplementary pension insurance system supported by government policies, voluntarily participated by individuals, and operated in a market-oriented manner.
The establishment of a personal pension system, adding another layer of accumulation on the basis of basic pension insurance, can better meet the people's diversified pension insurance needs and achieve a higher quality and more secure life for the elderly.
2. Conditions for participating in personal pensions Workers in China who participate in the basic pension insurance for urban employees or the basic pension insurance for urban and rural residents can participate in the personal pension system.
3. Opening a Personal Pension Account Personal pension implements a personal account system, including two accounts: a personal pension account and a personal pension fund account.
Personal pension accounts should be opened on the personal pension information management service platform through the national unified online service portal or commercial banks and other channels.
A personal pension fund account can be opened or designated by a commercial bank that meets the regulations, or it can be designated by other personal pension product sales institutions that meet the regulations.
4. Use of Personal Pension Account Funds Personal pensions implement a personal account system, and payment is entirely borne by the participants. They can independently choose to purchase financial products such as savings deposits, financial products, commercial pension insurance, and public funds that meet the regulations, and implement full accumulation.
Enjoy preferential tax policies in accordance with relevant national regulations.
5. Policies for participating in personal pension benefits In the payment process, you can make deductions before personal income tax through prepayment of comprehensive personal income tax or final settlement in the following year.
In the investment stage, personal income tax is not levied for the time being on the investment income obtained.
In the receiving process, when participants receive personal pensions, they will pay personal income tax at a tax rate of 3% regardless of the method of receiving or receiving the amount, which is a relatively low tax rate.
6. Conditions for receiving personal pensions: Participants can receive personal pensions when they reach the age of receiving basic pensions, completely lose their ability to work, settle abroad (border), and other conditions stipulated by the state.
The method of receiving the pension is decided by the participant himself, and he or she can receive personal pension on a monthly basis, in installments or in a lump sum.
When a participant applies to receive a personal pension from a commercial bank, the commercial bank will verify the participant's qualifications with the personal pension information management service platform.
For those who meet the conditions, the commercial bank will transfer the funds in the personal pension fund account to the participant's social security card bank account according to the individual's choice of payment method and amount, which will be controlled by the participant independently.
7. Inheritance of personal pension When a participant dies, the assets in his personal pension account can be inherited.
If a participant's social security card is canceled due to reasons such as going abroad or settling abroad, dying, etc., the commercial bank will transfer the funds in the participant's personal pension fund account to the fund account designated by the participant or his heir.
Personal Pension Pioneer Cities In July 2022, the Sichuan Provincial Department of Human Resources and Social Security, together with the Department of Finance and the State Administration of Taxation, Sichuan Provincial Taxation Bureau, launched the Sichuan Province personal pension pioneer city declaration for 21 cities (states) in the province.
Through each city's voluntary declaration, reporting city statement, organizing expert review, and with the approval of the provincial government, Chengdu was determined to be the leading city for personal pensions in Sichuan Province.
On July 22, 2022, the relevant person in charge of the Ministry of Human Resources and Social Security stated at a press conference of the Ministry of Human Resources and Social Security that the Ministry of Human Resources and Social Security will continue to improve the national coordinated supporting policies for basic pension insurance for enterprise employees, formulate a 2022 adjustment fund allocation plan, and
We will do a good job in fund allocation and further unify and standardize the pension insurance policies of various provinces.