The adjustment of pension funds for retirees in 2024 concluded at the end of July. However, before 2025, there will be another increase in pensions for some elderly individuals. What is the situation?

Of course, the pension increase we are referring to does not mean the annual benefits in some places, such as the Mid-Autumn Festival, where elderly people in certain areas like Hangzhou receive a festival allowance of 800 yuan; the Double Ninth Festival, where retired elderly in places like Shaoxing can receive a festival allowance of 400 yuan; from October to November each year, some northern provinces will issue winter heating subsidies to retired elderly, with enterprise retirees in Shandong Province receiving 1,700 yuan and those in Qinghai Province receiving 3,900 yuan.

The scope of the pension adjustment for retirees in 2024 includes those who retired and received their pension benefits on a monthly basis before December 31, 2023. Will there be no increase in pension for those who retired since January 2024? In fact, there will generally be an increase.

According to the pension calculation formula for retirees, both the basic pension part and the transitional pension part are linked to the social average wage of the year before retirement or the pension payment base of that year. The personal account pension part, which is determined by the payment base and the accounting interest rate, is not affected.

Advertisement

As stipulated, retirees in 2024 should use the social average wage of the year before 2023 or the local pension payment base to calculate their pensions. However, due to the lag in the announcement of relevant data, to avoid delaying the collection of pensions, a provisional pension will be calculated using the social average wage of the year before the year before or the payment base of the previous year, such as the following provisional retirement benefit table.

For example, in Shandong Province, the pension payment base last year was 7,468 yuan, and the announcement time was in November. If the announcement time this year is also in November, the pensions for those who retired from January to October this year will be provisional. Therefore, they will be regularized after the announcement. In fact, the regularization time in Shandong Province last year was in December. When the regularization occurs, the underpaid pensions will be supplemented. Overpaid pensions should be deducted, but this situation has never occurred in the past.

With a working life of 40 years, how much can the pension increase? The key still depends on how much of the basic pension and transitional pension one can receive.

According to the pension calculation formula, with an average payment index of 1, a person with a working life of 40 years can receive 40% of the social average wage or the pension payment base as the basic pension.Transitional pension is assumed to be calculated based on the model of Shandong Province, which is calculated for the payment period before January 1996. Assuming there are 12 years of calculation period, one can receive a pension based on 15.6% of the pension calculation base.

In this case, if the pension calculation base could be increased by 200 yuan, then the increase in the pension amount would be 55.6% × 200 yuan = 111.2 yuan.

How much will the pension calculation base increase this year? In the past two years, as long as the average social salary increased to a certain extent, the growth rate of the pension calculation base would be the pension growth rate plus 0.2 percentage points. Last year, the pension increased by 3.8%, and the growth rate of the calculation base was 4%. Therefore, it is estimated that this year's growth rate will be 3.2%, with an estimated increase of about 240 yuan.

In addition, the calculation base used for enterprise retirees in Heze City is the full-scale average social salary of the previous year. Currently, the full-scale average social salary of Shandong Province has been announced as 7,359 yuan, which is an increase of 290 yuan from the previous year's 7,069 yuan.

However, many people still have an average payment index lower than 1 in the pension calculation, mainly due to the low payment level usually. In this case, the corresponding increase in money will be slightly lower.

Pension supplementation is calculated from the month the pension is issued. Therefore, if one retires in January and the pension is issued in February, by December when the supplement is made, there will be a difference of 11 months.

Overall, comparing the pension adjustment plan, the recalculated increase in pension for a working life of 40 years and the adjusted increase in pension are actually about the same. #Top Headline Creation Challenge#