The principal of the basic pension account refers to the accumulated savings in the personal account formed by paying a certain proportion of personal pension insurance premiums when an individual participates in the basic pension insurance. This is an important part of the personal pension insurance system, which aims to ensure that insured persons can enjoy certain pension benefits when they reach the statutory retirement age.

1. Composition of the principal of the basic pension account

The principal of the basic pension account is mainly composed of pension insurance premiums paid by individuals. According to my country's social insurance system, both employees and employers need to pay pension insurance premiums according to a certain proportion. Part of these fees goes into the overall fund to pay current pension expenses; the other part goes into individual accounts to form the principal of the basic pension account. The cumulative amount of savings in a personal account continues to grow as the individual's payment years and payment amount increase.

2. The role of the principal of the basic pension account

The role of the principal of the basic pension account is mainly reflected in the following aspects:

1. Guaranteeing pensions Benefits: The accumulation of principal in the basic pension account provides the insured with a certain pension benefit guarantee when they retire. When the insured reaches the legal retirement age, pension benefits can be calculated based on the accumulated savings in the personal account to ensure that their basic living needs are met.

2. Incentivize individual contributions: The accumulation of basic pension account principal is closely related to the individual payment period and payment amount, which to a certain extent encourages individuals to actively pay pension insurance premiums and increase the amount of savings in personal accounts. , thereby laying a more solid foundation for future pension benefits.

3. Promote the sustainable development of the pension insurance system: By setting up personal accounts to achieve personal accumulation of pension insurance fees, it will help reduce the payment pressure on the overall fund and promote the sustainable development of the pension insurance system.

3. Management and use of the principal of the basic pension account

The management and use of the principal of the basic pension account are strictly supervised by relevant national laws and regulations. The national social insurance administration agency is responsible for the management of personal accounts and ensuring the safety, integrity and compliant use of funds. At the same time, the funds in personal accounts will also be maintained and increased in value according to the investment channels prescribed by the state to improve the payment ability of pension benefits.

In summary:

The principal of the basic pension account is an important part of the personal pension insurance system. It is formed by the pension insurance premiums paid by individuals and is designed to protect the insured during their lifetime. Pension benefits upon retirement. Through the establishment of personal accounts, personal accumulation of pension insurance premiums can help encourage individuals to actively pay contributions and promote the sustainable development of the pension insurance system. At the same time, the state also strictly supervises the management and use of personal accounts to ensure the safety, integrity and compliant use of funds.

Legal basis:

"Social Insurance Law of the People's Republic of China"

Article 12 stipulates:

Employers Basic pension insurance premiums shall be paid in accordance with the proportion of the total wages of employees of the unit stipulated by the state, and shall be recorded in the basic pension insurance pooling fund. Employees should pay basic pension insurance premiums in accordance with the proportion of their wages stipulated by the state and record them into their personal accounts.

"Social Insurance Law of the People's Republic of China"

Article 15 stipulates:

The basic pension is composed of the overall pension and the personal account pension composition. The basic pension is determined based on the individual’s cumulative contribution years, contribution salary, average salary of local employees, personal account amount, average life expectancy of the urban population and other factors.