2024 has arrived, and one of the most concerned topics for the majority of retirees is the distribution of pensions. Some people say that the pension is still related to the length of service, and the longer the length of service, the higher the pension. Some people say that the pension is no longer linked to the length of service, but to the number of years of contribution and the average salary. So, which statement is more accurate? Today, we are going to answer this question for you.
First of all, we must understand that China's pension system is divided into two categories, one is the pension of enterprise retirees, and the other is the pension of retirees of government agencies and institutions. The calculation method and adjustment method of these two types of pensions are different, so we have to look at them separately.
The pension of enterprise retirees is mainly composed of two parts, one is the basic pension and the other is the personal account pension. The basic pension is determined on the basis of the local average social wage at the time of retirement, the average contribution index of the person and the number of years of contributions. The personal account pension is determined according to the amount of the person's contribution and the number of months of payment.
From this formula, it can be seen that the pension of corporate retirees is related to the length of service, but it is not the only factor. The longer the length of service and the more years of contribution, the higher the proportion of the basic pension, but the average contribution index and the average social wage will also affect the amount of the basic pension. The personal account pension mainly depends on the amount of the person's contributions, and is not directly related to the length of service.
Therefore, the pension of enterprise retirees has a certain relationship with the length of service, but it is not absolute. The longer the length of service, the greater the magnitude of the pension**, but it also depends on the changes in other factors.
The pension of retirees of government institutions is more complicated, because it includes four parts, namely basic pension, personal account pension, transitional pension and occupational annuity. The calculation method of basic pension and personal account pension is the same as that of enterprise retirees, and will not be repeated. The transitional pension is calculated for the deemed contribution period before October 2014, mainly to ensure the treatment of retirees under the old method. Occupational pension is a supplementary pension that is jointly paid by the unit and the individual.
From this formula, it can be seen that the pension of retirees in government institutions and institutions is also related to the length of service, but it is not the only factor. The longer the length of service and the more years of deemed contributions, the higher the proportion of transitional pensions, but the transitional coefficient and the pension calculation base will also affect the amount of transitional pensions. The calculation method of basic pension, personal account pension and occupational annuity is the same as that of enterprise retirees, and the relationship with length of service is also the same.
Therefore, the pension of retirees in government institutions and institutions also has a certain relationship with the length of service, but it is not absolute. The longer the length of service, the greater the magnitude of the pension**, but it also depends on the changes in other factors.
To sum up, we can conclude that whether it is a retiree of an enterprise or a retiree of a government institution, the pension has a certain relationship with the length of service, but it is not the only determining factor. The longer the length of service, the greater the magnitude of the pension**, but it also depends on the changes in other factors. Therefore, we cannot simply think that the pension is still linked to the length of service, or the pension is no longer linked to the length of service, but to consider various factors in order to make a more accurate judgment.
I hope this article can be helpful to you, if you have any questions or suggestions, please leave a comment. Thank you for reading!