Study On Legal System Of Private Pensions In The United States

United States private pension system is one of the most comprehensive pension systems in the world, which is made up of employer pension plans and individual retirement accounts, as a supplement to basic old-age security. Private pensions in the United States has rapidly developed and robust operated, not only due to the open market, either its professional and mature pension scheme trustees and management experience, but also its sophisticated private pension security laws. These laws as the guarantee for healthy operation of pension plans, not only constrains the behavior of pension plan sponsors, participants, and trustees, but also connect various departments of laws related to pension operating. So as to it perfect security of the whole system running.In the other hand, the basic law of private pensions in United States also as a incentives to promote the parties involved in pension plans willing to take up pension plan, so as to effectively promote the development of private pensions.We, China, faced the circumstances similar to United States; they can provide a good reference for us. How to find efficient ways to protect the interests of pension plan participants, and how to promote and safeguard the pensions running circumstance, how to make pensions safe and steady operation, but also to ensure that substantial gains while being cannot remove program properties, and how to find solutions to these issues in the legal systems, is certainly worthy of further consideration.Existing research is lack of theory and practice, so the further research is needed.Following is the structure of the article:Introduction leads to major problems, according to summarize and review the information at home and abroad, as well as discussed some research methods in paper.The first chapter mainly explained the basic concepts and features of private pensions. Which states that private pension are supplementary and voluntary plans, it has not, as public pension insurance, the fiscal transfer payment as the main payment method, and contributions are mandatory payroll taxes, the purpose of which is to protect the employees’pension replacement rate at an ideal level. In addition, the article explains the basic concept and nature of private pensions, for example, pension coverage and requirements of planning that must be met.The second chapter outlining the typical private pension plans in USA, and sketched the outline of the whole system. The section explains the basic characters of typical private pension plans, then makes data comparisons and explains the brief history, at last discussed the picture of the private pension system in United States generally.The third chapter, in this chapter, the paper discusses the rule of vesting and security in the private pension, and describes the process of benefit accrual and how to meet the non-forfeitable rule. In addition, in order to protect the rights and interests in DB plans, the Federal Government established the PBGC which guarantee and compensated the planners’interest.The fourth chapter, in this chapter, the paper explained the disclosure and reporting systems of pension plan. Disclosure and reporting is very important in private pension regulation. Someone who cannot complete its pension plans disclosure procedures will be considered as breach of fiduciary duty. To a large extent, ERISA law and the provisions of the domestic tax law and other relevant regulations in order to strengthen the transparency and openness of information, prevent the plan trustee wanton disposal of plan assets or for other purposes. Specific use of disclosure documents is one of the most important elements, which will be discussed in detail.The fifth chapter, this chapter discusses pension Trustees’liability, which is the most critical link in the whole pension legal system and also the most important section of this paper. Most of the pension plans choose put the plan assets in trust fund, it is likely to lead to the failure of the pension plan, if the trustee not complete their mission with caution or due diligence, this is a very serious consequence, it is likely to lead to failure of the whole plan. This chapter is separately explaned from the definition of trustee, the trustee’s obligation and responsibility, and careful exposition of the trustee’s duty.The sixth chapter, United States Internal Revenue Code and ERISA Act are mutually reinforcing, if someone elaborate private pensions law, consideration must be given to the relevant provisions of the tax law. The purpose to a large extent to establish a Pension plan perhaps for reasonable tax avoidance, this is also the incentive for the qualified plan. This chapter briefly explains the relevant tax provisions, in order to outline the taxes on the private pension plans in the relevant legal contours.Conclusion, it makes summary of whole article. Appendix charts include specific disclosure requirements related to such contents and explain some of the data in order to better understand the content of articles.