Methods for calculating interest on personal pension insurance accounts:
Method 1: Annual calculation method.
Calculation formula: Cumulative deposit amount of personal account as of the end of this year = Cumulative deposit amount of personal account as of the end of last year × (1 + current year’s accounting interest rate) + personal account current year’s accounting amount × (1 + The accounting interest rate for the year × 1/2) × 1.083.
Method 2: Monthly product method.
Calculation formula: Cumulative deposit amount of personal account as of the end of this year = Cumulative deposit amount of personal account as of the end of last year × (1 + current year’s accounting interest rate) + current year’s accounting amount principal + current year’s accounting amount Account interest.
In addition, the interest on the current year's accounting amount and the interest on the accumulated deposit amount are calculated differently.
Extended information:
Notes on pension insurance:
1. Pension insurance cannot be received in one lump sum.
2. The draft of the Social Insurance Law, which was reviewed for the fourth time by the National People’s Congress Standing Committee on October 25, 2010, stipulates that social insurance funds shall not be diverted for other purposes.
3. Some members and representatives of the Standing Committee of the National People’s Congress proposed that the current accumulated balance of social insurance funds is large and relatively scattered. In order to ensure the safety of the funds, strict regulations and strengthened supervision should be implemented.
4. When an employee’s personal contribution period (including the deemed payment period) is less than 15 years and reaches the statutory retirement age, he will not enjoy basic pension benefits after retirement, and the entire savings in his personal account will be paid in one lump sum. I, at the same time terminate the pension insurance relationship.
Baidu Encyclopedia_Interim Measures for the Management of Personal Accounts of Employee Basic Pension Insurance
Baidu Encyclopedia_Pension Insurance Funds