3.75 Million Farmers in Guangdong Take the Lead in Enjoying Old-Age Security
3.75 Million Farmers in Guangdong Take the Lead in Enjoying "Old-Age Pension"
(Agricultural Wealth Network) Recently, the author learned from the Provincial Department of Human Resources and Social Security that the provincial government has officially issued the "Implementation Measures for the Pilot Program of the New-Type Rural Social Old-Age Insurance of Guangdong Province." From this year to 2010, pilot programs will be carried out in 14 counties (districts) including Pingyuan County, Meizhou City, and about 3.75 million farmers will be the first to be included in old-age security, accounting for about 10% of Guangdong farmers eligible for participation. The pilot program is now being rolled out in full, and will be gradually expanded thereafter. Before 2020, full coverage of rural old-age insurance in Guangdong will be basically achieved, ultimately directly benefiting 38 million farmers.
Contribution standards set at five tiers
According to the "Measures," rural residents aged 16 or above who have Guangdong Province household registration and have not participated in the basic old-age insurance for urban enterprise employees (including fishermen, herdsmen, etc., excluding students in school) may voluntarily participate in rural old-age insurance at their place of household registration. The fund is composed of individual contributions, collective subsidies, government subsidies and social donations.
Individual contribution standards are set at five tiers: 100 yuan, 200 yuan, 300 yuan, 400 yuan and 500 yuan per year, and participating individuals may choose one of these tiers for contributions. Each locality may add additional contribution tiers according to local conditions. The contribution methods for participants are flexible, allowing monthly contributions, quarterly contributions or annual contributions, but within one natural year only the same contribution method and contribution standard may be chosen. Participants who are already 45 years old when the system is implemented may make a "lump-sum payment" of old-age insurance contributions for a certain number of years, but for no more than 15 years. Village collective economic organizations with the capacity to do so should provide subsidies for their members' participation, and the subsidy amount shall be decided through study by the village collective economic organization.
Pension benefits consist of a basic pension and an individual account pension, and are paid for life. Among these, the basic standard for the basic pension is 55 yuan per month. The monthly calculation and payment standard for the individual account pension is the total accumulated amount in the individual account divided by 139 (the same as the calculation and payment coefficient for individual accounts under the current basic old-age insurance for urban employees).
Government pays the largest share, tilting toward middle-aged and elderly people
Lin Yingwu, deputy director of the Provincial Department of Human Resources and Social Security, said that this new system involves large fiscal input and fully reflects the government's responsibility. The "Measures" stipulate that finance departments at all levels must subsidize participants' contributions and the payment of basic pensions, that is, subsidize at both the "entrance" and the "exit": provide at least 30 yuan per person per year in contribution subsidies for participants aged 16-59, and provide 55 yuan per person per month in basic pensions for participants aged 60 and above receiving benefits, making fiscal subsidy funds the main body of the old-age benefits received by farmers.
Establishing a basic pension demonstrates the fairness of the system. The new rural old-age insurance system adopts a model combining individual accounts and basic pensions. The basic pension funded by governments at all levels reflects fairness, while the individual account established mainly through individual contributions reflects differences. Among the pensions received by farmers, the basic pension is the largest part, while the accumulation in the individual account is the smaller part.
Tilting toward middle-aged and elderly farmers. When the new rural old-age insurance system is implemented, those who have already reached age 60 and do not enjoy basic old-age insurance benefits for urban enterprise employees may, after their eligible children participate and pay contributions, receive a basic pension of 55 yuan per month without paying contributions themselves; farmers over 45 years old when the system is implemented may, as long as they pay contributions continuously, receive monthly benefits even if they have paid for less than 15 years. For particularly poor groups such as rural persons with severe disabilities, the government of the coordinating region will also pay part or all of the old-age insurance premiums at the minimum standard on their behalf.
Establish a dynamic mechanism under which contribution and benefit levels are appropriately adjusted along with economic and social development and increases in farmers' incomes, so that farmers can share in the fruits of development.
Establish connecting channels between urban and rural security methods. The new rural old-age insurance clearly stipulates the connection methods with enterprise employee old-age insurance, adapting to the characteristics of farmers' mobility between urban and rural areas for employment.
14 pilot counties and districts for the new rural old-age insurance
Qujiang District, Shaoguan; Dongyuan County, Heyuan; Pingyuan County, Meizhou; Boluo County, Huizhou; Yangdong County, Yangjiang; Potou District, Zhanjiang; Maonan District, Maoming; Deqing County, Zhaoqing; Lianshan County, Qingyuan; Jiedong County, Jieyang; Xinxing County, Yunfu; Luhe County, Shanwei; Xiangqiao District, Chaozhou; Doumen District, Zhuhai.
Contribution standards set at five tiers
According to the "Measures," rural residents aged 16 or above who have Guangdong Province household registration and have not participated in the basic old-age insurance for urban enterprise employees (including fishermen, herdsmen, etc., excluding students in school) may voluntarily participate in rural old-age insurance at their place of household registration. The fund is composed of individual contributions, collective subsidies, government subsidies and social donations.
Individual contribution standards are set at five tiers: 100 yuan, 200 yuan, 300 yuan, 400 yuan and 500 yuan per year, and participating individuals may choose one of these tiers for contributions. Each locality may add additional contribution tiers according to local conditions. The contribution methods for participants are flexible, allowing monthly contributions, quarterly contributions or annual contributions, but within one natural year only the same contribution method and contribution standard may be chosen. Participants who are already 45 years old when the system is implemented may make a "lump-sum payment" of old-age insurance contributions for a certain number of years, but for no more than 15 years. Village collective economic organizations with the capacity to do so should provide subsidies for their members' participation, and the subsidy amount shall be decided through study by the village collective economic organization.
Pension benefits consist of a basic pension and an individual account pension, and are paid for life. Among these, the basic standard for the basic pension is 55 yuan per month. The monthly calculation and payment standard for the individual account pension is the total accumulated amount in the individual account divided by 139 (the same as the calculation and payment coefficient for individual accounts under the current basic old-age insurance for urban employees).
Government pays the largest share, tilting toward middle-aged and elderly people
Lin Yingwu, deputy director of the Provincial Department of Human Resources and Social Security, said that this new system involves large fiscal input and fully reflects the government's responsibility. The "Measures" stipulate that finance departments at all levels must subsidize participants' contributions and the payment of basic pensions, that is, subsidize at both the "entrance" and the "exit": provide at least 30 yuan per person per year in contribution subsidies for participants aged 16-59, and provide 55 yuan per person per month in basic pensions for participants aged 60 and above receiving benefits, making fiscal subsidy funds the main body of the old-age benefits received by farmers.
Establishing a basic pension demonstrates the fairness of the system. The new rural old-age insurance system adopts a model combining individual accounts and basic pensions. The basic pension funded by governments at all levels reflects fairness, while the individual account established mainly through individual contributions reflects differences. Among the pensions received by farmers, the basic pension is the largest part, while the accumulation in the individual account is the smaller part.
Tilting toward middle-aged and elderly farmers. When the new rural old-age insurance system is implemented, those who have already reached age 60 and do not enjoy basic old-age insurance benefits for urban enterprise employees may, after their eligible children participate and pay contributions, receive a basic pension of 55 yuan per month without paying contributions themselves; farmers over 45 years old when the system is implemented may, as long as they pay contributions continuously, receive monthly benefits even if they have paid for less than 15 years. For particularly poor groups such as rural persons with severe disabilities, the government of the coordinating region will also pay part or all of the old-age insurance premiums at the minimum standard on their behalf.
Establish a dynamic mechanism under which contribution and benefit levels are appropriately adjusted along with economic and social development and increases in farmers' incomes, so that farmers can share in the fruits of development.
Establish connecting channels between urban and rural security methods. The new rural old-age insurance clearly stipulates the connection methods with enterprise employee old-age insurance, adapting to the characteristics of farmers' mobility between urban and rural areas for employment.
14 pilot counties and districts for the new rural old-age insurance
Qujiang District, Shaoguan; Dongyuan County, Heyuan; Pingyuan County, Meizhou; Boluo County, Huizhou; Yangdong County, Yangjiang; Potou District, Zhanjiang; Maonan District, Maoming; Deqing County, Zhaoqing; Lianshan County, Qingyuan; Jiedong County, Jieyang; Xinxing County, Yunfu; Luhe County, Shanwei; Xiangqiao District, Chaozhou; Doumen District, Zhuhai.