Recently, Beijing, Tianjin, Guangdong and other places have successively introduced basic pension adjustment plans for retirees. According to incomplete statistics, 22 provinces and cities across the country have announced pension adjustment plans since this year.

In April this year, the Ministry of Human Resources and Social Security and the Ministry of Finance issued a notice clarifying that starting from January 1, 2017, the basic pension level for retirees from enterprises and government institutions would be adjusted to an overall increase of about 5.5%, and all regions were required to

It will be submitted to the Ministry of Human Resources and Social Security and the Ministry of Finance for approval and then organized for implementation.

On April 26, Shanghai took the lead in announcing the pension adjustment plan for corporate retirees, and various regions have since followed suit.

It is understood that Guangxi, Sichuan, Shanxi and other places have clearly required that the increased basic pension be paid in place before the end of July, and Shanghai has completed the payment in June.

After adjustments, how much can retirees' pensions increase?

In accordance with the requirements of previous notices issued by the Ministry of Human Resources and Social Security, regions that have announced adjustment plans have generally adopted an adjustment method that combines quota adjustments, linked adjustments and appropriate tilts.

In the quota adjustment part of the data map, the rate of increase varies from place to place. Fujian has the lowest increase of 35 yuan per person per month. Liaoning's quota adjustment is divided into five levels. The highest level is for retired workers who worked before the founding of the People's Republic of China, with an increase of 35 yuan per person per month.

An increase of 75 yuan.

For the linked adjustment part, taking Shanghai as an example, it will first increase by 2.5 yuan every year based on the individual’s employment insurance payment period (including the deemed payment period); then it will increase by 2.5% based on the individual’s basic pension in December 2016.

In accordance with the requirements of documents issued by the Ministry of Human Resources and Social Security, pension adjustments in various localities should appropriately take care of groups such as elderly retirees and enterprise retirees in difficult and remote areas.

Regions that have announced adjustment plans have issued relevant rules to appropriately increase the pensions of elderly retirees; five provinces including Guangxi and Sichuan have issued rules to take care of corporate retirees and other groups in difficult and remote areas.

After sorting out, 10 provinces and cities including Guangxi, Sichuan, and Guangdong clearly stated that the adjustment range is around 5.5%, which is consistent with the guidance line announced by the Ministry of Human Resources and Social Security this year. The per capita basic pension adjustment range for enterprise retirees in Jiangsu and Heilongjiang is more than 6.5%.

%, but lower than the 6.5% guidance line issued by the Ministry of Human Resources and Social Security last year.

After this adjustment, what level can the pensions of enterprise retirees in various places reach?

Currently, only Beijing and Guangxi have clearly adjusted average pension levels, reaching 3,770 yuan and 2,305 yuan respectively.

According to public information, the average pension situation of enterprise retirees in 17 regions across the country in the past three years.

Public data shows that Beijing and Shanghai are economically developed, and the average monthly pension of enterprise retirees in the past three years has exceeded 3,000 yuan; although the level of economic development in Ningxia, Xinjiang, Qinghai and other places is not as good as that of the central and eastern regions, the average monthly pension of enterprise retirees has

However, the pension level exceeds that of Guangdong, Shandong and other places.

It is worth mentioning that although Tibet did not announce the average monthly pension for enterprise retirees in 2016 and 2017, its average monthly pension for enterprise retirees in 2015 was as high as 3,678 yuan. According to the 6.5% increase and increase in 2016 stipulated by the Ministry of Human Resources and Social Security

With an increase of 5.5% in 2017, Tibet's average monthly pension for corporate retirees in 2017 may be as high as 4,132.5 yuan, making it the region with the highest average monthly pension for corporate retirees in the country.

It is understood that since 2005, China has increased the basic pensions of corporate retirees for 13 consecutive years.

From 2005 to 2015, most corporate retiree pension increases remained at 10%. In 2016, the increase fell to 6.5%, and the 5.5% increase in 2017 hit a new low in recent years.

Image source: China Economic Weekly In this regard, Su Hainan, vice president of the China Labor Society, said that this year’s 5.5% increase is consistent with China’s current economic slowdown and is compatible with the payment capacity of the social security fund. It will remain 10% in the long term.

An increase of more than % is unsustainable.

“The main reason is that China’s economic growth has slowed down in recent years, wage growth has also slowed down, prices have not risen much, and the pressure on the social security fund’s payment affordability has gradually increased. Comprehensive considerations, based on sustainable arrangements for retirees

Reasonable growth of pension funds requires slowing down the growth rate of pension funds,” Su Hainan said.

Lu Aihong, spokesperson of the Ministry of Human Resources and Social Security, also said at the first quarter press conference that the decision to increase the increase rate by about 5.5% is a prudent decision made taking into account the new normal of China's economic development and the new situation of population aging, and taking into account economic development as a whole

The adjustment range is determined based on various factors such as conditions, employee wage levels, consumer price index, and population aging.

Facing the slowdown in economic growth and the acceleration of China’s aging population, will the scope of pension adjustments continue to decline in the future?

Su Hainan believes that whether it will continue to decline is still uncertain, but it is difficult to see a growth rate of as high as 10% again.