The meaning of enterprise's excessive annuity:

1. Enterprise annuity refers to a supplementary pension system that is established by enterprises under the guidance of national policies and according to their own economic strength and situation, in addition to the government's compulsory public pension or national pension, and provides a certain degree of retirement income protection for their employees.

2. The old-age insurance system for urban workers in China is improving, which consists of three parts: basic old-age insurance, enterprise annuity and personal savings old-age insurance. In countries with modern social insurance system, enterprise annuity has become a common supplementary pension plan for enterprises, also known as "enterprise pension plan" or "occupational pension plan", and has become an important part of the old-age insurance system in the host country.

Transitional pension is an integral part of the basic pension for middle-aged people after the unified system. For those who worked before the new system (or "unified accounting") and then retired, because their previous years of work did not implement personal accounts, the amount of personal accounts at retirement failed to reflect the labor contribution of this period of time.

Therefore, the basic pension at the time of retirement cannot be simply calculated by adding the basic pension to the personal account pension, but should be added with the pension without the number of years of personal account. Transitional pension solves this pension problem without personal account years.

the influence of the amount of contribution on the pension

the current method links the amount of individual contribution to the basic pension. The old method of calculating the basic pension is based on the "average monthly salary of employees in the whole city last year", which is not directly related to my payment. The current method is to calculate the basic pension based on "the average monthly salary of employees in the city last year and the average monthly salary of my indexed contribution".

"my indexed monthly average salary" is determined by the amount of individual contributions each year. If the contributions are more, the "my indexed monthly average salary" will be higher, so the calculated pension will be higher.

Reasons for "middle-aged" to increase "transitional pension"

The payment years of "newcomers" are all the actual payment years. In this way, the amount of personal accounts of "newcomers" is more, and the amount of personal accounts of "middlemen" is less. Therefore, "transitional pension" is used to make up for the problem of less historical accumulation of "middle-aged" personal accounts.

Legal basis

Measures for Enterprise Annuities

Article 3 The expenses required for enterprise annuities shall be paid by both the enterprise and individual employees. The enterprise annuity fund shall be fully accumulated, and a personal account shall be established for each employee who participates in the enterprise annuity, and shall be invested and operated in accordance with the relevant provisions of the state. Income from investment and operation of enterprise annuity fund is merged into enterprise annuity fund.