Recently, the Ministry of Human Resources and Social Security and the Ministry of Finance have issued the Circular on Matters Relating to the Transfer and Continuation of Basic Endowment Insurance Relations and Occupational Annuities of Organs and Public Institutions (the "Circular"), which shall enter into force as of October 1, 2014.
The Circular makes arrangements with regard to matters such as the transfer and continuation of basic endowment insurance relations, parameters for calculation and payment of relevant benefits, handling of multiple endowment insurance relations, and the transfer and continuation of occupational annuities. The Circular provides that, where an insured employee moves between organs and public institutions within an area under the same overall planning for basic endowment insurance, only his or her endowment insurance relation needs to be transferred, without the need of transferring funds; where an insured employee moves from an organ or public institution to an enterprise, the funds need to be transferred together with the basic endowment insurance relation. Where an insured employee moves between the organs and public institutions within areas under different overall planning for basic endowment insurance, or from an organ or public institution to an enterprise, the deposits of individual contributions included into his or her individual account for basic endowment insurance shall be transferred in full; and the contributions made by his or her employer shall be transferred at the rate of 12% of the sum total, with the actual annual wages for payment by individuals after the reform as the base, if the payment period is less than one year, the amount to be transferred shall be calculated according to the number of actual months for contributions.