Research On The UK Occupational Pension System

As the essential part of social security system,the old-age insurance system plays a vital role in the country's economic development,people's happiness and social stability.The United Kingdom is one of the earliest established welfare countries in the world.In the successful reform featuring “legislation-driven and top-down”,the occupational pension has gradually become an important part of the “three pillars” old-age security system.However,compared with the advanced and mature model in the UK,the first pillar pension is a dominant one in current pension security system in China,and the replacement rate is relatively high,which has seriously squeezed the development space of the second and third pillars.As a result,the second pillar pension is ineffective and develops slowly,and it has become the biggest obstacle to the balanced development of the multi-pillar old-age security system in China.This article mainly discusses the superiority of the occupational pension system from five aspects,including theoretical origin,development process,institutional structure,investment operation and fund supervision,in order to provide useful references for the construction of the second pillar pension system in China.First of all,this article takes the basic concepts and main theories of old-age security as the starting point and explores theoretical basises of the occupational pension system.Secondly,it analyzes the path evolution and important position of occupational pension in the "three pillars" old-age security system,and then considers the development status of occupational pension from the three indicators of participation rate,coverage rate and savings amount.Thirdly,it expounds the strict admittance and payment standards of occupational pensions from the institutional structure level,and discusses its flexible treatment benefits and highly motivated tax incentive system.Fourthly,it analyzes the unique trusteeship mode and open and efficient investment mode of occupational pensions,and then explores its independent supervision system,which plays an important role in maintaining and increasing the value of the fund.Finally,on the basis of summarizing successful experiences of occupational pensions in the UK,this article compares and analyzes the development status and problems of the second pillar pension in China,and then proposes feasible policyrecommendations from five levels: it's necessary for us to grasp the historical opportunity of reducing social security contributions and accelerate the integration of the "three pillars" pension system;we can also appropriately introduce the " Automatic Enrolment " mechanism to promote the reform of mandatory enterprise annuity system in China;and then we urgently need to formulate reasonable and preferential tax policies and strengthen incentive effects of annuity payment;next,we'd better broaden the fund investment channels and provide diversified portfolio options;last,it's important to strengthen the internal and external supervision of the fund and improve the construction of the fund supervision system.