Recently, some netizens have reported that certain “small advertisements” claim to offer a service to help withdraw money from the personal account of the basic endowment insurance in advance by paying a handling fee. This service is said to solve the problem of “urgent need for money.” However, the Ministry of Human Resources and Social Security has responded to clarify the situation.
Legal Provisions on Early Withdrawal
There are specific conditions under which funds from an individual’s basic endowment insurance account can be withdrawn. Generally, it is not possible to withdraw these funds in advance or at any time. Article 14 of the Social Insurance Law states: “Personal accounts shall not be withdrawn in advance, the bookkeeping interest rate shall not be lower than the interest rate of bank fixed deposits, and interest tax shall be exempted.” In the event of an individual’s death, the balance of the individual account can be inherited.
Special Circumstances for Early Withdrawal
The Several Provisions on the Implementation of the Social Insurance Law of the People’s Republic of China outline specific circumstances under which the money in the individual account of the basic endowment insurance can be withdrawn in advance:
After reaching the legal retirement age, if an individual participating in the basic endowment insurance for employees has accumulated contributions that are less than the minimum contribution period and has not been transferred to the endowment insurance for urban and rural residents, the individual may apply in writing to terminate the basic endowment insurance relationship for employees, and the balance in the individual account will be paid to the individual in a lump sum.
If an individual leaves the country to settle down before meeting the legal conditions for receiving basic pensions and loses the nationality of the People’s Republic of China, he or she may apply in writing to terminate the basic endowment insurance relationship for employees at the time of departure or after departure, and the balance in the personal account will be paid to the individual in a lump sum.
After the death of an individual who has participated in the basic endowment insurance, the balance in his or her personal account can be inherited in full in accordance with the law.
Proper Use of Funds at Retirement
When you reach the retirement age stipulated by the state and the contribution period has reached the minimum period stipulated by the state, the money in your personal account will become part of your “pension” and will be distributed to you monthly. Therefore, if someone claims they can help you withdraw the money from your basic endowment insurance personal account in advance, you must be vigilant and ensure that you meet the conditions for early withdrawal.
Risks of Believing in “Small Advertisements”
If you rashly believe in “small advertisements,” you may not only fail to withdraw money or be cheated out of a handling fee, but also have your ID number, bank account number, password, verification code, and other important personal information stolen, resulting in losses of property and insured rights. It is crucial to be cautious and not to trust such promises easily.
Seeking Reliable Information
For any relevant questions, please call the consultation hotline 12333 or consult the local social security agency. Remember not to trust others’ “promises” easily and beware of being deceived.
Additional Common Questions
The Ministry of Human Resources and Social Security has also addressed several other common concerns regarding individual accounts of the basic endowment insurance:
Why is the endowment insurance premium paid by the employer not credited to the individual account?
The Social Insurance Law stipulates that the basic endowment insurance shall be implemented by combining social pooling with individual accounts. Employers shall pay the basic endowment insurance premiums in accordance with the provisions of the state, which shall be credited to the basic endowment insurance pooling fund and used to pay the basic pension, transitional pension, etc. Employees should pay the basic endowment insurance premiums in accordance with the state regulations, which will be credited to their personal accounts and used for the calculation of personal account pensions.
If an insured person participates in insurance and makes contributions in multiple regions, will the contribution years and the balance in the individual account be combined when calculating the basic pension?
The cross-regional employment movement of insured individuals will not affect their personal endowment insurance rights and interests. When insured individuals meet the conditions for receiving basic endowment insurance benefits, their years of participation and contribution in various regions will be combined and calculated, and the balance in their personal accounts (including principal and interest) will be accumulated and calculated. For detailed policies, you can call the 12333 hotline or visit the local social insurance agency.
If one has received unemployment insurance benefits, will the money in the individual account of the basic endowment insurance decrease?
No. According to the provisions of the Social Insurance Law, the basic old-age insurance and other social insurance funds such as unemployment insurance are accounted for separately and separately. Unemployment insurance benefits are drawn from the unemployment insurance fund. Receiving unemployment insurance benefits will not lead to a reduction in the balance of the individual account of the endowment insurance.
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