Buy out the length of service, is retirement still a length of service?

If you retire after buying out the length of service, you will count the length of service.

As long as you continue to pay social insurance premiums and have not paid them off, the length of service before retirement must be calculated continuously.

The company can still enjoy retirement after the annual buyout. After successful buyout, employees can pay relevant endowment insurance by themselves. In this case, in line with our national pension policy, we can still enjoy retirement benefits, which will not be affected.

It is not an accurate legal term, but a way for some state-owned enterprises in China to arrange surplus personnel in the process of reform in the early stage of opening up. At present, it generally refers to the compensation paid by the employer according to the employee's working years and salary level when dismissing the employee who has signed an open-ended labor contract.

"Buy-out length of service" is a kind of enterprise behavior, which requires enterprises and employees to reach an agreement through consultation. Enterprises need to pay certain economic compensation or compensation to employees when they buy out the length of service. The level of employees' pension is directly related to the payment period, payment base and the average salary of employees in the previous year when they retire. The so-called buyout did not cause the loss of the length of service of employees, and the previous payment period continued to be valid. In other words, the traditional length of service has no substantive significance for providing for the aged. After buying out the length of service, employees can pay their own pensions, but as long as they meet the pension policy, their benefits will not be affected.

Retirement methods in Calculation Length include:

Continuous calculation method, combined calculation method and length of service conversion method. When calculating the general length of service, it should include the length of service of the enterprise, but it should not include the general length of service when calculating the continuous length of service. When determining the insurance benefits of employees and whether they have retirement conditions, they generally only use continuous service. Years of service or years of continuous calculation shall be counted as one year after the anniversary of "full".

Retirement methods in Calculation Length include:

1, continuous calculation method, also called continuous calculation of length of service;

2. Combined calculation method, also called continuous length of service combined calculation. Refers to the employee's work experience, which is usually interrupted for a period of time due to non-subjective reasons. Deduct the interruption time and combine the two working hours before and after the interruption.

To sum up, the enterprises paid by the company every year can still enjoy the retirement benefits after the buyout. After the employee's buyout is successful, he can pay the relevant old-age insurance by himself. In this case, in line with our country's pension policy, we can still enjoy retirement benefits, and this treatment will not be affected.

Legal basis:

Article 47 of People's Republic of China (PRC) Labor Contract Law

Calculation of economic compensation The economic compensation is paid to the laborer according to the number of years the laborer has worked in this unit and the standard of paying one month's salary for each full year. For more than six months but less than one year, it shall be counted as one year; If it is less than six months, economic compensation of half a month's salary shall be paid to the workers.

If the monthly salary of workers is three times higher than the average monthly salary of local workers announced by the people's government of the municipality directly under the central government or the city divided into districts where the employer is located, the standard for paying economic compensation to workers is three times the average monthly salary of workers, and the longest period for paying economic compensation to workers shall not exceed 12 years.