The urgency of pension system reform under the challenge of aging
China is entering the stage of deep aging, and how to build and optimize the pension system to ensure the economic security of the elderly population has become the core issue of policy formulation.
The traditional pension calculation system is mainly based on the amount and number of years of individual contributions, but this model does not fully reflect the social contribution and fairness of long-term workers.
The strengthening role of seniority factor in pension adjustment
In order to respond to social changes and protect the rights and interests of workers, the current pension reform has strengthened the length of service as an important adjustment parameter.
Length of service refers to the number of years an individual has served in the same occupational field continuously, and is introduced to compensate workers who consistently dedicate their careers despite their low income.
This means that under the new pension adjustment mechanism, the longer the employee, regardless of the level of contributions, the amount of pension he or she will receive after retirement will be more advantageous.
As a result, the following three types of people will benefit:
1.The treatment of long-term workers has been improved.
For retirees with a long length of service, the increase in the weight of seniority is directly reflected in the growth of pensions, which is not only a substantial reward for their years of service, but also an important guarantee for the quality of life in their later years.
2.Protection of the rights and interests of low-income people.
The new policy pays more attention to balancing the interests of all strata, and helps to alleviate their pension burden by giving higher value to the length of service, so that low-income but long-term workers are no longer in a disadvantageous position in pension distribution.
3.Special industries and early retirements are concerned.
Employees in special industries such as education, medical care, and public services, as well as those who retire early due to age or health reasons, have been adjusted to make their post-retirement treatment more reflective of their career accumulation and contributions.
The far-reaching impact of the change in the calculation of pensions through length of service
1.Shifts in social values.
With the rise of seniority in pension adjustment, people have a new understanding of employment outlook and career stability. More and more workers are inclined to choose a long-term and stable career path, pursuing long-term and stable pension benefits rather than short-term high salaries**.
2.Changes in enterprise human resource management.
Lower employee turnover rates can help companies reduce training costs, maintain team stability, and better plan long-term development strategies. As a result, companies may place more emphasis on employees' career planning and development to motivate them to serve the company for a long time.
3.Individual career development planning.
The strengthening of the seniority policy has prompted individuals to pay more attention to long-term planning and development in their careers, and through the continuous accumulation of work experience and professional skills, they have not only enhanced their competitiveness, but also laid the foundation for better pension benefits in the future.
Including the length of service in the core adjustment index of pension is an important measure to cope with the challenge of population aging, safeguard the rights and interests of workers and social justice.
This reform process not only demonstrates the country's respect for the fruits of every citizen's hard work, but also contributes to the formation of a good social custom of "working hard and providing for the elderly with peace of mind".
We look forward to the future pension system can be improved in continuous practice, so that every citizen can enjoy the pension treatment that matches his or her contribution, and jointly build a more harmonious, inclusive and sustainable social security environment.