How to calculate rural pension insurance

Calculation of rural old-age pension insurance: Monthly pension entitlement = basic pension + total amount of personal account ÷ 139 (the number of months of pension accrual). When a participant dies, the balance of funds in the individual account, except for government subsidies, can be inherited in accordance with the law; the balance of government subsidies is used to continue paying pensions to other participants.

Rural old-age insurance is an old-age insurance system that insures residents of rural areas who do not have urban household registration. The basic principles of rural old-age insurance are: the level of protection is commensurate with the development of rural productive forces and the affordability of all parties; old-age insurance is combined with family support, land security, and social assistance and other forms; the rights and obligations of the relative equivalence; efficiency is given priority to take into account the fairness of the situation; self-insurance is given priority to, supplemented by the collective (including township and village enterprises and institutions) transfer, the state to give policy support; the combination of governmental organization and the farmers voluntarily.

About rural pension, many areas did not establish the rural social pension system, has been established in the region there are many defects, the operation of a lot of problems, so the necessity and urgency of improving the system of rural social pension insurance is increasingly reflected.

(I) accelerated aging.

With the accelerated pace of urbanization and the export of rural labor force, more and more rural young adults into the city, the age structure of the "two ends of the big, the middle of the small" situation. According to statistics, in 2000, China's population of 833 million people in rural areas, the elderly population aged 65 years or older is estimated to account for 7.36%, by 2030, 664 million rural population, the elderly population aged 65 years will reach 17.39% for 129 million.

(2) The coverage of rural social old-age insurance is too small, and there are defects in the coverage of the target.

China has the world's largest elderly population, seventy-five percent of which are in rural areas. According to statistics, there are still many rural people who are not covered by social security. The number of townships that have established a social security network accounted for only 41 percent of the total number of townships in the country in 1998, and the number of village committees that have established social security funds is less than 20 percent of the total number of villagers' committees. In addition, according to the National Bureau of Statistics, the number of urban migrant workers in China has risen from less than 2 million at the beginning of the reform and opening-up process to 114 million in 2003, so there is a great need to consider the issue of old-age insurance for this particular group. The basic program does not reflect any differentiation between farmers who remain in the countryside and those who migrate to the cities to work. Farmers who go to the cities to work are neither included in the rural pension insurance system nor in the urban pension insurance system, and are in a legal protection gap.

(3) The function of traditional family pension insurance has been weakened.

The concept of raising children for old age is y rooted in rural China, and family support has always been the most important way of old age. In agricultural societies, which are basically characterized by self-sufficiency, production technology is basically stable, the social division of labor is very low, and the close relationship between the upper and lower generations is highly summarized in the phrase "the son inherits his father's work". This stable succession of generations allowed for the natural fulfillment of the function of supporting the elderly within the family and the formation of a corresponding moral code. However, with the advent of the industrial society characterized by social division of labor, this natural and stable relationship was broken, and "the son inherits his father's work" no longer existed, and there was almost no other relationship between father and son, except for the blood relationship and the relationship of rearing the children when they were minors. The children's labor skills have to be mastered by their own efforts, and the opportunity to work has to be sought by themselves, for which they often have to leave the place where they were born and raised, and their parents.

(4) It is difficult to rely entirely on land security for rural old age, but land is still an important means of production for some farmers.

According to data provided by the China Statistical Yearbook, from 1978 to 1998, the proportion of the average national farmer's income from the primary industry fell from 91.5 percent to 57.2 percent, with pure agricultural income accounting for only 42.9 percent of total income. About 40% of farmers' household income came from the secondary and tertiary industries, and about 1/4 came from labor income. Income from transfer and property accounts for about 5.7% of the net income. It is thus clear that agricultural income from the land can no longer guarantee the basic livelihood of farmers, and it is even more extravagant to use it for old age. Some farmers have already escaped from the land to participate in the reality of social security. However, land is still an important means of production for some farmers.

(5) The gap between the rich and the poor is widening year by year, laying a hidden danger for future social development.

Development in the countryside is getting worse every year, while development in the cities is getting better every year. The gap between the living conditions of the elderly in rural and urban areas is also obvious, and the government has basically paid no attention to the implementation of rural old-age insurance after the introduction of the Basic Program for Rural Social Old-Age Insurance. According to a survey, 82.4% of the organizations of migrant workers in the cities do not pay pension insurance for them, which is much higher than that of "city dwellers" (46.1%), thus indicating that the overall level of pension insurance for migrant workers in the cities is very low. The government's policy on social pension insurance in rural areas should be strengthened, social justice should be maintained, and the rights and interests of farmers should be effectively protected.

(6) Problems in fund-raising and fund management.

1. The level of demand for rural old-age insurance is relatively low, but if you take into account a variety of factors such as urbanization, social development, and improvement in living standards, and take into account the economic and social background of the people who are insured for their old age today in their twenties, thirties, or even forties when they enter their old age, and the very small amount of old-age insurance premiums that are now being paid, there is a situation in which the old-age insurance can not support old age, and can not protect against insurance The situation.

2. With regard to fund-raising, many poor villagers are unable to take out insurance, while a few village and township cadres take advantage of their authority, make up names, and use public funds to take out insurance for themselves, and old-age insurance has become a tool for these people to seek private gain for themselves, which affects the operation of the old-age insurance and the motivation of the masses to take out insurance. Some areas have also appeared compulsory insurance, for example, do not pay the premiums will not be allowed to receive a marriage license and so on.

3. Pension insurance funds raised can not be earmarked, a few places under various pretexts, unauthorized diversion of other uses, resulting in risk, damage to the interests of the insured, and ultimately will affect the implementation of the social pension insurance system.

4. Most township and village enterprises and private enterprises, as well as state-owned enterprises, urban collective enterprises, and three-funded enterprises with rural laborers employed in them, have basically blanked out social security for rural workers. The collectives have not really taken responsibility.

5. The management level of the fund is too low to make the fund effectively preserve and increase its value. Forming FactorsThe formation of rural social pension insurance at the present stage is the result of many years of accumulation of socio-economic and cultural backgrounds, and is the result of the combined effect of many factors. Two of the more basic factors will be described below.

(1) The backwardness of the rural economy is the most basic reason for the lagging of pension insurance.

On the one hand, because agriculture itself is the primary industry, the effect of creating productivity is not as obvious as other industries, so the state is not strong enough to manage and supervise it. On the other hand, since the development of agriculture is mainly in rural areas, the state's management may fail due to too many management levels. Therefore, due to the weakness of the agricultural industry, the state formulated the policy of developing industry at the expense of agriculture at a time when a market economy had just been introduced to require vigorous economic development.

(ii) The lag of legislation.

On the introduction of rural social pension insurance, there is only the Basic Program for County-level Rural Social Pension Insurance (for Trial Implementation), which was published and put into effect by the Ministry of Civil Affairs of the People's Republic of China*** and the People's Republic of China on January 3, 1992, to provide a basic plan for rural social pension insurance at the county level (for trial implementation). The State has not made timely adjustments to the law in the light of economic and social developments. The basic conditions for carrying out rural social pension insurance are clearly set out in the Circular of the General Office of the State Council Transmitting the Opinions of the Ministry of Civil Affairs on Further Improving the Work of Rural Social Pension Insurance (Guo Ban Fa [1995] No. 51). Namely, "areas where the problem of subsistence for the peasant masses is basically solved and where grassroots organizations are relatively sound." The basic principles of rural social old-age insurance are: the level of protection is commensurate with the development of rural productive forces and the affordability of all parties; old-age insurance is combined with forms of family support, land security, and social assistance; rights and obligations are relative to each other; priority is given to efficiency, and fairness is taken into account; self-protection is the mainstay of the system, with the collective (including township and village enterprises and institutions) making transfers, and the state giving policy support; and the combination of governmental organization and The combination of government organization and farmers' voluntariness. The main features of the rural social pension insurance system model mainly has the following characteristics:

One is the fund-raising to individual contributions, supplemented by collective subsidies, the state policy support, a clear individual, the collective and the state's responsibility, highlighting the principle of self-protection is the main, do not give the government backpacks;

The second is the implementation of the accumulation of reserves, the establishment of individual accounts, individual farmers contributions and collective subsidies are all recorded in the individual's name, and the farmers' individual contributions and collective subsidies are all recorded in the individual's name. Collective subsidies are all recorded in the name of the individual, belonging to the individual. The amount of personal pension depends on the amount of personal

contributions and the length of the accumulation time;

Thirdly, the implementation of a unified social pension insurance system for all types of rural workers, such as farmers and businessmen, to facilitate the mobility of the rural labor force;

Fourthly, the government's organization to guide the combination of the work of the farmers and voluntary method of work. This is China's rural economic development is very unbalanced by the decision of the transitional period of the working methods, with the development of the rural economy, in areas with the conditions will gradually increase the efforts of the government to promote, in order to reflect the characteristics of social insurance. [1]

The rights and interests of the object

The rights and interests of the object of the insurance are:

1) the insured person who dies during the payment of premiums, the individual pays all the principal and interest, refunded to their legal heirs or designated beneficiaries.

2) The policyholder receives an old-age pension, which is guaranteed for ten years. If the insured person dies after receiving the pension for less than ten years, the balance of the pension during the guarantee period can be inherited. If there is no heir or designated beneficiary, funeral expenses shall be paid in accordance with the relevant regulations of the village social pension insurance administration organization. If the recipient lives longer than ten years, the pension will be paid until death

3) The insurance recipient moves from the county (city) to a foreign country. If the place of relocation has not yet established a rural social pension insurance system, the entire principal and interest of the individual contributions can be refunded to the person himself/herself.

4) The insured person who recruits for public office, promotes himself to the cadre, goes to school, etc., can transfer the insurance relationship (including funds) to the new insurance track, or return all the principal and interest of his personal contributions to himself.

Reform and Improvement

Basic Principles

1, the development of social pension insurance in accordance with local conditions, compulsory and voluntary combination. That is, it should be based on China's national conditions, according to the level of economic development in each region, according to the needs of farmers in each region for social pension insurance, the ability to pay the different timely and appropriate establishment of rural pension insurance. Only when the overall strength of the regional economy can provide surplus accumulation, and from the accumulation of funds withdrawn for social old-age insurance on the region's economic development and people's current life consumption has no impact, the establishment of social insurance has the possibility, in has not yet solved the problem of food and clothing to talk about the establishment of social old-age insurance is unrealistic.

2. The principle of coordinated development of the rural social pension insurance system and other security systems. The establishment of a multi-level rural old-age security system. Self-security level: family security, embodied in the adult children of the elderly "feeding"; personal savings, personal savings in young and middle-aged old age; land security can also play a useful complementary role. The government is responsible for the level: financial and policy support; collective security level, traditional or new economic organizations to give subsidies.

3, the principle of differentiation. For different objects, different management. For urban farmers should be treated flexibly, can be included in the town to participate in pension insurance as far as possible into the town pension insurance system, in advance and the town pension insurance system; can not be included in the rural pension insurance system.

4, the principle of gradual progress. Expressed in the following aspects: First, gradually expand the coverage of rural social pension insurance. Secondly, the mobilization of funds at this stage to adhere to the individual contributions, supplemented by collective subsidies, the State to give financial and policy support. As farmers' incomes continue to rise, the share of collective and State support will gradually diminish. Third, the social pension insurance system should be gradually integrated with the urban social pension insurance system, so as to realize a unified social pension insurance system for both urban and rural areas. Fourth, at this stage should establish a multi-level old-age security, combined with family old-age and other security systems, the future slowly transition to complete social pension insurance to solve the problem of old age.

Legal basis

The Chinese people*** and the State Social Insurance Law, Article 20

The State establishes and improves the new rural social pension insurance system.

The new rural social pension insurance system combines individual contributions, collective subsidies and government subsidies.

Article 21 of the Law of the People's Republic of China on Social Insurance

The new rural social pension insurance treatment consists of a basic pension and a personal account pension.

Rural residents participating in the new type of rural social pension insurance shall receive the new type of rural social pension insurance benefits on a monthly basis if they meet the conditions stipulated by the State.