2023 New Regulations on Social Security Reform Five new policies are released for those who have pai

Mondo Social Updated on 2024-01-28

In the face of an aging population, economic and social changes, the need to improve social security coverage and fairness, and technological advances in digitalization and informatization, China** launched a series of new social security regulations in 2023. These reforms aim to make the social security system more flexible, inclusive and efficient, especially with new solutions for those who have contributed for less than 15 years.

The state has introduced five new regulations and options:

1.Annual Supplementary Payment:Those who have reached retirement age but have made social security contributions for less than 15 years can retire and receive a monthly pension after paying the full amount of contributions. Late fees apply.

2.Delayed retirement:Those who have reached retirement age but have paid social security for less than 15 years can choose to continue paying social security until the 15-year requirement is met. It can be delayed for up to 5 years.

3.Converted to resident social securityIf the payment period is less than 15 years and you do not want to make up the payment, you can choose to switch to resident social security, but the resident social security treatment is lower than that of employee social security.

AI Assistant Creation Season 4One-time supplementary payment: Specific groups can choose to make a one-time supplementary payment, including: educated youth who went to the countryside from 1961 to 1982, retirees of state-owned enterprises or public institutions before 2011, and retirees with local household registration who participated in social security before 2011.

5.Waiver of payment:Those who have reached retirement age but have only paid short-term social security and are not eligible for the one-time supplementary contribution policy can choose to waive the contribution and withdraw the part of the individual's previous contributions.

These new policies give people who are underpaying more flexibility to respond to their individual circumstances and needs.

Several measures introduced by the new regulations are of great significance:

1.A variety of top-up payment options are available:The new rules allow these people to make annual catch-up contributions or defer retirement to meet the 15-year contribution requirement, giving them more choice and flexibility. This means that even if you don't have enough years of contributions near retirement age, you still have the opportunity to get a pension through catch-up contributions or delayed retirement.

2.One-time catch-up payment opportunities for specific groups:For specific groups (e.g., educated youths who went to the countryside from 1961 to 1982, employees of state-owned enterprises or public institutions who retired before 2011, etc.), the new regulations provide an opportunity for a one-time supplementary payment, so that they can solve the long-term accumulation of social security problems at one time.

3.Options for Switching to Resident Social Security:If the catch-up contribution is not cost-effective or impossible, individuals may choose to switch from Employee Social Security to Resident Social Security, which provides a viable alternative for those who may not be able to meet the 15-year contribution requirement, albeit with lower resident social security benefits.

4.Some groups of people are allowed to waive their contributions and withdraw their personal portions:For those who don't think it's cost-effective to continue making Social Security contributions, the new rules allow them to stop paying and withdraw their previous individual contributions. This flexibility respects individual choice, although forgoing contributions means losing future pensions and health insurance.

Taken together, these new rules provide more options and flexibility for people who do not meet the traditional 15-year contribution requirement, addressing some of the core issues they face, such as access to pensions, continuity of social security contributions, and solutions for those in special circumstances. These changes reflect the humanization of policies and efforts to adapt to the needs of modern society.

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