In recent years, due to the continuous improvement of China's pension insurance system, the release of the pension calculation base this year is also late.
In May 2019, the state uniformly reformed the caliber of the pension payment base of various provinces and cities, and clarified the upper and lower limits of the social security individual payment base approved on the basis of the average wage of employed personnel in urban units of all calibers. The average social wage used in the caliber of the payment base is originally consistent with the social average wage used to calculate the pension. Changing the caliber of the payment base will have a series of effects.
Originally, many parts of the country adopted the average wage of employed persons in urban non-private units. In the 1990s, when China implemented the reform of the pension insurance system, the main employment at that time was mainly non-private enterprises such as state-owned enterprises and foreign-funded enterprises. With the rapid development of China's economy and society, the private economy has become larger and larger, solving a large number of employment problems and providing a large amount of tax revenue. However, the general wage treatment level of private enterprises is low, and after the average wage of private enterprises is included in the accounting of the payment base, the upper and lower limits of the entire payment base have decreased.
In order to ensure the fairness and sustainability of the calculation of the treatment of the elderly, from 2020, the local human resources and social security departments will uniformly publish the pension calculation base. It is a certain proportion of the social average wage used in the original local pension calculation. For example, the pension calculation base in Shandong Province in 2020 is 6573 yuan, which is about 5% higher than the average social wage of urban non-private units used in 2019 of 6260 yuan.
In 2021, the pension calculation base of all localities will be announced, which can only be determined after approval by the Ministry of Human Resources and Social Security and the Ministry of Finance. Tianjin's pension calculation base in 2021 is 8324 yuan, up about 4.836% from 7940 yuan in the previous year. The pension base of Shandong Province in 2021 is 6893 yuan, compared with 6573 yuan over the previous year, which is also an increase of 4.868%. The pension base in Liaoning Province is divided into three grades according to different regions. Dalian is the highest, with the latest calculation base in 2021 being 8038 yuan, up 4.675% from the previous year's 7679 yuan. Shenyang's base was 7530 yuan, up 4.656% from the previous year's 7195 yuan. The calculation base in other regions was 6340 yuan, up 4.672% from the previous year's 6057 yuan.
Overall, the pension base across the country is expected to rise by about 4.6% to 4.9%, which is higher than the average pension growth rate of retirees in 2021.
After the new pension base is announced, we will use the new base to recalculate the pension of the retired elderly from January to October this year. Generally speaking, retiree pensions mainly include three parts: basic pension, personal account pension and transitional pension.
The basic pension is linked to the number of years of contribution, the contribution index, and the average social wage. Generally speaking, if we contribute according to the 60% base for 15 years, we can only receive 12% of the average social salary of the previous year for retirement. However, if our contribution base is high and the basic pension for a long period of contribution will be higher. For example, the average contribution index is 2, and 40 years of contribution can receive 60% of the average social wage of the previous year of retirement. If the same calculation base is increased by 320 yuan, the basic pension will increase by 38.4 yuan and 192 yuan respectively.
The pension of the individual account will be calculated annually according to the bookkeeping interest rate published by the state. This year's book-entry rate is still not announced, but according to previous years, it is an increase of more than 6% to 8%. If the balance of the pension insurance personal account is low, the increase in the amount of money will be less. Some elderly people are 50 years old retirement, personal account balance of 30,000 yuan, can only receive more than 150 yuan per month personal account pension, even if the increase of 6% is only an increase of 9 yuan. The balance of the personal account of the pension insurance can be 200,000, and the pension of the 60-year-old retirement personal account can reach about 1439 yuan, and an increase of 6% can increase by about 86 yuan.
Transitional pensions, so they are also linked to the average wage of society, and they are also increased proportionally.
In general, the annual pension recalculation is actually not the same as the annual pension adjustment. When the pension is adjusted, it is through the adjustment of the quota, the adjustment of the linkage, and the appropriate tilt, and gradually narrow the gap between the level of everyone's pension, and the pension is recalculated, paying more attention to paying more and getting more, paying more and getting more.