The 38 Million Chinese Chose To Suspend Social Security Payments And Increase The Pressure Of "Empty Accounts" In Personal Accounts.

Abandoning the "disaster stricken area"

interrupt social security The way of retirement is not necessarily desirable, but the fact is that the number of people who interrupt social security has taken up a large proportion of the working population.

At the end of October, Premier Li Keqiang of the State Council said at the Sixteenth National Congress of the Chinese trade unions that about more than 300 million people in China participated in the endowment insurance for urban workers, and this year there were 38 million people who had interrupted their insurance payments. In September, at the 2013 International Symposium on Chinese pensions, Li Zhen, a professor at the school of public administration of Renmin University of China, also pointed out that 23% of the working population had suspended payment in a survey conducted by the Ministry of human resources and social affairs.

In the course of the interview, reporters found that with the aggravation of aging, many migrant workers interrupt the social security problem is very prominent.

Ms. Hu, from Hunan, is 55 years old. She worked in Guangzhou for 19 years. During the period, she bought 10 years of social security. She thought she would retire to her hometown next year. But after many inquiries, she found it impossible to retire in Guangzhou.

"I now have three choices. One is to suspend social security, and only to retain the funds and interest paid in the personal account." two is to transfer the existing insurance relationship according to the policy of the old home. However, the part of the social co ordination can not be transferred. Only the funds transferred from the personal accounts need to be repurchased locally. The three is to continue to work in Guangzhou until the social insurance is sufficient for 15 years. In November 13th, Miss Hu reluctantly told our reporter that her social insurance life was relatively long, so she hesitated, but many of the migrant workers she knew returned home, and most of them chose to suspend social security.

Once the social security is interrupted, it means that it has reached the level of Retirement age Ms Wu is unable to get a pension due to insufficient insurance coverage.

Shen Shuguang, director of the social security research center of Zhongshan University, said that in the next few years, the retirement age will be enough, but the number of people unable to retire due to the age of the insured will become more and more. At the same time, this phenomenon has a direct impact on the choice tendency of the working population in paying social security, and the phenomenon of giving up social security will be increased at the beginning of the interruption or at the beginning of the work.

"There are mainly two kinds of interruption of social security. One is to suspend social security after 15 years of insurance, and to receive pension directly after retirement age; the other is to pay less than 15 years after the retirement age, and temporarily suspend or completely suspend the payment of social security." Cui Peng said that the interruption of payment of social security mainly concentrated in three categories of people: first, laid-off workers, most of them were passive interruptions; two, employees of small and micro enterprises, in order to reduce costs, employees did not pay social security; three were relatively mobile workers.

According to the reporter's understanding, once the individual breaks off social security, according to the different policies of different places, buying a car and buying a car will be greatly affected. More importantly, due to the lack of funds in the personal accounts during the interruption, there will be losses when calculating the pension.

　 " book reserve "Pressure"

On the surface, interruption of social security is purely personal behavior, but it affects the whole social security system.

In November 14th, Tang Jun, a researcher at the center for Social Policy Research of the Academy of Social Sciences, told reporters that the current pension system in China adopts the combination mode of "social co ordination and personal accounts". The social co ordination part is the pay as you go system, and the personal account is part of the reserve accumulation system. This pattern requires a relatively stable population structure. Once the retirement age is ahead of schedule, the birth rate continues to fall, and the aging of the population will be uncertain, it will bring risks to the pay as you go part.

That is to say, the part of the social co ordination fund of the incumbents is used to pay the pensions of the retirees in the current period, and the funds of individual accounts are used for accumulation, so as to ensure the use of the insured when they retire.

However, according to the reporter's understanding, at present, the annual expenditure on pension insurance in many areas is far greater than the amount of income, and the main solution of the problem is to increase the financial subsidy, which is to squeeze personal account funds to deal with the current payment, resulting in "empty accounts" of personal accounts.

The "China pension development report 2012", published by the world social security research center of the Academy of Social Sciences, shows that as at the end of December 2011, the personal accounts of urban employees in China accounted for approximately 2 trillion and 500 billion yuan, but the actual accounts were only 270 billion 300 million yuan, and the "empty accounts" of personal accounts had exceeded two trillion.

The part of the current payment has been paid, and the part that should be accumulated has not been accumulated. The result is that if the personal account funds can not be remedied, the workers who are now paying personal accounts pension will have a large payment gap when they retire in the future.

In this regard, the content of "making a personal account" has been repeatedly mentioned in the central document and widely tested in Liaoning and other places, but the reality is parallel to the policy in another track.

Because the funds for making personal accounts are shared by the central and local governments. As the final contributor, the financial department does not support immediate personal accounts. The reason is very simple, because in accordance with the current system design, the actual personal account funds can only exist in a one-year interest rate interest rate financial account, devaluation.

According to the reporter, in mid October, the seminar on pension system, led by the Ministry of human resources, has incorporated the "nominal account system" of personal accounts into the research field of top-level design. That is to say, the 20% of the current overall account is incorporated into the personal account, but it is not true. In addition to the current payment, the balance is used for investment value preservation and appreciation.

In fact, a similar solution is still a temporary solution. Eliminating the "strange situation" still depends on the old age pension reform plan.