The reasons for the pension deficit include:

First, all retired workers before 1995 were paid free of charge by social insurance. The length of service before 1995 is regarded as the payment period, and the treatment is approved according to the regulations, and the social security pays this part of the fee free of charge.

Second, with the arrival of an aging society, the number of retirees has increased too much and their life expectancy has generally been extended. Due to the influence of inflation, their pensions have to be increased every year, so the social security fund's expenditure is too large, and when new insurance can't make up for the expenditure gap, it will cause a loss of the social security fund.

Third, the actual interest of social security is lower than the interest on bookkeeping.

Pension, also known as pension and retirement fee, is the most important social pension insurance treatment. That is to say, the relevant documents of the state stipulate that after the workers are old or lose their ability to work, according to their contributions to the society and their qualifications for enjoying old-age insurance or retirement conditions, the insurance benefits paid in monetary form on a monthly basis or at one time are the needs of benefiting the society and are mainly used to ensure the basic living needs of employees after retirement. Pensions are accumulated and operated on the principle of * * * accumulation by the state, the collective and the individual. When people are in the prime of life, part of the wealth created is invested in pension plans to ensure a sense of security in their old age.

from 25 to 215, although the China municipal government raised the pension level of enterprise retirees for the 11th consecutive year, due to the great difference in pension level, currency depreciation and rising prices, all sectors of society were not "ungrateful". On the contrary, they were dissatisfied with and questioned the declining pension replacement rate year after year. The proportion of pension to wages has dropped for nine years, which has fallen below the international warning line. [1]

On November 25th, 222, the Ministry of Human Resources and Social Security announced that the individual pension system was implemented.

Legal basis

Article 3 of the Detailed Rules for the Implementation of the Social Insurance Law of the People's Republic of China

After reaching the statutory retirement age, individuals who have paid the accumulated contributions for less than 15 years (including extending the payment in accordance with Article 2) may apply for transfer to the new rural social endowment insurance or urban residents' social endowment insurance where they are registered, and enjoy the corresponding pension insurance benefits. Individuals who participate in the basic old-age insurance for employees reach the statutory retirement age, and the accumulated payment is less than fifteen years (including the extension of payment in accordance with the provisions of Article 2), and have not been transferred to the new rural social endowment insurance or urban residents' social endowment insurance, individuals may apply in writing to terminate the basic old-age insurance relationship for employees. After receiving the application, the social insurance agency shall inform it in writing of its right to transfer to the new rural social endowment insurance or urban residents' social endowment insurance and the consequences of terminating the basic old-age insurance relationship for employees. After my written confirmation, it will terminate the basic old-age insurance relationship for employees and pay the amount stored in personal account to me in one lump sum.