The process of opening a personal pension fund account

Yesterday (25th), the whole society is generally concerned about you and me after the retirement life of the personal pension system started to implement. The Ministry of Human Resources and Social Security, the Ministry of Finance, the State Administration of Taxation issued a notice, clear personal pension system in Beijing, Tianjin, and Hebei Shijiazhuang, Xiong'an New Area, Shanxi Jinshi City and other 36 cities and regions to start the implementation of the first. The people who are eligible in the pioneer cities can voluntarily participate in the personal pension business.

At present, the Banking and Insurance Commission announced the first batch of 23 commercial banks can start personal pension business, are in succession with the Ministry of Human Resources and Social Security personal pension information management service platform for docking test. The list of commercial banks that have completed the docking test is published on the national social insurance public **** service platform, and the public can inquire through the platform and electronic social security cards and other channels. The Ministry of Human Resources and Social Security will be based on the commercial bank system access to update the relevant list in real time.

Accelerating the construction of a multi-level multi-pillar pension insurance system

I believe that everyone wants their old age to be more comfortable, higher quality, which can not be separated from a certain economic security. First of all, what is a personal pension? In order to clarify this question, we have to start from our country's pension insurance system.

China's multi-level pension insurance system mainly consists of "three pillars". The first pillar is the basic pension insurance, including the basic pension insurance for urban workers and the basic pension insurance for urban and rural residents. The first pillar is based on basic insurance, adopting a system model combining social coordination and individual accounts, reflecting social **** relief, and already has a relatively complete system. At present, the number of people covered has reached 1.05 billion, with an accumulated fund of more than 6 trillion yuan, the overall operation of the fund is stable, and the benefits are paid in full and on time.

The second pillar is the enterprise annuity, occupational pension, established by the employer and its employees, mainly to play a supplementary role, has a good foundation for development. As of the second quarter of 2022, more than 75 million employees have participated in enterprise (occupational) annuities, accumulating funds of nearly 4.7 trillion yuan, supplementing the role of old-age pensions initially appeared.

The third pillar is personal savings pension insurance and commercial pension insurance, including personal pensions and other personal commercial pension financial business two parts. Previously, there was no nationally standardized institutional arrangement, which is the shortcoming of the multi-level pension insurance system.

Jia Jiang, deputy director of the Department of Pension Insurance of the Ministry of Human Resources and Social Security:

Personal pensions are part of the third pillar with institutional arrangements, which is a supplemental pension insurance system supported by government policies, voluntary participation of individuals, and operated on a market-oriented basis. The establishment of the personal pension system is an important measure to improve China's multi-level and multi-pillar pension insurance system, which is conducive to promoting the sustainable development of China's pension insurance system.

Vice President of the School of Insurance at the University of International Business and Economics, Mr. Sun Jie:

(personal pension) is government-led, and then market-operated, it not only includes commercial pension insurance, but also includes public funds, financial products, and trust funds.

To sum up, personal pension is a supplementary pension insurance system supported by government policy, voluntary participation of individuals, and market-oriented operation, which adopts the mode of personal account, with individual contributions, full accumulation, market-oriented operation, and connects with basic pension insurance, enterprise and occupational pension.

Buy personal pension can enjoy these favorable policies

So it seems, personal pension is actually a supplementary pension insurance. Since we already have a basic pension insurance, some units have corporate pensions, why do we need to buy a personal pension? What are the benefits of participating in the personal pension business?

Mo Rong, president of the China Academy of Labor and Social Security Sciences:

It helps us to organize our personal pension in the future, the personal pension is implemented in the personal account, we can buy the corresponding financial products according to the need to comply with the provisions of the financial products are through the government's audit, there is a whitelist.

In addition, the policy support for personal pensions is mainly reflected in tax incentives. Ministry of Finance, the General Administration of Taxation issued a notice on personal pensions related to personal income tax policy shows that, in the contribution link, personal contributions to the personal pension fund account, in accordance with the limit of 12,000 yuan/year standard, in the comprehensive income or operating income deduction; in the investment link, credited to the personal pension fund account of the investment income is not levied on the personal income tax; in the receiving link, personal pension, not merged with the personal pension account, the personal pension, not merged with the personal pension fund account. Personal pensions are not included in the comprehensive income, and the individual income tax is calculated separately according to the tax rate of 3%, and the tax paid is included in the item of "wages and salary income".

The University of International Business and Economics Insurance School vice president Sun Jie:

After the market operation, it is a closed operation, in fact, it is also a kind of letting the individual in the future for their own more money, and then the government to provide tax incentives. For the individual, there are benefits, one is the effect of tax savings, one is the future of an additional layer of protection.

Who can participate in the personal pension business

The ability to make the old age of life more of a guarantee, personal pension system naturally attracted much attention. Previously, the Ministry of Human Resources and Social Security, the Ministry of Finance and other five departments jointly issued the implementation of the clear, personal pension system has a wide range of coverage. So who can join the personal pension system, and why do such provisions?

Vice President of the University of International Business and Economics School of Insurance Sun Jie:

Now participate in the personal pension system of the crowd, should be to participate in the basic pension insurance coverage of some of these basic groups, if there is no first pillar of the basic pension insurance participation record, it is not possible to enter into the head of this system, and can not enjoy the tax-deferred concessions.

From the function of the system, only to participate in the basic pension insurance, the realization of the basic premise, to participate in the individual pension to reflect the function of supplementary pension insurance. From the coverage point of view, China's basic pension insurance system has realized the full coverage of the system, the current number of participants reached 1.05 billion people, basically covering the working-age population. On this basis, the willingness of workers to participate in the realization of personal pensions, long-term contributions, and continue to increase the accumulation of funds in personal accounts.

From the account to receive a personal pension business how to operate

Personal pension business in 36 cities and regions to take the lead in the implementation of the first, from the account to receive, the whole process of specific how to operate it?

The first step:

Through the national unified online service portal or commercial banks and other channels, select the "personal pension account opening" service, the establishment of personal pension accounts.

Step 2:

Open an individual pension fund account through commercial banks' mobile banking or counter channels. Through commercial bank channels, participants can complete the opening of personal pension accounts and personal pension fund accounts in one go.

Mo Rong, president of the China Academy of Labor and Social Security Sciences:

Participating in the personal pension requires the opening of two accounts, one is the personal pension account, and the other is the personal fund account. The personal pension account is mainly a record of information, inquiries and services, followed by a capital account, which is used to make contributions to buy products, collect earnings, and receive pensions.

Step 3:

Contribute to the personal pension fund account in a lump sum or in installments during the natural year through cash, mobile banking or personal internet banking. It should be noted that the implementation of personal pension contributions limit management, the current annual contribution ceiling of 12,000 yuan, more than the limit is not allowed to contribute.

Deputy Director of the Pension Insurance Department of the Ministry of Human Resources and Social Security, Mr. Jia Jiang:

The amount of such contributions is mainly considered from the point of view of maintaining an appropriate level of supplementary pension insurance as well as reflecting the incremental reform to determine. In the future, the State will raise the upper limit of the contribution level in accordance with the level of economic and social development and the development of the multi-level pension insurance system. For participants, according to their own financial capacity, to flexibly choose whether to participate in the individual pension contributions every year or part of the year, but also in the year to choose their own contribution amount, can be a one-time payment, can also be paid in installments.

Step 4:

At the contribution stage, you can choose to enjoy tax incentives by using the "Individual Income Tax" App to scan the code when you make withholding contributions, that is, when you earn wages and salaries, or when you make withholding contributions for labor remuneration according to the cumulative withholding method, or when you make remittance payments.

Step 5:

Through the sales channels of personal pension products, you can purchase qualified savings deposits, financial products, commercial pension insurance, public funds and other personal pension products.

Step 6:

When you receive your pension, you can choose to receive it monthly, in installments, or as a lump sum through commercial banking channels, and it will be transferred to your social security card after the commercial banking organization withholds and pays the personal income tax on your behalf.

The University of International Business and Economics School of Insurance Vice President Sun Jie:

First of all, the conditions are to reach the legal retirement age, retirement can be received, the second belongs to the loss of your ability to work, there is also a kind of is, for example, moved abroad, settled abroad, in this case you can also receive in advance. For example, did not reach the retirement age, early death, or after reaching the retirement age, his personal account has a balance, that part of the pension children can inherit.

Individuals participating in the whole process of personal pension information, all through the national unified online service portal query personal pension-related accounts, contributions, transactions, receive personal rights and interests of the information, and at the same time you can query the personal pension products and issuers and other information.

How to use the money in the personal pension fund account

After the money is deposited into the personal pension account, how can the money be used, and how to realize the value of the value added?

In the Personal Pension Implementation Measures, it is clear that personal pensions are implemented in the individual account system, the contributions are entirely borne by the participants, the independent choice to purchase savings deposits, financial products, commercial pension insurance, public funds and other financial products in accordance with the provisions of the implementation of the full accumulation, in accordance with the relevant provisions of the State to enjoy the preferential tax policies.

Jia Jiang, deputy director of the Department of Pension Insurance of the Ministry of Human Resources and Social Security:

The diversity of personal pension products is mainly to meet the investment preferences and needs of different investors. It is conducive to meeting the investment needs of different groups, and at the same time, it is also conducive to promoting market competition, prompting financial institutions to develop more and better financial products to participate in the personal pension system. Compared with general financial products, personal pension products it should have the operation of safe, mature and stable, standardized, focusing on long-term preservation of value.

The Implementation Measures stipulate that participants independently choose the personal pension fund account funds to buy personal pension products of varieties and amounts. Personal pension product sales organizations to "sales appropriateness" as the principle, do a good job of risk tips, shall not take the initiative to recommend to the participants beyond their risk tolerance of personal pension products.