Farmers' retirement pension applications start next week! Pay in for 40 years and receive 45,000 per month; farm retirement and labor retirement can overlap, and actual cultivators can also participate
The farmers' retirement savings fund will launch next year, with applications starting next week on December 7. On June 10 this year, the government announced the Farmers' Retirement Savings Fund Regulations. Farmers under 65 years old with farmers' insurance status who pay in 1% to 10% of the minimum labor wage each month will have the government contribute a corresponding proportion to their savings account. When they pay in until age 65, they can receive the retirement savings fund.
Next year (2021), the basic wage will be adjusted to 24,000 yuan. Taking a 25-year-old young farmer as an example, if they pay in the maximum amount of 2,400 yuan per month for 40 years, starting at age 65 they can receive the old farmer allowance plus the retirement savings fund, about 45,590 yuan per month. The old farmer allowance is received until death, while the retirement savings fund can be received until age 85. If the person passes away earlier, family members can withdraw the remainder. The Council of Agriculture estimates that 60,000 farmers will participate next year.
Chen Yiren, deputy director of the Council of Agriculture's Guidance Office, explained that military personnel, public servants, teachers, and those receiving national pensions cannot receive the old farmer allowance, but the farmers' retirement savings fund system does not conflict with individual labor retirement accounts. People who have worked in society and then switch to farming can still participate. Some farmers take part-time work during the agricultural off-season. Chen Yiren stated that the regulations explicitly allow 180 days per year for overlapping labor and farmers' insurance enrollment, and part-time farmers can have both labor retirement and farm retirement accounts at the same time.
Paying at the highest rate for 40 years allows a monthly retirement payment of 45,590 yuan
The current domestic farmer welfare system has three major types of insurance: farmers' health insurance (hereinafter referred to as farmers' insurance), farmers' occupational accident insurance, and agricultural insurance. Among them, farmers' insurance has the largest number of participants at 1.05 million, while agricultural occupational accident insurance has 270,000. Now there is also the farmers' retirement savings fund as another major protection. President Tsai Ing-wen announced the Farmers' Retirement Savings Fund Regulations on June 10 this year, to take effect on January 1 next year.
Council of Agriculture Minister Chen Chi-chung explained that the probability of injury from farming is 14 times that of other occupations. Farmers' occupational accident insurance currently only covers "injury," but "illness" will also be included in the future. For agricultural insurance, trial operation has already begun this year for some crops, and next year income insurance will also be launched for second-crop rice, and pig deaths will also be mandatorily covered. The farmers' retirement pension system imitates the labor retirement pension system. On top of the basic protection of the original farmers' insurance and old farmer allowance systems, it adds a personal farmers' retirement savings account, with farmers and the government jointly making monthly contributions to encourage farmers to save for old age.
The qualifications for participating in contributions to the farmers' retirement savings account are: under 65 years old and not receiving old-age benefits from social insurance. The amount farmers contribute each month is based on 1% to 10% of the monthly basic labor wage (24,000 yuan in 2021), and the government will also contribute a corresponding amount to the personal account. The contribution rate can be adjusted once each year in May and November. The contribution amount will also be adjusted in the future along with the statutory basic wage, with an average annual increase of 2% and fund returns of 3%.
Eligible farmers can start next week on December 7 by bringing a photocopy of their ID card, application form (affidavit of agricultural work), and an agreement for automatic transfer payment to the township or district farmers' association to apply. After the farmers' association receives the documents, it will review them through the Farmers' Welfare Data Management System. After approval, it will register them in the Council of Agriculture information system, notify the Bureau of Labor Insurance, and send them to the local competent authority for reference.
As for the old farmer allowance, farmers with farmers' insurance status pay 78 yuan in insurance premiums per month. After paying for more than 15 years and reaching age 65, they can receive the old farmer allowance. At the current old farmer allowance of 7,550 yuan per month, it will be adjusted once every four years according to the Consumer Price Index (4%).
The old farmer allowance plus the farm retirement savings fund gives farmers double protection in old age. Based on an average remaining life expectancy of 20 years and the highest contribution rate of 2,400 yuan, a farmer who starts contributing at age 40 for 25 years can receive 24,530 yuan per month; a farmer who starts contributing at age 30 for 35 years can receive 37,245 yuan per month; a farmer who starts contributing at age 25 for 40 years can receive 45,590 yuan per month.
Labor and farmers' insurance can overlap for 180 days per year, and part-time farmers can have both farm retirement and labor retirement accounts at the same time
On May 22 this year, when the Legislative Yuan passed the "Farmers' Retirement Savings Fund" draft on third reading, some farmers asked: if they had labor insurance status from working outside before farming, then switched to farmers' insurance after becoming farmers, and later participate in the farmers' retirement savings fund system, what happens to the labor retirement pension they paid in previously?
In response, Chen Yiren, deputy director of the Council of Agriculture's Guidance Office, explained that both the farmers' retirement savings fund and the labor retirement pension are personal contribution accounts, and the two do not conflict. Those with labor retirement pensions can also participate in the farmers' retirement savings fund, but labor insurance old-age benefits are social insurance and do not meet farmers' insurance qualifications, so they cannot receive the old farmer allowance.
Some domestic farmers are part-time farmers and take odd jobs during the agricultural off-season. If part-time farmers take odd jobs and are covered by labor insurance, would that conflict with farmers' insurance and prevent them from participating in the farmers' retirement savings fund system? Chen Yiren stated that the regulations allow 180 days per year for overlapping labor and farmers' insurance enrollment. This means that farmers with farmers' insurance qualifications can simultaneously have labor insurance status for 180 days each year. Once the number of days exceeds that, labor insurance will take precedence, but below that number of days, farmers can enjoy both the farmers' retirement savings fund and the labor retirement pension account at the same time.
For farmers who actually farm but lack farmers' insurance qualifications because obtaining a lease is difficult, Chen Yiren stated that those with oral leases, qualifications as actual cultivators, and who are not receiving other social insurance can participate in the farmers' retirement savings fund system after the agricultural improvement station verifies them and issues proof of actual cultivation.
An estimated 60,000 people will participate next year, with a first-year budget of 1.6 billion yuan
According to Council of Agriculture statistics, there are currently 450,000 people under 65 years old with farmers' insurance qualifications, including 300,000 aged 50 or above and 150,000 under 50. The Council of Agriculture estimates that in the first year of the farmers' retirement pension system, participation rates will be about 10% for those aged 50 or above and about 20% for those under 50, totaling 60,000 people.
Based on the highest contribution rate of 10% and each person contributing 2,400 yuan per month, the Council of Agriculture estimates that first-year funding needed will be 1.6 billion yuan, with an estimated 1 billion to 2 billion yuan needed each year thereafter. But if the number of participants increases in the future, will the public budget be sufficient? Council of Agriculture Minister Chen Chi-chung stated that currently this additional funding will not put pressure on the public budget, and farmers will not necessarily all pay at the highest rate. Chen Yiren explained that future funding will be adjusted according to the number of participants.
The farm retirement account is managed by the Bureau of Labor Funds, guaranteeing that "participants will definitely be able to receive it"
The farmers' retirement savings account is executed through cross-ministerial division of labor among the Council of Agriculture, the Ministry of Labor's Bureau of Labor Insurance, and the Bureau of Labor Funds. The Council of Agriculture will commission farmers' associations in various places to accept farmer applications and handle procedures. The Bureau of Labor Insurance is responsible for the receipt, expenditure, and custody of farmers' retirement savings personal accounts. The Bureau of Labor Funds is responsible for the use, operation, and management of the farmers' retirement fund.
The Council of Agriculture estimates annual fund returns at 3%, but after recent allegations of corruption involving Bureau of Labor Funds officials and losses in labor fund performance, is the farmers' retirement savings fund protected? Chen Chi-chung repeatedly emphasized that 3% is the minimum percentage set by law, and the farmers' retirement savings fund is an account, so there will be no problem of participants being unable to receive it.