How much do you know about social insurance?

Thread Content

When starting work, legitimate employers will help employees purchase social insurance and housing provident funds. But how much do people actually know about social insurance? Here is a post shared for everyone’s reference and learning. I. Basic Pension (I) Eligibility Criteria 1. Retirement age 2. Contribution period An insured person who meets one of the following conditions can apply to receive a basic pension on a monthly basis: (1) Those who joined the basic old-age insurance after July 1, 1998, have reached the **specified retirement age, and have a cumulative contribution period (including years considered as contributions, the same below) of 15 years ； 　(2) Those who were enrolled in the basic old-age insurance prior to June 30, 1998, reached the **specified retirement age prior to June 30, 2013, and had a cumulative contribution period of 10 years or more ； (3) Those who joined the basic old-age insurance before June 30, 1998, reached the **specified retirement age after July 1, 2013, and had a cumulative contribution period of 15 years or more ； (4) Those who failed to enroll in the basic old-age insurance by June 30, 1998, and completed the procedures for retroactive enrollment after July 1, 1998, who have reached the retirement age specified in ** and have a cumulative contribution period of 15 years. (II) Methods of Calculation 1. Payment on a monthly basis (1) Basic pension A. Basic pension = (Average monthly wage of employed workers in the province in the previous year × a + Individual’s indexed average monthly contribution wage) ÷ 2 × Number of years of contributions (including years considered as contributions) × 1% B. Personal account pension = Amount in the personal account ÷ Number of months for which the personal account pension is calculated C. For those who have a special account for contributions considered as such, in addition to the basic pension and personal account pension, a transitional pension is also paid: a. For those who joined the basic pension insurance before June 30, 1998: Transitional pension = Total amount in their account considered as contributions ÷ 120 ； b. Those who joined the basic old-age insurance after July 1, 1998: If they already had a period of contributory service considered equivalent to actual contributions as stipulated by ** prior to June 30, 2006, then the transitional pension = total amount in their equivalent-contribution account ÷ 120. For those who began to have such a period of contributory service as stipulated by ** after July 1, 2006, the transitional pension = total amount in their equivalent-contribution account ÷ the number of months for which the individual account pension is calculated. D. For those who joined the basic old-age insurance before June 30, 2006 but applied for the basic old-age pension after July 1, 2006, an additional local pension is granted: Local pension = (average monthly wage of employed workers in this city in 2005 – average monthly wage of employed workers across the province in 2005) ÷ 2 × their own contributory years prior to June 30, 2006 × 1%. Note: ① Regarding the value of a: When an individual’s average contribution index is greater than or equal to 0.6, a = 1; when it is less than 0.6, a = individual’s average contribution index ÷ 0.6. Here, the average contribution index = (sum of equivalent-contribution index × number of months of equivalent contributions + sum of actual monthly contribution indices) ÷ (number of months of equivalent contributions + number of months of actual contributions) ； ②Method of calculation based on the deemed contribution index: A. Ordinary employees use a factor of 1.201 ； B. Special groups: Demobilized and transferred military personnel assigned to enterprises in our province, former government employees who moved to enterprises, and staff members of public institutions that were managed in accordance with civil service regulations prior to restructuring – whose continuous length of service calculated in accordance with **relevant regulations before joining the basic old-age insurance can be considered as contributory service years. The deemed contribution index = the average monthly wage of employed workers across the country in the previous year at the time of discharge, or the average basic monthly wage over the 12 months prior to transfer out, leaving a government agency or public institution, or before the restructuring of such an entity; or the average wage of employed workers in the province in the previous year at the time of discharge, leaving a government agency or public institution, or during the restructuring of such an entity. If the calculated value is greater than 3.0, 3.0 shall be used ； ③The number of months considered as contribution months is the sum of the **specified number of months considered as contribution months and the actual number of contribution months prior to December 31, 1993** ； ④The actual number of months of payment is the sum of the actual payment months starting from January 1994 ； ⑤Method for calculating the actual monthly contribution index: A. Calculation method in general cases – Actual monthly contribution index = Monthly contribution base of the individual as of January 1994 ÷ Average monthly wage of employed workers in the entire province for the corresponding previous year ； For the months for which the overdue pension insurance premiums are paid (including payments to cover the shortfall), the actual monthly contribution index for those months = the monthly contribution base during the period of payment / the average monthly wage of employed workers across the province for the previous year at the time of making the payment ； B. For those who left state-owned enterprises early and made a one-time payment, the actual monthly contribution index for that one-time payment = the monthly contribution base for that one-time payment ÷ the average monthly wage of employed workers across the province in 2000. ⑥ The indexed average monthly contribution wage = the average monthly wage of employed workers across the province in the previous year × the individual’s average contribution index ； ⑦For the calculation methods of the deemed contribution account and the individual account, please refer to \"Introduction to the Deemed Contribution Account\" and \"Introduction to the Individual Account for Basic Old-Age Insurance\“. (2) Method of calculation during the transition period: A 5-year transition period was established (from July 1, 2006, to June 30, 2011). During this period, the basic pension was calculated by comparing the methods specified in Document Yuefu [2006] No. 96 (hereinafter the new method) with the previous provincial pension calculation method (hereinafter the previous provincial method), and the difference between the two was used as the basis for calculation. A. If the basic pension calculated under the new method is lower than that calculated under the previous provincial method, the difference shall be paid as a supplementary amount ； Difference to be compensated = Basic pension under the old method – Basic pension under the new method (including local pension) ； B. If the basic pension calculated under the new method is higher than that calculated under the province’s original method, the difference shall be handled as follows: Basic pension to be paid = Basic pension under the province’s original method + (Basic pension under the new method (including local pension) – Basic pension under the province’s original method) × M ； Value of M: For those who first received benefits between July 1, 2006, and June 30, 2007, M is set at 10% ； For those who first received benefits between July 1, 2007, and June 30, 2008, M is set at 30% ； For those who first received benefits between July 1, 2008, and June 30, 2009, M is set at 50% ； For those who first received benefits between July 1, 2009, and June 30, 2010, M is set at 70% ； For those who first received benefits between July 1, 2010, and June 30, 2011, M is set at 90% ； No further comparison will be made after July 1, 2011; payments will be calculated according to the new method. (3) Previous provincial pension calculation method. Note: ① a01, a02……a05 represent the adjustment rates for transitional pensions in this city for the social insurance years from 2001 to 2005, namely: 17.1%, 6%, 5.4%, 5.3%, and 2.93% respectively ； ② Calculation coefficient: 1.2% for those who have completed 15 years of contribution period (including years considered as contribution period) at the time of first receiving benefits; 1% for those who have completed 10 years of contribution period (including years considered as contribution period) but less than 15 years ； ③ Indexed monthly average contribution wage = Average monthly wage of local employees in 1999 × ÷ (Number of months considered as contribution periods before December 1993 + Number of actual contribution months before December 1993 + Number of actual contribution months from January 1994 to June 2001) ④ Actual monthly contribution index = Monthly contribution base of the insured person ÷ Average monthly wage of local employees in the corresponding previous year (4) The basic pension is adjusted annually in July according to the plan uniformly announced across the province. 2. Lump-sum withdrawal of pension: If an insured person reaches the **specified retirement age but does not meet the conditions for receiving a monthly basic pension, they may withdraw the amount stored in their individual account in a lump sum, thereby ending their pension insurance coverage. Among them, those who joined the basic old-age insurance before June 30, 1998, and those who joined it after July 1, 1998 and for whom all of the insurance premiums were paid by the individual, are also eligible to receive a one-time old-age allowance. The standard for the one-time seniority allowance is: for each full year of contributions, 1 month’s worth of the individual’s indexed average monthly contribution wage is paid out. II. Benefits in case of death of retirees (1) Funeral expenses = Monthly average wage of employed workers in the city in the previous year at the time of death × 3 months ； (II) Pension = Monthly average wage of employed workers in the city in the previous year at the time of death × 3 months ； (III) One-time relief payment for supporting immediate family members = Monthly average wage of employed workers in the city in the previous year at the time of death × 6 months ； (IV) The balance in the individual account shall be paid in a lump sum to the legal heirs; if there are no legal heirs, it shall be transferred to the pension insurance pooling fund. III. Moving abroad to settle there or dying before retirement: (1) The balance in the individual account is paid out in a lump sum to the individual himself/herself or to the legal heirs of the deceased ； (II) Simultaneously refund the principal and interest of individual contributions made prior to the establishment of the personal account. Instructions for Applying for Basic Old-Age Insurance Benefits: The employer shall, in the month when the employee reaches the legal retirement age, assist the employee in going through the retirement application procedures at the social insurance agency. Please provide the following documents when applying: I. For those receiving a basic pension on a monthly basis: 1. Two copies of the \"Guangzhou Labor Employment and Social Insurance Staff Addition and Reduction Form\" ； 2. “Retiree Application Form” or “Form for Approval of Early Retirement by Employees” along with copies thereof ； 3. If available, also provide the Guangzhou Employees’ Labor Manual ； 4. “Guangzhou City Employee Continuous Service Length Approval Form” and its copy ； 5. In addition to the above-mentioned documents, military transfer officials must also provide the \"Military Officer Transfer Approval Form\" along with its copy. II. Receiving the basic pension in a lump sum 1. If available, both the \"Guangzhou Basic Old-Age Insurance Individual Account Manual\" and the \"Guangzhou Employees’ Labor Manual\" should be provided ； 2. For applications submitted by the applicant himself/herself: the applicant’s ID card and its copy, household registration book and its copy, a current account passbook from a Bank of China, Agricultural Bank of China, or Industrial and Commercial Bank of China account opened in this city, along with a copy of the page showing the account details; or a bank card (both the original and a copy), along with the application form for opening the card (both the original and a copy). 3. Two copies of the “Guangzhou Labor Employment and Social Insurance Staff Increase/Decrease Form”. III. Benefits in case of death after retirement 1. Original copy of the burial certificate (or household registration cancellation document) and a copy of the Report (or Death and Burial Certificate) ； 2. Two copies of the “Guangzhou Labor Employment and Social Insurance Staff Increase/Decrease Form” ； 3. For those who need to support immediate family members, the following documents shall be provided depending on the person being supported: (1) For a spouse who is supported and has lost the ability to work before reaching the legal retirement age: the original and copy of the household registration book, along with a certificate issued by the local authority responsible for assessing working capacity. B. Those who have reached the legal retirement age and have no source of income: provide the original and copy of the household registration book, along with a certificate from the community residents’ committee. (2) For dependent children A under 16 years of age: provide the original and a copy of the household registration book. B: Those who are over 16 years old and still attending high school or vocational school: provide the original and copy of the household registration book, as well as the original and copy of the student ID card, along with a certificate from the school they are attending. 　　C. Those who have lost their working capacity: provide the original and copy of the household registration book, along with a certificate from the municipal agency responsible for assessing working capacity. (3) Support for parents: If the deceased was an only child, provide the original and copy of the household registration book, along with a certificate from the family planning department at the sub-district or town level or above. B. If the deceased is not an only child: provide the caregiver’s labor protection card (with an official seal) or medical expense reimbursement receipts. (4) For supporting other immediate family members: provide the supporter’s labor protection card (with an official seal) or medical expense reimbursement receipts. IV. Moving abroad to settle down or passing away before retirement 1. If available, provide both the \"Guangzhou Basic Old-Age Insurance Individual Account Manual\" and the \"Guangzhou Employees’ Labor Manual\" ； 2. Two copies of the “Guangzhou Labor Employment and Social Insurance Staff Increase/Decrease Form” ； 3. To settle abroad, the following is required: (1) A certificate of settlement abroad issued by the public security authorities ； Household registration and passports cancelled by the police station (for non-Chinese versions, a written application from the employee himself/herself is required) ； 　(Note: Provide one of the above documents along with a copy thereof.) (2) When applying in person, it is also necessary to provide a copy of the current account passbook from a Bank of China, Agricultural Bank of China, or Construction Bank account opened in this city, along with a copy of the page showing the account details; or a bank card (both the original and a copy), along with the application form for opening the card (both the original and a copy) ； If handled by an agent: in addition to the above documents, the agent’s ID card and a power of attorney certified by a notary office are also required (if not in Chinese, it must be translated and certified by a notary office) ； 4. For death, the following must be provided: (1) The original and copy of the proof of death (such as a funeral certificate or a Death Report) ； (2) When applied for by the heir, the original household register is also required; if the household register cannot prove that the applicant has a legal right to inheritance, a notarized document confirmed by a notary office must be provided ； If handled by someone else, a power of attorney certified by a notary office from the heir is also required. V. For those who are not registered as residents of the city and have left it before reaching retirement age, they may apply for a one-time payment of the amount stored in their personal account or the portion of contributions they made. 1. The \"Guangzhou Basic Old-Age Insurance Personal Account Manual\" or the \"Detailed Statement of Contributions by Insured Persons\", certified with the seal of the social security agency ； 2. A copy of the current account passbook of the employee’s work-related or agricultural, construction bank accounts opened in this city, along with the page showing the account number; or a bank card (both the original and a copy); plus the application form for opening the account (both the original and a copy) ； 3. The “Application for Withdrawal of Insurance by Employees under the Farmer Contract System” signed by the employee himself/herself for confirmation ； 4. The ID card of the person in charge of the unit, and two copies of the “One-time Benefit Form for Persons Without Urban Residence in This City”. 5. If the employee handles the application procedures in person, in addition to the documents listed in points 1, 2, and 3, they must also provide the original and a copy of their ID card. VI. Documents required by retirees (or former employees) who do not hold local household registration to apply for the delivery of pensions via the postal service: 1. “Form for the Delivery of Retirement Pensions to Retirees Living Outside the City via Postal Savings” ； 2. Copy of the page from the postal savings passbook that shows the account details ； 3. Copies of ID card and household registration book ； VII. Insured entities must carry the Social Insurance Registration Certificate when handling all social insurance-related matters. Procedures for Verifying Eligibility to Receive Basic Pension: In Guangzhou, pensions for retirees are paid on a social basis. An annual verification of the eligibility of those receiving basic pensions is carried out; those who fail to provide valid proof of survival have their basic pensions suspended starting from July of that year. I. Residing in Guangzhou City (excluding Panyu and Huadu districts): For retirees who reside in this city, the employer (or the district retirement management office) conducts an annual assessment of their eligibility; the social insurance authorities carry out random checks to verify this. II. Residing in another location: From March to June 20 each year, the insured entity (or the district pension administration office) shall submit to the relevant social insurance agency proof issued by the authorities in the place where the entity’s retirees reside. 1. Those residing domestically: a certificate from the local public security authorities or an acknowledgment from the social insurance agency ； 2. Those residing abroad: a certificate issued by our embassy or consulate in that country is required ； For those that have not established diplomatic relations with our country, a certificate issued by the notary office in the country of residence is required ； 3. **Those settled in a specific area: Provide a certificate from the **Ministry of Civil Affairs** or the **Trade Union Federation** ； 4. Those residing in the Macao region: a certificate issued by the “Macao Civil Affairs Department” or the “Macao Trade Union Federation” is required ； 5. Those residing in Taiwan: a certificate issued by the local notary office is required ； 6. Retired individuals returning to the country from abroad or regions such as Hong Kong, Macao, and Taiwan to visit family can provide the corresponding proof of residence and entry permits. The settlement certificates presented by overseas residents in items 2, 3, and 4 above include the date of their settlement and their age for that year. III. After the death of retirees who are under social management, their relatives shall report the matter to the retirement management service agency in their respective neighborhoods within 7 days; the neighborhood-based retirement management agency shall then report it to the district-level retirement management agency. The district-level agency shall, upon receiving the report, inform the relevant social insurance handling agency within 20 days ； In the event of the death of a retired person who was not under social management, their relatives shall report the matter to the deceased’s former employer within 7 days; the former employer, upon receiving the report from the relatives, shall inform the relevant social services agency within 20 days. IV. In the event that a retired person falls under any of the following circumstances, the social insurance agency shall suspend or temporarily stop paying their basic pension: 1. Failing to provide proof of their residence location or other relevant documentation as required, without proper justification ； 2. Those who have been missing for more than 6 months, for whom their relatives or interested parties report them as missing, or whose household registration is temporarily cancelled by the household registration authority ； 3. Those who moved abroad to settle before reaching the retirement age but failed to go through the procedures to terminate their pension insurance coverage, and then went through the retirement procedures after reaching that age ； 4. During the period of being sentenced to imprisonment or undergoing reeducation through labor ； 5. Other circumstances stipulated by laws and regulations. In the cases specified in points 1 and 2 above, if retirees stop receiving their basic pension but can provide valid proof or it is confirmed that they are still eligible to receive it, the basic pension will be paid retroactively starting from the month of suspension and payments will resume ； For retirees in the situation described in item 3 above, payment of their basic pension will be stopped as soon as it is discovered; the amount of basic pension already received will be refunded, and the social security agency will return to them the balance in their personal account as well as the principal and interest of the individual contributions made prior to the establishment of the account, thereby terminating their pension insurance coverage. Retired persons in the situation described in item 4 above may continue to receive their basic pension at the rate last received before serving their sentence or undergoing re-education through labor, once such sentence or re-education period has come to an end.