Has Shanghai social security been co-ordinated nationwide?

Shanghai social security will implement national overall planning in 2022.

This time, the national overall plan is employee pension insurance. Its model is both complex and simple. Simply put, it is to pay money to the pool at work and withdraw money from the pool after retirement. The pension that the old people receive now is the money that the young people pay now. This model is called pay as you go.

8% of the employee's contribution base is given to the individual account, and 16% of the enterprise's contribution base is given to the overall account. 16% part is the money paid by the enterprise, but in fact the wool is on the sheep. Generally speaking, employees pay three copies of money at a time, one for personal account and two for overall use. It's just that before, every place was fragmented and had its own pool. Now the national master plan is to merge all the ponds into one big pond.

Reasons for implementing national overall planning of social security

1, the problem of regional separation. Long-term fragmentation leads to great differences in pension insurance policies implemented in different places; In some areas, the endowment insurance reserve has a surplus, while in some areas, the income can't make ends meet, and the regional differences are very obvious. Money is distributed in big cities, but most of it still goes back to hometown to support the elderly. For economically developed areas, there are more people making friends and fewer people getting paid, while economically backward areas are just the opposite, resulting in increasing differences between regions.

2. The problem of transfer in different places. Due to the independence of local pools, when people move between different regions, they need to go through complicated cross-regional transfer procedures. Moreover, due to local protection, only the personal account part can be transferred, as the overall planning part of the big head, and no transfer or only a part can be transferred. In order to alleviate regional differences, the state has been implementing the system of "regional overall planning+central adjustment". Each province will hand over a portion to Ministry of Human Resources and Social Security in proportion, and Ministry of Human Resources and Social Security will transfer the payment according to the actual situation to balance the regional differences.