Study On Employer's Pension Model For Large State-Owned Enterprises In China

The main purpose of this study is to find a suitable model for the development of China's Employer's Pension, to argue if it is necessary and feasible to develop the sub-type employer's pension scheme in China. The study found the requirements of CPC Central Committee, to improve the livelihood of people, to exhibit the people-oriented ideology, to build a socialist harmonious society. With the emerging issues in aging society, it has an important significance for deepening pension reform and establishing the multi-level old-age security system. It is an urgent and major issue to resolve the benefit of hundreds of millions of employees. For the characteristics of the subject, we use the combination research methods, such as comparative analysis method, system analysis method, empirical research method, Actuarial Analysis, and so on.First, the social security is more and more pressure to our growing finance, and the multi-level old-age security system need to be established urgently. As an important second pillar, it is still not found the right program model for the employer's pension in China, which is a bottleneck to restrict its raped development. In this paper, based on the theoretical analysis of employer's pension and the analysis of foreign pension system, we further study the pension mode selection for Chinese state-owned enterprises. And it is proposed to be established a DB-DC sub-type employer's pension.Secondly, we analysis of DB (Defined Benefit) type and DC (Defined Contribution) type employer's pension model in-depth, and its advantages and disadvantages are compared also. In this paper, the DB-DC sub-type employer's pension plan can not only be able to enjoy the security and stability to protect the future of pensions from DB-type plan, but also can maximize revenue, reduce overall risk in the same time, as the DC-type program, which will still be able to continue to provide substantial pension. So it is in line with China's state-owned large companies to establish their employer's pension program. In this paper, the DB-DC sub-type employer's pension plan model has been established also. In payment period, the treatment is determined; but in the accumulation phase, the investment risk has to be bear by the workers themselves. And so it will cause different levels of employer's pension inconsistent treatment. When entering the DB phase, the enterprise will unify the account management, and the contribution rate will be different according to different levels of accumulation of account. The fewer amounts accumulated, the less contribution rate, and vice versa. And the contribution rate is a tool to adjust the difference from the DC planning stage.Again, we study the financial business model and the various stages of accounting for the new DB-DC sub-type employer's pension. The specialty of the sub-type pension is embodied in accounting, accounting assumptions, accounting principles, accounting elements and the composition of the accounting environment. And we can divide it into financing, investment operations and payment the operation accounting to the fund investment process. This paper has measured the amount of planned funding according to rate of accumulation and replacement. We form the fund investment mode of operation, management, risk control and compensation, investment and supervision mechanisms, and we also standardize the payment of the calculated and paid, rights granted, payment terms, payment, account transfer, clearing and storage. Based on this we propose some accounting elements of the employer's pension, such as recognition, measurement, recording, disclosure, and information processing mode. So we establish a complete financial accounting system for the DB-DC sub-type employer's pension.Finally, we set the Inner Mongolia Baotou Steel Rare Earth High-tech Co., Ltd. as the research object, observe the financial situation during the period of establishment, operation and distribution. Combined with the results of this study, we conducted an empirical study. And we demonstrate the feasibility and accuracy of DB-DC sub-type payment model. We also conduct an actuarial analysis of bridging programs to ensure the implementation of the program, which will not be extreme shortage of funds and can achieve a smooth transition.