Today, a friend asked such a question: He is a professional staff member with 24 years of service and now wants to resign. Will he still receive a pension when he is 60 years old?

In fact, the situation is quite complex.

Retirement conditions.

The legal retirement conditions in our country are stipulated in Article 16 of the Social Insurance Law, which states that individuals who participate in the basic pension insurance and reach the legal retirement age, with a total of 15 years of pension insurance payments, can receive a pension on a monthly basis.

Pension insurance payment period.

For government agencies and public institutions, the pension insurance system reform was implemented in October 2014. Up to now, the payment period for pension insurance is close to 10 years.

The role of service length.

The service length of government agencies and public institutions is calculated based on the staff's personnel files. Before the implementation of the pension insurance system, people mainly determined whether they met the retirement conditions based on their service length and determined the specific proportion of the basic salary to be paid according to the service length. For example, the commonly used method is to pay 85% for those with a service length of more than 30 years but less than 35 years, and 90% for those with a service length of more than 35 years.Pension Calculation Formula for Government and Public Institutions.

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After the implementation of the pension insurance system reform, the new method for calculating pensions for government and public institutions introduced by the state mainly consists of three parts: basic pension, personal account pension, and transitional pension. Although the state has stipulated a 10-year transitional period, during which the retirement benefits under the old and new methods are compared for retirees, the 10-year transitional period is about to end, and the new method will be used to calculate retirement benefits for pensions in the future.

Below is the new method for calculating retirement benefits in Shandong Province:

Through the pension calculation formula, we can see that calculating a pension requires the use of various factors such as payment duration, average payment index, and retirement age. The payment duration includes both actual payment duration and deemed payment duration, and the continuous service period recognized by the state before the establishment of the personal pension insurance account system can be deemed as payment. It is important to note that the deemed payment index for the deemed payment duration is calculated based on factors such as the individual's position and rank at the time of retirement.

For the establishment of the personal pension insurance account system, the payment duration before it was established is used to calculate the transitional pension. It is only related to the deemed payment duration and the deemed payment index.

Changes after government and public institutions are transferred to enterprises?

Firstly, if an individual resigns, the previous continuous service period can be retained as deemed payment duration. However, if an individual is held criminally responsible or dismissed, the continuous service period is generally reset to zero. After resetting to zero, only the payment duration of the last 10 years can be calculated.

If not reset to zero, with 24 years of payment duration (including 14 years of deemed payment duration), it meets the retirement conditions of the Social Insurance Law, and retirement can be processed.  Enterprise employees, due to the lack of corresponding administrative levels, are generally considered to have a contribution index that is either 1 or calculated according to the actual average contribution index. For instance, Shandong Province calculates transitional pensions based on the actual average contribution index. If the average contribution index is low, the calculation of deemed contribution years will also be somewhat disadvantageous.

After resigning, individuals can participate in the flexible employment personnel pension insurance by bearing the social insurance fees themselves. If there is a new employer, the employer should pay social insurance for the employee.

The balance of individual accounts in government and public institutions can be connected with the individual account balance of enterprise employees. However, there is no destination for occupational annuities unless the unit has an enterprise annuity.

Additionally, with the possibility of changes in the retirement age in the future, the minimum contribution years for receiving a pension may also change, perhaps becoming 25 or 30 years. Therefore, even if one resigns, it is advisable not to interrupt the payment.

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