The old system of labor retirement and new measures have been implemented, making retirement planning more flexible

        The accumulation method and retirement planning of labor pensions have always been the most concerned issues for office workers. In order to provide more diverse retirement planning methods for workers who are eligible for the Labor Standards Law retirement system (commonly known as the "Labor Retirement Old System"), the Ministry of Labor has revised the implementation rules of the Labor Pension Regulations based on the "Labor Retirement Pure Old System Workers' Voluntary Contribution and Early Deposit Pension" plan, which will come into effect on July 17th. This issue's' Legal Column 'reorganization focuses on three key points to assist those who apply it in making appropriate choices.

        This amendment applies to pure old system workers, that is, workers who have been subject to the retirement system of the Labor Standards Law before the implementation of the Labor Pension Regulations under the new labor retirement system, and who still serve in the same company after the implementation of the new labor retirement system and choose to continue using the old retirement system.

        Key point one: Pure old system workers can voluntarily contribute to their retirement pension

                In the past, the voluntary pension contribution system was mainly applicable to workers under the new labor retirement system. After this amendment, pure old system workers can also voluntarily contribute their pension to the personal pension special account established by the Labor Insurance Bureau within the range of 6% of their monthly salary.

        Key point 2: Those who meet the retirement requirements can deposit their retirement benefits in advance

        If a pure old system worker has met the retirement requirements stipulated in the Labor Standards Law and the labor contract continues to exist, with the agreement of both the employer and employee, the accumulated Labor Standards Law retirement pension can be settled in advance.

        According to the Labor Standards Law, those who meet any of the following conditions are eligible for self retirement:

        Those who have worked for more than 15 years and are over 55 years old.

        Those who have worked for more than 25 years.

        Those who have worked for more than 10 years and are over 60 years old.

        After the settlement is completed, the retirement pension will not be directly distributed to the workers, but will be fully transferred to the personal retirement pension account established by the Labor Insurance Bureau. When the retirement pension application requirements are met, it will be lawfully applied for.

        Key point three: After early balance, the subsequent work experience continues to accumulate

        Early retirement benefits do not mean termination of the labor contract, nor do they affect the calculation of retirement benefits for subsequent years of service.

        After completing the advance balance, if the worker continues to work in the original public institution, the newly added years of service will still accumulate retirement benefits in accordance with the law; When the labor contract is terminated, the employer shall still calculate and pay the retirement benefits generated during that period in accordance with the law.

        In addition, the employer and employee can also reach an agreement to settle the retirement benefits generated by their subsequent work experience based on the actual situation, and transfer the full amount to the personal retirement account of the Labor Insurance Bureau after settlement.

        FAQ

        Q: After participating in this system, will it be changed to a new labor retirement system?

        A: I won't. This system only adds a voluntary contribution and early retirement fund mechanism, and will not change the status of workers who were originally subject to the Labor Standards Law retirement system. Employers do not need to contribute to the new labor retirement pension system for workers as a result.

        Q: Can I receive my pre paid retirement pension immediately?

        A: No way. The pre settled retirement pension must be fully deposited into the personal retirement pension special account of the Labor Insurance Bureau, and applied for in accordance with the retirement pension application regulations.

        Q: Can I continue working after depositing my retirement pension in advance?

        A: Okay. Early retirement benefits do not affect the labor contract, and the accumulated retirement benefits will continue to be accumulated over subsequent years of work; When the labor contract terminates, the employer shall still pay the retirement benefits generated during that period in accordance with the law.

        This revision provides more diverse retirement planning options for pure old system workers. In addition to voluntarily contributing accumulated retirement assets, those who meet the retirement conditions can also, with the agreement of both the employer and employee, deposit their accumulated old system retirement benefits in advance into their personal retirement account and continue to participate in income distribution. Qualified personnel can evaluate whether to use this system to enhance retirement life security based on financial planning and career arrangements. (Source: Ministry of Labor)

        *Image source: Magnific

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