Analysis of the annuity to develop gradually improve China's pension system（分析年金发展逐步改善中国的养老保险制度）

1、 Analysis of the annuity to develop gradually improve Chinas pension system Abstract: Based on the historical development of Chinas Enterprise Annuity Review, Analysis of the establishment of enterprise annuity system will help improve Chinas multi-level old-age security system will help improve the

2、 living standards of retirees, will help enhance the cohesion and competitiveness, and promoting economic prosperity and development of capital markets and the significance of sums up the current development of Chinas enterprise annuity pension system there is a lack of strong corporate control mech

3、anism, uneven development, enterprise annuity system, the lack of a unified, clear tax incentives, enterprise annuity the narrow channels of investment, enterprise annuity market has not really formed an effective regulatory coordination mechanism, the enterprise annuity publicity is not enough, do

4、not know the place and so on. Made to further accelerate the improvement of Chinas Enterprise Annuity system related to the pace of building, as soon as possible to establish a policy of tax incentives-based support system, enterprise annuities to create a good interaction with the capital markets,

5、corporate pension funds in order to expand investment channels to create an environment, government legislation to regulate enterprise annuity operations, increase publicity of the proposed annuity, thereby contributing to the development of enterprise annuity. Paper Keywords: enterprise annuity, mu

6、lti-level old-age security system Annuity is a business and its employees participated in basic pension insurance, in accordance with law on the basis of voluntary supplementary pension insurance system established, namely: the government enforce the basic pension insurance system, the company under

7、 the guidance of national policy, according to their own economic strength and operating conditions for enterprise employees to provide retirement income security to some extent the form of old-age insurance system. First, the development of Chinas Enterprise Annuity History In 1991, <<State C

8、ouncil on the reform of corporate employee pension insurance systems decision>> the first time that the state promote and encourage the implementation of supplementary pension insurance company, and gradually establish a basic old-age insurance and supplementary pension insurance companies and

9、 employee pension insurance, personal savings of the combined system, marking Chinas pension system as the second level of the legal status of supplementary pension insurance system for the formal establishment. In 1995, the State Council promulgated the <<pension insurance for enterprise empl

10、oyees to deepen reform of the system to inform>> made a business required to pay the basic old-age insurance, you can under the guidance of national policy, according to the unit cost in an effort to establish supplementary pension insurance, the former Ministry of Labor issued a <<on th

11、e establishment of enterprise supplementary old-age insurance system views>> and put forward the development of supplementary pension insurance company the basic framework of Chinas enterprise supplementary pension insurance policy for a preliminary specification. In 1997, the State Council pr

12、omulgated the <<on the establishment of a unified pension insurance system for enterprise workers, the reform of the decision>> to be made under the guidance of national policy to develop enterprise supplementary pension insurance, commercial insurance also play a complementary role, cle

13、arly complement our business old-age insurance and basic endowment insurance relationship. In 2000, the State Council <<on improving the urban social security system pilot program>> in the supplementary pension insurance company changed its name to annuity. Clearly stated that qualified

14、enterprises to establish enterprise annuities for employees, and implement market-oriented operation and management , and to determine the enterprise annuity management is the implementation of enterprise annuity fund fully funded, the use of personal account approach to management, the cost paid by

15、 the enterprises and individual workers, companies pay less than 4% in the total wage portion, from costs are incurred. In 2004, the Ministry of Labor and Social Security and other related departments have been put up <<Interim Measures for Enterprise Annuity >>,<< Interim Measures

16、 for Enterprise Annuity Fund Management>> and <<enterprise annuity fund management qualification body Interim Measures>> 2005 issued the <<enterprise annuity account management information system trial standard>> to determine the trust of our annuity-based management sy

17、stem, the basic framework of Chinas Enterprise Annuity further defined the basic rules of market operation, reflecting the state policy support, business self-build, market management, the principles of administrative regulation the same year, <<the State Council on improving the funds for bas

18、ic old-age insurance system for the decision>> proposed to establish a multi-level old-age insurance system, enhance the competitiveness of talent, more good protection for enterprise employees after retirement, qualified enterprises to establish enterprise annuities for employees. 10-year per

19、iod 1991-2001, the scale of Chinas enterprise annuity is less than 200 billion yuan, an average annual growth rate of less than 20 billion yuan in 2005, the fund size is 680 billion yuan in 2006, reaching 91 billion yuan, an increase of 200 a year billion, more than 24,000 companies nationwide have

20、established enterprise annuity, the number of participants reached 964 million from January to September .2007 enterprise annuity fund management institutions to manage corporate annuity fund reached 34.4 billion yuan. Second, the establishment of enterprise annuity system to fully understand the im

21、portance of Annuity is essentially a welfare system within the enterprise, is the first time a continuation of the income distribution, is different from the basic pension insurance, but also different from the commercial insurance. Enterprises and basic old-age pension insurance in the role and fun

22、ction is to protect workers after retirement, but not the same level of protection, the former is higher to meet the needs of life, which is to protect the basic needs of life. annuity and pension business is the basic old-age insurance system a useful supplement to meet part of the staff into old a

23、ge higher income levels, the establishment of enterprise annuity system has very important significance. (A) the establishment of enterprise annuity system will help improve Chinas multi-level old-age security system in Chinas pension system is divided into three levels: first level is the basic soc

24、ial pension insurance, the governments unified policy enforcement, and the second level is enterprise supplementary pension (annuity), the governments macro-guidance, companies voluntarily established; third level is the personal savings of the old-age insurance, workers voluntarily participate in t

25、he first level reflects the equality of social insurance rights of workers to take to support fixed income, slightly balance, leaving part of the accumulated ways to raise funds, the second and third level is based on business efficiency and the different personal income workers have a greater diffe

26、rence, to take fully funded approach, through the establishment of personal accounts, term deposits and the interest owned by individuals . the establishment of enterprise annuity system, is our multi-level old-age security system, an important component of the national basic supplementary pension i

27、nsurance for an important form of pension insurance, according to the fifth census, China has entered the aging society , 2005, Chinas elderly population aged 65 and above the proportion of the total population N7.53%, according to forecasts, by 2020, Chinas elderly population in the total populatio

28、n of more than 10% by 2040 China will be the average of every five people There is a 65-year-old or older population, the aging period, serious steps were, if retirees rely entirely on the first level to the pension, will inevitably lead to greater fund gap, the urgent need to establish enterprise a

29、nnuity system to improve the structure of Chinas old-age security encourage the development of various types of corporate pension plans, to reduce the states basic pension of retirees rely on insurance to ease the aging of the population to pay the pension insurance fund to bring pressure to help im

30、prove the multi-level with Chinese characteristics, old-age security system. (B) the establishment of enterprise annuity system will help improve the living standards of retirees experience from abroad, the United States, Switzerland and the Netherlands from the first level (basic pension) replaceme

31、nt rate was only about 40% from the second level (annuity) and the third level (personal savings of the old-age insurance) pension income accounted for 50% of retirement income, the retirees income structure, the gradual decline in the proportion of the basic pension, corporate pension and personal

32、savings gradually increase the proportion of old-age insurance pension system is a global trend of reform in China, the first level of the current actual average replacement rate of 86% of basic pension insurance system, the target replacement rate of the total share of the social pension system ove

33、r and the second, third level largely ineffective due to restrictions on the level of productive forces, the first level of basic old-age insurance benefits can not be very high, some economic good businesses have a responsibility to establish enterprise annuity system for workers , improving their

34、standard of living after retirement, the higher-level workers to meet the needs of old-age security in order to ease the current organizations and institutions and business benefits of retired workers the gap is too big contradiction. (C) the establishment of enterprise annuity system will enhance t

35、he cohesion and competitiveness of enterprise annuity is based on economic conditions by the employer to establish their own, on the one hand reflects the difference in cost between different enterprises, on the other hand reflects the difference between workers differences in labor contributions. a

36、nnuity is a modern enterprise system, an important component of pay. With Chinas rapid economic development and local community is becoming more international, more and more intense competition for talent, many companies hope to build business pension plans, By optimizing the human resources managem

37、ent, improving staff remuneration structure, stable workforce, retain talent, enhance the attraction of talent, enhance cohesion and competitiveness. (D) the establishment of enterprise annuity system is conducive to promoting economic prosperity and development of capital markets and corporate pens

38、ion funds that the total accumulation mode, current consumption can put a lot into the long-term savings funds and construction funds to help foster capital markets, promote economic development . Pension assets in the United States accounted for 60% of assets in the stock market. With the deepening

39、 of Chinas social security system, enterprise annuity will be more and more attention, tax incentives and other policy support will increase the enterprise annuity market potential will be fully released , according to the forecast, the total size of enterprise annuity in 2010 estimated the size of

40、10,000 billion yuan in 2030, will reach $ 1.8 trillion, the worlds third largest corporate pension market. enterprise annuity in Chinas huge market potential, the scale is not small the accumulation of funds, so as to promote Chinas capital market development, economic development for the country to

41、 provide financial support to the same time, DC-based trust model in the form of the trustee, custodian, account management and investment management were the main refining operations division, will promote the the formation of multi-level market, promote financial product innovation and development

42、 of the financial services industry, and ultimately to promote innovation and development of capital markets. Links to free download Third, restricting the development of Chinas Enterprise Annuity the main problem (A) the enterprise annuity system, the lack of strong control mech

43、anisms, uneven development with economic development, social security system of continuous improvement, employee post-retirement benefit level will continue to improve, this will inevitably have to come from a considerable part of the enterprise the accumulation of pension, but now the establishment

44、 of the enterprise annuity system, the lack of strong state control mechanism, but provides companies participating in basic pension insurance after the social context of voluntary annuity for employees, the second-level old-age security system the establishment of weakening, will inevitably result

45、in the establishment of enterprise annuity system monopoly enthusiasm and have a great contrast compared to general business, the same social enterprises from different treatment of post-retirement pension will be very poor, the gap between rich and poor will be due to social policy oriented and to

46、increase, leading to regions, industries imbalance present, Chinas enterprise annuity equal to the number of participating countries, only the number of basic pension insurance of 5%, while enterprises in developed countries pension coverage is generally above 50%. (B) The lack of a unified pension

47、system, although clearly preferential tax policies of the State Council Decree 512 <<Implementing Regulations of the PRC Enterprise Income Tax Law>> provides that for investors or companies to pay employees supplementary pension insurance, supplementary medical insurance charges in the a

48、ccounts, the tax authorities within the prescribed scope and standards are allowed to deduct , is the first time in the level of tax law and the supplementary pension insurance, supplementary medical insurance that encourages and supports, but does not provide the proportion of deductible , in pract

49、ice a lot of problems: First, the introduction of a unified national level tax advantages without the policy, local policy to determine the different levels of tax advantages, the cost could be included in the proportion of very different, as approved by the State Council in addition to the three no

50、rtheastern provinces, the Shanxi 8.3%, Jiangsu, Hubei, 12.5%, 6% in Chongqing, Zhejiang, Anhui and other places is 5%, Shanxi, Beijing and other places of 4%, while Guangxi and other places not yet developed excellent tax policy, two is the total wage provisions are too general, ignoring the wage ga

51、p between different companies, three trust tax policy is not expressly bound to slow down the pace of corporate pension system was established. (C) the narrow channels of enterprise annuity investment <<Interim Measures for Enterprise Annuity Fund Management>> provides a range of enterpr

52、ise annuity fund and the investment ratio of specific investment products: investment banking for demand deposits, central bank bills, repurchase and other short-term debt flows products and the proportion of money market funds, fund of not less than 20% of net assets, deposits for investment banks,

53、 agreement deposits, treasury bonds, financial bonds, corporate bonds and other fixed-income products and convertible bonds, bond funds ratio not higher than 50% of fund net assets, of which the proportion of investment in government bonds net assets of not less than 20% of funds for investing in st

54、ocks and other equity investment products and insurance products, the proportion of equity funds, not higher than the net assets of the Fund 30%, of which the proportion of investment in shares is not higher than 20% of the net assets of the Fund. Thus, corporate pension funds to invest mainly bank

55、deposits, bonds and other with good liquidity of financial products, investment channels, investment efficiency is low, it is difficult to meet the needs of increasing the value of annuity. (D) The enterprise annuity market has not really formed an effective coordination mechanism for monitoring Ann

56、uity market regulation relating to finance, taxation, labor and social security, CIRC, CBRC, CSRC and other departments, although the enterprise annuity market have issued a series of regulatory requirements, but the lack of harmonization between departments, not form a true sense of the co-regulato

57、ry mechanism, the need to further clarify its responsibilities, reasonable division of labor. (5) The enterprise annuity of publicity is not enough, do not know the place most of our business for a lack of understanding establishing a modern enterprise system, according to the Ministry of Labor and

58、Social Security survey, business managers, only 40% of people know annuity, but only a real understanding of the accounted for 30%, about 30% of the serious short-term behavior of business managers that business is not for the staffs responsibility to establish enterprise annuity system, and some ev

59、en believe that the establishment of enterprise annuity system for workers is not as direct bonuses, and many pension system for enterprise employees do not understand that the annuity is a few years later things, that gold is more than happy, not as individual supplementary pension investments. Fourth, the proposal to develop enterprise annuity (A) at the system level, to further accelerate the improvement of Chinas enterprise annuity-related instituti