Will the promotion of deputy senior in public institutions after October 2024 st
October 2024 marks a pivotal turning point for the pension system of government and public institutions. After October, the pensions of retired personnel from government and public institutions will be calculated entirely according to the new retirement benefit method.
Some argue that the new retirement benefit method is calculated based on a model of "more contributions, more benefits" and "longer contributions, more benefits." Therefore, it is said that there is not much significance in being promoted to a higher position after this point.
Let's examine the changes in pension if one is promoted to a higher position, based on the pension calculation formula.
The new pension calculation formula for government and public institutions mainly includes three parts: basic pension, personal account pension, and transitional pension, with an additional supplementary pension mechanism known as the occupational annuity.
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The basic pension part and the personal account pension part (including the occupational annuity part) of the pension calculation formula are the same nationwide. The transitional pension part is formulated by each province, referring to the transitional pension calculation formula for enterprise retirees in each province. The main difference lies in the transitional coefficient, while the rest is the same.
① The basic pension part is calculated as the pension payment base of the province or the full range of the previous year's average social wage × (1 + the average contribution index of the individual) ÷ 2 × the contribution years × 1%.
Here, the most important factor is the average contribution index. The average contribution index is equal to (actual contribution years × actual average contribution index + deemed contribution years × deemed contribution index) ÷ total contribution years.
If there were no deemed contribution index, indeed, whether to promote to a higher professional title would not matter, because the actual average contribution index is already determined. However, now the majority of middle-aged retirees from government and public institutions have a deemed contribution index.The deemed contribution index generally includes the post index determined by the individual's position level at the time of retirement, the salary grade index, and the retirement living allowance index. In some regions like Inner Mongolia, there is also a remote and arduous area index.
Apart from the salary grade index, the other components are influenced by the factor of professional titles. How much can it be increased specifically? It mainly depends on the deemed contribution index table of each province, and the table itself may also be revised, making the situation complex.
Generally speaking, if one can be promoted to a senior professional title, their deemed contribution index can generally be increased by about 0.1 to 0.2.
Assuming an increase of 0.2, each year of deemed contribution service can enhance the pension calculation base or the average social wage by 0.1%. If the increase is 0.1, it can only enhance it by 0.05% per year.
②The part of the personal account pension is equal to the balance of the individual's social insurance personal account at the time of retirement, divided by the number of months determined by the retirement age.
Since the personal account balance is determined by the contribution base, and the contribution base is determined by the individual's average monthly wage of the previous year, it means that a promotion to a senior professional title before retirement will not be affected. Of course, if there are a few years until retirement, it can still enhance the accumulation in the personal account to some extent.
③The calculation formula for the occupational annuity part is the same as that for the personal account pension. Promotion before retirement will not affect the benefits.
④The transitional pension, in most provinces across the country, is basically the deemed contribution years × deemed contribution index × the pension calculation base of the year of retirement × the transitional coefficient.In Shandong Province, if the deemed contribution index is increased by 0.2, the pension calculation base will be increased by 0.26% for each year of deemed contribution service.
Through the above calculation process, it means that an increase of 0.2 in the deemed contribution index can increase the pension calculation base by 7.2% for 20 years of deemed contribution service. According to the pension calculation base of 7,468 yuan in Shandong Province last year, the monthly pension will be increased by 537 yuan.
Therefore, as long as there are deemed contribution service years, after being promoted to a deputy senior position after October 2024, there will be a significant increase in the pension. #Top Headline Creation Challenge# #Pension for Government and Public Institutions#
October 2024 marks a pivotal turning point for the pension system of government and public institutions. After October, the pensions of retired personnel from government and public institutions will be calculated entirely according to the new retirement benefit method.
Some argue that the new retirement benefit method is calculated based on a model of "more contributions, more benefits" and "longer contributions, more benefits." Therefore, it is said that there is not much significance in being promoted to a higher position after this point.
Let's examine the changes in pension if one is promoted to a higher position, based on the pension calculation formula.
The new pension calculation formula for government and public institutions mainly includes three parts: basic pension, personal account pension, and transitional pension, with an additional supplementary pension mechanism known as the occupational annuity.
Advertisement
The basic pension part and the personal account pension part (including the occupational annuity part) of the pension calculation formula are the same nationwide. The transitional pension part is formulated by each province, referring to the transitional pension calculation formula for enterprise retirees in each province. The main difference lies in the transitional coefficient, while the rest is the same.
① The basic pension part is calculated as the pension payment base of the province or the full range of the previous year's average social wage × (1 + the average contribution index of the individual) ÷ 2 × the contribution years × 1%.
Here, the most important factor is the average contribution index. The average contribution index is equal to (actual contribution years × actual average contribution index + deemed contribution years × deemed contribution index) ÷ total contribution years.
If there were no deemed contribution index, indeed, whether to promote to a higher professional title would not matter, because the actual average contribution index is already determined. However, now the majority of middle-aged retirees from government and public institutions have a deemed contribution index.The deemed contribution index generally includes the post index determined by the individual's position level at the time of retirement, the salary grade index, and the retirement living allowance index. In some regions like Inner Mongolia, there is also a remote and arduous area index.
Apart from the salary grade index, the other components are influenced by the factor of professional titles. How much can it be increased specifically? It mainly depends on the deemed contribution index table of each province, and the table itself may also be revised, making the situation complex.
Generally speaking, if one can be promoted to a senior professional title, their deemed contribution index can generally be increased by about 0.1 to 0.2.
Assuming an increase of 0.2, each year of deemed contribution service can enhance the pension calculation base or the average social wage by 0.1%. If the increase is 0.1, it can only enhance it by 0.05% per year.
②The part of the personal account pension is equal to the balance of the individual's social insurance personal account at the time of retirement, divided by the number of months determined by the retirement age.
Since the personal account balance is determined by the contribution base, and the contribution base is determined by the individual's average monthly wage of the previous year, it means that a promotion to a senior professional title before retirement will not be affected. Of course, if there are a few years until retirement, it can still enhance the accumulation in the personal account to some extent.
③The calculation formula for the occupational annuity part is the same as that for the personal account pension. Promotion before retirement will not affect the benefits.
④The transitional pension, in most provinces across the country, is basically the deemed contribution years × deemed contribution index × the pension calculation base of the year of retirement × the transitional coefficient.In Shandong Province, if the deemed contribution index is increased by 0.2, the pension calculation base will be increased by 0.26% for each year of deemed contribution service.
Through the above calculation process, it means that an increase of 0.2 in the deemed contribution index can increase the pension calculation base by 7.2% for 20 years of deemed contribution service. According to the pension calculation base of 7,468 yuan in Shandong Province last year, the monthly pension will be increased by 537 yuan.
Therefore, as long as there are deemed contribution service years, after being promoted to a deputy senior position after October 2024, there will be a significant increase in the pension. #Top Headline Creation Challenge# #Pension for Government and Public Institutions#