What is the deficit of pension?

The reasons for the pension deficit include:

First, all retired employees before 1995 are paid free of charge by social insurance. The length of service before 1995 is regarded as the payment period, and the treatment is approved according to the regulations, and social security pays this part of the fee free of charge.

Second, with the advent of an aging society, the number of retirees has increased too much, and their life expectancy has generally been extended. Due to the influence of inflation, their pensions will increase every year, which leads to excessive expenditure of social security funds. When new insurance cannot make up for the expenditure gap, it will cause losses of social security funds.

Third, the actual social security interest is lower than the bookkeeping interest.

Pension, also known as pension and retirement fee, is the most important social pension insurance treatment. That is to say, according to the relevant national documents, the monthly or lump-sum payment of insurance benefits in the form of money is the need to benefit the society and is mainly used to ensure the basic living needs of employees after retirement according to their contributions to society and their qualifications or retirement conditions. Pensions are accumulated and operated in accordance with the principle of common accumulation by the state, the collective and the individual. When people are in their prime of life, part of the wealth created is invested in pension plans to ensure a sense of security in their later years.

From 2005 to 20 15, although the China municipal government raised the pension level of enterprise retirees for the first consecutive year 1 1, all sectors of society were not "ungrateful" because of the great difference in pension level, currency depreciation and rising prices. On the contrary, they expressed dissatisfaction and doubts about the declining pension replacement rate year by year. The proportion of pension in wages has dropped for nine consecutive years, which is lower than the international warning line. [ 1]

20221October 25th, 165438+ Ministry of Human Resources and Social Security announced the implementation of individual pension system.

legal ground

Detailed Rules for the Implementation of People's Republic of China (PRC) Social Insurance Law

essay

Individuals who participate in the basic old-age insurance for employees who have paid less than 15 years after reaching the statutory retirement age (including extending the payment in accordance with the provisions of Article 2) may apply for transfer to the new rural social endowment insurance or urban residents' social endowment insurance where they are registered, and enjoy the corresponding old-age insurance benefits. Individuals who participate in the basic old-age insurance for employees reach the statutory retirement age, and the accumulated payment is less than 15 years (including the extension of payment in accordance with the provisions of Article 2), and have not been transferred to the new rural social endowment insurance or urban residents' social endowment insurance, individuals can apply in writing to terminate the basic old-age insurance relationship for employees. After receiving the application, the social insurance agency shall inform it in writing of its right to transfer to the new rural social endowment insurance or urban residents' social endowment insurance and the consequences of terminating the basic endowment insurance relationship for employees. After my written confirmation, I will terminate the employee's basic old-age insurance relationship and pay me the amount stored in my personal account in one lump sum.