Detailed Measures for Implementing Provisions of Beijing Municipality on Basic Pension

Q: What are the calculation and distribution standards for the basic pension?

A: The monthly amount of the basic pension is calculated based on the city's average monthly wage for employees in the year prior to the insured person's retirement and the amount of the insured person's indexed average monthly contribution. For each full year of contribution (including deemed contribution years, hereinafter the same shall apply), 1% of this base amount is paid.

The monthly amount of the personal account pension is calculated by dividing the insured person's total balance on his/her personal account by the number of months for calculation and distribution stipulated by the state.

The monthly amount of the transitional pension is the sum of the monthly transitional pension calculated based on deemed contribution years and that calculated based on actual contribution years.

Specifically, the monthly amount of the transitional pension based on deemed contribution years is calculated based on the city's average monthly wage for employees in the year prior to the insured person's retirement, with 1% of that amount paid for each full year of deemed contribution.

The monthly transitional pension based on actual contribution years is calculated based on the product of the city's average monthly wage for employees in the year prior to the insured person's retirement and the insured person's contribution wage index, with 1% of that amount paid for each full year of actual contribution made before June 30, 1998.

Q: What is the contribution base for individual industrial and commercial households and flexible workers?

A: The contribution amount of an individual industrial and commercial household or flexible worker is based on the city's average monthly wage for employees in the previous year. For those facing financial difficulties in paying contributions based on this standard, they may, upon submitting written applications, choose 60% of the city's average monthly wage in the previous year as their contribution base.

Q: Can basic pension insurance contributions be delayed?

A: If an insured person at an age within the statutory working age range stipulated by the state, and has unpaid basic pension insurance contributions due to the employer's failure to pay as required, the employer may submit a written application for delayed payment to the responsible administrative authority of labor and social security. The supplementary materials must include the proof of the existence of an employment relationship with the insured person during the period of retroactive payment, as well as documents proving wage income. Upon verification, the basic pension insurance contributions may be retroactively paid.

For retroactive payments, the contribution base for the corresponding year shall be calculated by multiplying the insured person's contribution wage base for that year by the ratio of the city's average employee wage in the year preceding the retroactive payment to the wage in the year preceding the year when the payment is supposed to be made. Contributions shall be paid based on this adjusted contribution base and the combined contribution rate of both the employer and the employee applicable in the corresponding years. The insured person shall retroactively pay the portion calculated by multiplying his/her contribution wage base for the corresponding year by the individual contribution rate applicable in that year. The remaining amount shall be fully borne by the employer. Both the individual and employer portions to be credited into the personal account shall be calculated based on the insured person's wage base for the corresponding year, and credited according to the prescribed contribution rates for each year.