An article to read how to handle personal pension business

On November 25th, the personal pension system, which is a matter of concern to the whole society, was launched and implemented. The Ministry of Human Resources and Social Security, the Ministry of Finance, the State Administration of Taxation issued a notice specifying that the personal pension system in Beijing, Tianjin, as well as Shijiazhuang, Hebei, Xiong'an New Area, Shanxi Jinshi City and other 36 cities and regions to start the implementation of the first. Eligible people in the pioneer cities can voluntarily participate in the personal pension business.

At present, the Banking and Insurance Commission announced the first batch of 23 commercial banks can start personal pension business, are in succession with the Ministry of Human Resources and Social Security personal pension information management service platform for docking test. The list of commercial banks that have completed the docking test is published on the national social insurance public **** service platform, and the public can inquire through the platform and electronic social security cards and other channels. The Ministry of Human Resources and Social Security will update the relevant list in real time according to the commercial banks' system access.

Accelerating the construction of a multi-level, multi-pillar pension insurance system

I believe that everyone would like to have a more comfortable, higher-quality life in their old age, which cannot be separated from a certain level of financial security. First of all, what is a personal pension? To figure this out, you have to start with our country's pension insurance system.

China's multi-level pension insurance system mainly includes "three pillars". The first pillar is the basic pension insurance, including the basic pension insurance for urban workers and the basic pension insurance for urban and rural residents. The first pillar is based on basic protection, adopting a combination of social coordination and individual account system model, reflecting the social **** relief, has a relatively complete system system. At present, the number of people covered has reached 1.05 billion, with an accumulated fund of more than 6 trillion yuan, and the overall operation of the fund has been stable, with benefits paid out in full and on time.

The second pillar is the enterprise annuity, occupational pension, established by the employer and its employees, mainly play a supplementary role, has a good foundation for development. As of the second quarter of 2022, more than 75 million employees had participated in enterprise (occupational) annuities, accumulating funds of nearly 4.7 trillion yuan, with the role of supplemental pensions initially appearing.

The third pillar is personal savings pension insurance and commercial pension insurance, specifically including personal pensions and other personal commercial pension financial business two parts. Previously, there was no nationally standardized institutional arrangement, a shortcoming of the multi-level pension insurance system.

Jia Jiang, deputy director of the Department of Pension Insurance of the Ministry of Human Resources and Social Security, said that personal pension is the part of the third pillar with institutional arrangements, which is a supplementary pension insurance system supported by government policies, participated voluntarily by individuals, and operated on a market-oriented basis. The establishment of the personal pension system is an important measure to improve China's multi-level and multi-pillar pension insurance system, which is conducive to promoting the sustainable development of China's pension insurance system.

Sun Jie, deputy dean of the School of Insurance at the University of International Business and Economics, believes that (personal pension) is government-led, and then market-operated, which contains not only commercial pension insurance, but also public funds, financial products, and trust funds.

To sum up, personal pension is a supplementary pension insurance system supported by government policy, voluntary participation of individuals, and market-oriented operation, which adopts the mode of personal account, with individual contributions, full accumulation, market-oriented operation, and connects with the basic pension insurance, enterprises, and occupational pensions.

Purchasing a personal pension

can enjoy these preferential policies

So it seems that the personal pension is actually a supplementary pension insurance. Since we already have a basic pension insurance, some units have enterprise annuity, why do we need to buy a personal pension? What preferential policies can I enjoy by participating in the personal pension business?

Mo Rong, president of the China Academy of Labor and Social Security Sciences, said that it helps to help us personally organize our future pensions, personal pensions to implement a personal account, we can, according to need, to buy the appropriate financial products in line with the provisions of the financial products are through the government's audit, there is a whitelist.

In addition, the policy support for personal pensions is mainly reflected in tax incentives. The Ministry of Finance and the State Administration of Taxation issued a notice on personal pensions related to personal income tax policy shows that, in the contribution link, personal contributions to the personal pension fund account, in accordance with the limit of 12,000 yuan/year standard, in the consolidated income or operating income according to the actual deduction; in the investment link, credited to the personal pension fund account of the investment income is not levied on the personal income tax for the time being; in the receiving link, the individual receiving the The personal pensions are not included in the comprehensive income, and the personal income tax is calculated separately according to the tax rate of 3%, and the tax paid is included in the item of "wages and salaries".

Sun Jie said, after the market operation, it is a closed operation, in fact, is also a kind of letting individuals in their own future to save a sum of money, and then the government to provide tax incentives. For individuals, there are also benefits, one is the effect of tax savings, one is the future of an additional layer of protection.

Who can participate in the personal pension business

The ability to make the old age of life more a guarantee, personal pension system naturally attracted much attention. Previously, the Ministry of Human Resources and Social Security, the Ministry of Finance and other five departments jointly issued the implementation of the clear, personal pension system has a wide range of coverage. So what exactly are the people who can join the personal pension system, and why do such provisions?

Sun Jie said, now participate in the personal pension system of the population, should be to participate in the basic pension insurance coverage of some of these basic groups, if there is no first pillar of the basic pension insurance participation record, it is not possible to enter into the head of this system, but also can not enjoy the tax-deferred concessions.

From the function of the system, only to participate in the basic pension insurance, the realization of the basic premise, to participate in the personal pension to reflect the function of supplementary pension insurance. From the coverage point of view, China's basic pension insurance system has achieved full coverage of the system, the current number of participants reached 1.05 billion people, basically covering the working-age population. On this basis, the willingness of workers to participate can realize the long-term contribution of personal pensions, and continue to increase the accumulation of funds in personal accounts.

From account opening to receiving

How to operate the personal pension business

Personal pension business in the 36 first cities and regions to take the lead in the start of the implementation of the whole process from account opening to receiving, the whole process of how to operate it specifically?

The first step: through the national unified online service portal or commercial banks and other channels, select the "personal pension account opening" service, the establishment of personal pension accounts.

The second step: through the commercial bank mobile banking or counter and other channels, open a personal pension fund account. Through commercial bank channels, participants can complete the opening of personal pension accounts and personal pension fund accounts in one go.

Mo Rong, president of the China Academy of Labor and Social Security Sciences, said that two accounts need to be opened to participate in the personal pension, one for the personal pension and the other for the personal fund account. The account for personal pension is mainly for information recording, inquiry and service, followed by the capital account, which is used when we make contributions to buy products, collect earnings and receive pension.

Step 3:Contribute to the personal pension funding account in a lump sum or in installments during the natural year through channels such as cash, mobile banking or personal internet banking. It should be noted that the personal pension contribution implementation limit management, the current annual contribution limit of 12,000 yuan, more than the limit is not allowed to contribute.

Jia Jiang said:

"Such a contribution amount is mainly considered from the point of view of maintaining an appropriate level of supplementary pension insurance as well as reflecting the incremental reform to determine. In the future, the state will raise the upper limit of the contribution level in due course according to the level of economic and social development and the development of the multi-level pension insurance system. For participants, according to their own financial affordability, to flexibly choose whether to participate in individual pension contributions every year or in partial years, but also in the year to choose the amount of contributions they need, can be a one-time payment, can also be paid in installments."

Step 4: At the contribution stage, you can choose to enjoy tax incentives by using the "Individual Income Tax" App to scan the code when you make withholding contributions, that is, when you earn wages and salaries, when you make withholding contributions on the basis of the cumulative withholding method, or when you make remittance payments.

Step 5: Purchase personal pension products such as savings deposits, wealth management products, commercial pension insurance, public funds and other personal pension products through personal pension product sales channels.

Step 6:When you receive your personal pension, you can choose to receive it monthly, in installments or as a lump sum through commercial banking channels, and it will be transferred to your social security card after the commercial banking institution withholds and pays personal income tax on your behalf.

Sun Jie: "The first condition is to reach the legal retirement age, after retirement to receive, the second belongs to your incapacity to work, and there is another is such as moving abroad, settled abroad, this case can also be received in advance. For example, did not reach the retirement age, early death, or after reaching the retirement age, his personal account has a balance, that part of the pension children can inherit."

Individuals participating in the entire process of personal pension information, all through the national unified online service portal query personal pension-related accounts, contributions, transactions, receiving and other personal rights and interests of the information, and at the same time can query the personal pension products and issuing institutions and other information.

How can the money in the personal pension fund account be used

After the money is deposited into the personal pension account, how can this money be used, and how to realize the preservation and appreciation?

In the "Personal Pension Implementation Measures", it is clear that personal pensions are implemented in the individual account system, the contribution is entirely borne by the participant's personal responsibility, the independent choice to purchase savings deposits in accordance with the provisions of the savings deposits, wealth management products, commercial pensions, public funds and other financial products, the implementation of the full accumulation, in accordance with the relevant provisions of the State to enjoy preferential tax policies.

Jia Jiang: "Personal pension products have diversity, mainly to meet the investment preferences of different investors as well as demand. Is conducive to meeting the investment needs of different groups, but also conducive to promoting market competition, prompting financial institutions to develop more and better financial products to participate in the personal pension system. Compared with general financial products, personal pension products it should have operation security, mature and stable, standardized, focusing on long-term value preservation.

The Implementation Measures stipulate that participants independently choose the personal pension fund account funds to buy personal pension products of varieties and amounts. Personal pension product sales organization to "sales appropriateness" as the principle, do a good job of risk tips, shall not take the initiative to promote to the participants beyond their risk tolerance of personal pension products.