According to the "Guiding Opinions on Further Promoting the Development of Enterprise Annuities in Our Province" jointly issued by the Hubei Provincial Department of Human Resources and Social Security and other eight departments, Hubei Province will begin to promote various groups of enterprise employees, dispatched personnel, and non-staff personnel in government agencies to participate in enterprise annuities starting from January 2025.

This indicates that starting from 2025, more enterprises and more people in Hubei Province will be included in the ranks of enterprise annuities, and those who are lucky enough to join the enterprise annuity will have their income increased to varying degrees. Although they cannot put it in their pockets for the time being, they can receive a considerable amount of money when they retire. This is equivalent to saving a considerable amount of retirement expenses for you year by year.

Because no matter whether it is an enterprise annuity paid by an organization or an individual, the full amount will be transferred to the individual's annuity account and belong to the individual, and an additional higher investment income can be earned each year (from the perspective of the enterprise annuity yield from 2007 to 2023, the cumulative yield over the years has reached 180.7% , and the average yield over 16 years is 6.26% , far exceeding the average interest rate of long-term time deposits) .

The "Guidance Opinions" put forward suggestions on classifying and different policies for different enterprises and individuals to participate in enterprise annuities.

Annuity arrangements for employees of state-owned enterprises

The opinions require that qualified state-owned enterprises (including state-controlled enterprises) in the province that have not yet established pension plans and enterprises where all employees do not participate in pension plans should take the lead in establishing enterprise annuities covering all employees in accordance with the principle of "establishing as many as possible" .

It can be seen that at present even state-owned enterprises can only promote all employees to participate in pensions in enterprises that meet the conditions, while those employees of state-owned enterprises that do not meet the conditions for the time being will have to wait in line to participate in pensions.

Non-state-owned enterprise employees participate in pension arrangements

First, for non-state-owned enterprises that meet the conditions, Hubei Province will strongly support them in establishing enterprise annuities that can be participated by all employees;

Secondly, for those non-state-owned enterprises that do not meet the conditions for the time being, the annuity plan will be promoted in a "two-step" order. First, some key personnel and personnel in important positions (such as senior management and professional and technical personnel, high-level overseas students, high-skilled talents and other core employees) will be included in the enterprise annuity, and then all employees will be gradually included according to the development of the enterprise;

Hubei Province plans to implement the participation of employees of small, medium and micro enterprises in enterprise annuities in steps through a "collective plan".

It seems that for non-state-owned enterprises, the pension plan will basically be to arrange for some people to participate first, and then gradually achieve full participation when conditions permit. The road should be long.

Opinions on the pension arrangements for dispatched workers

The Guiding Opinions clearly state that the labor dispatch companies to which dispatched workers belong are responsible for their participation in the annuity payments. However, as the labor dispatch companies' financial resources are all from their associated employing units, the settlement of the annuity expenses for dispatched workers actually requires the support of their associated employing units. In doing so, the employing units will inevitably increase their labor costs. Whether the employing units are willing to pay the extra money becomes the key to whether dispatched workers can participate in the annuity payments.

From this perspective, one can imagine how difficult it is for dispatched workers to participate in the pension plan, and it is a long and arduous journey!

Opinions on the pension arrangements for non-staff members of government agencies and public institutions

Starting from 2025, Hubei Province will encourage government agencies and public institutions across the province to establish enterprise annuities for their non-staff personnel, but the "Guiding Opinions" clearly state that the annuity expenses borne by non-staff personnel units need to be borne by themselves.

Therefore, non-staff members of government agencies and public institutions who have the financial capacity to afford it are expected to be the first to participate in enterprise annuities.

Finally, I would like to remind you that according to the Guiding Opinions, the total annuity payment ratio of the unit and the individual shall be controlled within 12% of the individual's salary, of which the individual shall pay 4% or more. The specific payment ratio shall be determined by the unit according to the actual situation. If an enterprise that has established an annuity encounters an operating loss and cannot continue to pay, the policy allows it to temporarily stop paying annuities and resume paying when the economy improves. At the same time, the previously suspended annuities can be made up in full at one time.