Bigger pension "reservoir"
The national overall plan for enterprise employees’ basic endowment insurance will be officially implemented in 2022, which is an important step in the reform of my country’s endowment insurance system.
This reform involves thousands of households and hundreds of millions of enterprise employees.
From the feelings of enterprise employees, at least two aspects are obvious.
One is that the "reservoir" of pensions is bigger.
Compared with local pooling, the most obvious benefit of the national pooling of employee pension insurance is that the pension insurance fund can help the surplus and vacancies across the country, and the fund's supporting capacity will be greatly enhanced.
For employees of participating enterprises, pensions are more secure, and the gap in pension levels between different regions will also be reduced.
Another advantage is that the portability of pension insurance is greatly improved.
With the national co-ordination of pension insurance, cross-regional mobility of pensioners will be more convenient, which is undoubtedly good news for the large number of floating pensioners.
Of course, the national overall planning of employee pension insurance does not mean an increase or decrease in pensions.
As many experts have pointed out, after the basic pension insurance for employees is nationally coordinated, the average wage of on-the-job employees will be calculated based on the national average wage of on-duty employees.
In theory, the level of pensions in high-wage areas will fall, and the level of pensions in low-wage areas may increase as a whole. The monthly pension level will not drop significantly, and the absolute number should increase steadily.
(Wei Yonggang Source: Economic Daily)