The personal pension system will be fully implemented! If you want to know something, look here

Mondo Social Updated on 2024-02-01

Personal pensions

Recently, the Ministry of Human Resources and Social Security held a press conference for the fourth quarter of 2023. What is the good news about personal pensions? Check it out!

From the perspective of the overall social security situation

By the end of 2023, the number of people insured in basic old-age, unemployment, and work-related injury insurance in the country will be 106.6 billion people, 24.4 billion people, 30.2 billion people, an increase of 13.36 million, 5.66 million and 10.54 million year-on-year.

Three social insurance incomes for the whole year** 792 trillion yuan, expenditure 709 trillion yuan, with a cumulative balance of 8 at the end of the year24 trillion yuan, ** operation is generally stable.

It was implemented in 36 cities and regions.

Personal pension system.

It is currently running smoothly

Positive results have been achieved in the advance work

The next step will be to move forward.

The personal pension system is fully implemented

Personal pension refers to:**Policy support, individual voluntary participation, market-oriented operation, and the realization of pension insurance supplementary functionssystem.

The personal pension implements the personal account system, and the payment is entirely borne by the participant, and the independent choice to purchase financial products such as savings deposits, wealth management products, commercial pension insurance, and public offerings in accordance with the provisions of the individual pension system is implemented, and the preferential tax policies are enjoyed in accordance with the relevant provisions of the state.

To put it simply, participating in a personal pension is enjoying.

On the basis of the basic pension insurance benefits imposed by the state.

Increased channels for supplemental pension security

For the insuredOne more pension income

Who can participate in a personal pension?

Opinions on Promoting the Development of Personal Pensions stipulates that the scope of participation in the personal pension system is:Workers who participate in the basic old-age insurance for urban employees or the basic old-age insurance for urban and rural residents。Persons who have participated in the basic old-age insurance for urban employees or the basic old-age insurance for urban and rural residents, and have not yet met the conditions for receiving basic old-age insurance benefits, can participate in the personal pension system.

Retirees have received basic pension insurance benefits and no longer participate in the personal pension system

How do I open an account and pay the fee?

Participants' participation in personal pensions shall be approvedNational Social Insurance Public Service Platform, National Human Resources and Social Security Government Service Platform, Electronic Social Security Card, Handheld 12333 APPand other national unified online service portals orCommercial banking channelsOpen a personal pension account on the information platform。The personal pension account is used to register and manage personal identity information, and is associated with the basic pension insurance relationship, recording personal pension payment, investment, receiving, deducting and paying individual income tax and other information, which is the basis for participants to participate in personal pension and enjoy preferential tax policies.

After that,Choose a commercial bank that meets the requirements to open or designate your only personal pension fund account(It can also be designated through other personal pension product sales agencies that meet the requirements). As a special special fund account, the personal pension fund account is bound to the personal pension account to provide participants with services such as fund deposit, payment quota registration, personal pension product investment, personal pension payment, individual income tax payment, and information inquiry of funds and related rights and interests.

The personal pension contribution shall be borne by the participantThe annual payment limit is 12,000 yuanYesMonthly, installment, or yearlyThe payment amount is accumulated in the natural year and recalculated in the following year, which is very flexible.

Funds in the fund account, yesIndependently choose to purchase savings deposits, wealth management products, commercial pension insurance, and public offerings that meet the regulationsand other personal pension products.

The financial products participating in the personal pension shall be determined by the relevant financial regulatory authorities, and:passOver the personal pension information management service platform(National Social Insurance Public Service Platform, National Human Resources and Social Security Government Service Platform, Electronic Social Security Card, etc.).and the financial industry platform to the public

For the specific income situation, the participant canCheck through the sales agency of the financial product

How many taxes can be deducted?

Personal pensions are subject to tax deferral. In the payment processThe contribution of individuals to the personal pension fund account shall be deducted from the comprehensive income or business income in accordance with the annual limit standard of 12,000 yuan; In the investment linkThe investment income included in the personal pension fund account is not subject to individual income tax for the time being; In the collection processThe personal pension received by an individual is not included in the comprehensive income, and the individual income tax is calculated and paid separately at a rate of 3%.

How do I claim it?

The personal pension fund account is closed, and the participantsThose who meet any of the following conditions can receive a personal pension on a monthly, installment or one-time basis

1) Reaching the basic pension age;

2) total loss of ability to work;

3) Going abroad (outside the territory) to settle down;

4) Other circumstances provided for by the state.

When a participant receives a personal pension, the commercial bank will verify the participant's eligibility through the information platform and transfer the funds to the participant's social security card bank account.

If a participant dies, the assets in his personal pension fund account can be inherited。If the social security card is cancelled due to the participant's overseas (territory) settlement, death, etc., the commercial bank will transfer the funds in the participant's personal pension fund account to the fund account designated by the participant or his heirs.

Can I change the bank of my personal pension fund account?

ParticipantsCan be changedThe bank where the fund account is openedAfter transferring the funds from the original funding account to the new funding account, the original funding account is cancelled

If part of the payment has purchased personal pension products, the part of the funds that have not been purchased can be transferred first, and then the corresponding funds can be transferred after the redemption of personal pension products.

The original fund account can no longer pay fees and purchase products before the funds and assets are fully transferred, and can only be cancelled after the complete transfer.

Inherit the income of the personal pension account

Do I need to pay taxes?

Participate in personal pensions and enjoy tax incentives. According to the announcement on individual income tax policies related to personal pensions (Announcement No. 34 of 2022 of the Ministry of Finance and the State Administration of Taxation), the payment of individuals to the personal pension fund account shall be deducted from the comprehensive income or business income according to the annual limit standard of 12,000 yuan; The investment income included in the personal pension fund account is not subject to individual income tax for the time being; The personal pension received by an individual is not included in the comprehensive income, and the individual income tax is calculated and paid separately at a rate of 3%.

If a participant dies, the assets in his personal pension fund account can be inherited。If the social security card is cancelled due to the participant's overseas (territory) settlement, death, etc., the commercial bank will transfer the funds in the participant's personal pension fund account to the fund account designated by the participant or his heirs.

Inheritance is a special form of entitlement and should alsoAccording to the regulations, the individual income tax shall be calculated and paid at a separate rate of 3%.

Editor of this issue: Zhang Zixuan.

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