What does the personal part of the total pension mean?

The total amount of individual pension accounts refers to the total amount in individual pension accounts of residents. The personal account of endowment insurance is used to record the basic endowment insurance premium paid by the insured and the basic endowment insurance premium transferred from the unit payment, as well as the interest of the above two parts; It is the main basis for the insured to receive personal account related treatment 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.

The calculation formula of personal account of endowment insurance: pension = (average monthly salary of employees in the province last year+average monthly payment salary of myself) +2* payment years * 1% = average monthly salary of employees in the province last year (1+ average monthly payment index of myself) +2* payment years * 1%. Individual endowment insurance is paid according to 20% of the payment base, of which 12% of the payment base is included in the overall account and 8% of the payment base is included in the personal account.

After retirement, the calculation of pension amount is also divided into two parts. Part of it is calculated from the overall account, which is the basic pension; The other part is calculated from the personal account, which is the personal account pension. The basic old-age insurance premium is paid jointly by enterprises and employees: enterprises pay according to a certain proportion of the total average monthly salary of employees in the previous year, and employees pay according to a certain proportion of the average monthly salary of employees in the previous year. Urban individual industrial and commercial households, flexible employees and laid-off workers from state-owned enterprises who participate in the basic old-age insurance in their personal capacity shall pay the basic old-age insurance premium at a rate of 20% based on the average social wage in the province where they are located, and all of them shall be borne by themselves.

The total amount of the endowment insurance account is the sum of the pension paid by me, the interest paid by the unit, the state subsidy and the previous payment.

The personal account of endowment insurance is used to record the basic endowment insurance premium paid by the insured and the basic endowment insurance premium transferred from the unit payment, as well as the interest of the above two parts; It is the main basis for the insured to receive personal account related treatment 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.

Old-age insurance consists of basic pension and personal account of old-age insurance, and personal account consists of monthly basic pension _ basic pension, personal account, transitional pension and adjustment fund. If the payment period is less than 10 years, after retirement, they will not enjoy the basic pension benefits, and all the savings in their personal accounts will be paid to them in one lump sum and the old age allowance will be given in one lump sum, and the pension insurance relationship will be terminated at the same time. When employees retire and pay for ten years, the monthly old-age insurance consists of the sum of the amount stored in individual accounts divided by the calculated number of months and the basic pension.

Personal account pension is an important part of basic pension in the reform mode of combining social pooling with personal account. Personal account pension, basic pension and transitional adjustment fund together constitute the basic pension for retirees. The establishment of personal accounts for employees' basic old-age insurance embodies the principle of sharing social insurance costs, increases the sources of old-age insurance premiums, is conducive to establishing an incentive and restraint mechanism, and mobilizes the enthusiasm of employees to care for and support old-age insurance, which is a concrete manifestation of the reform results of China's characteristic old-age insurance system.

I hope the above content can help you. If in doubt, please consult a professional lawyer.

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 15

The basic pension consists of overall pension and individual account pension.

The basic pension is determined according to factors such as individual cumulative payment years, payment wages, average salary of local employees, personal account amount, average life expectancy of urban population, etc.

Article 16

Individuals who participate in the basic old-age insurance will receive the basic old-age pension on a monthly basis if they have paid a total of fifteen years when they reach the statutory retirement age.

Individuals who participate in the basic old-age insurance and pay less than fifteen years when they reach the statutory retirement age can pay for fifteen years and receive the basic pension on a monthly basis; Can also be transferred to the new rural social endowment insurance or urban residents' social endowment insurance, enjoy the corresponding pension insurance benefits in accordance with the provisions of the State Council.

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.