In fact, this co-ordination account is the generation that we are now participating in endowment insurance. We pay the money into the co-ordination fund, and then there will be money in this co-ordination fund, and then the national social security co-ordination fund will issue pension accounts to retired people. This overall account plays this role, because personal accounts are limited. When you basically receive a pension of about 12 years, the money in that person's account runs out, but after the money in your personal account runs out, the state will not stop paying your pension benefits. At this time, there will be this overall fund to give you full pension benefits, which is one of the functions of the overall account.

legal ground

Article 12 of the full text of the Social Insurance Law of People's Republic of China (PRC) * * * The employer shall pay the basic old-age insurance premium according to the proportion of the total wages of employees stipulated by the state and record it in the basic old-age insurance pooling fund. Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts. Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.