What is the difference between enterprise retirement and collective retirement with the same length of service?

What is the difference between enterprise retirement and collective retirement with the same length of service?

Enterprises are divided into state-owned, collective and private (individual). Before 1978, the three coexisted.

After 1992, state-owned, private, joint-stock and private enterprises replaced the above three and became diversified.

In the era of planned economy, state-owned enterprises, units and individuals basically do not pay social security, and the task is to pay by enterprises, and then the government allocates funds to solve social welfare such as old-age medical care.

Before 1992, China had not established a unified social security payment system, so most people who took part in the work in 1992 would be identified according to the deemed payment period, but this way of identifying the deemed payment period does not mean that everyone has it. Generally, it can only be identified for people in state-owned enterprises, that is, regular workers in state-owned enterprises (temporary workers are not recognized).

Large collective enterprises rely on enterprises to pool funds or pay social security and medical insurance to insurance companies after deducting personal wages, and employees' pension and medical care are borne by enterprises and social insurance. Enterprises raise funds by themselves to solve the problem of providing for the aged, which is similar to today's enterprise annuity form. If it is not paid, it is actually not counted as the payment period. Therefore, it means that employees of large collective enterprises do not enjoy the recognition of deemed payment years, so if they work for years before 1992, it means that there is no deemed payment years, which is equivalent to your accumulated payment years. This piece will be much less, so compared with people in state-owned enterprises, they may receive less pension benefits, but after 1992, the working population has little influence in this respect.

This is also the reason why young people chose state-owned enterprises when they took part in work and employment. Although the wages of collective enterprises are higher than those of state-owned enterprises, they are far less stable, with good welfare and overall medical care. Employees only deduct 2.5 yuan every month, take the overall plan to see a doctor, and directly reimburse them in the overall plan account of the hospital. After retirement, they have pension security.

At that time, there were not many state-owned enterprises, most of which were collective enterprises. Many people who know this matter have to choose collective enterprises and community collective enterprises in the streets to take part in the work in order to return to the city for employment, as a springboard for life. Because the retired employees of an enterprise are managed by the whole enterprise, the older they are, the more retired employees they have, which makes the burden of such enterprises heavier and heavier, and eventually drags down the enterprise. In the process of restructuring, many enterprises closed down and reorganized, shed their burdens, engaged in joint-stock system and went public to raise idle funds. If the retired employees of such enterprises did not pay the insurance premium to the social insurance company at the beginning, it is likely that part of the accounting length of service will be omitted.