What does it mean for institutions to be included in social security?

Incorporation of public institutions into social security is a basic old-age insurance system for urban workers such as organs, institutions and enterprises to implement social pooling and individual accounts. Both units and individuals pay fees, and all pension benefits linked to payment are calculated and paid, and the "dual track system" is abolished from the institutional mechanism.

201514, People's Republic of China (PRC) * * and the State Council, China, issued the Decision on the Reform of the Pension Insurance System for Staff in Government Offices and Institutions [2015] No.2.

Decision on the reform of endowment insurance system for staff in government agencies and institutions. It is stipulated that the basic old-age insurance premium shall be shared by units and individuals. The proportion of the unit paying the basic old-age insurance premium (hereinafter referred to as the unit payment) is 20% of the total salary of the unit, and the proportion of the individual paying the basic old-age insurance premium (hereinafter referred to as the individual payment) is 8% of the salary paid by himself, which is withheld and remitted by the unit.

Establish a personal account for basic old-age insurance according to the amount of 8% of my salary, all of which are formed by individual contributions. The part where the individual salary exceeds 300% of the average salary of local employees in the previous year is not included in the base of individual contribution salary; If it is lower than 60% of the average salary of local employees in the previous year, the base of individual payment salary shall be calculated according to 60% of the average salary of local employees.

Extended data:

1, scope of reform

It is determined that the units managed by reference to the Civil Service Law, the organs (units) managed by reference to the Civil Service Law, public institutions and their staff participate in the endowment insurance of public institutions. This provision is in line with the current staffing management and funding guarantee system of government agencies and institutions. The units and personnel included in the reform implement the basic old-age insurance that combines social pooling with individual accounts, which fundamentally changes the institutional model from unit security to social security.

2, payment base and proportion

It is stipulated that units and their staff should pay endowment insurance premiums. 20% of the total wages paid by the unit; Individuals pay 8% of their salary, and the part of their salary that is three times higher than the average salary of local employees is not included in the payment base, and the part that is lower than 60% of the average salary is paid by 60%, that is, "300% is capped and 60% is guaranteed".

Individual contributions are all included in individual accounts, and interest is calculated uniformly. This is basically consistent with the basic old-age insurance policy for enterprise employees, which is conducive to system convergence. This is a major change in the financing mechanism of the old-age security. It has changed from a relatively single channel with financial contributions as the mainstay to a multi-channel financing with units and individuals paying and finance taking sole responsibility for the old-age insurance fund, forming a new mechanism shared by units, individuals and the government.

3, the basic pension benefits plan hair method

After the reform, the basic pension benefits are divided into two parts: one is the basic pension, which is based on the average of the average social wage and the salary paid by me, and is paid every 1 year/percentage point, that is, the longer the payment period, the higher the treatment level. Second, personal account pension, the accumulated principal and interest of individual contributions over the years divided by the specified number of months.

It can be seen from the annex of the State Council's "Decision", "Monthly Table of Personal Account Pensions": Retirees of the same age have the same number of months, so the more they pay, the higher the treatment level; However, the later you retire, the fewer months you plan to pay, that is, the smaller the divisor, so the higher the level of treatment.

This is a major reform to determine the retirement pension treatment mechanism. The pension standard does not calculate retirement benefits according to a certain proportion of the "final salary", but mainly according to the amount of contributions and the length of payment years. Every year or even every month, we can carefully calculate the changes of employees' positions and salaries, which can fully reflect the contributions made by individuals throughout their careers.

4. The convergence of treatment policies before and after the reform.

The general principle is that "the old will use the old methods, the new will use the new system, and the people of China will gradually transition". "Old people" refers to people who have retired before the reform. Their original treatment remains unchanged and they will participate in future treatment adjustment. "Newcomers" refer to those who have joined the work after the reform. When they retire in the future, the basic pension is the sum of the basic pension and the personal account pension. "China people" refers to those who took part in the work before the reform and retired after the reform, which is the largest group at present.

Baidu Encyclopedia-the State Council's decision on the reform of endowment insurance system for staff in government agencies and institutions