The latest news on pension adjustments for retirees in 2022: Has it been increased?

According to the results of my country's seventh national census, the proportion of people aged 60 and above exceeds 18%, and the degree of population aging has further deepened. So, what is the latest news on pension adjustments for retirees in 2022? Has it been raised?

1. The latest news on pension adjustments for retirees in 2022: Has it been increased?

In 2022, pensions for retirees were raised by 4%.

Recently, relevant departments issued the "Notice on Adjusting the Basic Pension for Retirees in 2022", which clearly stated that from January 1, 2022, the basic pension level will be increased for retirees of enterprises and institutions who have completed the retirement procedures in accordance with regulations and received basic pension on a monthly basis before the end of 2021. The overall adjustment level is 4% of the average monthly basic pension for retirees in 2021.

II. Calculation method for pensions of retirees in 2022

According to Article 15 of the "Social Insurance Law of the People's Republic of China": The basic pension consists of a unified pension and an individual account pension.

The basic pension is determined based on factors such as the individual's cumulative years of contributions, contribution wages, local average wage of employees, personal account balance, and average life expectancy of the urban population.

1. The monthly standard for calculating basic pension is based on the local average monthly wage of on-the-job employees in the previous year and the average of the individual's indexed average monthly contribution wage. 1% will be paid for every full year of contribution.

The calculation formula is: Basic pension = local average monthly salary of employees in the previous year when the insured person retires * (1 + personal average monthly contribution wage index) / 2 * contribution years * 1%

2. The monthly pension standard of an individual account is the balance in the individual account divided by the number of payment months.

The calculation formula is: Personal account pension = the accumulated balance of the insured person's personal account at retirement xdivide; the number of payment months

The number of payment months is based on retirement age. If you retire at 50, the number of payment months is 195; if you retire at 55, the number of payment months is 170; if you retire at 60, the number of payment months is 139.

3. The monthly standard of transitional pension is based on the individual's indexed average monthly contribution salary, and a transitional coefficient will be paid for every full year of contribution before the integration of the unified accounts.

The calculation formula is: Transitional pension = local average monthly wage of employees in the previous year when the insured person retires * personal average monthly contribution wage index * contribution years before the unified account combination * transition coefficient

Note: The transition coefficient may vary among provinces, municipalities and autonomous regions; some are 1%, some are 1.2%, some are 1.3% and some are 1.4%.

3. How often are pensions for retirees adjusted?

Our country organizes the adjustment of retirees' pensions once a year, mainly based on the relevant provisions of the Social Insurance Law: the state establishes a normal adjustment mechanism for basic pensions. The level of basic pension benefits will be increased in a timely manner based on the growth of average wages of employees and price increases.

In general, the pension level for retirees will be increased by 4% this year. Next, all provinces, autonomous regions, and municipalities should formulate specific implementation plans based on local conditions.