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Let's Talk about Employee Endowment Insurance Today!

Release time:

2023-11-17 00:00

Source:

The Social insurance is divided into two kinds, Employee Social Insurance and Resident Social Insurance. Today the topic we're talking about is the Employee Endowment Insurance which is one of the important items of Employee Social Insurance.

What is Employee Endowment Insurance?

Employee Endowment Insurance: It is mainly to protect people's life after retirement and pay pensions to retired employees to maintain their basic life.

2023 Statutory retirement age for men and women

According to national regulations, retirement includes normal retirement, early retirement and other situations, the retirement age of men and women is different, and the retirement age of each position is also different.

The statutory retirement age of enterprise employees is: male workers at 60 years old, female workers at 50 years old, and female cadres (management position) at 55 years old.

For those who are engaged in underground, high-altitude, high-temperature environment, and particularly heavy physical labor or other harmful jobs to health (hereinafter referred to as special jobs), the retirement age shall be 55 for men and 45 for women; in case of the disability due to illness or non-work related disability, which is certified by a hospital and confirmed by a labor appraisal committee as completely incapacitated for work, the retirement age shall be 50 for men and 45 for women.

The report of the 20th Party Congress in October 2022 pointed to the strategy of "gradually postponing the mandatory retirement age." The Central Economic Work Conference at the end of 2022 also stressed the "appropriate adoption of the gradual postponement of the statutory retirement age system." The retirement age may be adjusted in the future.

What are the requirements for receiving a pension after retirement?

1) The cumulative contribution period of endowment insurance reaches 15 years;

2) Retirement age reaches the statutory retirement age, and the retirement age is different for different groups.

What should the employees do if they reach the retirement age but the cumulative contribution period of endowment insurance has not reached 15 years?

There are four ways to solve the problem:

1.If employees paid the endowment insurance before July 1st 2011, then they can make a one-time payment for up to 15 years for endowment insurance and receive the pension.

Employees who participated in the endowment insurance for the first time before July 1st 2011 (before the implementation of the Social Insurance Law of the People's Republic of China), when they reach the statutory retirement age, if their cumulative contribution period of endowment insurance is less than 15 years, they are allowed to make a one-time payment for 5 years to extend the period; if the cumulative contribution period is still less than 15 years after extended 5 years, they are allowed to make a one-time payment again to make the period reaches 15 years. Then they can go through the retirement procedures and receive the pension.

2.If employees paid the endowment insurance after July 1st 2011, then they need to continue to pay monthly endowment insurance to make the cumulative contribution period up to 15 years.

Employees who participated in the endowment insurance for the first time after July 1st 2011 (after the implementation of the Social Insurance Law of the People's Republic of China), when they reach the statutory retirement age, if their cumulative contribution period of endowment insurance is less than 15 years, they need to continue to pay monthly endowment insurance to make the cumulative contribution period up to 15 years. Then they can go through the retirement procedures and receive the pension.

Note: In this way, the employees may need to discuss with the company to delay retirement or use their savings to continue to pay monthly endowment insurance to make the cumulative contribution period up to 15 years.

3.To transfer the employee endowment insurance to the resident endowment insurance

The employees can also apply to transfer from the employee endowment insurance to the resident endowment insurance and enjoy the corresponding residents pension treatment. They are allowed to make a one-time payment to make the cumulative contribution period of endowment insurance for residents to reach 15 years. Then they can go through the retirement procedures and receive the pension.

Note: The pension treatment for resident endowment insurance is much lower than the employee endowment insurance pension treatment for employees and it is generally not recommended to do this way.

4.Apply for the termination of the employee endowment insurance relationship.

If the employee endowment insurance is not transferred to the resident endowment insurance, the individual may apply in writing to terminate the employee endowment insurance relationship. The social security agency shall terminate the employee endowment insurance relationship and pay the amount saved in the personal account to the employee in a lump sum after confirmation by the employee according to the procedure.

Note: Giving up the employee endowment insurance is the least recommended practice, after the surrender of employee endowment insurance, the employee can only take out the personal contribution part and can not receive pensions, not to say enjoy any pension treatment. It is suggested to not choose this way.

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This article is based on the analysis and references of different cited sources online and does not represent AsecorpChina's opinion. AsecorpChina won't assume any responsibility on the reader's application of the interpretation of this article.

Source:

https://mp.weixin.qq.com/s/GozWlrmnsxnxR4AdHMErTA

https://mp.weixin.qq.com/s/PI32w9AnvDvhiV6_sw3c0A

https://mp.weixin.qq.com/s/PKAZJFeD03nhSDk7_3byZA

https://mp.weixin.qq.com/s/AS_Ih5wV5GsaV27Xu1UGWg?

https://mp.weixin.qq.com/s/JR6DJHcp-tZV6SwP2Rsn8Q

https://mp.weixin.qq.com/s/e4ZAi_C8KtaO1S6InjsKNg

https://mp.weixin.qq.com/s/nYdTsd2nepevNINTKlBRA

https://mp.weixin.qq.com/s/mrGaTP02XfoWbKavxdd4CQ

https://mp.weixin.qq.com/s/0aY15Wa8LN_5MXD57FgIlQ

https://mp.weixin.qq.com/s/qOr2MFjqXsoD_1kshJK8xQ