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Yesterday, a friend left a message. He was born in December 1964 and started working in July 1982. Initially, he was in a public institution until he was transferred to a company in March 2001. There was a 4-year gap in his social security contributions, and he is expected to have about 38 years of contribution duration with a personal account balance of a little over 140,000 yuan. Now, he is paying contributions based on a base of 8,500 yuan. How much can he receive in retirement pension?

If a worker from a government or public institution transfers to a company and retires from there, the calculation formula should be executed according to the method for corporate retirees. In fact, the calculation content of the two is basically the same, as the pension mainly includes the basic pension, personal account pension, and transitional pension, although the specific calculation factors differ.

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Below is the pension calculation formula for corporate retirees in Shandong Province:

① For the basic pension part, it is equal to the 2024 Shandong Province pension payment base × (1 + the individual's average contribution index) ÷ 2 × contribution duration × 1%.

The contribution index is equal to the contribution base of a certain month ÷ the average monthly wage of the previous year for that month. Generally, the average contribution index is roughly the average value of the contribution levels.

To put it simply, if we always pay contributions at the 60% level, the average contribution index would be 0.6.

For this insured person, the 2024 contribution base is 8,500 yuan, and we are temporarily using the 2022 social average wage of 7,069 yuan (the 2023 figure should be used), which would result in a contribution index of approximately 8,500 yuan ÷ 7,069 yuan = 1.2.

The personal account balance of over 140,000 yuan is roughly in line with this level.The contribution period includes both actual contribution years and deemed contribution years. From July 1982 to December 2024, the theoretical service length should be 42 and a half years. With a 4-year break in contributions, the contribution period used for calculating the pension should be 38.5 years.

Based on the factors mentioned above, the basic pension part can be received as (1.2 + 1) / 2 * 38.5 years * 1% = 42.35% of the 2024 pension base amount.

The pension base amount for Shandong Province in 2023 (except for retirees from provincial enterprises and Heze enterprises) is 7,468 yuan, and it is expected to increase by 3.2% in 2024, reaching around 7,707 yuan. After calculation, the basic pension can be received at a monthly rate of 3,264 yuan.

② The personal account pension part is relatively easier to calculate.

Personal account pension = the balance of the individual's social insurance account divided by the number of months determined by the retirement age.

As the retirement age is 60, the number of months for calculation is uniformly 139.

The balance of the individual's social insurance account is estimated at 140,000 yuan, which allows for a monthly personal account pension of about 1,007 yuan.

③ The transitional pension is mainly calculated for the previous deemed contribution years (for some enterprise employees, it is for the contribution years before the establishment of the local social insurance personal account, generally before 1996, and before October 1994 in Qingdao City).Shandong Province's transitional pension = the pension calculation base of Shandong Province in 2024 × average contribution index × the number of contribution years before account establishment × 1.3%.

For the years of service that are deemed as contribution years, there is no deemed contribution index; the contribution index used here is also calculated based on the average actual contribution index.

With 225 months, which is 18.75 years, of deemed contribution years, and an average contribution index of 1.2, one can receive 29.25% of the pension calculation base. Calculated at 7707 yuan, the result is approximately 2254 yuan.

Adding up the three parts of the pension, 3264 yuan + 1007 yuan + 2254 yuan = 6525 yuan.

Many people might be surprised that with more than 38 years of service, one can receive a pension of over 6500 yuan? In fact, there is also a winter heating subsidy of 1700 yuan per year.

The main reason for the high pension of this retiree is the long deemed contribution years, coupled with a high average contribution index.

Overall, the pension insurance system is one where more contributions lead to more benefits, and longer contributions lead to more benefits. If the contribution level is high, the pension can also provide a decent treatment. #Top Headline Creation Challenge# #Pension Calculation#