Notice of the Ministry of Human Resources and Social Security, the Ministry of Finance, the State Administration of Taxation, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission on Printing and Distributing the Publicity Outline of the "Opinions on Promoting the Development of Individual Pensions"
Letter from the Ministry of Human Resources and Social Security [2022] No. 63
The human resources and social security departments (bureaus), finance departments (bureaus), taxation bureaus, banking and insurance regulatory bureaus, and securities regulatory bureaus of all provinces, autonomous regions, municipalities directly under the Central Government and Xinjiang Production and Construction Corps:
The CPC Central Committee and the State Council attach great importance to the construction of a multi-level and multi-pillar old-age insurance system.
Recently, the General Office of the State Council issued the "Opinions on Promoting the Development of Individual Pensions" (Guoban Fa [2022] No. 7, hereinafter referred to as "Opinions").
In order to do a good job in the implementation of the "Opinions", the "Opinions on Promoting the Development of Individual Pensions" Publicity Outline is hereby printed and distributed to you. Please do a good job of publicity and interpretation in light of local actual conditions.
Promoting the development of personal pensions is an important measure to implement the spirit of the 19th National Congress of the Communist Party of China and the previous 19th plenary sessions, and to standardize the development of the third pillar pension insurance.
All localities should improve the multi-level and multi-pillar old-age insurance system to better meet the diverse old-age needs of the people, actively respond to the height of population aging, and fully understand the importance of promoting the development of individual pensions.
Human resources and social security, finance, taxation, banking and insurance supervision, and securities supervision departments at all levels should, according to their respective responsibilities, deeply understand the spirit of the "Opinions", accurately grasp the key points of policies, strengthen publicity through various means, and enhance the awareness of individuals from all walks of life and the general public. Awareness of pension policies, and guide the people to actively participate.
All localities are requested to summarize the good experience and practices in the pilot work of individual pensions in a timely manner, and report to the Ministry of Human Resources and Social Security, the Ministry of Finance and relevant departments any important situations and problems encountered in the work process.
Ministry of Human Resources and Social Security Ministry of Finance State Administration of Taxation
China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission
June 7, 2022
(This piece is voluntarily made public)
"Opinions on Promoting the Development of Individual Pensions"
publicity outline
1. Why establish a personal pension system
Social security is the basic institutional guarantee for guaranteeing and improving people's livelihood, maintaining social fairness, and enhancing people's well-being.
Our party has always attached great importance to the improvement of people's livelihood and social security. It regards social security as the basic livelihood project for improving people's lives, and regards endowment insurance as the focus of the construction of the social security system. A system framework for multi-level development has been established, various tasks have been steadily advanced, and significant progress has been made.
Since the 18th National Congress of the Communist Party of China, the Party Central Committee with Comrade Xi Jinping as the core has adhered to the people-centered development philosophy, placed the construction of the social security system in a more prominent position, and promoted the construction of my country's social security system into the fast lane. Development has made historic achievements.
The central government has strengthened top-level design, strengthened institutional guidance, and promoted the introduction and implementation of a number of key and iconic reform measures. The coverage has continued to expand, the level of benefits has been steadily improved, and the security capacity has been continuously enhanced. my country has successfully established the world's largest basic old-age insurance security network. The fairness and sustainability of the system have been significantly enhanced, providing a basic guarantee for the elderly life of the general public, and it has also become an important way for the people to share the fruits of reform and development.
The central government clearly requires that, based on my country's basic national conditions and drawing on international experience, efforts should be made to build a "three-pillar" pension based on basic pension insurance, supplemented by enterprise annuities and occupational pensions, and linked with personal savings pension insurance and commercial pension insurance. insurance system.
From the perspective of the three pillars as a whole, the first pillar is the basic old-age insurance, including the basic old-age insurance for urban employees and the basic old-age insurance for urban and rural residents. With a relatively complete institutional system, the coverage continues to expand.
By the end of 2021, the number of participants will reach 1.03 billion, and the accumulated fund will be more than 6 trillion yuan.
The second pillar is enterprise annuity and occupational annuity, which are established by the employer and its employees, mainly play a supplementary role, and have a good foundation for development.
As of the end of 2021, more than 72 million employees have participated in enterprise (occupational) annuities, accumulating nearly 4.5 trillion yuan in funds, and the role of supplementary pensions has initially appeared.
The third pillar is personal savings endowment insurance and commercial endowment insurance. Before this, there was no unified national institutional arrangement, which was a shortcoming of the multi-level endowment insurance system.
In 2020, the "Proposal of the Central Committee of the Communist Party of China on Formulating the Fourteenth Five-Year Plan for National Economic and Social Development and the Vision for 2035" proposed the development of a multi-level, multi-pillar pension insurance system.
Both the 2021 and 2022 government work reports propose to regulate the development of the third pillar pension insurance.
In accordance with the decisions and arrangements of the Party Central Committee and the State Council, the General Office of the State Council issued the "Opinions on Promoting the Development of Individual Pensions" (hereinafter referred to as the "Opinions") in April 2022.
The issuance of the "Opinions" has symbolic significance for the construction of my country's multi-level and multi-pillar old-age insurance system.
Personal pension is the institutional arrangement of the state on the third pillar. In addition, there are other personal commercial pension financial services. Both are important components of the third pillar, complementing and promoting each other.
The implementation of the personal pension system is an inevitable requirement to adapt to the changes in the main contradictions in my country's society and meet the multi-level and diversified pension security needs of the people. After retirement, you can have one more income, further improve the standard of living after retirement, and make the elderly life more secure and quality.
The implementation of the personal pension system is also an important measure for the high-quality and sustainable development of social security, which is conducive to actively responding to the aging of the population and building a multi-level, multi-pillar pension system with more complete functions.
2. The importance of promoting the development of personal pensions
The promulgation and implementation of the "Opinions" fully reflects the great importance attached by the CPC Central Committee and the State Council to the construction of the old-age insurance system and the vital interests of the masses. The establishment of a personal pension system and its development is a good thing for the country and the people.
(1) Conducive to improving the multi-level and multi-pillar old-age insurance system.
The establishment of a personal pension system is conducive to making up for the shortcomings of the third-pillar pension insurance from the institutional level, providing institutional guarantees for the realization of individual supplementary pensions, and helping to further improve the multi-level and multi-pillar pension insurance system and promote better three-pillar pensions. Coordinated and sustainable development.
(2) It is beneficial to meet the diverse endowment insurance needs of the people.
Promoting the development of personal pensions not only adds a supplementary pension insurance channel for those who participate in the second pillar enterprise (occupational) annuity, but also adds a supplementary pension insurance channel for those who do not participate in the second pillar, which conforms to the The people's demand for the diversification of old-age insurance.
It is beneficial to guide people to plan early and make reserves for the future life of the elderly under the increasingly severe situation of my country's population aging, and it is beneficial to effectively improve the income level of the elderly through institutional arrangements, so as to better meet the needs of the elderly life.
(3) It is conducive to actively responding to the aging of the population and promoting economic and social development.
Personal pension is an institutional arrangement for individuals to reserve pension funds, which is conducive to rational planning of pension funds for individuals and rational selection of financial products. It is an important measure to actively respond to population aging.
At the same time, the long-term funds accumulated by individual pensions can better serve the overall economic and social development of the country.
3. Basic principles of individual pension
The formulation of the "Opinions" follows three basic principles:
(1) Pay attention to the integrity of the multi-level and multi-pillar old-age insurance system.
Put individual pensions in the organic whole of multi-level and multi-pillar pension insurance, take into account the positioning of individual pensions in the overall treatment, adhere to the dialectical relationship between basic insurance and supplementary insurance, and fully consider the connection with relevant pilot policies. .
(2) Pay attention to the simplicity and effectiveness of operation.
Personal pensions involve policies and operating rules of multiple departments and industries, and the situation is complicated.
In the process of formulating the "Opinions", we insisted on taking the account system as the core, simplifying the information operation process and facilitating the participants.
Effectively manage funds to ensure the realization of supplementary pension functions.
(3) Pay attention to maintaining financial market rules.
Market-oriented operation of personal pensions is implemented. In the process of establishing the personal pension system model and formulating the "Opinions", market rules are fully respected, and the channels for opening capital accounts, determining participating financial institutions and financial products, and financial product sales channels, etc. The financial supervision department is responsible and will not have adverse effects on the financial market.
4. Accurately grasp the main policies of individual pension
Personal pension is a supplementary pension insurance system supported by government policies, voluntary participation of individuals, and market-oriented operation.
(1) The positioning and role of individual pensions.
Personal pension refers to a supplementary pension insurance system supported by government policies, voluntary participation of individuals, and market-oriented operation. It is an important part of the multi-level and multi-pillar pension system.
The state attaches great importance to the construction of the third pillar endowment insurance system, supports it through preferential taxation and other policies, encourages the broad participation of the people, and realizes the preservation and appreciation of accumulated funds through market-oriented operations.
Participating in individual pensions is beneficial for participants to add another pension accumulation on the basis of the first and second pillars of pension insurance, and further improve the income level and quality of life of the elderly.
(2) The coverage of individual pensions.
Workers who participate in the basic pension insurance for urban employees or urban and rural residents in China can participate in individual pensions.
On the one hand, only by participating in the basic endowment insurance and fulfilling the premise of “basic” insurance can participation in individual pensions reflect the function of “supplementary” endowment insurance.
On the other hand, the participation of willing workers can realize long-term contributions to personal pensions and continue to increase the accumulation of funds in personal accounts.
(3) The management mode of individual pensions.
Individual pensions are subject to an individual account system.
Participants can establish their own personal pension accounts through the personal pension information management service platform (hereinafter referred to as the information platform) organized and constructed by the Ministry of Human Resources and Social Security.
Individual pension accounts are unique and are the basis for participating in individual pensions and enjoying preferential tax policies.
After that, participants designate or open a unique personal pension fund account for personal pension contributions, collection of income, payment, and payment of personal income tax. It is fully accumulated and closed, and its rights and interests belong to the participants.
The implementation of the personal account system is more in line with my country's existing national conditions. First, the personal pension involves participants' contribution for decades, the choice of different financial products, the payment of personal income tax, and the collection. Therefore, it is necessary to open a personal pension account on the information platform. , verify the eligibility and uniqueness of participation, clearly record all relevant information, and provide services and guarantees.
The second is to reflect personal pension responsibility.
Individual pensions are paid by individuals and are fully accumulated, and the level of benefits depends on the accumulation of individual pension fund accounts at the time of collection.
The third is to ensure the realization of supplementary pension functions.
The personal pension fund account is closed and operated, and the participants pay when they work, and can only receive them when they reach the age of receiving the basic pension, so as to ensure the realization of the supplementary pension function.
(4) The opening and modification of individual pension fund accounts.
A participant shall designate or open a personal pension fund account that is unique to him.
An individual pension fund account may be designated or opened at a commercial bank that meets the regulations, or it may be designated by other financial product sales agencies that meet the regulations.
When a participant changes the bank where the account is opened, it shall be verified by the information platform, transfer the funds in the original personal pension fund account to the new personal pension fund account and cancel the original fund account.
In this way, the first is to ensure the uniqueness of the individual pension fund accounts of the participants, so that the participants can pay fees and enjoy preferential policies according to the regulations.
The second is to maintain the existing financial market ecology, without affecting the method of opening capital accounts or affecting the original sales channels.
Third, when the participant needs to change the bank where the account is opened, he or she needs to "suspend" the original fund account (can no longer pay fees to it or use the funds to purchase products), and then apply for opening or designate a new fund account.
(5) Regarding the payment level.
The upper limit of individual pension contributions starts at 12,000 yuan per year, and is adjusted in time according to the level of economic and social development, the development of the multi-level pension insurance system and other factors.
(6) About investment.
The funds in the personal pension fund account are used to purchase financial products such as bank wealth management, savings deposits, commercial pension insurance, and public funds that meet the regulations (hereinafter referred to as personal pension products), which are selected by the participants.
Judging from international experience and domestic exploration, the participation of multiple financial products in personal pensions is not only conducive to meeting the needs of different groups, but also conducive to full market competition, prompting financial institutions to develop better financial products to participate in personal pensions.
Personal pension products are determined by financial regulatory authorities and announced on information platforms and financial industry platforms.
The funds in the individual pension fund account should purchase products jointly announced by the information platform and the financial industry platform.
(7) Regarding personal pensions.
After the participants reach the basic pension age and other conditions, they can receive individual pensions on a monthly, instalment or one-off basis, and collect them into their social security cards.
After a participant dies, the assets in his personal pension fund account can be inherited.
First, the receiving conditions are linked to receiving the basic pension, which can effectively guarantee the realization of the supplementary pension function.
Second, the collection methods are diversified, which is convenient for individuals to choose.
The third is to collect individual pension benefits into one's own social security card bank account, which is conducive to the integration and service of the three pillars of pension rights and interests of participants, and provides support for adjusting and improving pension insurance policies.
(8) About the information platform.
The Ministry of Human Resources and Social Security will build a national-level information platform to connect with qualified commercial banks and related financial industry platforms to provide services for participants, participating financial institutions, and relevant government departments.
The first is to connect with qualified commercial banks, which is conducive to ensuring the timely and accurate correspondence of capital flow and information flow, realizing system operation, providing relevant services, and implementing policy supervision.
The second is to connect with the industry platforms of the China Banking and Insurance Regulatory Commission and the China Securities Regulatory Commission to collect aggregated information on individual pension products and transactions.
The third is to share information with finance, taxation and other departments to facilitate the precise implementation of policies.
(9) About organization and implementation.
Individual pensions will be implemented step-by-step according to the actual situation, and will be gradually rolled out after a one-year trial in some cities.
This arrangement is mainly due to the fact that there are many departments involved in personal pensions. It is necessary to select some cities first, test the specific operation process and improve it, and then gradually expand it to the whole country.