In what year was the new pension insurance contribution rate implemented on April 1, 2019 (new 4050 pension insurance policy introduced in 2019)

What year was social pension insurance implemented?

What year was social pension insurance implemented? A: Social pension insurance was officially implemented in 1997. The Social Insurance Law came into effect from July 1, 2011 onwards.

When was the new pension insurance contribution rate implemented

Xinhua News Agency was authorized to broadcast the Decision of the State Council on Improving the Basic Pension Insurance System for Enterprise Employees on the 14th. At a press conference held by the State Council Information Office on the morning of Dec. 15, Liu Yongfu, vice minister of China's Ministry of Labor and Social Security, said China will establish a basic pension insurance system that suits the country's national conditions and is capable of realizing sustainable development in accordance with the principles of broad coverage, appropriate level, reasonable structure and balanced fund.

Liu said at the press conference that with the aging of the population, diversification of employment methods and urbanization, China's current basic pension insurance system for enterprise employees has revealed some problems that are not compatible with social and economic development.

He said the coverage of the system is not broad enough, with a large number of urban self-employed businessmen and flexibly employed people not yet insured; the individual accounts of the pension insurance have not been made real, failing to truly realize the partial accumulation mode of the system, making it difficult to cope with the demand for the fund from an aging population.

He said the pension calculation method is not reasonable and lacks an incentive and constraint mechanism for participation and contribution; the basic pension adjustment mechanism is not sound, and the overall level of pension is not high.

At the same time, the system's level of coordination is also relatively low, and most regions in China have yet to implement provincial-level coordination, with a weak fund transfer capacity. China's corporate pensions are lagging behind, and a multi-level pension security system has yet to be established.

Liu Yongfu said at the meeting that with major changes in China's ownership structure and forms of employment, there has been a rapid increase in the number of nonpublic economic workers and flexibly employed people, but a large number of urban self-employed businessmen and flexibly employed people have not been able to be included in the pension insurance system, which has affected their rights and interests in social insurance.

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What year did pension insurance start?

China's pension insurance system for enterprise workers was set up in the early 1950s, and then revised twice, in 1958 and 1978 respectively.

In 1997, the State Council promulgated the Decision on the Establishment of a Unified Basic Pension Insurance System for Enterprise Employees, which established a unified basic pension insurance system for enterprise employees in China, formulated a pension insurance system combining social coordination and individual accounts, and set up individual accounts for basic pension insurance for employees.

Extended information:

In order to reduce enterprise costs and enhance enterprise vitality, according to the "People's Republic of China*** and the State Social Insurance Law" and other relevant provisions, with the consent of the State Council, starting from May 1, 2016, the provinces where the proportion of the unit contribution to the basic pension insurance for enterprise employees exceeds 20%, will reduce the unit contribution ratio to 20%;

Provinces with a unit contribution ratio of 20% and a cumulative balance of the basic pension insurance fund for enterprise employees at the end of 2015 that can be paid for more than nine months can reduce the unit contribution ratio to 19% in a phased manner, and the period for the reduction of the rate will be implemented for the time being for two years. The specific program will be determined by each province.

As of July 6, 2016, 21 provinces and municipalities across the country are eligible to reduce the rate of enterprise pension insurance premiums, including Shanghai, which has been reduced from 21% to 20%, and the remaining 20 provinces and municipalities are Beijing, Tianjin, Shanxi, Inner Mongolia, Jiangsu, Anhui, Jiangxi, Henan, Hubei, Hunan, Guangxi, Hainan, Chongqing, Sichuan, Yunnan, Guizhou, Tibet, Xinjiang, Gansu and Ningxia.

Reference:

Baidu Encyclopedia - Pension Insurance