In October 2014, the reform of the pension insurance system for government and public institutions was implemented. At that time, a 10-year transition period was established, clearly defining the transition from the old to the new retirement benefit calculation method. As the transition period is about to end in October 2024, will the pensions of retired personnel from government and public institutions be reduced after the end of this period?

Firstly, the basic pension will not be reduced.

The calculation of the pension for retired elderly will fully implement the basic pension calculation model after October 2024, which mainly consists of three parts: the basic pension, the personal account pension, and the transitional pension. The fundamental principle of the pension benefit is that more contributions lead to more benefits, and longer contributions lead to more benefits.

This calculation model is the same as the new method of calculating retirement benefits from October 2014 to September 2024. As long as the new method results in a higher retirement benefit, a certain proportion of the excess over the old method will be paid on top of the old method. For most employees of government and public institutions, the new method of calculating the pension is higher than the old method.

After October 2024, we will no longer have the old method of calculating retirement benefits. It can be said that there has never been a situation where the pension calculation leads to a reduction in pension benefits.

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What about the pension after retirement? According to the Social Insurance Law, we will timely increase the level of basic pension insurance benefits based on the growth of the social average wage and the rise in prices. There is only the concept of "increasing," not "reducing."

Since 2016, the country has implemented a unified adjustment of pensions for retired personnel from enterprises and government and public institutions, with annual increases in pensions. Even including the adjustment of enterprise retirees since 2005, there has been no situation where pensions have been reduced.

Therefore, it is non-existent that the pension benefits for retired elderly will be reduced after October 2024.Secondly, the overall pension benefits may decrease.

Upon retirement, the benefits calculated using the pension formula are referred to as the basic pension. After the implementation of the pension insurance system reform in government and public institutions, a supplementary pension mechanism was also established, known as the occupational annuity.

The occupational annuity is a type of benefit that is capped by the balance of the individual's account at the time of retirement, and personal income tax must be paid according to regulations when it is received. The calculation method for the occupational annuity is the same as that for the individual account pension. For example, for a person retiring at the age of 60, if the balance of the occupational annuity individual account is 100,000, it will be distributed monthly at a rate of 100,000 ÷ 139, which is approximately 719 per month.

The balance in the occupational annuity account will be calculated for earnings based on investment operations each year. If the individual account balance is exhausted, there will be no further payments. Compared to the individual account pension, once the balance in the pension insurance individual account is depleted, an equivalent amount of individual account pension will be paid from the consolidated account to ensure that the retirement benefits are not reduced.

For those who retired in October 2014, they have been receiving the occupational annuity for nearly 10 years now. As time goes on, their individual account balance for the occupational annuity will gradually be exhausted, leading to a decrease in pension benefits. In fact, since they only contributed to the occupational annuity for one month at that time, the corresponding amount was quite low. However, the occupational annuity for subsequent retirees will gradually increase, and now many places have reached a level where retirees can receive about 1,000 per month from their occupational annuity.

Thirdly, benefits other than pensions should be adjusted according to actual circumstances.When incorporating reforms in the old-age insurance system, the main components are basic salary, performance salary, and standardized allowances and subsidies. For those parts not included in the overall planning, some local subsidies or bonuses may still be retained, such as the previous spiritual civilization awards, year-end performance awards, etc., which some places may distribute to retired elderly.

As time goes on and the reform of the salary system in government and public institutions progresses, all benefits will be streamlined, and therefore the treatment of the elderly will also change.

Overall, the basic pension is essentially impossible to reduce and will continue to be adjusted and increased with the development of the economy and society. As for the occupational pension, if it is used to purchase commercial old-age insurance upon retirement, it can also be received for a lifetime, so there will be no reduction. #Headline Creation Challenge#