Laid-off and unemployed workers should renew basic pension insurance

In July 1997, the State Council issued No. 26 [1997] and decided to establish a unified basic pension insurance system for enterprise employees. In this file, it is stipulated that the individual contribution and the deemed payment have accumulated for 15 years, and the basic pension is paid monthly after retirement. At the same time, it is proposed to expand the coverage of the old-age insurance, and the urban individual laborers are required to implement the basic old-age insurance system. Many workers, especially laid-off and unemployed workers, understand the concept of “paying basic pensions on a monthly basis for 15 years of payment.” They think that it is not necessary to continue to pay fees after 15 years of payment, and individual enterprises exaggerate this statement for employees who have terminated labor relations. Invisibly deepened the misinterpretation of this concept by employees.
As a grassroots social security worker, I often encounter some laid-off and unemployed workers between the ages of 30 and 40 in their daily work. They are still 20 years or more away from retirement. I am confused by this statement: We Has it been more than 15 years of payment or deemed to be paid, and is it still necessary to pay? Our response to them is clear: you should renew your basic pension insurance.
why would you said this? This is determined by the history of the payment of laid-off workers and the calculation of pension benefits at retirement. On the one hand, the so-called "payment of basic pensions for 15 years on a monthly basis" is the necessary and minimum condition for enjoying basic pension insurance, mainly for urban individual workers who are older and have no history of payment when they start paying. From the beginning of the payment to the statutory retirement age, it is only about 15 years of payment. Due to the short payment time, the level of protection is relatively low. Laid-off and unemployed workers have a long history of payment, and the starting point for payment is high. According to the design principle of retirement pension insurance, if the payment time is long and the payment level is high, the guarantee level is high. Therefore, laid-off and unemployed workers should renew their basic endowment insurance. Otherwise, they will lose their original payment advantages. On the other hand, according to the calculation method of the pension insurance benefits of laid-off workers, the basic pension insurance should also be renewed. Their basic pension consists of four parts:
1. Basic pension = the average monthly salary of the city's employees in the previous year at the time of retirement * 20%;
2. Transitional adjustment gold = 99 yuan + annual salary;
3. Personal account pension = personal account storage / 120;
4. Transitional pension = indexed monthly average salary * 1.4% * full payment period before the establishment of a personal account.
Indexed monthly average salary = average monthly salary of the city's employees in the previous year at the time of retirement * average index.
Among them, the first and second parts are relatively fixed, reflecting social fairness; the third and fourth parts reflect social efficiency and determine the level of personal pension insurance. When the payment time is long and the payment base is high, the personal account has a large amount of storage and the average index is high, so the personal account pension and the transitional pension level are high. On the contrary, if the intermittent payment time is too long, the personal account pension will be small, and the average index will be the minimum value. Therefore, the transitional pension calculated according to the original payment period will be greatly reduced. For example, before the establishment of a personal account in 1996, there were two laid-off and unemployed workers who had 25 years of payment as the same period of payment. One person continued to pay before reaching the retirement age, and one stopped paying. Then the value of the 25-year working period is different. . The average annual rating of the 25-year payables for continuous payment of employees has been improved or maintained at the original level, while the average index of employees who have been suspended has been diluted and can only enjoy the minimum level of protection.
To sum up, in order to effectively protect their own pension insurance rights and interests, as far as conditions permit, it is necessary to continue the basic endowment insurance as much as possible. Otherwise, the pension level will be low in the future retirement, which will not only affect their quality of life. It will also increase the overall burden on society. This is not responsible for oneself, but also irresponsible for society.