Many people may not be aware that participating in the pension insurance program entitles them to five major types of benefits, which take into account people's needs for retirement comprehensively. What exactly are these benefits? Let's take a look together.

First, the basic pension paid upon retirement.

This is perhaps the most familiar part to people. An individual who has participated in the pension insurance for 15 years and has reached the legal retirement age can receive a pension on a monthly basis. The pension calculation formula is as follows:

The pension calculation formula in each province consists of three parts: the basic pension, the personal account pension, and the transitional pension. The first two parts follow a unified national calculation model, while the transitional pension part is determined by each province individually, with some differences.

The basic pension follows the principle of "more contributions, more benefits" and "longer contributions, more benefits." Some people choose to pay at the minimum base rate for 15 years, resulting in a pension level that is not very high, typically ranging from 1,200 to 2,000 yuan.

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Second, the pension increase starting from the second year of retirement.

Since 2005, the state has issued a pension adjustment notice every year. The scope of pension adjustment includes those who have completed retirement procedures and started receiving pension benefits by the end of the previous year. Therefore, the pensions of retirees generally increase from the second year onwards.

However, in recent years, due to the late announcement of the pension calculation base for the current year, there may be a recalculation and an increase in pension for those who retire this year.

The annual pension adjustment is carried out through three methods: fixed amount adjustment, linkage adjustment, and appropriate inclination. However, the state only stipulates the overall adjustment level, and each province determines its adjustment plan with the overall level as the upper limit. The overall pension adjustment level for 2024 is 3%, with some individuals experiencing a higher increase and others a slightly lower one. Elderly retirees and those in remote and arduous areas may receive additional increases in their adjustment levels.Thirdly, funeral subsidies.

In the event of the death of a person participating in the basic pension insurance, the state will also issue a certain subsidy to cover the funeral expenses of the insured. The standard for the funeral subsidy is currently unified at two months of the per capita disposable income of urban residents in the province where the deceased was located in the year prior to their death. Due to the varying income levels across provinces, the national range is approximately between 7,000 and 14,000 yuan.

Fourthly, consolation money.

This portion of funds belongs to the surviving family members of the insured, and it can be said to be intended to help them adjust to life after the insured's death.

The standard for consolation money is also linked to the per capita disposable income of urban residents in the province where the deceased was located in the year prior to their death. However, the distribution criteria are relatively more complex, primarily tied to the number of years of contributions and the duration of pension receipt.

For employees who have not retired:

- With a contribution period of less than 5 years, 5 to less than 10 years, and 10 to less than 15 years, the number of months for distribution is 3, 6, and 9 months, respectively.

- For contributions of more than 15 years, it is based on 9 months, with an additional month added for each extra year of contribution. However, for contributions exceeding 30 years, they are calculated as if they were 30 years.

For retired employees:The pension is reduced by one month of issuance for each year it is received, but it shall not be less than 9 months.

The standards for funeral subsidies and consolation money in Shandong Province for the year 2024 are generally as follows:

5. Balance of the individual account in the pension insurance.

For each month of participation in the pension insurance, a portion of the payment base at 8% is recorded into the individual account, and this amount is also increased annually according to the interest rate published by the state. Currently, workers who have paid for more than 15 years generally have a balance of more than 40,000 to 50,000 yuan in their individual accounts.

According to the provisions of the "Social Insurance Law," the balance can be inherited after the insured person's death. If it has been fully received, then there will be no more.

The above are the five major types of benefits that our pension insurance can provide. In addition, there may also be local subsidies, winter heating subsidies, holiday fees, and other benefits. Therefore, our pension insurance benefits are very rich, and one should not give up the protection provided by the state. #What are the pension insurance benefits for retirees?#