CHAPTER I GENERAL PROVISIONS CHAPTER II ORGANIZATION CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS CHAPTER IV ENJOYMENT OF ENDOWMENT INSURANCE TREATMENT CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT CHAPTER VII SUPPLEMENTARY PROVISIONS Article 1 In order to guarantee the basic needs of life after retirement for town employees, these Procedures are formulated in accordance Article 2 The endowment insurance as defined in these Procedures refers to the social security system, set up through legal procedures, organized Article 3 These Procedures shall apply to town administrative agencies, enterprises and institutions (hereinafter referred to as units), and These Procedures shall not apply to aliens in foreign-invested enterprises or units and personnel otherwise stipulated by the State. Article 4 The endowment insurance follows the principles of sharing expenses among the State, units and individuals, combining individual savings Units have the obligation to pay endowment insurance premiums for their employees while employees have the obligation to pay insurance An employee’s rights to have his/her unit pay endowment insurance premiums and to enjoy endowment insurance treatment after retirement Article 5 The reform of this Municipality’s endowment insurance system aims at phasing in a multi-layer endowment insurance system. In addition
Article 6 This Municipality shall set up the Municipal Social Insurance Committee that is responsible for the examination of the development Article 7 The Municipal Social Insurance Administration is responsible for the administration of endowment insurance of this Municipality. 1. To organize the implementation of endowment insurance system; 2. To prepare the development plan of endowment insurance; 3. To draft local laws and regulations on endowment insurance; 4. To formulate, jointly with relevant departments, the financial, accounting, statistical and internal auditing systems for endowment 5. To supervise the collection of endowment insurance premiums, the disbursement of pensions, and the operation of endowment funds 6. To direct the work of endowment insurance management centers at the municipal, district and county levels; and 7. To execute the decisions of the Municipal Social Insurance Committee. Article 8 Endowment insurance industry management centers are the agencies that undertake the routine business about endowment insurance. Their 1. To take charge of the collection of endowment insurance premiums and the payment of pensions; 2. To manage individual endowment insurance accounts; 3. To answer inquiries about endowment insurance from units, employees and retirees; and 4. To handle other matters commissioned or authorized by the Municipal Social Insurance Administration.
CHAPTER III PAYMENT OF ENDOWMENT INSURANCE PREMIUMS Article 9 All units referred to in Paragraph 1, Article 3 of these Procedures shall register endowment insurance for the units and their employees When a unit is divided or merged, goes bankrupt or is shut down, and recruits or dismisses employees (including resignation, unauthorized When registering endowment insurance, the endowment insurance management center shall set endowment insurance codes for units, open Article 10 An employee’s individual endowment insurance account shall remain unchanged for life. The Endowment Insurance Book must be used for When an employee changes his/her work unit, the Endowment Insurance Book must be transferred with the employee accordingly. Article 11 Units and employees shall pay monthly endowment insurance premiums within the prescribed time limit. No delay or failure of payment Article 12 A unit shall pay endowment insurance premium at the rate of 25.5% of the total amount of wages paid to all its employees in the preceding An employee shall pay endowment insurance premiums at the rate of 3% of his/her monthly average wage in the previous year, which is The same approach must be taken to computing the payment base of endowment insurance premium for units and for employees. The adjustment of the rates of endowment insurance premium paid by units and employees shall be proposed by the Municipal Social Insurance Article 13 The endowment insurance premiums paid by units shall be entered as expenditures through the following channels: 1. Entered as expenditures before tax for enterprises and institutions that balance their revenue and expenditures by themselves; 2. Entered as administrative expenses or operating expenses for administrative agencies and institutions with total or differential Article 14 The endowment insurance premiums shall be paid in the following ways: 1. A unit shall withhold the endowment insurance premiums to be paid by employees from their monthly wages. The deduction from an 2. A unit shall go to the endowment insurance management center at regular time every month to verify the endowment insurance premiums Article 15 The endowment insurance management center shall settle the savings amount in the individual endowment insurance account each year Article 16 The endowment insurance premium to be entered in the individual endowment insurance account shall include: 1. The endowment insurance premium paid by the individual; and 2. The portion of endowment insurance premium paid by the unit, which is to be entered in the individual account; a. The amount to be entered at certain rates (8% for enterprises and institutions that balance revenue and expenditures by themselves, b. The amount to be entered at 5% of the monthly average wages of the employees in the whole city in the previous year. The portion of the endowment insurance premiums paid by the unit, which is to be entered in the individual account, shall be adjusted Article 17 All the endowment insurance premiums paid by units must be used for social unified plannings except for the portion entered in the Article 18 The interest on the savings amount entered in the individual endowment insurance account shall be computed at a rate not lower than Article 19 The endowment insurance fund shall be channeled to the financial special account under the city treasury for the independent social
CHAPTER IV ENJOYMENT OF ENDOWMENT INSURANCE TREATMENT Article 20 A retiree who is enpost_titled to endowment insurance treatment shall satisfy the following requirements at the same time: 1. The employee has reached the retirement age stipulated by the State or this Municipality; 2. The unit and the employee have paid endowment insurance premiums as stipulated; and 3. The employee employed before the implementation of these Procedures has 10 successive working years (including premium payment The retiree who meets the above requirements may go through the formalities for drawing pensions with the endowment insurance management Article 21 A jobless person who meets the requirement in Section 1 of Article 20 of these Procedures may go through the formalities for drawing Article 22 A person who got employment before the implementation of these Procedures and has been working for more than 5 but less than 10 successive A person who has quit working for the above reasons is enpost_titled to corresponding pension treatment as stipulated. Article 23 A person who got employment before the implementation of these Procedures with less than 5 successive years (including premium payment Article 24 The person who meets the pension-drawing requirements may draw pensions for life. When the savings amount in his/her individual endowment Article 25 After the death of an employee or retiree, the balance of the savings amount in his/her individual endowment insurance account paid Article 26 The Municipal Social Insurance Administration may require pensioners to go through the check-up formalities with the endowment insurance When a retiree can not go through the check-up formalities because of going abroad, or out of border or for other reasons, he/she When a retiree can not draw his/her pension in person because of going abroad or out of border or for other reasons and has to entrust Article 27 The formula for computing the pension of the person who got employment after the implementation of these Procedures is: Monthly pension = total savings in individual endowment insurance account/120 Article 28 The monthly pension the person who got employment before the implementation of these Procedures and retired or quit working before 1. The monthly pension shall be augmented with 11% for the person who retired and whose payment years plus his/her successive working 2. The monthly pension shall be augmented with 2% for the person who retired from an administrative agency or institution and whose 3. The monthly pension shall be augmented by 10% for the person who quits working from an enterprise and 1% for the person who quits The above-mentioned person who reaches retirement age in any month of the year shall pay the premium for 12 months in the current The preferential treatment enjoyed by retired veteran cadres, model workers, senior experts and those who can have an early retirement Article 29 The savings amount in the individual endowment insurance account multiplied by a definite coefficient makes the savings amount for Monthly pension = savings amount in individual endowment insurance account x coefficient/120 When the pension computed according to the provision in the preceding Section is lower than the standard computed according to the Article 30 The savings amount in the individual endowment insurance account must only be used to pay monthly retirement pensions and must not When a pension is paid to an retiree, a corresponding deduction must be made from the savings amount in the individual endowment insurance Article 31 The Municipal Social Insurance Committee shall set the lowest standard of retirement pension. In case the pension drawn by according The lowest standard of pension shall be adjusted with the economic development and the rising consumer price index of local residents. Article 32 The retirement pension shall be adjusted every year according to the extent of rise in the local residents’ consumer price index Article 33 This Municipality shall grant living allowances to retirees from time to time according to the national economic development and Article 34 After the death of a retiree, a funeral allowance, grants for lineal dependents and relief benefits shall be paid according to the
CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND Article 35 The sources of endowment insurance funds shall include: 1. Endowment insurance premiums paid by units and employees; 2. Income from the interest earned by endowment insurance fund; 3. Income from the operation of endowment insurance fund for its appreciation; and 4. Overdue fines collected according to the provisions of these Procedures. Article 36 The endowment insurance fund shall be mainly used to pay retirement pensions. When the fund is not enough to make payment, it shall The endowment insurance fund shall be put under the centralized management of the Municipal Social Insurance Administration and be Article 37 The payments that can be made from the endowment insurance fund are: 1. Retirement pensions; 2. Funeral allowances, grants for lineal dependents, and relief benefits paid after the death of retirees according to the relevant 3. The balance of the part attributable to individual payment in the individual endowment insurance account to be given to the legal 4. Living allowances granted under Article 33 of these Procedures. The endowment insurance industry management center may draw a certain percentage of the endowment insurance premiums actually collected The management fees drawn according to the above Section shall be exempt from taxes or fees. Article 38 The endowment insurance fund may be put into operation for its appreciation on condition that the regular payment and its safety Article 39 The Municipal Social Insurance Administration shall timely summarize, verify and report the use and management of the endowment insurance Article 40 A budget and final accounts must be made annually for the collection, payment and operation of the endowment insurance fund for its Article 41 The collection, payment and operation of the endowment insurance fund for its appreciation shall be supervised concurrently by the Article 42 The Municipality shall set up the endowment insurance fund supervisory organization, consisting of the governmental department concerned
CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT Article 43 Disputes between an employee and his/her unit over the payment of endowment insurance premiums or disputes between an employee or Article 44 An employee or retiree or a unit may ask the endowment insurance management center to check the payment of endowment insurance premiums Article 45 The endowment insurance management center may examine the payment of endowment insurance premiums. The Municipal Social Insurance Article 46 The endowment insurance management center shall impose an overdue fine equal to 0.2% of the payable amount for each day in arrears Income from overdue fines shall be included in the endowment insurance fund. Article 47 When a retiree who enjoys the endowment insurance treatment dies, his/her lineal relative(s) or the unit concerned shall go through If any person violates the above Section, overdraws or falsely claims pension by forging documents or by other means, the endowment Article 48 If the party concerned refuses to accept as final the specific administrative act of the Municipal Social Insurance Administration, If the party concerned does not apply for review or institute legal proceedings within the prescribed period of time, nor does it Article 49 The public security organs shall inflict penalty on those who disturb the normal working order of endowment insurance agencies according
CHAPTER VII SUPPLEMENTARY PROVISIONS Article 50 The interim measures on endowment insurance for employees in foreign-funded enterprises and the measures on endowment insurance for Article 51 The procedures on unit supplementary endowment insurance and individual savings endowment insurance in this Municipality shall be Article 52 The Municipal Social Insurance Administration shall be responsible for the interpretation of the specific application of these Procedures. Article 53 These Procedures shall become effective on June 1, 1994. Any unit or individual that failed to execute the Plan of Shanghai Municipality for the Implementation of Reform of Endowment Insurance
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