What does the dual-track system of endowment insurance mean?

There are two parallel pension systems, one is the retirement system of government institutions, and the pension is paid by the finance; The other is the "payment-type" overall planning system of social enterprise units, which is paid by units and employees themselves according to certain standards.

Background of dual-track pension insurance system;

1. 1995, the pension adjustment of enterprise retirees is adjusted according to 40%-60% of the average wage growth rate of employees in the previous year, and the pension of retirees in government agencies and institutions is adjusted according to 90% of the wage growth rate of employees at the same level.

2. The increase of civil servants' pension also benefited from the two wage reforms in 1993 and 2006, especially in 2006, which was mainly reflected in the length of service and position: the longer the length of service and the bigger the position, the greater the increase, and the retirement salary also increased significantly according to this increase.

Extended data:

Retirement pensions of institutions and enterprises are embodied in three different ways:

1. First, the overall planning method is different. The employees of enterprises are paid by the units and employees themselves according to certain standards, and the institutions and institutions are raised by the state finance;

2. Second, the payment channels are different, that is, employees of enterprises are paid by self-raised accounts, and institutions are paid by the state finance;

Third, the standard of enjoyment is different, that is, the pension standard of government agencies and institutions is much higher than that of enterprise retirees, and the gap is about 3 ~ 5 times. The maximum difference in pension benefits is 50 times. According to the respondents, the lowest is 200 yuan, and the highest is 1 10,000 yuan.

References:

Baidu encyclopedia-pension double regulations

References:

Baidu encyclopedia-pension