Occupational Pension Scheme of State Authorities and Public Institutions

机关事业单位职业年金

Coverage

Mandatory participation

All persons insured in the old age pension insurance scheme of state authorities and public institutions.

Financing

General finances

Partially funded notional defined contribution (NDC) system (incl. state subsidies and capital revenues) for public sector institutions which are not fully financed by the state, or fully funded (DC) (incl. capital revenues) individual accounts.
Interest on the employees’ contribution payments shall be calculated according to the market interest rate.
Interest on the employers’ contribution payments (for those who are not fully subsidised by the state) shall be calculated according to the market interest rate; interest on the employers’ contribution payments (for those who are fully covered by the state) shall be calculated on a yearly basis according to the bookkeeping interest rate as uniformly published by the state.

Contribution rates

Contributions shared between employer (8% of the total wage) and the employee (4% of the personal wage).

State support

Contribution payments of the employee are deducted from the individual income tax base.
Contribution payments of the employer are deducted from the individual income tax base.
The capital revenues distributed in the individual accounts are deducted from the individual income tax base.

Administration

The local social insurance authorities and finance authorities are responsible for supervising the implementation of the scheme.
The ‘Local Social Insurance Enforcement Agencies’ (社会保险经办机构) are responsible for managing the scheme.

Qualifying Conditions

Based on entitlement to standard or early old age pension benefits from the old age pension insurance of state authorities and public institutions.

Benefits

Either defined contribution (DC) or notional defined contribution (NDC); primarily based on the amount of contributory earnings, length of contribution period and capital revenues.
Option for monthly annuity (until the accumulated capital is completely paid and possibility of inheritable rights on the remaining capital) based on dividing the accumulated capital by the ’number of months of payment‘ (see basic old age pension insurance scheme for employees) determined by factors such as the average life expectancy of the urban population at the time of retirement, the retirement age of the insured person and the interest;¹in case of death of the participant, possibility of inheritance of the accumulated amount in the individual account; possibility of lump sum payment of the accumulated capital if the employee is being relocated abroad.
Option for one-time payment used for purchasing commercial pension insurance products.

Taxation on pension payments

Pension payments are subject to income tax.
Information on social security contributions is currently not available.

Coverage

Financing

Administration

Qualifying Conditions

Benefits

Mandatory participation

All persons insured in the old age pension insurance scheme of state authorities and public institutions.

General finances

Partially funded notional defined contribution (NDC) system (incl. state subsidies and capital revenues) for public sector institutions which are not fully financed by the state, or fully funded (DC) (incl. capital revenues) individual accounts.
Interest on the employees’ contribution payments shall be calculated according to the market interest rate.
Interest on the employers’ contribution payments (for those who are not fully subsidised by the state) shall be calculated according to the market interest rate; interest on the employers’ contribution payments (for those who are fully covered by the state) shall be calculated on a yearly basis according to the bookkeeping interest rate as uniformly published by the state.

Contribution rates

Contributions shared between employer (8% of the total wage) and the employee (4% of the personal wage).

State support

Contribution payments of the employee are deducted from the individual income tax base.
Contribution payments of the employer are deducted from the individual income tax base.
The capital revenues distributed in the individual accounts are deducted from the individual income tax base.

The local social insurance authorities and finance authorities are responsible for supervising the implementation of the scheme.
The ‘Local Social Insurance Enforcement Agencies’ (社会保险经办机构) are responsible for managing the scheme.

Based on entitlement to standard or early old age pension benefits from the old age pension insurance of state authorities and public institutions.

Either defined contribution (DC) or notional defined contribution (NDC); primarily based on the amount of contributory earnings, length of contribution period and capital revenues.
Option for monthly annuity (until the accumulated capital is completely paid and possibility of inheritable rights on the remaining capital) based on dividing the accumulated capital by the ’number of months of payment‘ (see basic old age pension insurance scheme for employees) determined by factors such as the average life expectancy of the urban population at the time of retirement, the retirement age of the insured person and the interest;¹in case of death of the participant, possibility of inheritance of the accumulated amount in the individual account; possibility of lump sum payment of the accumulated capital if the employee is being relocated abroad.
Option for one-time payment used for purchasing commercial pension insurance products.

Taxation on pension payments

Pension payments are subject to income tax.
Information on social security contributions is currently not available.

¹ The ‘number of months of payment’ for different retirement ages is now specified in a table defined by the ‘State Council’.

Legal Basis: Regulation on the Implementation of the Individual Income Tax Law of the People's Republic of China (中华人民共和国个人所得税法实施条例); Notice of the General Office of the State Council on Issuing the Measures for the Occupational Pension of State Authorities and Public Institutions (国务院办公厅关于印发机关事业单位职业年金办法的通知), 国办发[2015]18号; Notice of the Ministry of Finance, the Ministry of Human Resources and Social Security and the State Administration of Taxation on Issues concerning Individual Income Tax on Enterprise Occupational Pension or Occupational Pension (财政部、人力资源社会保障部、国家税务总局关于企业年金、职业年金个人所得税有关问题的通知), 财税[2013]103号; Notice of the Ministry of Finance and the State Administration of Taxation on Issues Concerning the Connection of Preferential Policies after the Individual Income Tax Law Is Amended (财政部、国家税务总局关于个人所得税法修改后有关优惠政策衔接问题的通知), 财税[2018]164号.