Procedures of Shanghai Municipality on the Basic Pension Insurance for Urban and Rural Residents

April 10, 2019

SMPG D [2019] No. 18

Chapter I  General Provisions

Article 1 (Purpose and Basis)

With a view to comprehensively promoting the construction of the basic pension insurance system covering all urban and rural residents in this Municipality, these Procedures are formulated in accordance with the Social Insurance Law of the People's Republic of China and the Opinions of the State Council on Establishing a Unified Basic Pension Insurance System for Urban and Rural Residents, and in the light of the actual circumstances of this Municipality.

Article 2 (Guiding Principles)

According to the guiding principles of full coverage, basic insurance, flexibility and sustainability, with emphasis on enhancing fairness, adapting to mobility and ensuring sustainability, the basic pension insurance system for urban and rural residents in this Municipality (hereinafter referred to as “pension insurance for urban and rural residents”) is established. Linked up with the basic pension insurance system for employees, jointly with other social security policies such as social assistance policy and social welfare policy, and with the positive role of traditional security method like family care of the elderly, this system shall better ensure the basic life of the elderly of the insured urban and rural residents.

Article 3 (Scope of Application)

An urban or rural resident with a Shanghai municipality household registration, reaching the age of 16 years old (excluding school students) and not covered by the basic pension insurance system for employees may participate in the pension insurance for urban and rural residents.

Article 4 (Administrative Departments)

The Municipal Human Resources and Social Security Bureau shall be the administrative department in charge of the pension insurance for urban and rural residents.

The Municipal Finance Bureau, the Municipal Civil Affairs Bureau, the Municipal Disabled Persons Federation, the Municipal Agricultural Commission, the Municipal Tax Service and other departments shall, in accordance with their own respective functions and duties, cooperate in the implementation of these Procedures.

The district people’s governments shall be responsible for the organization, administration and implementation of the pension insurance for urban and rural residents within their jurisdictions.

Chapter II  Fund Raising

Article 5 (Fund composition)

The pension insurance fund for urban and rural residents consists of individual contribution, collective subsidies and government subsidies.

Article 6 (Individual Contribution)

Persons participating in the pension insurance for urban and rural residents shall pay the pension insurance premiums in accordance with the provisions. The individual contribution standard is currently set at 10 levels of RMB500 yuan, 700 yuan, 900 yuan, 1100 yuan, 1300 yuan, 1700 yuan, 2300 yuan, 3300 yuan, 4300 yuan and 5300 yuan per year.

The insured person may choose his/her own level of payment under the policy of paying more and getting more.

Article 7 (Collective Subsidies)

Village collective economic organizations with proper conditions shall give subsidies to the insured person's contributions, and the subsidy standard shall be determined democratically by the villagers' committee holding a villagers' meeting or by the village collective economic organizations holding a member meeting. Encourage communities with proper conditions to include collective subsidies into the financing scope of community public welfare funds. Encourage other social and economic organizations, charity organizations and individuals to provide financial assistance for the insured. The amount of subsidy and assistance shall not exceed the highest payment standard level.

Article 8 (Government Subsidies)

The government shall pay the basic pension in full for the insured who meet the conditions for receiving the benefits of the pension insurance for urban and rural residents.

The district people’s governments shall give subsidies to the insured with household registration within their jurisdictions. According to the annual individual contribution standard of RMB500 yuan, 700 yuan, 900 yuan, 1100 yuan, 1300 yuan, 1700 yuan, 2300 yuan, 3300 yuan, 4300 yuan and 5300 yuan, the corresponding contribution subsidy standard shall be RMB200 yuan, 250 yuan, 300 yuan, 350 yuan, 400 yuan, 450 yuan, 525 yuan, 575 yuan, 625 yuan and 675 yuan.

The district people’s governments shall pay part or full of the pension insurance premiums for the group of people with payment difficulty like the severely disabled with household registration within their jurisdictions. The individual payment standard for the severely disabled is RMB1100 yuan per year, of which the disabled individual shall pay 5% of the premiums, while in the name of the disabled, the disabled employment security fund shall pay RMB600 yuan, and the district finance shall pay the rest. Those with severe disabilities who receive the living allowances for the severely disabled and unemployed do not need to pay the pension insurance premiums, while in the name of the disabled, the employment security fund for the disabled shall pay RMB600 yuan, and the district finance shall pay RMB500 yuan. The specific provisions shall be separately formulated by the Municipal Disabled Persons’ Federation and the Municipal Finance Bureau and other relevant departments.

Article 9 (Standard Adjustment)

The adjustment of the individual contribution standard and subsidy standard shall be put forward by the Municipal Human Resources and Social Security Bureau jointly with the Municipal Finance Bureau in accordance with the income growth of urban and rural residents in this Municipality, and shall be promulgated and implemented upon approval by the Municipal people’s Government.

Article 10 (Establish Personal Account)

This Municipality shall establish a life-long personal pension account for each insured person. The individual contribution, district people’s government’s subsidy and collective subsidy to the insured, as well as other social and economic organizations’, charity organizations’ and individuals’ assistance to the insured shall all be included in the personal account. The amount deposited in the personal account shall bear interest in accordance with the provisions of the State.

Chapter III  Pension Benefits

Article 11 (Conditions for Receiving Pension Benefits)

The participants of the pension insurance for urban and rural residents, who have reached the age of 60 and have contributed premiums for a cumulative period of 15 years, and have not received the basic pension insurance benefits prescribed by the State and this Municipality, may receive the pension insurance benefits for urban and rural residents on a monthly basis.

Those, at the time when the municipal new-type social pension insurance for rural areas (hereinafter referred to as the “new rural insurance”) system or the social pension insurance for urban residents (hereinafter referred to as the “urban resident insurance”) system is implemented, who have already reached the age of 60 and have not received the basic pension insurance benefits prescribed by the State and this Municipality, do not need to pay any pension insurance premiums. They may, starting from the month of the implementation of these Procedures, receive the monthly basic pension paid by the pension insurance for urban and rural residents. If the gap is less than 15 years from the prescribed age of receipt, the premium may be paid year by year for the insufficient years, and an overall supplementary payment shall also be allowed. However, the accumulated payment period upon the supplementary payment shall not exceed 15 years. If the gap is more than 15 years from the prescribed age of receipt, the premium shall be paid on an annual basis, and the cumulative payment period shall not be less than 15 years.

Article 12 (Benefit Composition)

The pension insurance benefits for urban and rural residents consist of the basic pension and individual account pension which shall be paid lifelong.

Article 13 (Basic Pension)

The monthly calculation and payment standard of the basic pension is RMB1010 yuan (including the minimum basic pension standard determined by the Central Government); the basic pension to the insured person who has contributed premiums for a cumulative period over 15 years shall be increased by RMB20 yuan for every extra payment year.

The basic pension shall be shared by the municipal finance (including the Central Government subsidy funds) and the district finance at the proportion of 50% and 50%. The district finance shall bear the corresponding basic pension to the beneficiary of the pension insurance of the urban and rural residents with the household registration within its jurisdiction.

Article 14 (Benefit Adjustment)

This Municipality shall set up a mechanism for the normal adjustment of the basic pension for urban and rural residents. The basic pension for urban and rural residents shall be adjusted in due course according to the adjustment of the national minimum standard of basic pension; and be adjusted timely according to the economic development and price changes in this Municipality.

Article 15(Personal Account Pension)

The monthly calculation and payment standard of the personal account pension shall be the quotient of the total deposit in the personal account divided by 139. If the insured person dies, the balance in his/her personal account may be inherited in accordance with law.

Article 16 (Funeral Subsidies)

If the beneficiary of the pension insurance benefits for urban and rural residents dies, the pension shall be stopped to pay in the next month from the month he/she dies, while his/her family may receive a funeral subsidy of RMB6,000 yuan.

Funds needed for the funeral subsidy shall be shared by the municipal finance and the district finance at the proportion of 50% and 50%. The district finance shall bear the corresponding funeral subsidy for the beneficiary of the pension insurance of the urban and rural residents with the household registration within its jurisdiction.

The adjustment of the funeral subsidy standard shall be put forward by the Municipal Human Resources and Social Security Bureau jointly with the Municipal Finance Bureau in accordance with the municipal economic development and price changes, and shall be promulgated and implemented upon the approval by the Municipal People’s Government.

Article 17 (Qualification)

The operation agency of the pension insurance for urban and rural residents shall verify the beneficiary every year; the village (neighborhood) committees shall assist the operation agency of pension insurance for urban and rural residents to carry out the verification work, which shall include publicizing the eligibility of the beneficiary of the pension insurance benefit within the administrative village (community), and checking the receiving records against the basic pension benefits stipulated by the State and this Municipality, so as to ensure that there are no repetition, omission or error in the payment work.

Chapter IV  Transfer，Continuation and System Cohesion

Article 18 (Transfer and Continuation within the Systems)

The participant of the pension insurance for urban and rural residents who needs to have a cross-province/municipality transfer of his/her pension insurance relationship due to a household registration transfer during the payment period of the pension insurance for urban and rural residents may apply for the transfer of the pension insurance relationship in the place where he/she moves in, transfer the total deposit in his/her personal account at one time, and continue to participate and pay for the insurance premiums in accordance with the regulations of the place where he/she moves in. The payment period shall be calculated cumulatively.

The person who has already received pension benefits for urban and rural residents in accordance with regulations shall not have his/her pension insurance relationship transferred regardless of whether his/her household registration is transferred.

Article 19 (Cohesion of Relevant Systems)

The cohesion among the pension insurance system for urban and rural residents,  the basic pension insurance system for employees, the condolence money system for dependent relatives of employees who died in work, the special care and placement system, the minimum living standard security system for urban and rural residents, the rural five guarantees and other social security systems, as well as the reward and assistance system for some family planning families in rural areas, shall be implemented in accordance with the relevant provisions of the State and this Municipality.

Procedures for persons whose land has been expropriated, relatives of workers of non-work-related death, and spouses of old resigned and hometown-returning employees due to redundancy and dismiss to participate in the pension insurance for urban and rural residents shall be implemented in accordance with the relevant provisions of the State and this Municipality.

Article 20 (Cohesion of the Old and New Systems)

After the establishment of the pension insurance system for urban and rural residents, the persons in the new rural insurance system who had originally participated in the rural social pension insurance, and the persons who had originally enjoyed the pension subsidy for elderly peasants, and the persons in the urban resident insurance system who had originally enjoyed the pension insurance benefits for urban elderly residents shall be treated in accordance with the principle of “fixing the population group and ensuring a smooth transition of benefits”.

1. The persons in the new rural insurance system who had originally participated in the rural social pension insurance may continue to enjoy the transitional pension that they can receive in accordance with the regulations. The funds needed shall be borne by the “original unified planning fund” in the new rural insurance fund, and the district finance shall continue to bear the payment when the original fund is used up.

2. The persons in the new rural insurance system who had originally enjoyed the pension subsidy for the elderly peasants shall continue to enjoy the transitional pension subsidy in accordance with the regulations, and the funds needed shall be borne by the district finance.

3. The persons in the urban resident insurance system who had originally enjoyed pension insurance benefits for urban elderly residents shall continue to enjoy the benefit of RMB100 yuan, which is extra to the basic pension. The funds needed shall be shared by the municipal finance and district finance at the proportion of 50% and 50%.

Chapter V  Fund Management

Article 21 (Fund Management and Operation)

The new rural insurance fund and the urban resident insurance fund shall be merged into the pension insurance fund for urban and rural residents, and the municipal management shall be implemented.

The pension insurance fund for urban and rural residents shall be included in the special financial account of the municipal social security fund. The fund shall be managed by two lines of revenue and expenditure, with separate bookkeeping and independent accounting. No department, unit or individual may misappropriate or falsely claim.

Funds borne by the municipal finance and district finance shall be included in the budgets at all financial levels, and allocated to the special financial account of the municipal social security fund by the municipal finance and district finance item by item.

The pension insurance fund for urban and rural residents shall be invested and operated in accordance with the unified regulations of the State to maintain and increase its value.

A financial accounting system of the pension fund for urban and rural residents shall be established. The specific procedures shall be separately formulated by the Municipal Finance Bureau jointly with the Municipal Human Resources and Social Security Bureau.

Article 22 (Fund Supervision)

The human resource and social security department shall conscientiously perform the fund supervision duties in conjunction with the relevant departments, establish and perfect the internal control system and the fund auditing and supervision system, monitor and inspect the fund’s raising, turning-over, allocation, distribution, deposit and management, and disclose information in accordance with the regulations and accept the social supervision.

The financial department and the auditing department shall, in accordance with its own respective functions and duties, supervise the fund’s revenue and expenditure, management and investment operations and, actively explore effective ways of social supervision with the participation of village (resident) representatives, so as to ensure that the fund is open and transparent and the system operates under the sun.

For falsely claim, misappropriation, corruption, waste and other violations against disciplines and laws, relevant departments shall dealt with severely in accordance with the relevant provisions of the State and this Municipality.

Chapter VI  Operational Management Services and Information Construction

Article 23 (Operation Agency)

The operational work of the pension insurance for urban and rural residents in this Municipality shall be managed by the Municipal Social Insurance Management Center. District people’s governments shall determine the social insurance operational agency in their district for the specific operation, and the Community Affairs Service Center of the sub-district (township or town) shall be responsible for the specific operation.

Article 24 (Operation Management Service)

District people’s governments shall strengthen the construction of the operational capacity of the pension insurance for urban and rural residents, scientifically integrate the existing public service resources and social insurance operational management resources, enrich and strengthen the operational forces at the grass-root level, and achieve an accurate management and convenient service; focus on the use of modern management methods and government purchase of service to reduce the administrative cost and raise the working efficiency; and provide necessary working places, facilities and equipment, and financial guarantee for the operation agencies.

The social insurance operation agency shall strengthen its staff’s professional training for the work of the pension insurance for urban and rural residents to raise their public service level. The agency shall establish a system of various business management rules and regulations, conscientiously record the premium paid and the benefit received by the urban and rural residents, establish the insurance files, and properly keep them in accordance with the provisions.

Article 25 (Working Funds)

The funds for the work on the pension insurance for urban and rural residents shall be included in the financial budget at the same administrative level, and may not be spent from the pension fund for urban and rural residents.

Article 26 (Informatization Construction)

A centralized municipal information administrative system for the pension insurance for urban and rural residents shall be established and incorporated into the construction of the social security information administrative system (“golden insurance project”) to realize the share of information resources with other citizen information administrative systems. The information network shall be extended to the grassroots level to realize a real-time networking of this Municipality, districts, townships(sub-districts) and communities. The districts with proper conditions may extend the information network to the administrative villages to facilitate urban and rural residents to contribute pension insurance premiums, receive benefits and inquire insurance information.

Chapter VII  Supplementary Provisions

Article 27 (Implementation Rules)

The Municipal Human Resources and Social Security Bureau, the Municipal Finance Bureau and other relevant departments may formulate detailed implementation rules in accordance with these Procedures.

Article 28 (Implementation Duration)

These Procedures shall be effective as of May 1, 2019 and shall be valid until April 30, 2024. Where there is any discrepancy between these Procedures and other relevant provisions of this Municipality, these Procedures shall prevail.