Document No (1) 2004
Issued by Division of Rural Pension Policy
Shanghai Municipal Labour & Social Security Bureau and
Shanghai Municipal Medical Insurance Bureau on January 12, 2004
To all District & County People¡¯s Governments, all Municipal Commissions, offices, Bureaus, the Holding (Group) Corporations, the Municipal Settlement & Administration Center for Social Insurance Funds, The Municipal Administration Center on Rural Old-age Pension, The Municipal Medical Insurance Administration Center, The District/ County Labour & Social Security Bureaus, The District/County Administration Centers for Social Insurance Funds, The District/County Medical Insurance Administration Offices, The District/County Rural Social Insurance Funds Administration Committee:
In order to improve the labour market system, establish the transferring and connection mechanism among Urban Social Insurance Scheme, Township Social Insurance Scheme and Rural Social Insurance Scheme, in accordance with¡°The Provisions on Township Social Insurance Scheme in Shanghai Municipality¡±, ¡°The Circular on Some Issues Concerning transferring and Connection of Social Insurance Relationship of Workers in Shanghai Municipality¡± is as the followings,
I. Connection of Individual Social Insurance Information
In case that a worker has changed his/her participation between the social insurance schemes in Shanghai Municipality, the corresponding social insurance agencies shall renew his/her social insurance relationship as per relevant stipulations and update his/her social insurance information on regular basis. Among which, in case that a worker has changed his/her participation from the Rural Pension Scheme (hereinafter referred to as RPS) to the Township Social Insurance Scheme (hereinafter referred to as TSIS) or to the Urban Social Insurance Scheme (hereinafter referred to as USIS), his/her RPS personal information shall be timely submitted to the Municipal Rural Social Insurance Agency for establishment of the corresponding transferring information records.
An individual social insurance record shall include the following information:
1) The individual account record for basic pension and medical insurance;
2) Starting year of his/her first job, consecutive years of service before the end of 1992 according to relevant State and Municipal stipulations;
3) Individual contributing years in USIS and RPS, the respective annual
contribution basis within the period; and the contribution records in TSIS;
4) Accruals in the individual Basic Social Insurance Account (including individual contribution, the recording part from the social pooling and interest accruals);
5) Information of the individual supplementary insurance account, the contribution records, accruals in the individual supplementary insurance account and relevant information;
6) Other relevant material.
II. Connection and combination of the contributing years & individual account accrual
When a local worker who has changed his/her social insurance participation in the Municipality reaches pensionable age, his/her contributing years and individual account accrual in USIS, TSIS and RPS may be combined and computed in light of the following stipulations.
1. Connection and combination of contributing years and individual account accrual for changes of participation from RPS to USIS or TSIS
1.) In case that a worker has changed his/her participation from RPS to
USIS, the sum of the RPS contributions by both the individual and the employer in each contributing year shall be converted according to the respective USIS contribution standard calculated by USIS contribution basis (not under 60% of the average monthly wage in the previous year) and the contribution rate for old-age pension, medical insurance in the same year (hereinafter referred to as the USIS contribution standard) to compute the corresponding contributing years in USIS. Among which the total sum of RPS contribution made by the individual and the employer before the end of 1992 shall be converted according to the specific Contribution Standard calculated by 60% of the workers¡¯ average monthly wage in 1992 in the Municipality and the USIS contribution rate for old-age pension and medical insurance in 1993 to compute the corresponding USIS contributing years.
The sum in the individual account for basic social insurance shall be recorded at the standard defined by the converted USIS contributing years, contribution basis and the recording rate of basic social insurance.
2.) In case that a worker has changed his/her participation from RPS to
TSIS, the sum of RPS contributions by the employer, subject to deduction of the part recorded into the individual account (hereinafter referred to as the RPS contributions by the employer) in each contributing year shall be converted according to the respective TSIS contribution standard calculated by the TSIS contribution basis and the TSIS contribution rate for old-age pension, medical insurance in the same year (hereinafter referred to as the TSIS contribution standard) to compute the corresponding contributing years in TSIS. Among which, the total sum of transferred RPS contribution by the employer before the end of 1992 shall be converted according to the contribution standard calculated by 60% of the worker¡¯s average monthly wage in 1992 in the Municipality and the TSIS contribution rate for old-age pension and medical insurance in 2003 to compute the corresponding USIS contributing years; the sum of transferred RPS contribution by the employer in each contributing year from January, 1993 to October, 2003 shall be converted according to the contribution standard calculated by 60% of the workers¡¯ average monthly wage in the respective previous year and the TSIS contribution rate for old-age pension and medical insurance in 2003 to compute the corresponding contributing years.
In case that the sum of annual RPS contribution by the employer exceeds that of the TSIS contribution for the same period, the surplus part may be transferred into the TSIS individual supplementary pension account (X1) according to relevant stipulations; and the annual sum in the individual RPS account, as per the individual¡¯s application, may be combined with the contributions by the employer for computation of the TSIS contributing years, or be transferred into the TSIS individual supplementary pension account (X1).
2. Connection and combination of contributing years and individual account accrual for changes of participation from TSIS to USIS or RPS
1.) In case that a worker has changed his/her participation from TSIS to USIS, the sum of the TSIS contributions by the employer in each contributing year shall be converted according to the respective USIS contribution standard in the same year to compute the corresponding contributing years in USIS.
The sum in the individual account for basic social insurance shall be recorded at the standard defined by the converted USIS contributing years, contribution basis and the recording rate of basic social insurance, and the balance in the supplementary individual medical insurance account (X2) from TSIS shall be transferred into the corresponding USIC individual medical insurance account.
2.) In case that a worker has changed his/her participation from TSIS to
RPS, the contributing years in TSIS shall be computed as corresponding contributing years in RPS.
The accrual in his/her supplementary individual pension account (X1) and the balance in the supplementary individual medical insurance account (X2) transferred from TSIS shall be paid lump sum to him/her by the TSIS and medical insurance agencies after settlement.
3. Connection and combination of contributing years and individual account accrual for changes of participation from USIS to TSIS or RPS
1.) In case that a worker has changed his/her participation from USIS to TSIS, the contributing years in USIS shall be computed as the corresponding contributing years in TSIS.
The accrual in the USIS individual pension account and the balance in the USIS individual medical insurance account shall be transferred respectively into the supplementary individual pension account (X1) and the supplementary individual medical insurance account (X2) in TSIC.
2.) In case that a worker has changed his/her participation from USIS to RPS, the contributing years in USIS shall be computed as corresponding contributing years in RPS.
The accrual in his/her USIS individual pension account shall be transferred into the RPS individual pension account, and the balance in the USIS individual medical insurance account shall be paid lump sum to him/her by the medical insurance agencies after settlement.
4. The contributing years combined and connected as per the above- stipulated principals shall not exceed the actual contributing years.
5. Connection and combination of contributing years and individual account accrual for those new TSIS participants whose land has been taken over for use and have been subsidized with a 15-year lump sum TSIS contributions for Pension and Medical Insurance (hereinafter referred to as the new TSIS participants)
1) In case that the new TSIS participants have changed their participation
from TSIS to USIS, the sum of their TSIS annual contributions, with the amount equal to 1/15 of the total 15-year contribution payment (hereinafter referred to as the TSIS annual contributions) after the 15-year contribution payment shall be converted according to the respective USIS contribution standard in the same year to compute the corresponding contributing years in USIS; among which for those new TSIS participants who are within 15 years for pensionable age, the balance of the lump sum 15-year contributions shall be converted according to the USIS contribution standard on the year that they apply for pensions to compute their USIS contributing years.
The accrual in the individual account for basic social insurance shall be recorded at the standard defined by the converted USIS contributing years, contribution basis and the recording rate of basic individual social insurance, and the balance in the supplementary individual medical insurance account (X2) from TSIS shall be transferred into the corresponding USIC individual medical insurance account, and the balance in the living allowance account (X3) transferred from TSIS shall be paid lump sum to them by the TSIS agencies after settlement.
2) In case that the new TSIS participants have changed their participation from TSIS to RPS, the 15-year lump sum contribution in TSIS shall be computed as corresponding contributing years in RPS. The accrual in the supplementary individual pension account (X1), the balance in the supplementary individual medical insurance account (X2), and the living allowance account (X3) transferred from TSIS shall be paid lump sum to them by the TSIS and medical insurance agencies after settlement.
III. Transferring of the Social Insurance Funds
1. The Principles of funds transferring
1) In case that the individual has changed his/her social insurance relationship between USIS, TSIS and RPS, the total sum of the old-age pension and medical insurance contributions by the individual and the employer, upon deduction of the administration charge as per relevant regulations, shall be transferred lump sum. And the fund in his/her basic individual social insurance account and the supplementary social insurance account shall include both the contributions and the interest accrued.
2) In case that a worker has changed his/her participation from USIS or TSIS to RPS, a compensation for his/her consecutive years of service shall be simultaneously transferred, with the standard defined by 15% of the municipal average annual wage in the previous year multiplying by his/her number of consecutive working years.
2. Time of funds transferring
1) The USIS, TSIS and RPS agencies shall settle and transfer respective social insurance funds in light of the defined principals on funds transferring when the concerned workers apply to claim pension benefits. Among which the medical insurance funds converted from the total sum of contributions transferred from RPS to USIS or TSIS shall be transferred from the municipal USIS or TSIS agency to the municipal medical insurance agency.
2) The RPS agencies at the district or county level, upon the worker¡¯s change from RPS to USIS or TSIS, shall transfer the due part of his/her social insurance funds to the Municipal Outstanding RPS Account, and meanwhile submit a detailed list of funds transferring information to the municipal RPS agency.
3) The funds transferred to the Municipal Outstanding RPS Account shall be annually checked during the period of December 20th-30th by the municipal RPS agencies together with the municipal USIS and TSIS agencies, and shall be settled at the end of every year.
IV. Eligibility of social insurance benefits
In case that the worker who had changed his/her participation between different schemes reaches pensionable age, upon his/her contributing years and accrual in the individual account been connected and combined in light of this Circular, the standard of his/her social insurance benefits shall be combined and computed as per the following stipulations,
1. In case that a local worker who had changed his/her participation between different schemes reaches pensionable age, and he/she is qualified, or after connection and combination of contributing years as per the principles defined in this Circular qualified the corresponding requirements for either USIS, TSIS or RPS old-age pension benefits paid on monthly basis, the worker may choose one among them, and his/her old-age pension and medical insurance benefits shall be handled according to corresponding USIS, TSIS and RPS stipulations.
To qualify for USIS old-age pension and medical insurance benefits upon connection and combination of contributing years, the individual¡¯s contributing period shall not be under 15 years (the converted contributing years and the consecutive years of service before the end of 1992 included), and the individual¡¯s actual contributing period (contribution made on monthly basis) shall not be under 5 years (the contributing years converted from TSIS and RPS monthly-paid contributions included).
2. In case that a local worker who had changed his/her participation between different schemes reaches pensionable age, and he/she is qualified, or after connection and combination of contributing years as per the principles defined in this Circular qualified the corresponding requirements for either TSIS or RPS old-age pension benefits paid on monthly basis, the worker may choose one between them, and his/her old-age pension and medical insurance benefits shall be handled according to corresponding TSIS and RPS stipulations.
3. In case that a local worker who had changed his/her participation between different schemes reaches pensionable age, and he/she is only qualified the requirements for RPS old-age pension benefits paid on monthly basis after connection and combination of contributing years as per the principles defined in this Circular, the worker may choose to make up for the balance of TSIS contributions as per the TSIS stipulations, and then claim for TSIS old-age pension benefits and medical insurance benefits; or choose to claim the RPS old-age pension and medical insurance benefits according to the RPS stipulations.
4. In case that a local worker who had changed his/her participation between different schemes reaches pensionable age, and he/she is not qualified the corresponding requirements for either USIS, TSIS or RPS old-age pension benefits paid on monthly basis after connection and combination of contributing years as per the principles defined in this Circular, and the concerned worker has not chose to make up for the balance of TSIS contributions as per the TSIS stipulations, the social insurance agency where his/her social insurance relationship was finally administered shall deal with his/her social insurance benefits according to relevant stipulations, and shall meanwhile terminate the social insurance relationship.
V. For the migrant workers who come from other provinces and have been employed in the municipality, when they reach the pensionable age, the issues on transferring of their social insurance relationships shall refer to stipulations in this Circular.
VI. This Circular shall become effective as of the issuing date. The issues on worker¡¯s social insurance relationship transferring between USIS, TSIS and RPS during the period of 20th October 2003 to the issuing date shall be handled as per this Circular. Among which the issues on the workers whose social insurance relationships had been terminated in light of previous regulations shall not be applied by this Circular. In case of any inconsistence with previous regulations in the municipality on issues of workers¡¯ social insurance relationships transferring, this Circular shall prevail.
