In 2024, will the pension be merged, will the enterprise and the agency pension be the same? Who will benefit more?
The background and importance of China's pension insurance merger.
With the advent of the "ten-year transition period" in October 2024, the pension accounting method of personnel in China's organs and institutions should also be unified, and all sectors of society have great expectations for this. There are also some people who hope that the retirees of enterprise employees and employees of public institutions can enjoy the same pension, will this happen? In fact, the "integration" of pension ** is not "annuity integration" in a simple sense, but "annuity integration". With the consolidation of pension systems, the biggest beneficiaries will be the elderly who are retired but receive a pension. However, this is not the case with the rapid increase in pensions as some would expect, so that everyone can enjoy the same high income. In fact, through the comparison of the calculation formulas of various pensions, we can see that the same time, the same payment, the implementation of the pension insurance system will be the same. Therefore, it is unlikely that the pension of the enterprise and the institution will be the same.
China's current pension insurance system mainly includes the basic pension insurance system and the personal account insurance system. The personal account pension is determined according to the calculation and payment month determined by the balance of the personal account and the retirement age. For example, when a person's average social salary is 10,000 yuan, if they pay a basic pension for 1 year, they can get 1% of the pension calculation, and the calculation limit for each month is 800 yuan. However, if the differential contribution basis is adopted, the expectation of obtaining a basic pension insurance equivalent to the higher payment base will cause social injustice and thus reduce the enthusiasm of the insured. Therefore, the calculation of pension cannot be completely applied to the same equation, and various factors must be taken into account.
There is a certain difference between the pension of the enterprise and the ** institution. At present, China's institutions and institutions are still implementing the transitional pension system, mainly for those who do not have a basic pension insurance personal account and occupational annuity before September 2014, and give a certain degree of compensation. In addition, there is also an endowment insurance system similar to the enterprise annuity, that is, the occupational annuity. However, at present, many enterprises in China have not set up endowment insurance for employees, which has caused many people to lack awareness of endowment insurance. Therefore, the pension of enterprises and ** institutions will not be absolutely balanced, but there will be certain differences.
The reconciliation of pensions is also an important issue. China's pension insurance system is adjusted nationwide, with the increase of the average social wage level and the change of the price level. This is the ninth year since 2016 and the ninth. There are three types of adjustment methods: quota adjustment, peg adjustment and moderate adjustment. If this is the case, the less the pension income will grow, so that the value of the pension can be maintained. Taking Shandong Province as an example, if the basic pension of enterprise employees is 4,000 yuan and the working life is 40 years, it can be increased by 148 yuan, an increase of 37%；The basic pension of employees of government institutions is 6,000 yuan, an increase of 173 yuan, an increase of 288%。Due to the change in the time and amount of pension payment, the rate of pension increase is also different, so the adjustment of pension will better serve low-income groups.
Overall, even if a unified pension system is implemented, pensioners will receive more benefits. It is not possible to align pensions between businesses and institutions. However, only by establishing a sound social security system can all types of workers enjoy the corresponding increased benefits, so as to maintain and increase the value of enterprise annuities. Therefore, in the future reform and adjustment of the pension insurance system, it is still necessary to take into account the interests of all parties in order to make the distribution of social welfare more fair and reasonable.