What's the difference between endowment insurance in government agencies and institutions?

Ordinary old-age insurance refers to a social insurance system in which the government and society give certain economic compensation, material help and services to workers after they reach the legal retirement age. Endowment insurance for government agencies and institutions refers to a social security system in which the government gives material help to the staff who temporarily or permanently lose their ability to work due to old age, illness, disability and unemployment.

The differences between institutional pension and endowment insurance are as follows:

1, different payment bases:

The payment base of endowment insurance for government agencies and institutions shall not be lower than the sum of file salary and retirement fee, and the payment base of enterprise endowment insurance shall be paid according to actual salary or average social salary.

2. Different payment ratios:

The payment base of the insured enterprises is not high, floating around 60% of the minimum payment base. Institutions determine the payment base according to the actual welfare benefits, which is generally above 100% of the average social wage, or even between 150%-200%.

3, pension calculation is different:

The proportion of basic pension in public institutions is 0.4%, and the pension is related to the age of receiving pension. The monthly standard of basic pension for enterprise employees is based on the local average monthly salary of employees in the previous year and the indexed average monthly salary, and it is paid by 1% every full year.

4. Different distribution methods:

The basic pension for retirees of public institutions shall be uniformly distributed by the social insurance agency, the enterprise pension shall be handled by the social security bureau as a whole, and the pension shall also be distributed by the social security bureau.

Steps and methods of applying for endowment insurance:

1. Employees need to pay endowment insurance according to their income. This fee is credited to the account opened by the local social insurance institution in the bank, and the interest is calculated according to the deposit rate of urban and rural residents not lower than or higher than the same period. Encourage employees to participate in savings endowment insurance. The interest earned can be credited to his personal account, and the principal and interest are all owned by the employees.

2. Bring the household registration book, the original and photocopy of the resident ID card and the recent one-inch bareheaded photo to the social labor and social security bureau where the household registration is located for registration.

3. After the relevant departments have approved the relevant materials, they have successfully purchased personal endowment insurance for themselves.

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

Legal basis:

Article 15 of the Social Insurance Law

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 18

The state establishes a normal adjustment mechanism for basic pensions. According to the average wage increase and price increase of employees, the basic old-age insurance treatment level will be improved in a timely manner.

Article 19

If an individual is employed across the overall planning area, his basic old-age insurance relationship will be transferred with him, and the payment period will be calculated cumulatively. When an individual reaches the statutory retirement age, the basic pension is calculated in stages and distributed uniformly. Specific measures shall be formulated by the State Council.

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.