Recently, netizens from Sichuan Province have posted online comments stating that they have received a supplementary pension payment of around 40,000 yuan. This benefit likely applies to those who retired between 2014 and 2024, referred to as the "intermediate group" of retirees.
The pension reform has been ongoing, with those retiring before 2014 having their pensions calculated under the old system, and those retiring after 2024 to be fully calculated under the new system. The period between 2014 and 2024 is considered a transitional period, during which the "intermediate group" is subject to a hybrid calculation method.
The specific rules of the hybrid calculation method, known as the "intermediate group method," involve using both the "new" and "old" methods to calculate pensions. The final pension amount is then determined based on individual circumstances, with the higher calculated amount being the amount distributed. Most intermediate group members find that the new calculation method results in a higher pension, hence the need for a supplementary payment to cover the difference. However, there are also cases where the old method yields a higher pension, thus no supplementary payment is required.
For those where the new pension amount exceeds the old, the difference is to be distributed over a 10-year period, with 10% of the difference being paid each year until the full 100% is distributed by September 30, 2024.
As we are now in 2022, there are only two years left until the completion of the supplementary payments. Therefore, in the next couple of years, various provinces and cities are expected to initiate the supplementary payment process. In addition to Sichuan Province, Zhangye in Gansu and Xiaogan in Hubei have also initiated their supplementary payment programs. Those eligible for the supplementary payments should await further news, as these funds should be distributed shortly.
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