Questions and answers on endowment insurance policy

How do individual employees pay and how do they calculate and pay their pensions?

The proportion of urban individual industrial and commercial households, their employees and urban freelancers participating in the basic old-age insurance is 18% of the average social wage of employees in the whole province in the previous year. Freelancers and owners of individual industrial and commercial households in cities and towns are all paid by themselves, and employees are paid by individual economic organizations and themselves (at present, the contribution ratio of employees is 7%, which will be adjusted with the adjustment of individual contribution ratio of enterprise employees). If the insured reaches the national statutory retirement age (6 years for men and 55 years for women) and has paid for 15 years, the basic pension and personal account pension will be paid monthly. If the payment is less than 15 years, the personal account storage amount (including interest) will be sent to me at one time, and the pension insurance relationship will be terminated.

how to calculate the pension insurance benefits for employees who have paid less than 15 years?

(1) When employees who joined the work after January 1, 1996 reach the statutory retirement age, and the cumulative payment period is less than 15 years, they will not enjoy the monthly pension treatment after retirement, and the amount stored in their personal accounts will be paid to them in one lump sum, and the pension insurance relationship will be terminated.

(2) Employees who joined the work before December 31, 1995, who retired after the implementation of the Implementation Measures, that is, after January 1998, can pay back to 15 years according to the regulations when they reach the statutory retirement age, and they can pay the basic pension on a monthly basis when they retire.

(3) Those who joined the work before December 31, 1995 and reached the legal retirement age, and paid less than 1 years, can't pay back. In addition to paying the personal account storage amount to me in a lump sum according to the regulations, I will be given an indexed monthly average payment salary of two months every full year according to the payment period (including deemed payment period) before I set up the account.

how to calculate the pensions of different types of people?

Before and after the implementation of the new old-age insurance system in p>1996, the structure of calculating and distributing basic pensions for employees who participated in the work was different:

(1) When employees who participated in the work after the implementation of the new system (so-called "newcomers") retired, basic pension = basic pension+personal account pension. Among them, the basic pension standard is 2% of the average monthly salary of employees in the province last year, and the personal account pension standard is the amount stored in my account divided by 12.

(2) When employees (so-called "middlemen") who joined the work before the implementation of the new system retire, the monthly basic pension = basic pension+personal account pension+transitional pension+a certain proportion of subsidies and adjustment funds.

(3) If the individual payment period is less than 15 years, he will not enjoy the basic pension when he retires, and the amount stored in his personal account will be paid to him in one lump sum.

(4) Retirees who have retired before the implementation of the new system will still be paid pensions according to the original regulations of the state, and the adjustment measures for pensions will be implemented at the same time. That is, like other retirees, they enjoy the normal adjustment mechanism of the basic pension.

how to establish individual accounts for employees' pension insurance?

what is the relationship between employee contributions and my future pension benefits?

The personal account is credited to 11% of the employee's own salary, including 7% paid by the employee in 23, and then 4% paid by the employer is credited to the employee's personal account; Individual insured persons set aside 11% from the 18% I paid and credited to personal accounts. Personal accounts are the main basis for calculating and distributing pensions when employees retire. Under normal circumstances, the longer the pension insurance premium is paid, the higher the salary base is paid and the larger the payment amount is, the higher the personal account savings will be, and the more basic pension will be received when you retire, and vice versa. Therefore, employees have the right to report to the competent department of the enterprise, labor and social security supervision institutions, social insurance institutions, trade unions at all levels and news media when they encounter the situation that the enterprise is in arrears with the old-age insurance premium or underreports the total wages, so as to protect their legitimate rights and interests.

according to what standards do enterprises and employees pay endowment insurance premiums?

the old-age insurance premium is paid by both the unit and the individual employee, with the unit paying 2% of the total salary of the current month and the individual employee paying 7% of his monthly salary at present. However, when the average monthly salary of individual employees is higher than 3% of the average monthly salary of employees in the province last year, it will be paid at 3% of the average monthly salary of employees in the province last year, and lower than 6% of the average monthly salary of employees in the province last year (the average monthly salary of employees in the province in 22 was 747 yuan).

the proportion of employees' individual contributions will increase by one percentage point every two years until 8%.

the payment base of individual insured personnel shall not be lower than the average monthly salary of employees in the whole province last year, and the highest payment base of high-income earners shall not exceed 3% of the average monthly salary of employees in the whole province last year. Individual insured personnel can choose between 1% and 3% of the average monthly salary of employees in the whole province last year. The contribution rate is currently 18%.

how can all kinds of people who interrupt payment continue the pension insurance relationship?

continue to pay the old-age insurance premium?

those who were employees of an enterprise, but whose payment was interrupted due to unemployment, or the dissolution or termination of labor relations with the enterprise due to closure, bankruptcy, restructuring, reorganization and merger, are now self-employed, have flexible employment or have a certain income and are able to pay fees, and can continue to pay old-age insurance premiums as freelancers. These personnel can carry the Employee Pension Insurance Manual, proof of unemployment, proof of dissolution or termination of labor relations, and go to the social insurance institution to handle the continuation of the pension insurance relationship (the employees who were originally insured at the city level went to the Municipal Social Labor Insurance Bureau to handle it; District enterprises to the District Social Insurance Bureau). After continuing the pension insurance relationship, the payment period can be combined with the previous payment period in the enterprise, and if it reaches the statutory retirement age and the payment period is over 15 years, the archival filing unit will handle the retirement procedures on its behalf and enjoy the pension insurance benefits according to the regulations.

what are the coverage and objects of endowment insurance?

all state-owned enterprises, urban collective enterprises, foreign-invested enterprises (including enterprises invested by Hong Kong, Macao and Taiwan), urban private enterprises and other urban enterprises and their employees within the administrative divisions of our province, institutions and their employees who implement enterprise management, urban individual industrial and commercial households and their employees and freelancers should be included in the coverage of basic old-age insurance according to law.

what is basic old-age insurance?

the basic old-age insurance is also called the national basic old-age insurance. It is an old-age insurance system that the state needs to unify policies and enforce in order to ensure the basic life of retired workers. It is the first and highest level of the multi-level old-age insurance system which combines basic old-age insurance with enterprise supplementary old-age insurance and employee personal savings old-age insurance.

how does the contribution base of enterprises and employees affect the retirement benefits of employees after retirement?

The payment base of enterprises and employees directly affects the treatment of employees after retirement. We know that the new pension calculation and payment method fully embodies the principle of combining fairness with efficiency and the consistency of rights and obligations. Personal account pension is credited to personal account according to a certain proportion of my salary income; Transitional pension is also calculated according to my contribution base. If the employee's individual contribution base is low and the enterprise does not pay in full, then the amount credited to the employee's individual account will be less, and the calculated personal account pension and transitional pension will be low. By the same token, if the payment base is large and the old-age insurance premiums paid by enterprises and employees are more, then the amount credited to and transferred from enterprises into individual accounts will be more, and the total amount of personal accounts when they retire will be divided by 12, and the calculated personal account pensions and transitional pensions will be more, and their pension benefits will be higher. Therefore, every enterprise employee should pay the endowment insurance premium in full and on time, and at the same time urge the enterprise to pay the endowment insurance premium in full, so that the endowment insurance premium will not be affected when he retires.

what provisions does the state make on the establishment and management of individual accounts for endowment insurance?

With the reform of pension calculation and payment methods, according to the national regulations, the state has set up a personal account for basic old-age insurance for every employee since 1996 as a part of calculating and paying basic pension for employees when they retire. The scale of personal account establishment, the use and management of personal account mainly include five aspects: (1) The scale of personal account is 11% of the salary paid by me, which consists of two parts: individual payment and enterprise payment. (2) The amount stored in individual accounts shall bear interest with reference to the bank deposit rate for the same period every year; (3) Personal accounts are only used for providing for the aged and cannot be withdrawn in advance; (4) When employees are transferred, personal accounts will be transferred with them; (5) If an employee or retiree dies, the individual contributions in the individual account can be inherited.

what is a transitional pension? What is the main function?

calculating the pension of a "middleman" before establishing a personal account is called a transitional pension. 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 account") and then retired, because their previous years of work did not have a personal account, the amount of personal account storage at retirement failed to reflect the labor contribution during this period, so their basic pension at retirement can not be simply calculated by adding a basic pension to a personal account pension, but should be added with a pension without a personal account. Transitional pension has solved this pension problem without individual account years.

what is the employee's basic old-age insurance personal account?

Personal account of employee's basic old-age insurance is an account in enterprise employee's basic old-age insurance, which is used to record the basic old-age insurance premium paid by individual employees and the part paid by the company into the employee's personal name. It is an important basis for calculating the personal account pension in the basic pension when employees retire. The scale of employee's personal account for basic old-age insurance is 11% of his paid salary. At present, the proportion of employees' individual contributions is 6%, and the rest is included in the unit contributions; With the increase of the proportion of individual contributions (eventually to 8%), the part of the unit is reduced. When an employee retires, the accumulated amount of his personal account is divided by 12, which is the personal account pension when the employee retires. Personal account of employees' basic old-age insurance is one of the core contents of the basic old-age insurance system for enterprise employees, which combines social pooling with personal account, and it is the concrete embodiment of deepening the reform of the old-age insurance system in recent years.

why is it that the endowment insurance premiums paid by enterprises should be regarded as equally important as the wages of employees?

The wages of employees are due labor remuneration, and the pensions of retirees are also due treatment according to national laws, both of which are equally important. Enterprise payment is the obligation and responsibility to establish endowment insurance relationship for employees of this unit. The payment of enterprises and employees is directly related to the treatment of employees after retirement. Therefore, according to the regulations of the state and the provincial government, as long as the units that normally pay wages must pay the old-age insurance premiums in full and on time, there can be no idea of giving priority to the first, and there can be no intentional refusal and default. According to the relevant laws of the state, when an enterprise goes bankrupt, the endowment insurance premium payable by the enterprise must also be paid in the first order when paying off its assets.

how can laid-off workers participate in the basic old-age insurance after re-employment?

(1) For laid-off workers who originally participated in the social pooling of basic old-age insurance in state-owned enterprises, the actual payment period of the original social pooling of old-age insurance shall be recognized. Re-employment and payment of basic old-age insurance premiums in accordance with the regulations, before and after the payment period (including deemed payment period) combined calculation, reaching the retirement age stipulated by the state, according to the provisions of the plan to pay retirement benefits.

(2) Those laid-off workers who are diverted to foreign investment, private enterprises and other non-public economic forms such as self-employment should continue to participate in the social pooling of basic old-age insurance and pay the basic old-age insurance premium. The payment period has accumulated for 15 years, and after reaching the retirement age stipulated by the state, you can receive the basic pension on a monthly basis.

what's the difference between the payment period and continuous service? How to calculate the payment period?

years of payment and continuous service are two different concepts, which cannot be confused. The payment period is the cumulative period in which both the unit and the employee pay the endowment insurance premium according to the regulations, which is used to measure the length of the employee's payment period and is one of the bases for calculating the pension benefits. Continuous length of service is the actual working years that can be calculated cumulatively according to national regulations, which is used to measure the length of workers' working time. The continuous length of service has nothing to do with the payment, and it cannot be used as the basis for calculating the pension benefits. However, due to historical reasons, before the implementation of social endowment insurance, employees can calculate the continuous length of service according to state regulations, which can be regarded as the payment period. The number of years that employees have paid endowment insurance premiums in several different work units can be accumulated by stages, but the payment period cannot be calculated when the payment is interrupted.

how to calculate and pay the pension for early retirees?

according to the document No.13 [2] issued by the Ministry of Labor and Social Security, the Ministry of Civil Affairs and the Ministry of Finance, and No.171 letter [2] issued by the Ministry of Labor and Social Security, when calculating and distributing the basic pension, the basic pension except the personal account will be reduced by 2% for other early retirees every year in advance. The calculation method is: basic pension = [basic pension+transitional pension+a certain proportion of subsidies and adjustment funds] × [1-early retirement years × 2%]+personal account pension.

what is the basic pension adjustment system?

The adjustment system of basic pension, also called the normal adjustment mechanism of basic pension, basically means that the basic pension is adjusted appropriately on a regular basis according to a certain proportion of the salary increase of employees, so as to ensure that the living standard of retirees will not drop and share the consequences of economic development and social progress. The adjustment of the basic pension level shall be organized and implemented by the Ministry of Labor and Social Security and the Ministry of Finance with reference to the price index of urban residents' living expenses and the wage growth of on-the-job employees.

how are the actual payment years of various employees calculated?

the time when all kinds of employees start to calculate the actual contributions should be consistent with the stipulated time when individual contributions are started, that is, the newly recruited employees under the labor contract system after the end of August 1984, the temporary workers recruited before the end of February 199, the temporary workers recruited after March 1, 199, and the former national fixed employees will be paid the basic old-age insurance by individuals according to relevant regulations.

what are the penalties for enterprises to default or refuse to pay endowment insurance premiums?

according to the relevant regulations of the state and the province, enterprises who default or refuse to pay the old-age insurance premium will be punished as follows: First, from the date of default, they will be charged a late fee of 2‰ of the arrears every day, and the administrative department of labor security will order them to pay within a time limit. Those who refuse to pay the old-age insurance premium and overdue fine within the time limit shall apply to the people's court for compulsory collection according to law by the administrative department of labor security. Second, all enterprises that are in arrears with old-age insurance premiums are not allowed to evaluate and evaluate first, not to upgrade, and not to buy cars, mobile phones and other special goods. The third is to reduce the salary and bonus for the legal representative of the enterprise, and give economic punishment in accordance with the relevant provisions of the Interim Regulations on the Collection and Payment of Social Insurance Fees. The fine shall be paid by the individual and shall not be reimbursed by the unit.

what is paid wages?

payment of wages is the monthly sum of the total wages of enterprises and the total income of individuals.