What's the difference between social security planning and account planning?

The differences between social security plan and account plan are as follows:

1, the concept is different: the overall account refers to the mutual aid of various social insurance projects, while the personal account is used to record the part paid by the insured and the expenses transferred from the unit, as well as the interest of the above two parts;

2. Different roles: The role of the overall account is to coordinate that the money in the account belongs to individuals. For example, in the case of endowment insurance, if an employee dies before retirement age, the personal account of endowment insurance will be returned to the beneficiary. The role of personal account is the main basis for the insured to receive the relevant treatment of personal account when going through retirement procedures, transferring across the overall scope, surrendering before retirement, leaving the country to settle down before retirement or terminating the basic pension relationship after death;

3. Different ways of use: the overall account is a collective mutual aid model, which is jointly funded by all insured persons, and all insured persons enjoy equal treatment. The money in the overall account is used to buy medical insurance for all insured persons and solve the problem of medical expenses. Personal account is a mode of personal accumulation. Money belongs only to individuals and can only be used to pay for the self-paid part of their medical expenses.

The benefits of paying social insurance are as follows:

1, users can receive a certain living security fee every month after retirement;

2. Drugs purchased in pharmacies can be paid by social security cards, and expenses can be reimbursed when there is a major illness that requires hospitalization observation;

3. If an accident occurs during working hours or due to work reasons, compensation can be made;

4. Women have compensation allowance during childbirth, and all expenses incurred during childbirth are reimbursed.

To sum up, overall planning means that social security expenses are concentrated in the social security fund, which is uniformly managed and distributed to ensure that the social security rights and interests of all insured persons are fairly guaranteed; Account transfer is to transfer social security fees to personal accounts, which are managed and dominated by individuals, so as to improve the autonomy and choice of the insured.

Legal basis:

Article 11 of the Social Insurance Law of People's Republic of China (PRC)

The basic old-age insurance combines social pooling with individual accounts.

The basic old-age insurance fund consists of employers, individual contributions and government subsidies.

Article 12

The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of its employees stipulated by the state, and record it in the basic old-age insurance pooling fund.

Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages stipulated by the state and record it in their personal accounts.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual accounts respectively.