Do new retirees make up the difference in October

New retirees will make up the difference in October.

For new retirees, their pension calculations may involve making up the difference. The make-up difference refers to the calculation and adjustment of a retiree's pension based on factors such as the previous year's social wage and the number of years of contributions. If there is a difference between the calculation of a new retiree's pension and the actual pension paid, a make-up difference is required. If the result of the new retiree's pension calculation is higher than the actual pension paid out, then it is necessary to make up the difference and pay the difference to the retiree. Conversely, if the new retiree's pension is calculated to be lower than the actual pension paid, then there is no need to make up the difference. Therefore, for new retirees, a make-up difference may be made in October.

The formula for calculating the pension consists of three main parts:

Basic Pension: Basic Pension = (Social Wage + Indexed Wage)/2* Years of Contribution*1%. The social wage here refers to the average monthly wage of the province's employed workers in the previous year when the employee retires, while the indexed wage is the product of the average monthly wage of the province's employed workers in the previous year when the employee retires and the index of the employee's own average contributory wage.

Personal account pension: personal account pension = personal account savings / number of months. The number of credited months is related to the retirement age, for example, when retiring at age 60, the number of credited months is 139; when retiring at age 50, the number of credited months is 195 and so on.

Transitional Pension: Transitional Pension = Indexed Salary * Deemed Contribution Period * Corresponding Ratio. The number of years of deemed contribution refers to the number of years set for the purpose of granting relevant subsidies as the local social security system was not yet established at the time of joining the workforce.

To summarize: new retirees may be given a supplement in October, and the exact amount and timing of the supplement may vary depending on the region and policy.

Legal basis:

The People's Republic of China*** and the State Social Insurance Law

Article 17

Individuals who have participated in the basic old-age pension insurance, and who have accumulated fifteen years of contributions by the time they have reached the legal retirement age, will receive the basic old-age pension on a monthly basis. Individuals who have participated in basic old-age insurance and have contributed for less than fifteen years by the time they reach the statutory retirement age may contribute until they reach the full fifteen years and receive a basic pension on a monthly basis; they may also be transferred to the new type of rural social old-age insurance or the urban residents' social old-age insurance, and shall enjoy the corresponding old-age insurance benefits in accordance with the provisions of the State Council.