Xinhua News Agency was authorized to broadcast the "Decision of the State Council on Improving the Basic Pension Insurance System for Enterprise Employees" on the 14th.

The State Council Information Office held a press conference on the morning of December 15. Liu Yongfu, Vice Minister of the Ministry of Labor and Social Security of China, stated at the meeting that China will establish a system suitable for China’s national conditions in accordance with the principles of broad coverage, appropriate levels, reasonable structures, and balanced funds.

, a basic pension insurance system that can achieve sustainable development.

Liu Yongfu said at the press conference that with the aging of the population, the diversification of employment methods and the development of urbanization, China's current basic pension insurance system for enterprise employees has shown some problems that are not compatible with social and economic development.

He said that the coverage of this system is not broad enough, and a large number of urban individual industrial and commercial households and flexible employment personnel have not yet participated in the insurance; the personal accounts of pension insurance have not been implemented, and the system model of partial accumulation has not been truly realized, making it difficult to cope with the impact of the aging population.

Fund needs.

He said that the pension calculation method is not reasonable and lacks an incentive and restraint mechanism for insurance participation and payment; the basic pension adjustment mechanism is not yet complete, and the overall level of pensions is not high.

At the same time, the coordination level of this system is relatively low. Most regions in China have not yet implemented provincial coordination, and the fund adjustment capability is relatively weak.

The development of enterprise annuities in China lags behind, and a multi-level pension security system has not yet been established.

Liu Yongfu said at the meeting that with the major changes in China's ownership structure and employment forms, non-public economic employees and flexible employment personnel have increased rapidly, but a large number of urban individual industrial and commercial households and flexible employment personnel have not yet been included in the pension insurance system

, which affects their social security rights.

“In this regard, it is stipulated that individual industrial and commercial households and flexible employment personnel in urban areas must participate in the basic pension insurance just like enterprise employees. At the same time, their insurance payment policies and benefits calculation and payment methods must be unified, so that they can enjoy the basic pension insurance after retirement.

Rights and interests can be implemented," Liu Yongfu said.

Liu Yongfu said that the current unreasonable basic pension calculation and payment method in China should be changed, and a method of "new system for new people, old method for old people, and gradual transition for middle people (those insured persons who retire after the implementation of this decision)" will be adopted to reform the basic pension system.

Pension calculation and payment methods.

Liu Yongfu said that according to the current basic pension calculation method, basic pensions are calculated and paid based on 20% of the average salary of local employees in the previous year for more than 15 years.

There are problems with this approach: First, it lacks an incentive and restraint mechanism.

For insured persons who have paid contributions for more than 15 years, no matter how much they pay, or how much longer the payment period is than 15 years, the basic pension will be the same. This is not in line with the principle of corresponding rights and obligations.

Secondly, it is not in line with the actual situation of retirees.

At present, the average life expectancy of Chinese retirees after retirement is more than 25 years. However, according to the current payment method, there will be no money left after 10 years of receiving the savings in personal accounts.

He said that according to the new basic pension calculation and payment method, for every additional year of payment by insured persons, the basic part of the pension will be increased by one percentage point, with no upper limit, which can form a "more work, more payment, more pension"

The incentive and restraint mechanism is in place, and the calculation and payment of personal account pensions takes into account the actual average remaining life of retirees.

Related reports: The design of the pension insurance system has taken into account those who have difficulty paying. Improving the pension insurance system will not use the National Social Security Fund to improve the pension insurance system. The benefits of retirees will not be reduced. Liu Yongfu revealed at the meeting that several more regions will be selected for expansion and implementation.

Basic pension insurance personal account pilot.

According to a report by the People's Daily, a major change in the new pension insurance policy is to gradually consolidate individual accounts.

The combination of social pooling and personal accounts in pension insurance is a principle established by the Third Plenary Session of the 14th Central Committee of the Communist Party of China, with the goal of achieving partial accumulation of funds.

However, in actual operation, since pension insurance has no historical accumulation and there are more and more retirees, in order to ensure current payment, the personal account funds that should be reserved for accumulation have to be used, resulting in an empty account in personal accounts.

This is not conducive to the long-term stable operation of the pension insurance system, and it is also difficult to ensure that pensions are paid out in full and on time when the peak of the aging population arrives.

For this reason, we must take precautions and gradually consolidate our personal accounts from now on.

After the individual account is established, the individual account fund is formed entirely from individual contributions, is all owned by the individual and can be inherited, and has private attributes that are different from the overall fund.

Moreover, personal account pensions are determined entirely based on individual contributions.

This means that if you work more - work longer hours when participating in pension insurance, and pay more - your personal contribution base will be larger, you will be able to receive more pensions after retirement in the future.