What does the dual-track pension system mean?

The dual-track pension system is the retirement pension of public institutions and the retirement pension of enterprises. The different systems implemented by the two are called "dual-track system" for providing for the aged, and the treatment gap is huge. Specifically, there are three differences:

1, the overall planning method is different. That is, enterprise personnel are paid by units and employees themselves according to certain standards, and institutions and institutions are funded by the government;

2. The channels of payment are different. That is, enterprise personnel are paid by self-raised accounts, and government agencies and institutions are paid by finance;

3. The standard of enjoyment is different. In other words, the pension insurance standard of public institutions is much higher than that of enterprise retirees, and now the gap is about 300%-500%.

Old-age insurance, the full name of social basic old-age insurance, is a social insurance system established by the state and society in accordance with certain laws and regulations to solve the basic life of workers who reach the working age limit stipulated by the state and terminate their labor obligations or quit their jobs because of old age. It is an important part of the social security system and one of the five most important social insurances. The purpose of endowment insurance is to protect the basic needs of the elderly and provide them with a stable and reliable source of life.

Legal basis: Article 10 of the Social Insurance Law of People's Republic of China (PRC).

Employees shall participate in the basic old-age insurance, and the employer and employees shall jointly pay the basic old-age insurance premium.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.

The measures for the endowment insurance of civil servants and staff managed by reference to the Civil Service Law shall be formulated by the State Council.

Article 11

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.