the State Council's decision on the reform of the old-age insurance system for enterprise employees

(June 26th, 1991)

The old-age insurance system for enterprise employees in China was established in the early 195s, and was revised twice in 1958 and 1978. In recent years, in order to meet the needs of economic system reform, various regions have carried out reforms with social pooling of retirement expenses as the main content, and achieved certain results. According to the requirements of the ten-year plan for national economic and social development and the outline of the eighth five-year plan, the State Council made the following decisions on the reform of the old-age insurance system for enterprise employees:

First, according to the development level of China's productive forces and the rapid aging of its large population, the reform of the old-age insurance system for enterprise employees should properly handle the national interests, collective interests and individual interests, the relationship between current interests and long-term interests, and the relationship between overall interests and local interests, mainly by adjusting and perfecting the existing institutional measures. Considering the different conditions of different regions and enterprises, the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government can make specific provisions on employee pension insurance according to the unified national policy, allowing certain differences between different regions and enterprises.

second, with the development of economy, the system of combining basic old-age insurance with enterprise supplementary old-age insurance and employee personal savings old-age insurance is gradually established. Change the way that the old-age insurance is completely covered by the state and enterprises, and implement the burden of the state, enterprises and individuals, and individual employees also have to pay a certain fee.

third, the basic old-age insurance fund is raised by the government according to the actual needs of paying expenses and the affordability of enterprises and employees, and in accordance with the principle of fixed income by expenditure, a little balance and partial accumulation. The specific extraction ratio and accumulation rate shall be determined by the people's governments of provinces, autonomous regions and municipalities directly under the Central Government after actual calculation and reported to the State Council for the record.

iv. The basic old-age insurance premiums paid by enterprises and individual employees are recorded in the Employee Old-age Insurance Manual.

the basic old-age insurance premium paid by an enterprise is extracted before tax according to the total wages of its employees and the proportion stipulated by the local government, and withheld by the bank where the enterprise opens an account on a monthly basis. If the enterprise fails to pay within the time limit, it shall be charged a late fee according to the regulations. Late fees are incorporated into the basic old-age insurance fund.

individual employees pay the basic old-age insurance premium, which is gradually implemented on the basis of salary adjustment. The payment standard can not exceed 3% of their standard salary at first, and then gradually increase with the economic development and the adjustment of employees' salary. The basic old-age insurance premiums paid by individual employees are collected by enterprises in the era of paying wages.

5. The basic old-age insurance premium paid by enterprises and individual employees shall be transferred to the "special account of old-age insurance fund" opened by the social insurance management institution in the bank, which shall be specially stored and earmarked, and no unit or individual may use it without authorization. Banks should withdraw "unpaid interest payable" as required; For the funds deposited in the bank, the interest shall be calculated according to the deposit rate of urban and rural residents' savings deposits in the same period stipulated by the People's Bank of China, and the interest earned shall be incorporated into the fund. Part of the accumulation fund can buy state bonds.

local governments at all levels should set up pension fund committees to guide and supervise the management of pension funds. The Committee is headed by the competent government leader, with responsible comrades from labor, finance, planning, auditing, banking, trade unions and other departments attending, and the office is located in the labor department.

VI. The method of calculating and distributing the basic pension for employees after retirement will not be changed at present. In the future, the amount of pension can be gradually increased by increasing the proportion of standard salary in the total salary in combination with the reform of the wage system.

the state makes appropriate adjustments to the basic old-age pension according to the growth of the price index of urban residents' living expenses and referring to the wage growth of on-the-job employees, and the required expenses are paid from the basic old-age insurance fund.

7. In areas where the basic old-age insurance fund has not been implemented at the provincial level, it is necessary to actively create conditions for the gradual transition from the current city and county overall planning to the provincial overall planning. After the implementation of provincial co-ordination, the old-age insurance funds of the original fixed employees and employees with labor contract system should be gradually extracted according to a unified proportion and merged and adjusted. Specific measures shall be formulated by the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government.

unless otherwise stipulated by the state, enterprises under the central government should participate in the overall planning of their respective regions.

VIII. Supplementary endowment insurance for enterprises is established by enterprises for their employees according to their own economic capacity, and the required expenses are drawn from the reward and welfare funds of enterprises' own funds. Personal savings endowment insurance is voluntarily participated by employees according to their personal income. The state advocates and encourages enterprises to implement supplementary old-age insurance and employees to participate in personal savings old-age insurance, and gives guidance on policies. At the same time, it is allowed to try out the method of linking individual savings endowment insurance with enterprise supplementary endowment insurance. Supplementary endowment insurance funds shall be credited to individual accounts of employees by social insurance management institutions according to the social security number (national standard GB 11643-89) issued by the State Bureau of Technical Supervision.

IX. The Ministry of Labor and local labor departments at all levels are responsible for the management of the old-age insurance for employees of urban enterprises (including enterprises owned by the whole people that are not in cities and towns).

the social insurance management institution affiliated to the labor department is a non-profit institution, which handles the specific business of basic old-age insurance and enterprise supplementary old-age insurance, and is entrusted by the old-age insurance fund Committee to manage the old-age insurance fund. The endowment insurance business that has been handled by the People's Insurance Company can maintain the status quo without change. Personal savings endowment insurance is voluntarily selected by individual employees.

1. The social insurance management institution may extract a certain management service fee from the endowment insurance fund. The specific extraction ratio shall be proposed by the local labor department according to the actual work needs and the principle of saving, and shall be audited by the finance department at the same level and reported to the endowment insurance fund committee for approval. Management service fees are mainly used to pay necessary administrative and business expenses. Pension fund and management service fee, excluding taxes and fees.

the social insurance management institution shall, according to the national policies and regulations, establish and improve various systems of fund management, prepare the budget and final accounts of the endowment insurance fund and the management service fee, report them to the local people's government for collection and expenditure in the budget, and accept the supervision of finance, auditing, banks and trade unions.

Xi. This decision applies to enterprises owned by the whole people. Urban collective-owned enterprises can refer to the implementation; For Chinese employees of foreign-invested enterprises, employees of urban private enterprises and individual workers, an old-age insurance system should also be gradually established. Specific measures shall be formulated by the people's governments of all provinces, autonomous regions and municipalities directly under the Central Government.

12. The Ministry of Personnel and the Ministry of Civil Affairs are responsible for the reform of the endowment insurance system in state organs, institutions and rural areas (including township enterprises), and the specific measures shall be formulated separately.

The reform of enterprise employees' old-age insurance system is an important measure to ensure the life of retired employees and maintain social stability, which plays an important role in reducing the burden on the state and enterprises, promoting economic system reform and rationally guiding consumption. This work is highly policy-oriented and involves a wide range. Governments at all levels should earnestly strengthen their leadership, formulate specific implementation plans according to the spirit of this decision and the actual situation, and actively and steadily promote the reform of the old-age insurance system for enterprise employees.