In the past few years, the topic of pension consolidation has attracted a lot of attention in society. It is like a mirror, reflecting the fairness and justice of society, but also reflecting our expectations and aspirations for future life.
In short, pension consolidation is the integration of the previously diversified and decentralized pension system into a unified system. The aim is to eliminate differences in pension benefits between different groups and to achieve a more equitable distribution of benefits.
In order to deal with this historical legacy and the unfairness it brings, China launched a pension system reform in 2014, aiming to push the pension system to a fair and sustainable track.
The need for pension consolidation
In the past few decades, with the rapid development of our economy, the labor market has also become more active. However, due to various reasons, the pension system has not kept up with this pace, forming a diversified and decentralized pattern.
In the previous pension system, there were differences in the calculation of pensions between employees of enterprises and employees of government agencies and institutions. This disparity leads to unfair treatment between different groups after retirement, with civil servants often receiving higher pensions than corporate employees.
This issue has led to widespread questioning of the fairness of the system. In order to solve this problem, it was decided to carry out the reform of the pension system and merge the two systems to eliminate the unfairness of pension treatment and make the social security system more fair and sustainable.
The challenge of superannuation consolidation
While the disparity in treatment of different groups is an issue that needs to be addressed, how to achieve equitable integration is an extremely complex one. In addition, the implementation of merger also needs to overcome many practical difficulties, such as the complexity of system design and operation, and the possible resistance of some groups.
In order to achieve a smooth integration of the two systems, a transition period from 2014 to 2024 was set. During this period, the pensions of retirees will be compared according to the results of the old and new regimes.
Specifically, if the pension calculated according to the old system is higher than that of the new system, the pension is paid according to the old system;Otherwise, it is based on the old system and calculated according to the difference between the old and the new and a certain percentage of returns.
The percentage of returns given is set in such a way that the return is 10% for the first year, then increases by 10% each year until it reaches 100% at the end of the transition period. This design is designed to ensure that the pension benefits of retirees are not significantly reduced during the transition period, and that a smooth transition can be achieved.
We are pleased to see that the integration of pensions is an important step to improve China's social security system and achieve social security fairness. From an overall and long-term perspective, this reform is in line with the common interests of the country and citizens, helps to achieve the fairness of social security treatment for different groups, and is an important measure to achieve the goal of common prosperity.
However, we also need to realize that fairness doesn't mean everything is the same. In fact, this reform has not completely eliminated the pension gap between different groups of retirees. To achieve true equity, we need deeper reforms and explorations.
Looking ahead, we expect that with the advancement of pension integration, pension security can be more fair and perfect. ** We will continue to improve the system to improve the level of living security for retirees and ensure that they have access to a reasonable pension income.