Is there a big difference between civil servants' pensions after the merger?

There are still some differences between civil servants' pensions after the merger and their previous pensions. After the merger, civil servants' pension benefits have decreased. Before the integration of pension insurance, civil servants were not required to pay for their own pension insurance, but were responsible for doing so by the organizations and institutions in which they worked. As a result, civil servants did not spend much on their annual pension insurance contributions. However, after the pension integration, civil servants are required to contribute to pension insurance at a certain percentage, just like corporate employees, and their monthly contributions have increased.

Nevertheless, civil servants' salaries are higher, so when they pay pension insurance according to the regulations, their contribution base is relatively higher, and the amount of contribution is also higher. At the same time, due to the stability of civil servants' positions and better treatment, the unit is able to pay pension insurance for civil servants for a longer period of time. Under the influence of the two main factors, namely the contribution base and the number of years of contribution, civil servants are able to receive more pension after retirement. Therefore, even if the pensions are harmonized, civil servants' pensions are usually higher than those of ordinary employee pension insurance participants.

And the main reasons for the higher pensions for civil servants are as follows:

Social security contributions for organizations and institutions are paid strictly in accordance with the actual salaries of civil servants, and there are no delinquencies or interruptions. However, for employee participants in external enterprises, there is no guarantee that their employers will make social security contributions according to their salaries. In order to save costs, some enterprises choose to make social security contributions for their employees based on the lowest local social security contribution base, and may not be able to make social security contributions on time due to cash flow problems. If the employee changes jobs, there is also a situation where the social security is not guaranteed.

Organizations and institutions usually set up a construction annuity system as a supplement to the basic pension insurance, which is paid by the unit and the civil servants according to a certain percentage, all of which is remitted to the individual annuity account. After the civil servants retire, they can receive the full amount.

Compared with external enterprises, institutions provide more subsidies and benefits. This allows civil servants to receive additional subsidies or allowances at the same time, in addition to the most basic pension.