Definition of pension replacement rate

The pension replacement rate refers to the ratio of a worker's post-retirement pension level to his or her pre-retirement wage level.

The specific value is usually obtained by dividing the "average pension of new retirees in a certain year" by the "average salary of active workers in the same year".

For example, if an elderly person retires this year, his retired salary is 4,000, and in the year of retirement, his working salary is 5,000, then his pension replacement rate is 80 percent.

According to the World Bank's recommendations, to maintain the standard of living before retirement does not decline, the replacement rate of the pension needs to be not less than 70 percent, and the International Labor Organization recommends that the minimum standard of the replacement rate of the pension is 55 percent. replacement rate of 55 percent as the minimum standard.

In the design of China's pension insurance system, the target replacement rate for post-retirement pensions is 59.2 percent for enterprise personnel who have contributed for 35 years. The target replacement rate for retirement pensions for civil servants and institutional employees after 35 years of service is 90 percent.

Expanded Information:

Basic Pension Also known as a retirement contribution, it is one of the primary pension benefits.

In April 2021, the Notice on the Adjustment of Retirees' Basic Pension in 2021 was issued. The overall adjustment level is 4.5 percent of the monthly per capita basic pension for retirees in 2020.

China's pensions are divided into two main categories: retirement pensions for institutionalized personnel and retirement pensions for corporate personnel.

The different systems implemented by the two are widely known as the "dual-track system" for pensions, with a huge gap between the two, a discriminatory system that has lasted 20 years in China.

Specifically, it is manifested in three different:

One is the co-ordination of the approach is not the same that is the enterprise personnel is the unit and the employee himself according to a certain standard, the institutions by the financial unified financing;

The second is the payment of the channels are not the same that is the enterprise personnel by the self-financing account on the payment, and institutions by the financial unified payment;

Third, the enjoyment of the The third is the enjoyment of the standard is not the same i.e. the pension standard of the organs and institutions is much higher than that of the enterprise retirees, the difference is about 300% to 500%.

Enterprises and institutions due to the different pension security system has resulted in a large difference in treatment between the two, and this difference has caused dissatisfaction among the masses, the demand for narrowing the gap, the unification of the system of the call is growing.

The conditions for receiving a basic pension

Anyone who has paid contributions for a total of 15 years by the time he or she reaches the legal retirement age can receive a basic pension on a monthly basis.

That is to say, in order to receive a pension, an employee must fulfill two conditions:

One is to reach the legal retirement age;

The other is to have accumulated 15 years of pension insurance contributions.

The so-called statutory retirement age is the age at which an employee quits work and becomes eligible for a pension.

According to the relevant regulations, the statutory retirement age of enterprise workers in China is 60 years old for men, 50 years old for women workers and 55 years old for women cadres.

Engaged in underground, high altitude, high temperature, especially heavy physical labor or other work harmful to health (hereinafter referred to as special types of work), the retirement age is 55 years old for men and 45 years old for women; due to illness or disability caused by work, certified by the hospital and confirmed by the Labor Appraisal Committee of the total loss of the ability to work, the retirement age is 55 years old for men and 45 years old for women.

Inquiry method

1, you can hold my ID card to the local social security bureau service hall to print the payment list inquiry [9].

2, you can call the local social security bureau consulting telephone query personal pension insurance contributions.

3, you can enter the local social security bureau website to inquire about personal pension insurance premium contributions.

4, you can log in to the social security inquiry website through the cell phone to inquire about personal pension contributions.