Social overall planning is shared by the state, units and individuals. The basic old-age insurance fund implements social mutual aid, and the basic pension is calculated by structural calculation method, emphasizing the incentive factors and labor contribution differences of individual account pension.
The basic old-age insurance is enforced by the state, and its purpose is to protect the basic needs of retirees.
Fund income refers to the social pooling fund paid by the units included in the basic old-age insurance according to the payment base and proportion stipulated by the state, and the income that constitutes the source of the fund obtained by other means, including social pooling fund income, financial subsidy income, interest income and other income paid by the units.
Fund expenditure refers to the pension and funeral subsidies paid from the social pooling fund to the retired and resigned persons who participate in the basic old-age insurance in accordance with the expenditure scope and expenditure standards stipulated by the national policy, as well as the expenditures incurred due to the transfer of insurance relations and the transfer of funds at higher and lower levels. Including basic pension, transitional pension, retirement fee, severance payment, severance payment, subsidies, funeral pension subsidies and other expenses.
Since 1997, China's basic old-age insurance system reform, the mode of combining social pooling with individual accounts has been implemented, which includes both the social pooling part of pay-as-you-go system, the younger generation paying for retirees, and the individual accounts of cumulative system. The contribution ratio of enterprises is about 20% of the total wages, and the contribution ratio of individuals is 8% of their wages. Since 2006, all the basic old-age insurance premiums paid by enterprises have been used to establish overall funds and are no longer included in personal accounts. The basic old-age insurance premiums paid by individuals are included in personal accounts. The basic pension consists of basic pension and personal account pension, and the basic pension is paid by the social pooling fund.
laws and regulations
People's Republic of China (PRC) social insurance law
Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.