At present, China has laws. The provisions on the length of service mainly refer to the revised draft of 1953 "Detailed Rules for the Implementation of Labor Insurance Regulations", and there is a chapter on the length of service, which has been implemented so far.
The length of service at that time refers to the length of service of the enterprise and the general length of service. Later, the retirement system clarified the continuous length of service. The continuous length of service is subject to the length of service calculated by our company. After all, the implementation unit of continuous length of service also includes institutions, which is not suitable for our company.
Continuous length of service is the length of service in this unit according to the records of employee files (including the length of service that can be confirmed by organizational transfer). In the past, no unit could not receive retirement benefits before retirement. It's different now. People who retire now can receive relief from the social security fund.
The previous length of service or continuous length of service in this enterprise is indeed related to the level of retirement benefits, but there is another factor: my basic salary before retirement. In the era of planned economy, a unified salary scale was implemented throughout the country, and there was little difference in everyone's wages, mainly due to some local subsidies.
According to the labor insurance regulations of 195 1 year, enterprises with working experience of 5 5~ 10/year can receive a retirement fee of 50% of their basic salary (it was not called retirement fee at that time), and 60% for 15 years.
In the past, people paid attention to the length of service, which may be mainly because if the length of service is interrupted, the continuous length of service should be calculated from re-employment. In addition, the length of service can really reflect the level of retirement benefits, but within a certain range, there is no difference in length of service.
In 1990s, China implemented the reform of the old-age insurance system. At this point, our payment requirement is cumulative payment. You can get the basic pension when you reach the legal retirement age after paying more than 15 years. After all, after the marketization of employment, a person can move freely, not necessarily in a fixed unit.
After the implementation of the old-age insurance system, the old-age treatment means paying more and getting more for a long time. But the advantage of length of service is not obvious. During the period of 1992~ 1997, China implemented the pension mode of combining overall account with individual account. The calculation formula of pension mainly includes three parts: basic pension, personal account pension and transitional pension. Regardless of the payment period and payment base, the basic pension is paid at 20% of my social salary, and the personal account pension is paid at 1 1% of my personal payment base. Because in those years, the average wage of our society grew very fast, and personal accounts accumulated relatively quickly. Therefore, the payment period and payment base will not cause too much pension gap.
It was not until 2005 that the state improved the old-age insurance system for enterprise employees that the current pension calculation and payment model was formulated. The calculation formula of basic pension is directly linked to the payment period and payment index. Now, for every month that the payment period is increased, the basic pension can actually get a little more. For example, if you pay according to the base of 100% for one year, you can get an extra 1% of the average social salary in the last retirement year. You can get an extra112% if you pay one more month.
Personal account pension, now the corresponding bookkeeping interest rate has increased, from 20 16 to 2020, it will always be more than 6%~8%. From this point of view, it seems that the higher the payment period, the more cost-effective the personal account.
However, for employees with a long service life, before the implementation of the pension insurance system combining pooling accounts and individual accounts, it is also very cost-effective to calculate the transitional pension because of the payment period and deemed payment period.