Some time ago, a teacher friend asked, "I was born in December 1965 and started working in January 1983. I have been promoted in job titles and positions for many years in a row. If I can be promoted to the level of Deputy Senior 5 before December 2025, how much will my pension increase?

How is the pension calculated for retirement after October 2024?

After October 2024, the pension benefits for retired employees of government and public institutions mainly consist of four parts: basic pension, personal account pension, transitional pension, and occupational annuity. The calculation formulas for these four parts of the pension are basically the same across the country, except for the transitional coefficient.

① For the basic pension part, it is calculated as the social average wage of the year before retirement × (1 + the average contribution index of the individual) ÷ 2 × the number of years of contribution × 1%.

If you are promoted in job title, it can affect the deemed contribution index, and then increase the average contribution index, which can enhance the basic pension benefits without affecting the number of years of contribution and the social average wage.

② For the personal account pension part, it is calculated as the balance of the individual's pension insurance account ÷ the number of months determined by the retirement age.

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If you are promoted in the last year before retirement, it might increase your salary for that year, but it will not affect the contribution base, as it is calculated based on the average monthly value of the total salary of the previous year. In this case, the balance of the personal account will not change.

If the promotion is achieved in 2024, for example, in December, think about it, a one-month salary increase will not make much difference to the increase in the contribution base."So, we will not consider the issue of personal account pension funds.

③ Occupational annuity, the calculation method is the same as that of personal account pension funds. However, the occupational annuity can be used to purchase commercial life insurance, which allows for a lifetime of benefits. It is not necessary to receive it monthly; once the personal account of the annuity is exhausted, such benefits will no longer be available.

Additionally, when receiving the occupational annuity, an individual income tax of 3% is required for amounts up to 3,000 yuan per month. Currently, there are essentially no cases exceeding 3,000 yuan.

④ The transitional pension part is equal to the retirement year's average social wage × the equivalent contribution years × the equivalent contribution index × the pension transition coefficient of the province.

The equivalent contribution index is mainly determined based on the individual's position level and salary level at the time of retirement, along with the corresponding past retirement living allowance to determine the comprehensive equivalent contribution index. If there is a promotion from a level 6 position to a level 5 position, the position index and the retirement living allowance index will generally increase.

Assuming it is merely a promotion from a level 6 position to a level 5 position, with the position index increasing by 0.04 and the retirement living allowance index increasing by 0.1, the total equivalent contribution index increases by 0.14.

If the work history is confirmed to be correct, with participation in work starting in January 1983, the equivalent contribution years for retirement would be 31.75 years.

According to the transitional pension calculation formula, if the transition coefficient is 1.3%, with the equivalent contribution index increasing by 0.14, the transitional pension that can be received is:

31.75 × 0.14 × 1.3% = 5.78% of the retirement year's average social wage.As for the basic pension, the average contribution index is quite complex in calculation, and the actual treatment level that can be improved is:

31.75 × 0.14 ÷ 2 × 1% = 2.22% of the average social wage of the year before retirement.

The total of these two parts can increase by 8% of the average social wage.

If the average social wage in Shanghai exceeds 12,000 yuan, this part of the treatment can reach around 1,000 yuan.

If the average social wage in other places is between 7,000 and 8,000 yuan, the pension can be increased by five to six hundred yuan.

Overall, for retired personnel from government agencies and public institutions, as long as there are deemed contribution years and the deemed contribution index is increased, the pension treatment can be effectively improved. #Pension for Government Agencies and Public Institutions#​