The calculation method of retirement basic pension is as follows: basic pension = basic pension+personal account pension.
1, basic pension Basic pension refers to the pension paid to retirees from the basic old-age insurance pooling fund. The monthly standard of basic pension at retirement is based on the average monthly salary of local employees in the previous year and my indexed monthly salary, and the payment is paid to 1% every1year. Basic pension = average monthly salary of employees in the overall planning area+average monthly payment salary of myself) /2 × payment period ×1%;
2. Personal account pension Personal account pension refers to the pension calculated according to the personal account storage amount of basic old-age insurance when the insured retires. Personal account pension = personal account storage amount ÷ months. The calculated number of months does not refer to the number of months that retirees actually receive the basic pension, but a hypothetical index calculated according to the average life expectancy of urban population and other factors. Personal account pension = personal account storage balance/months.
Relevant regulations:
People's Republic of China (PRC) social insurance law
Fifteenth basic pension consists of overall pension and individual account pension. The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc.
Sixteenth individuals who participate in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have accumulated contributions for fifteen years when they reach the statutory retirement age. Individuals who participate in the basic old-age insurance and pay less than fifteen years when they reach the statutory retirement age can pay for fifteen years and receive the basic pension on a monthly basis; Can also be transferred to the new rural social endowment insurance or urban residents' social endowment insurance, enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.
Seventeenth individuals who participate in the basic old-age insurance, due to illness or non-work-related death, their survivors can receive funeral grants and pensions; Persons who have completely lost their ability to work due to illness or non-work-related disability before reaching the statutory retirement age can receive disability allowance. The required funds are paid from the basic old-age insurance fund.
Article 18 The state establishes a normal adjustment mechanism for basic pensions. According to the average wage increase and price increase of employees, the basic old-age insurance treatment level will be improved in a timely manner.