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Procedures of Shanghai Municipality on Endowment Insurance for Town Employees(1998) (2)          【字体:
Procedures of Shanghai Municipality on Endowment Insurance for Town Employees(1998) (2)
更新时间:2007-5-2
  Article 23 A person who got employment before the implementation of
these Procedures with less than 5 successive years (including premium
payment years) or who got employment after the implementation of these
Procedures and has paid premiums with less than 15 payment years may, at
the retirement age, apply to the endowment insurance industry management
center for the payment of the total savings amount in his/her individual
endowment insurance account to be made to him/her and for  the
termination of his/her endowment insurance at the same time.
Article 24 The person who meets the pension-drawing requirements may
draw pensions for life. When the savings amount in his/her individual
endowment insurance account is exhausted, the pension may be paid from
the pool of unified social security funds.
Article 25 After the death of an employee or retiree, the balance of the
savings amount in his/her individual endowment insurance account paid by
himself/herself may be given in one lump sum to his/her heir determined
through legal procedures.
Article 26 The Municipal Social Insurance Administration may require
pensioners to go through the check-up formalities with the endowment
insurance industry management center at regular time. The payment of
pension  may be suspended for failure to complete the  check-up
formalities.
When a retiree can not go through the check-up formalities because of
going abroad, or out of border or for other reasons, he/she must produce
a certificate of his/her survival in accordance with relevant provisions
of the State.
When a retiree can not draw his/her pension in person because of going
abroad or out of border or for other reasons and has to entrust someone
else to draw pensions for him/her, a notarized power of attorney shall
be presented.
Article 27 The formula for computing the pension of the person who  got
employment after the implementation of these Procedures is:
Monthly pension = total savings in individual endowment insurance
account/120
Article 28 The monthly pension the person who got employment before the
implementation of these Procedures and retired or quit working before
the end of 1995 shall first be computed by the said formula and then
augmented with a certain percentage of the individual accumulated
payment. The augmentation shall be determined according to the following
provisions:
1. The monthly pension shall be augmented with 11% for the person who
retired and whose payment years plus his/her successive working years
before the implementation of these Procedures are 10 or more years but
less than 15 years. On this base, a further increase of every 5 years
shall bring in a rise of 1 percentage point accordingly, but the
augmentation shall not

exceed the limit of 16%.
2. The monthly pension shall be augmented with 2% for the person who
retired from an administrative agency or institution and whose payment
years plus his/her successive working years before the implementation of
these Procedures are 10 or more years but less than 15 years. On this
base, an increase of every 5 years shall bring in a rise of 1 percentage
point accordingly, but the augmentation shall not exceed the limit of
7%.
3. The monthly pension shall be augmented by 10% for the person who
quits working from an enterprise and 1% for the person who quits working
from an administrative agency or institution.
The above-mentioned person who reaches retirement age in any month of
the year shall pay the premium for 12 months in the current year of
his/her retirement and the pension shall be augmented according to the
provisions in the preceding Section.
The preferential treatment enjoyed by retired veteran cadres, model
workers, senior experts and those who can have an early retirement as
stipulated by the State shall be carried out according to the original
provisions as before.
Article 29 The savings amount in the individual endowment insurance
account multiplied by a definite coefficient makes the savings amount
for the total working years for the person who got employment before the
implementation of these Procedures and retires after January 1, 1996.
The formula for computing his/her monthly pension is:
Monthly pension = savings amount in individual endowment insurance
account x coefficient/120
When the pension computed according to the provision in the preceding
Section is lower than the standard computed according to the measure in
Article 28 of these Procedures, the measure in Article 28 may be adopted
to compute the pension instead.
Article 30 The savings amount in the individual endowment insurance
account must only be used to pay monthly retirement pensions and must
not be diverted to any other purposes.
When a pension is paid to an retiree, a corresponding deduction must be
made from the savings amount in the individual endowment insurance
account according to the proportion of the amount paid by the individual
to the amount paid by the unit.
Article 31 The Municipal Social Insurance Committee shall set the lowest
standard of retirement pension. In case the pension drawn by according
to the provisions is lower than the lowest standard, the pension may be
granted according to the lowest standard.
The lowest standard of pension shall be adjusted with the economic
development and the rising consumer price index of local residents.
Article 32 The retirement pension shall be adjusted every year according
to the extent of rise in the local residents' consumer price index 

in
the previous year, which becomes effective on April 1 of the current
year. The pension of the person who retires in the current year shall be
adjusted the following year. No adjustment is made when the local
residents' consumer price index drops from the previous year.
Article 33 This Municipality shall grant living allowances to retirees
from time to time according to the national economic development and the
receipts and disbursement of the endowment insurance fund, and with
reference to the employees' actual wages. A special living allowance may
be granted additionally to retirees in special difficulties.
Article 34 After the death of a retiree, a funeral allowance, grants for
lineal dependents and relief benefits shall be paid according to the
relevant provisions of the State and this Municipality.
   CHAPTER V USE AND ADMINISTRATION OF ENDOWMENT INSURANCE FUND
Article 35 The sources of endowment insurance funds shall include:
1. Endowment insurance premiums paid by units and employees;
2. Income from the interest earned by endowment insurance fund;
3. Income from the operation of endowment insurance fund for its
appreciation; and
4. Overdue fines collected according to the provisions of these
Procedures.
Article 36 The endowment insurance fund shall be mainly used to pay
retirement pensions. When the fund is not enough to make payment, it
shall be subsidized by the local finance.
The endowment insurance fund shall be put under the centralized
management of the Municipal Social Insurance Administration and be
earmarked and used exclusively for its specified purpose and must not be
drawn on arbitrarily by any unit or individual.
Article 37 The payments that can be made from the endowment insurance
fund are:
1. Retirement pensions;
2. Funeral allowances, grants for lineal dependents, and relief benefits
paid after the death of retirees according to the relevant provisions of
the State and this Municipality;
3. The balance of the part attributable to individual payment in the
individual endowment insurance account to be given to the legal
inheritor(s) of the deceased employee or retiree; and
4. Living allowances granted under Article 33 of these Procedures.
The endowment insurance industry management center may draw a certain
percentage of the endowment insurance premiums actually collected as
management fees upon approval by the Municipal Social  Insurance
Committee.
The management fees drawn according to the above Section shall be exempt
from taxes or fees.
Article 38 The endowment insurance fund may be put into operation for
its appreciation on condition that the regular payment and its safety
are secured, but must not be used to make investment with long recovery
period, great ri

sks or of a speculative nature. The increment included
in the endowment insurance fund after operation shall be exempt from
taxes or fees.
Article 39 The Municipal Social Insurance Administration shall timely
summarize, verify and report the use and management of the endowment
insurance fund to the Municipal Social Insurance Committee on regular
basis or at the request of the latter.
Article 40 A budget and final accounts must be made annually for the
collection, payment and operation of the endowment insurance fund for
its appreciation.
Article 41 The collection, payment and operation of the endowment
insurance fund for its appreciation shall be supervised concurrently by
the  public finance, and auditing departments and the  financial
regulatory departments.
Article 42 The Municipality shall set up the endowment insurance fund
supervisory organization, consisting of the governmental department
concerned and representatives of the social public, to supervise the
collection, payment and management of the endowment insurance fund. The
specific measures shall be separately formulated.
      CHAPTER VI SETTLEMENT OF DISPUTES AND PUNISHMENT
Article 43 Disputes between an employee and his/her unit over the
payment of endowment insurance premiums or disputes between an employee
or retiree or a unit and the endowment insurance management center may
be referred to the Municipal Social Insurance Administration for
adjudication.
Article 44 An employee or retiree or a unit may ask the endowment
insurance management center to check the payment of endowment insurance
premiums made by the individual or the unit and the payment of pensions.
The endowment insurance management center shall provide free services.
Article 45 The endowment insurance management center may examine the
payment of endowment insurance premiums. The Municipal Social Insurance 
Administration shall instruct the unit that makes no payment of,  or
fails to make of, or makes underpayment of endowment insurance premiums 
to pay the premiums within a prescribed time limit. If the payment is
not  made within the deadline, the Municipal  Social  Insurance
Administration may ask the bank to withhold the payment and may impose a
fine 1 to 2 times as much as the unpaid amount. The fine, however, shall
not exceed 30,000 yuan.
Article 46 The endowment insurance management center shall impose an
overdue fine equal to 0.2% of the payable amount for each day in arrears
on the unit that fails to make the payment of endowment insurance on
time.
Income from overdue fines shall be included in the endowment insurance
fund.
Article 47 When a retiree who enjoys the endowment insurance treatment
dies, his/her lineal relative(s) or the unit concerned shall go t

hrough
the endowment registration cancellation formalities with the endowment
insurance management center in good time.
If any person violates the above Section, overdraws or falsely claims
pension by forging documents or by other means, the endowment insurance
management center shall recover the amount overdrawn or falsely claimed.
If the case is serious, the Municipal Social Insurance Administration
may impose a fine one to five times as much as the amount overdrawn or
falsely claimed. However, such fine shall not exceed 30,000 yuan for a
unit and 1,000 yuan for an individual.
Article 48 If the party concerned refuses to accept as final the
specific  administrative  act of the Municipal  Social  Insurance
Administration, it may apply for administrative review according to the
Regulations on Administrative Review or institute legal proceedings
according to the Administrative Litigation Law of the People's Republic
of China.
If the party concerned does not apply for review or institute legal
proceedings within the prescribed period of time, nor does it comply
with the specific administrative decision, the administrative department
that made the decision may apply to the people's court for enforcement
according to the provisions of the Administrative Procedure Law of the
People's Republic of China.
Article 49 The public security organs shall inflict penalty on those who
disturb the normal working order of endowment insurance agencies
according to the Regulations of the People's Republic of China on Public
Security Administration and the Imposition of Punishment.
         CHAPTER VII SUPPLEMENTARY PROVISIONS
Article 50 The interim measures on endowment insurance for employees in
foreign-funded enterprises and the measures on endowment insurance for
employees in privately-owned enterprises and individual industrialists
and businessmen shall be separately formulated according to  the
principles of these Procedures.
Article 51 The procedures on unit supplementary endowment insurance and
individual savings endowment insurance in this Municipality shall be
separately formulated.
Article 52 The Municipal Social Insurance Administration shall be
responsible for the interpretation of the specific application of these
Procedures.
Article 53 These Procedures shall become effective on June 1, 1994.
Any unit or individual that failed to execute the Plan of Shanghai
Municipality for the Implementation of Reform of Endowment Insurance
System for Town Employees during the period from January 1, 1993 until
the time of implementation of these Procedures shall fulfill the
obligations under the Plan within 3 months starting from the date of
implementation of these Procedures.

exceed the limit of 16%.
2. The monthly pension shall be augmented with 2% for the person who
retired from an administrative agency or institution and whose payment
years plus his/her successive working years before the implementation of
these Procedures are 10 or more years but less than 15 years. On this
base, an increase of every 5 years shall bring in a rise of 1 percentage
point accordingly, but the augmentation shall not exceed the limit of
7%.
3. The monthly pension shall be augmented by 10% for the person who
quits working from an enterprise and 1% for the person who quits working
from an administrative agency or institution.
The above-mentioned person who reaches retirement age in any month of
the year shall pay the premium for 12 months in the current year of
his/her retirement and the pension shall be augmented according to the
provisions in the preceding Section.
The preferential treatment enjoyed by retired veteran cadres, model
workers, senior experts and those who can have an early retirement as
stipulated by the State shall be carried out according to the original
provisions as before.
Article 29 The savings amount in the individual endowment insurance
account multiplied by a definite coefficient makes the savings amount
for the total working years for the person who got employment before the
implementation of these Procedures and retires after January 1, 1996.
The formula for computing his/her monthly pension is:
Monthly pension = savings amount in individual endowment insurance
account x coefficient/120
When the pension computed according to the provision in the preceding
Section is lower than the standard computed according to the measure in
Article 28 of these Procedures, the measure in Article 28 may be adopted
to compute the pension instead.
Article 30 The savings amount in the individual endowment insurance
account must only be used to pay monthly retirement pensions and must
not be diverted to any other purposes.
When a pension is paid to an retiree, a corresponding deduction must be
made from the savings amount in the individual endowment insurance
account according to the proportion of the amount paid by the individual
to the amount paid by the unit.
Article 31 The Municipal Social Insurance Committee shall set the lowest
standard of retirement pension. In case the pension drawn by according
to the provisions is lower than the lowest standard, the pension may be
granted according to the lowest standard.
The lowest standard of pension shall be adjusted with the economic
development and the rising consumer price index of local residents.
Article 32 The retirement pension shall be adjusted every year according
to the extent of rise in the local residents' consumer price index 

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