When will the dual-track social security system be cancelled?

When will the dual-track pension system really end? The so-called dual-track pension system means that retirees use different calculation methods to calculate pension benefits. It is mainly reflected in the fact that retirees in enterprises and institutions adopt different calculation methods, so it is called dual-track system. But in fact, the dual-track system has been effectively changed from 20 14 to 10. Only from June 20 14, 10, although the employees of our institutions paid the old-age insurance, they did not actually calculate the pension according to the new standard, so a transition period of 10 was set.

During the transitional period of 10, China people, as government agencies and institutions, adopted the principle of combining the old with the new, taking the high and keeping the low. This means that a considerable number of people in public institutions may still use the old method to calculate pensions, so in essence, our dual-track pension system has not really ended. And we also pay attention to public institutions. The transition period of China people is only 10 years. The period from June 438+04 to September 2024 is June 2065. During this period, the old and new methods will be combined to calculate the pension.

However, after June 5438+ 10, 2024, all retirees of government agencies and institutions were calculated according to the new method. At that time, it could only be called the real end of the dual-track system. Some people think that after the end of the dual-track system, it will fundamentally narrow the gap in pension benefits for employees in enterprises and institutions? We said it wouldn't happen. The level of pension benefits depends on your own insurance situation. Everyone's pension benefits are closely related to their own insurance situation. Moreover, some people have poor insurance conditions, and their pensions will naturally not be particularly high, nor will they increase their pensions because of the end of the dual-track system.

For a simple example, why is the pension level of enterprise retirees still significantly lower than that of government agencies and institutions? This is because in the process of paying endowment insurance, in order to reduce labor costs, enterprises often choose the minimum payment index of 60% to insure their employees. Before the social security tax reform, many private enterprises, small and medium-sized enterprises and private enterprises often did so. This fundamentally reduces the overall level of retirees' treatment and pension in our enterprise units.

On the other hand, government agencies and institutions began to pay government pension insurance from June 20 14. However, government agencies and institutions set up social security payment index strictly according to their own wages, thus laying a high average payment index. At the same time, government agencies and institutions have also established occupational annuity treatment simultaneously. Having an occupational annuity means that you can get a supplementary pension when you retire, which greatly improves the treatment of retirees in our institutions, and many enterprises here do not have enterprise annuities. Therefore, in essence, the pension benefits are really far behind the retirees of our institutions.