Can the balance of the personal account of Ningbo pension insurance be inherited? How to get the money after people leave.

Many families in Ningbo only think of a thing that is easy to be ignored after the death of their elders and after taking care of their affairs: the old people have paid the pension insurance for decades, what on earth will they do with the money left in their personal accounts? Can you take it out? Who will pick it up? Some people take it for granted that "when people leave, the pension will stop, and the money will be invalidated", while others worry that "the money is in the social security account, and the family members can't get it at all, so they have to break their legs when they take it out". The fact is that, under the current regulations, this portion of funds will not simply disappear; it can be treated as part of an estate and inherited by eligible individuals in accordance with the law. What really needs to be clarified is: which assets are inheritable, who is entitled to inherit them, according to what rules they are distributed, and what procedures must be followed to access them.

This article, based on the actual practices in Ningbo, provides a comprehensive overview of “inheritance of individual pension account balances,” starting with the key conclusions, then outlining the eligible heirs and the relevant rules, followed by the withdrawal process and required documents. Finally, it clarifies the distinctions between the individual pension account balance and other similar payments—such as funeral subsidies, bereavement benefits, enterprise annuities, and housing provident funds—that are often confused. After reading it, most Ningbo households can generally determine how to handle their own situation.

1. Can the balance in a Ningbo individual pension insurance account be inherited? First, remember this conclusion.

The core conclusion can be summarized in a single sentence: Upon the death of a participant in the basic old-age insurance scheme, the balance in their individual pension account may be inherited by their legal heirs in accordance with the law. In accordance with the relevant provisions of the Social Insurance Law, individual accounts may not be withdrawn in advance; the crediting interest rate shall not be lower than the interest rate for bank fixed deposits, and interest income is exempt from interest tax; upon the death of an insured person, the balance in the individual account may be inherited. These are nationally uniform rules, and the same applies to Ningbo.

To understand this statement, you first need to know that there are “two pockets” in the pension insurance account. For employees, a portion of the pension insurance contributions they pay goes into the pooled account, and another portion is allocated to their individual accounts; similarly, for self-employed individuals, a portion of their own contributions is also credited to their individual accounts. These two types of accounts differ fundamentally in nature: the pooled account is designed for social solidarity and is used to pay basic pensions to retirees; the individual account, by contrast, clearly belongs to the insured person and constitutes their lawful personal property. Therefore, only the balance in the individual account can be inherited; the pooled portion is not subject to inheritance and will not be refunded to the individual.

The criterion can be simplified to a single sentence: If the money is in an individual’s account, it is considered the individual’s property and can be legally inherited upon their death. As for the pooled portion, it is inherently designed for a pay-as-you-go system and social solidarity, so the issue of “returning it to the family” does not arise. Once this point is clarified, many subsequent questions will be easily resolved. The remaining key questions are: who will inherit, how the inheritance will be divided, and how it will be distributed.

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2. Who will inherit and according to what rules: the will takes precedence; if there is no will, statutory succession applies.

Once “inheritance is possible” has been confirmed, the next question is “who will inherit and how the estate will be divided.” This brings us back to the general rules of inheritance. The balance in an individual’s pension insurance account is considered part of the estate. Article 1122 of the Civil Code provides that an estate consists of the lawful personal property left behind by a natural person upon their death. Since the balance in an individual’s account constitutes property lawfully accumulated during the insured person’s lifetime, it falls within the scope of the estate.

According to Article 1123 of the Civil Code, inheritance shall be administered as follows: where a will exists, it shall be executed in accordance with the will or through a bequest; where a gift-for-care agreement exists, it shall be executed in accordance with the agreement; and where neither a will nor a gift-for-care agreement exists, statutory succession shall apply. In other words, the order of priority for handling the matter is as follows: first, the gift-for-care agreement; second, the will; and only if neither exists does statutory succession apply.

1. If there is a will, proceed in accordance with the will.

If the insured person left a valid and legally effective will during their lifetime that clearly specifies how the balance in their individual account is to be handled, the will shall be followed first. It should be noted that a will is valid only if its form and content comply with the law. For estates of substantial value or in cases where there are already disputes among the heirs, it is advisable to seek legal advice in advance and, if necessary, have the will notarized. In Ningbo’s legal practice, it is not uncommon for a will to be invalidated due to formal defects, ultimately resulting in the estate being distributed according to statutory succession. When making a will, the form often poses more challenges than the substance.

2. In the absence of a will, succession shall follow the statutory order of inheritance.

Article 1127 of the Civil Code specifies the scope and order of statutory heirs. The first-order heirs are the spouse, children, and parents; the second-order heirs are siblings, grandparents, and maternal grandparents. After the inheritance commences, it shall be inherited by the first‑order heirs; the second‑order heirs shall not inherit. Only in the absence of any first‑order heirs shall the inheritance be passed to the second‑order heirs. Heirs in the same order of succession shall, as a general rule, inherit equally.

When applied to the balance in an individual’s pension insurance account: upon the death of the account holder, if the spouse, children, and parents are all still alive, they are all first‑order heirs and, in principle, each is entitled to an equal share of the account balance; however, if they reach a mutual agreement, the distribution need not be equal. The term “children” here includes legitimate children, illegitimate children, adopted children, and stepchildren who are financially dependent; the term “parents” includes biological parents, adoptive parents, and stepparents who are financially dependent, with the specific scope determined in accordance with statutory provisions.

3. Heirs may negotiate or renounce their inheritance.

Article 1124 of the Civil Code provides that, after the commencement of inheritance, if an heir renounces the inheritance, such renunciation shall be made in writing prior to the settlement of the estate. In other words, the heirs may reach a consensus on the distribution; for example, they may agree that one of them receives the inheritance first and then transfers it internally among themselves, or one of them may renounce it in writing. A waiver of inheritance must be made in writing before the estate is settled; a verbal waiver followed by subsequent documentation is often not recognized.

Article 1161 of the Civil Code also involves a rule related to the balance of individual accounts: the heir shall pay off the taxes and debts that the decedent should pay according to law within the limit of the actual value of the acquired estate; the part exceeding the actual value of the estate shall not be paid by the heir voluntarily; if the heir gives up the inheritance, he may not be liable for the taxes and debts that the decedent should pay according to pay according to law. This is what is commonly referred to as “limited inheritance,” which protects heirs by ensuring they are not required to use their own assets to pay off the deceased’s debts indefinitely.

3. How to obtain in Ningbo: application process, required documents, and notarization.

Now that the rules have been understood, what Ningbo residents are most concerned about in practice is “where to go and what documents to bring.” The inheritance and withdrawal of the balance in an individual’s basic old-age insurance account are typically processed through the social security administration agency, and some regions also allow online applications. The overall approach is to clearly establish three key points: that the person has passed away, who is entitled to receive the benefits, and the amount to be received.

1. Commonly required materials

1. Death certification documents, such as a death certificate, household registration cancellation documents, etc.;
2. Proof of identity of the heir;
3. Proof of kinship with the deceased, such as a household registration book, marriage certificate, birth certificate, or a certificate of relationship issued by the employer or the community (village), etc.;
4. Documents related to inheritance, such as a will, an inheritance agreement, a notarized certificate of inheritance rights, or a final and effective legal document issued by the People’s Court;
5. Bank account information of the recipient, etc.

2. Two paths: non-contentious and contentious

If the heirs have no disputes over the distribution, the procedure can usually be completed by submitting the required documents. In many jurisdictions, a notarized certificate of inheritance rights is also required, or all heirs must appear in person to confirm the arrangement. If there is a dispute among the heirs, or if some heirs are uncooperative and unable to appear together, the inheritance shares must generally be determined first—either through notarization of the right of inheritance or by obtaining a final and effective legal document from the people’s court—and then the proceeds may be claimed based on such document.

3. Can be used on online channels.

Insured individuals and their family members in Ningbo can inquire about relevant policies and access service portals through channels such as the Zhejiang Government Service Website and the “Zheli Ban” app. They may also call the 12333 Human Resources and Social Security Service Hotline or the 12345 Government Services Hotline for specific requirements. The list of required documents may vary slightly depending on the service agency in each district (county or city), so it’s a good idea to call ahead and confirm before you go—this can save you a trip.

4. Don't confuse: funeral subsidy, survivor benefits, enterprise annuity, and housing provident fund.

What Ningbo residents with family members who have passed away most often confuse is treating the “personal account balance” as the same thing as “funeral subsidy and bereavement allowance.” Although all of them are related to the deceased, their nature and eligibility criteria differ.

1. Funeral subsidies and bereavement allowances: Generally not considered part of the estate.

Upon the death of an insured person, surviving family members are generally entitled to receive funeral subsidies and survivor benefits in accordance with the relevant regulations. These two benefits are intended for the deceased’s close relatives as a form of assistance and consolation; they are generally not considered part of the deceased’s estate and are not distributed according to the rules of inheritance. Instead, eligible close relatives receive them in accordance with the applicable regulations. Therefore, the “individual account balance” and the “funeral subsidy and survivor benefits” should not be combined into a single pool for distribution; they are typically calculated and disbursed separately.

2. Enterprise annuities and occupational annuities: also involve individual account balances.

If the deceased participated in an enterprise annuity or a occupational pension plan during their lifetime, the balance in their individual account is generally subject to inheritance. The rules are similar to those governing the balance in the individual account of the basic old-age insurance, but the specific provisions shall be governed by the relevant regulations and schemes of the pension plan. When processing the application, you may also inquire with the relevant departments or your former employer to see whether you can submit the application concurrently.

3. Housing Provident Fund: After the employee’s death, the inheritance may be withdrawn by the legal heir(s).

The balance in an employee’s housing provident fund account is owned by the employee personally. Upon the employee’s death, the legal heirs may withdraw the funds in accordance with the relevant regulations governing the housing provident fund. Its application process differs from that of social security; it is typically handled by the housing provident fund management authority and also requires a death certificate, proof of kinship, and identity documents of the heirs.

| | |, close relatives can receive in accordance with the provisions of the enterprise annuity/occupational annuity personal account balance, the part of the individual, generally can be inherited (subject to the relevant provisions), housing provident fund balance, owned by the individual, after the death of the employee by the heir to withdraw (in accordance with the relevant provisions).

5. Multiple heirs, non-cooperation from some parties, and pre-death debts: how to handle these three types of disputes.

1. How do multiple heirs claim?

The balance in the individual account shall be jointly inherited and held as tenants in common by all first‑order statutory heirs. In practice, the parties may agree that one of them receives the benefit first and then transfers and allocates it internally, or each party may assert its own share. To avoid future disputes, it is recommended to formalize the internal allocation in a written agreement, with all parties signing to confirm it, clearly specifying “who receives, how it is divided, and when it will be distributed.”

2. Someone is not cooperating and it is impossible to handle the matter jointly.

As long as there is an heir who is unwilling to sign or unable to be present, the process often cannot proceed, either online or at a service counter. At this time, you can first negotiate and leave a trace of written reminder; if the negotiation fails, you can notarize the right of inheritance or file an inheritance dispute lawsuit with the people's court to determine the share of each heir, and then handle the collection with a notarized document or an effective legal document. This is also the most common approach used in Ningbo’s practice to address situations where a case “gets stuck” on an individual.

3. If the deceased had outstanding debts during their lifetime, should the remaining balance be used to pay off those debts first?

In accordance with the limited liability rule set forth in Article 1161 of the Civil Code, heirs are liable for the deceased’s taxes and debts only to the extent of the actual value of the inherited estate. The balance in a personal account constitutes part of the estate. If the deceased had outstanding debts during their lifetime, creditors may seek repayment from the estate, including the balance in the personal account, but only to the extent of the estate’s actual value. If an heir renounces the inheritance, they shall not be liable for such debts. To put it plainly, an heir does not use their own assets to pay off the deceased’s debts beyond the value of the estate simply because they have inherited the balance in the deceased’s personal account.

6. Several common misconceptions among Ningbo families

1. "Can all the pension insurance contributions paid by the employer be inherited?"

That’s not how it should be understood. Only the balance in an individual’s personal account can be inherited. The portion of employer contributions that goes into the pooled fund is part of the social solidarity system and does not belong to any individual, so it cannot be inherited. Only the portion allocated to an individual’s personal account constitutes personal property and is therefore subject to inheritance.

2. “If you pass away before receiving all your pension, does the money just go to waste?”

No. The portion that has not been fully withdrawn is the remaining balance in the individual account; this balance can be inherited according to law and will not be forfeited upon the death of the account holder. According to the relevant provisions of the Social Insurance Law, in the event of the insured person’s death, the balance in the individual account may be inherited, precisely to prevent the portion of contributions paid by the individual from being lost.

3. "Can a spouse withdraw all the money by themselves?"

Not necessarily. If the deceased did not leave a will, the spouse, children, and parents are all first‑order heirs, and the balance in the individual account should, in principle, be distributed among them; the spouse is not automatically entitled to take the entire amount.Only in the case of consensus, it can be collected by the spouse and then transferred internally; if someone does not agree, the share needs to be determined first.

4. "The money is in the social security account, and the family can't get it at all?"

Not so. As long as the materials are complete and the inheritance relationship is clear, it can be collected through social security agencies and other channels. The real difficulty is often not "whether it can be taken", but "multiple heirs disagree". Such problems are usually solved by notarization or litigation.

7. Frequently Asked Questions

Q: Can the balance of the personal account of the old-age insurance be inherited?

Sure. According to the relevant provisions of the Social Insurance Law, if the insured person dies, the balance of the personal account can be inherited. This balance belongs to the legal property of individuals. According to Article 1122 of the Civil Code, it belongs to the legal property of individuals left over from the death of a natural person and is included in the scope of the estate. It should be noted that the part of the pooled account does not involve inheritance and cannot be returned to the individual.

Q: When one parent dies, how will the children and spouse share the money?

If the deceased does not have a will, and the spouse, children and parents are all the first-order heirs (Article 1127 of the Civil Code), the balance of the personal account is equally distributed among them in principle; if it is agreed, it may also be unequal. If there is a will or a legacy maintenance agreement, it shall be handled in accordance with the will or agreement (Article 1123 of the Civil Code). An heir who renounces the inheritance shall do so in writing prior to the settlement of the estate (Article 11

24of the Civil Code).

Question: What documents are required to withdraw this sum of money, and which channels should be used?

Generally, death certificate, identity certificate of heir, proof of kinship, will, inheritance agreement, notarial certificate of inheritance right or legal documents in force of the court are needed, which are handled through social security agencies. Ningbo family members can also inquire about the entrance through Zhejiang government service network and "Zhejiang Li office", or call 12333 or 12345 for consultation. If there is a dispute among the heirs, it is generally necessary to first determine each heir’s share through notarization or litigation before proceeding with the distribution.

Question: Are the funeral subsidy, survivor benefits, and this balance all the same thing?

No. The balance of an individual's account belongs to the legal property of the individual and can be inherited; funeral grants and pensions are generally paid to the close relatives of the deceased, which are usually not inheritance in nature and are not divided according to inheritance, but are received by qualified close relatives in accordance with the regulations. The two should be treated separately and handled individually; do not mix them up and try to divide them as a single whole.

8. Practical Insights from a Lawyer

When the elders passed away and the funeral was finished, many families remembered that the old people had paid the pension insurance for decades, and there was still a sum of money left in their personal accounts. Some people think that "the pension will stop when the person leaves, and the money will be invalid", while others worry that "the money will not be available in the social security account at all". Both of these concerns are off the mark. According to regulations, the balance in a personal account can be inherited as an inheritance by eligible heirs in accordance with the law, and it will not disappear out of thin air; what really needs to be clarified is which money can be inherited, who will divide it according to what rules, and what procedures can be taken out, instead of being frightened by "whether it will be invalid.

In terms of operation, the inheritance of this balance, if there is a will, according to the will, if there is no will, according to the legal inheritance, usually can be included in the notarization of the right of inheritance or litigation. Heirs should prepare death certificates, kinship certificates, social security insurance and account information, and apply to the social security agency for approval and withdrawal. If other inheritances such as real estate deposits are involved, it is recommended to list the materials at one time to avoid running repeatedly for different properties. Attention should also be paid to the distinction: funeral subsidies, pensions, enterprise annuities, and housing provident funds are not of the same nature. The recipients and rules are different. Don't confuse them, and don't divide pensions as inheritance.

When talking about this money in the family, it is best to explain it clearly when the inheritance is divided as a whole, so as to avoid some people thinking that "the pension is public and it is not my turn" and giving up, or conversely because of asymmetric information. If there are many heirs, some people do not cooperate, or the old people's debts are involved, they should first sort out the share and the order of settlement before withdrawal. If necessary, the inheritance right should be confirmed through notarization or litigation, and then apply to the social security institution. If it is found that the account information is incomplete and the payment record is broken, go to the social security window as soon as possible to verify and supplement the certificate. Don't wait until you have to withdraw the money to find that the materials are not right. For no reason, you have to detour more.