Old-age insurance system
In 1984, the Chinese around the old-age insurance system reform. In 1997, the Chinese government formulated the "on the establishment of a unified the basic old-age insurance system for enterprise employees of the decision" to begin to establish a unified nationwide urban basic old-age insurance system for enterprise employees.
China's basic old-age insurance system for the implementation of social pooling and individual accounts combined model. The basic old-age insurance covers workers in urban enterprises; all urban enterprises and their workers must fulfill the obligation to pay the basic old-age insurance. At present, the proportion of businesses pay about 20% of the total wages of the individual contribution rate as my salary to 8%. Basic old-age insurance premium paid by enterprises as part of the fund for the establishment of co-ordination, the rest goes to personal accounts; individual basic old-age insurance premium paid by personal accounts. The basic pension from the basic pension and individual pension accounts formed the basis of the pension from the social pool fund, pension on the basis of the average wage for workers and the community to 20% on individual accounts for personal accounts funded pension amount of a / 120. Pensions in personal accounts can be inherited. For the new system before the implementation to work, and retired after the implementation, but also increase the pension for the transitional period.
After several years of promoting the basic old-age insurance of insured workers by the end of 1997 were 86.71 million to 108.02 million at the end of 2001; the number of people receiving the basic old-age pensions from 25.33 million to 33.81 million people, the average monthly basic pension also from 430 yuan to 556 yuan. In order to ensure timely and full payment of basic pensions in recent years, the Chinese government efforts to improve the basic old-age insurance fund, co-ordination level, gradually to the provincial co-ordination, and constantly increase the basic old-age insurance fund financial inputs. From 1998 to 2001, only the central government expenditures for basic old-age insurance subsidies amounted to 86.1 billion yuan. At present, the basic realization of the basic old-age pensions by social service agencies (such as banks, post offices) the issuance, in 2001 the social distribution of the basic pension rate of 98%. In addition, government employees and retired persons are still practicing the old-age security system.
In 1991, China some of the rural old-age insurance system started in the pilot. Rural old-age insurance system in order to "be paid mainly by grants, supplemented by the collective, supported by government policies" as the basic principle of the accumulation of funds in personal accounts.
From 2009 to carry out a new pilot work of rural social old-age insurance.
Base for calculating accrual of pension insurance:
If my salary is lower than the average wage of local employees, 60% over the previous year, according to the average wage of local employees, 60% over the previous year to determine the base payment; if I pay more than the average wage of local employees, 300% over the previous year, according to the local staff over the previous year 300% of the average wage to determine the base payment; if my wages of workers in the local average wage last year between 60% -300%, according to my old-age insurance, real wage income to determine the base payment.