A friend asked, does our pension increase every year? In fact, the increase of pensions is very complex. Recently, after a warm-hearted review, it was found that there were four increases in pensions in 2024 alone. What exactly is going on?

Firstly, there is the pension adjustment in July.

By the end of July, the pension adjustment for retirees in 2024 was finally completed. This pension adjustment was carried out through the government work report, the issuance of a national pension adjustment notice, the formulation of pension adjustment plans by localities, and finally, the adjustments were implemented.

This year's pension adjustment saw an overall increase of 3%, roughly an average increase of about 100 yuan. However, not everyone's pension increased by 3%, nor did everyone receive an increase of 100 yuan. The adjustments were made through a fixed amount adjustment, a linkage adjustment, and appropriate inclination, with those who have lower pension levels receiving a higher increase.

This pension adjustment was implemented from January, and the scope of adjustment included elderly people who had completed retirement procedures and were receiving pension benefits on a monthly basis before December 31, 2023, ensuring a seamless connection in time.

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Secondly, there is the recalculation of transitional pensions in some provinces.

Transitional pensions generally refer to a compensatory pension treatment stipulated by the state for the contribution periods and deemed contribution periods before the establishment of the personal account system for social insurance in each province, due to the lack of personal account accumulation.

The calculation formula for transitional pensions in most provinces is linked to the average social wage. Shanghai, Guangdong, and Jiangsu initially did not implement this method but calculated pensions by estimating personal accounts. However, due to the rapid increase in the average social wage, transitional pensions were somewhat at a disadvantage. In recent years, these three provinces have successively straightened out this issue.

Especially in January 2024, Jiangsu Province implemented a new method for calculating transitional pensions, and the pension benefits for some elderly people with transitional pensions saw a significant increase. The reform of the transitional pension payment method in Jiangsu Province is being implemented over three years, with only a 40% increase this year, and another 30% increase each in the following two years.The transitional pension reform in Guangdong Province will also be in place next year, with an increase in pensions also occurring in January of this year, and there will be another pension increase next year.

Thirdly, since January 2024, there has been an increase in the basic pension and transitional pension for retirees.

According to the calculation formula for retirement pensions, both the basic pension and the transitional pension are linked to the social average wage of the year before retirement or the pension payment base of that year.

Starting from the end of July, Beijing, Shanghai, and Shandong have successively announced the social average wages and contribution base limits for the previous year. The pension rectification work will also gradually begin, but Shandong Province uses the pension payment base of that year, which was announced in November last year, so there is no need to rush.

Retirees this year have been calculated with provisional pensions using the values of the previous year, as the corresponding social average wages and payment bases have not been announced. Once they are announced, the pensions will be recalculated and rectified.

For example, a retired elderly person receives 30% of the social average wage as their basic pension and 10% as their transitional pension. If the social average wage for the year 2024 increases by 200 yuan, then the increased pension amount is 200 yuan × 40% = 80 yuan.

Fourthly, there is an increase in the basic pension for urban and rural residents' endowment insurance.

In the government work report published in March 2024, it has already been clarified that the minimum standard of the basic pension for urban and rural residents' endowment insurance will continue to be raised this year. The standard of this increase is quite significant, amounting to 20 yuan.The basic pension for urban and rural residents' endowment insurance is entirely funded by fiscal subsidies, with Beijing and Shanghai having taken the lead in adjustments. This year, Shanghai increased by 90 yuan, reaching 1490 yuan. The national minimum standard for the basic pension is 103 yuan, and after adjustment, it will rise to 123 yuan.

The adjustment of the basic pension for urban and rural residents' endowment insurance is expected to cover 160 million recipients of benefits.

Overall, the four pension increases in 2024 will affect the interests of over 300 million recipients, which is truly not easy. Thanks to the good national policies. #Top Headline Creation Challenge#