What is an Early IRA Withdrawal?

Refers to the behavior of employees retiring before reaching the age or service period prescribed by the state or enterprise. Early retirement is often proposed by companies to improve their operational efficiency. This is a very popular method used by many companies today to manage employee outflows in the face of fierce competition in the market.

Early retirement

Refers to employees who have not reached the age required by the state or the enterprise or

Through investigation, we know the following reasons:

1. Staff reasons. For employees' self-interest considerations, instead of being in arrears of wages in an enterprise with poor returns, it is better to rely on the big tree of social insurance to protect their income from drought and floods. If you have another skill, you will have a stable pension income after retirement, and then be hired by other companies.

2. Enterprises are driven by economic benefits. Many enterprises, especially large and medium-sized state-owned enterprises, have a heavy burden on their personnel and are doing everything they can to find a way to retire early. After applying for early retirement for employees, not only reducing wage expenses, but also reducing insurance and welfare costs, staff reduction has become one of the important means for them to increase efficiency.

3. Encouraging behavior by local governments. In consideration of local economic development and local stability and local interests, local governments will pressure the labor and social security departments when they encounter unforeseen obstacles, and even threaten to "remove their hats", forcing resignation, coupled with the current The lack of effective restrictions on local government responsibilities will inevitably encourage early retirement.

Illegal early retirement is not conducive to the economic development of the enterprise and social stability, it is not conducive to promoting employment, and it will also have a long-term serious negative impact on the construction of the social security system.

1. aggravated

According to the Provisional Measures on the Retirement and Retirement of Workers issued by the State Council in June 1978 and the Interim Measures on the Placement of Elderly, Weak, Sick and Disabled Cadres (Guo Fa [1978] No. 104), retirement can be handled in the following situations:
(1) Male workers must be at least 60 years old, female cadres must be at least 55 years old, female workers must be at least 50 years old, and the number of consecutive working years or working years must be at least 10 years.
(2) Employees who are engaged in underground, high-altitude, high-temperature, heavy physical labor and other harmful health work, males must be 55 years old, females must be 45 years old, and have worked continuously for 10 years.
(3) Workers who have reached the age of 50 and women who have reached the age of 45, and who have worked continuously or have worked for 10 years, have been certified by the hospital and confirmed by the labor appraisal committee, and they have been completely incapacitated.
(4) Disability due to work, which is completely incapacitated by the hospital (workers and confirmed by the labor appraisal committee). According to the "Injury Insurance Regulations" (implemented from January 1, 2004), employees who have been identified as disability level 1 to level 4 due to disability at work, retain labor relations, retire from work, and enjoy monthly disability benefits. ; After the injured employee reaches the retirement age and completes the retirement procedures, the disability allowance will be stopped and basic pension insurance benefits will be enjoyed. If the basic old-age insurance benefits are lower than the disability allowance, the work injury insurance fund will make up the difference.

The State Council's Interim Measures on Workers' Retirement and Resignation (Guo Fa [1978] No. 104) stipulates that enterprises owned by the whole people,

Employees who have completely lost their labor capacity due to illness or non-disability due to work shall be medically diagnosed and issued a certificate by the county-level or above hospital designated by the labor and social security department at the prefecture level. All certificates issued by non-designated hospitals are invalid. The prefecture-level labor appraisal committee is responsible for regularly reviewing the diagnosis certificates issued by the designated hospitals and making appraisal conclusions. The identification standard for employees who have completely lost their ability to work due to illness or non-work-related disability shall be temporarily implemented in accordance with the "Appraisal of Disability Degree of Workers' Injuries and Occupational Diseases" (GB / T16180-1996) (1 ~ 4).

Since January 2011, China has levied a personal income tax on one-time subsidy income obtained by individuals for early retirement in accordance with the "wage and salary income" item. The State Administration of Taxation has announced the "Announcement on Individual Income Tax Issues of Individuals Receiving Early Subsidy Income".
According to the announcement, in accordance with the provisions of the "Personal Income Tax Law of the People's Republic of China" and its implementing regulations, in the future, institutions, enterprises and institutions will pay early retirement workers one time in accordance with unified standards for individuals who have not reached the statutory retirement age and formally completed early retirement procedures Sexual subsidies, which are not tax-exempt retired salary income, shall be subject to personal income tax in accordance with the "wage and salary income" item.
Specifically, the one-time subsidy income obtained by an individual as a result of the early retirement procedures shall be calculated on the basis of the average monthly income tax between the early retirement procedures and the statutory retirement age. The tax calculation formula is: taxable amount = {[((one-time subsidy income ÷ actual number of months for early retirement procedures to legal retirement age)-expense deduction standard] × applicable tax rate-quick calculation deductions) × early retirement procedures to The actual number of months of legal retirement age.

Reform pilots have not stagnated. <br /> Q : National institutions have repeatedly pushed for reform of public institutions in recent years, but it is understood that the reform of pension insurance for public institutions that began in 2008 has not been detailed in the pilot areas and is currently in a stagnant state . What do you think about this?
Wu Jiang: This is not a question of whether there is a detailed plan. It can be said that the reform of the endowment insurance of public institutions involves the whole society and civil servants, and the situation is more complicated. The outstanding problem is that public institutions do not provide the most perfect service products for taxpayers. Therefore, reform of public institutions is of course necessary. The reform initiated by the state in 2008 was piloted in five cities across the country. It is still in the pilot stage and is not stagnant. The State Council is determined to pilot this reform. The current situation is to put the construction of the personnel management system of public institutions in the forefront and realize the employment system, performance pay and post management of public institutions, thereby promoting reform.
Q: What aspects of the complexity you just mentioned?
Wu Jiang: First of all, the problem of classification of public institutions is unclear. It is difficult to determine which public institutions are to strengthen its public welfare, and which are to be reformed and promoted to the society. The reform cannot be carried out without a clear classification.
In addition, the complexity of the reform of public institutions is also reflected in the existence of a large number of private institutions in China, such as private public welfare units, public service institutions, private education and medical institutions, and some of them also do not provide public services for the purpose of profit. After such a public institution is clearly classified, it also needs to obtain policy support as a public institution.
Civil servant reform is also an inevitable question: Many people think that under the condition that the civil servant reform is not carried out, it is unfair to make radical reforms of public institutions.
Wu Jiang: Indeed, many of us are now compared with civil servants. In fact, objectively speaking, a civil servant is a law enforcement unit that uses administrative means. It is difficult for us to evaluate the performance of individual civil servants. Of course, in the long run, civil servants also need to break the "iron rice bowl", introduce competition mechanisms, and "upper and lower." In the future, a considerable number of civil servants will need to implement the appointment system. This road is also inevitable.
Urgent need to introduce a competition mechanism. <br /> Q : You just talked about some of the current disadvantages of public institutions. So, what is the breakthrough point to promote reform now?
Wu Jiang: These outstanding problems currently exist in public institutions. Fundamentally, they are caused by the lack of competition mechanisms in public institutions for a long time. Therefore, it is urgent to introduce competition mechanisms. This is why the performance salary and performance evaluation mechanism are implemented within the public institution. You can evaluate your job title through the quality of the services and products provided by the taxpayer. In this way, both parties will have constraints and the results will be different. Therefore, performance is very important in public institutions.
Furthermore, the "iron rice bowl" of public institutions must be taken away! It is not possible to get an "iron rice bowl". Whoever gives this rice bowl needs the taxpayer's ordinary people to give it. Everyone recognizes you, you have a rice bowl, and if you serve well, you have a good rice bowl.
However, it needs to be understood that this way of improving the quality of public services to the common people through the competition mechanism is not a "burden". On the path of design reform, we cannot simply treat them, neither push them all into society, allow them to support themselves, or return to the civil service. Instead, we must take a path that will not only provide them with good public services, but also The middle path to mobilize them.
Early retirement is not necessary. <br /> Q : Beijing's current planning for public institution reform is still limited to the country's institutional design, as if there is no refinement or breakthrough. What do you think of Beijing's move in this regard?
Wu Jiang: The pace is different. The big guiding ideology is the tone set by the central government, but some places go faster and some go slower. However, some content is unswerving, and some paths must be taken sooner or later in the long run. For example, the next operation path may be the socialization of old-age care, work injury, and medical treatment. The treatment of staff in public institutions adopts the method of "new people have new methods, middle people have Chinese methods, and old people have old methods." The country has different systems. Design arrangement.
Question: The reform of the socialization of old-age care that you just mentioned has experienced early retirement in some pilot areas, which has hindered the reform to some extent?
Wu Jiang: Our reform is to form a unified social endowment insurance mechanism. During the reform process, it is unrealistic to want the entire country to be contracted. But it did produce some panic, fearing that after the policy change, it would have an impact on their retirement income. Retirement or non-retirement depends on whether it meets the national regulations. In fact, the design of the national system has no space to drill. Different methods are designed for different groups of people. For those people who have retired conditionally, the state will consider compensation for them. In other words, the benefits will not be reduced, so you also need to have confidence in the design of the system, and there is no need to retire early.

China's civil service retirement system is not only an important part of the national civil service system, but also an important part of the social security system. It is an indispensable and important link in the three major links of China's personnel management: "in", "management", and "out". . It includes important contents such as retirement conditions, retirement benefits, retirement placement, and post-retirement management. The establishment and implementation of the national civil service retirement system is of great practical and strategic significance to the prosperity and development of the country's undertakings, to build upon the past, and to maintain long-term security.
Early retirement of civil servants <br Early retirement means that civil servants can voluntarily apply to withdraw from their jobs and enjoy retirement benefits when they meet the required early retirement conditions before they reach the general retirement age.

Staff of the public office

According to the conditions for early retirement of national civil servants and staff of "participating public" units: If national civil servants and staff of management institutions meet one of the following conditions, I submit an application and can retire early with the approval of the appointment and removal authority: the working period is 30 years It is less than 5 years from the retirement age stipulated by the state and has a working life of 20 years ^[1] .

Institution

Article 14 of Chapter 14 of the "Civil Servants Law" stipulates that "when the working period is over 30 years, I voluntarily submit an application and I can retire early with the approval of the appointment and removal authority", which is not applicable to public institutions (participating in public institutions) (Except units) staff ^[2] .

According to China's Civil Service Law, the conditions for early retirement of civil servants are:
First, those who have worked for 30 years. This refers to civil servants who have worked in the government for a total of at least 30 years from the first year of their employment in the state organs to the year when they propose to retire.
Second, those who are less than five years from the retirement age set by the state and whose working years have reached 20 years. According to relevant regulations, male civil servants are generally over 55 years old and can retire early if they have worked in the government for at least 20 years; female civil servants are generally over 50 years old and have worked for the government for at least 20 years before they can retire early. .
Third, in other circumstances that can be retired early in accordance with national regulations. This situation generally refers to civil servants in special positions. Due to their special working conditions, the state allows them to retire early in order to protect their health. For example, civil servants engaged in nuclear tests, field operations, and work involving toxic and hazardous substances may follow the regulations. Retire early. This will help protect the physical health of such civil servants.

I. Civil servants enjoy the treatment prescribed by the state after retirement

Retirement benefits for civil servants refer to the rights that civil servants should enjoy after retirement, mainly referring to economic benefits, that is, pensions and other living welfare benefits that retirees should enjoy. Pensions are the main economic benefits that civil servants enjoy after retirement.
Paragraph 1 of Article 77 of our Civil Service Law states: "The state establishes a civil servant insurance system to ensure that civil servants receive assistance and compensation in the event of retirement, illness, work injury, maternity, unemployment, etc." Article 79 states: " Civil servants' wages, benefits, insurance, retirement benefits, and the expenses required for employment, training, rewards, and dismissal shall be included in the fiscal budget to be guaranteed. "According to the provisions of China s Civil Servants Law, civil servants retirement benefits are covered by the civil servants right to welfare insurance. At the same time, the funding for civil servants' retirement is guaranteed by the state finance. When formulating the fiscal budget, the state shall include the funding for the retirement benefits of civil servants. The government shall earmark funds for the retirement benefits of civil servants, and shall not misappropriate them.
2. Post-retirement activities of civil servants After retirement, civil servants can use their personal expertise to participate in social development, continue to make due contributions to society and the country, and fully mobilize the enthusiasm of many senior civil servants and other positive factors Can provide strength support for China's reform and opening up and socialist modernization.
It should be pointed out that the life of civil servants after retirement should comply with the provisions of laws, especially the Civil Service Law. Paragraph 1 of Article 102 of the Civil Service Law of the People's Republic of China stipulates: "If a civil servant resigns or retires, the former civil servants of the leading members shall leave within three years of leaving, and other civil servants shall not receive the enterprise directly related to the original job within two years of leaving. Or other for-profit organizations serving, may not engage in for-profit activities directly related to the original job business. "