The General Office of the State Council issued the "Opinions on Promoting the Development of Personal Pensions", which is a specific measure to build a multi-level, multi-pillar pension insurance system and standardize the development of the third pillar pension insurance requirements. It is of great significance for meeting the people's diversified pension insurance needs.
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1. Brief description of the key points of personal pensions According to the "Opinions", personal pensions implement a personal account system, and contributions are fully borne by the participants and fully accumulated.
1. Insured people: people who have participated in social security.
Workers in China who participate in the basic pension insurance for urban employees or the basic pension insurance for urban and rural residents can participate in the personal pension system.
2. Insurance participation mode: Participants establish personal pension accounts through the personal pension information management service platform (hereinafter referred to as the information platform), and enjoy preferential tax policies based on this.
Relevant scholars believe that tax incentives will adopt the EET model, that is, tax exemption during the insurance participation stage and capital utilization stage, and taxation during the pension receiving stage.
Currently, the upper limit for participants' annual personal pension contributions is 12,000 yuan.
“The State Council executive meeting held on September 26 decided to implement personal income tax preferential treatment for personal pensions with policy support and commercial operation: payers will be deducted before tax according to the annual limit of 12,000 yuan, and investment income will not be taxed for the time being.
The actual tax burden on income is reduced to 3%. 3% is equivalent to the personal tax rate for wages in the range of 5,000 to 8,000 yuan. "3. How to invest and operate pensions? The insured person uses personal pensions in financial institutions that meet the regulations.
They purchase financial products through authorized channels in compliance with laws and regulations and bear the corresponding risks themselves.
Investment targets include bank financial management, savings deposits, commercial pension insurance, public funds and other financial products that are safe in operation, mature and stable, have standardized targets, and focus on long-term value preservation, for individuals to choose independently.
Personal pension fund accounts are closed and their rights and interests belong to the participants, and no early withdrawal is allowed unless otherwise provided.
Relevant financial institutions and financial products are determined by relevant financial regulatory authorities and released to the public through information platforms and financial industry platforms.
4. How to receive it? If you reach the social security receiving age, completely lose the ability to work, settle abroad, etc., after the information platform verifies the receiving conditions, you can receive personal pensions on a monthly, installment or one-time basis. Once the payment method is determined, it cannot be changed.
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After a participant dies, the assets in his personal pension fund account can be inherited.
5. How to supervise? The Ministry of Human Resources and Social Security and the Ministry of Finance provide macro guidance for the development of personal pensions. According to their responsibilities, they formulate specific policies and conduct operational supervision on personal pension account settings, payment ceilings, benefit collection, tax preferences, etc., and conduct regular operational supervision.
Disclose relevant information to the public.
The tax department implements tax collection and administration of personal pensions in accordance with the law.
2. The necessity of personal pension accounts Let’s start with my country’s current pension insurance system.
China's pension insurance system is a "three-pillar" system. The first pillar is basic pension insurance, that is, urban and rural pension insurance; the second pillar is enterprise/occupational annuity; and the third pillar is personal savings pension and commercial pension.
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1) As the first pillar, "social security" adopts a pay-as-you-go system, that is, current employees pay money, which is distributed to current retirees after coordination.
Payment of social security contributions is made jointly by individuals and enterprises.
In the early days of the establishment of the system, the system worked well. However, as we entered an aging society and the population structure deteriorated, the pay-as-you-go social security fund was put to the test.
According to the "China Pension Actuarial Report 2019-2050", the social security fund will have a current deficit of 100 million yuan by 2028. If financial subsidies are not taken into account, the current balance will already be negative in 2019.
At the same time, the cumulative balance of social security funds will also reach a peak of one trillion yuan in 2027, and then begin to decline rapidly, and the cumulative balance will be exhausted by 2035.
Both financial subsidies and delayed retirement policies have great limitations.