Research On Establishment Of Occupational Pension System With Chinese Characteristics

China's current social endowment insurance system was established in1970s, which played a positive role in ensuring the China's retiree basic life, improving the development of the public utilities and maintaining the social stability. But there still exists some problems. On one hand, the basic level of our endowment insurance system is not high because of the limitation of our government financing. On the other hand, the national income per capital and living standard was greatly improved due to the rapid development of our national economy. The contradiction between them will lead the inappropriate of the former endowment insurance system, because it was unable to meet the request of retired people of living a high-quality life. Therefore the establishment of the supplement endowment insurance system is very necessity. Meanwhile, the "double-track" system that has been carried out in our national enterprises has to follow the steps of revolution of the endowment insurance system and changed into "unification" system. In this way, not only we can significantly optimize the allocation of human resources, mobilize the enthusiasm of the various units, but also show the justice of endowment insurance system and reduce the press of our national finance.Under this circumstance, the reformation of endowment insurance system and implementation of the "integration" endowment insurance system has become the prior issue for China. And the establishment of institutions of occupation pension system is the most effective method and channel through the "double track system" of the insurance system, it will become a indispensible part in promoting the development and harmony of our society, establishing modern human resources management system and the accumulating funds to support the national economic construction and other aspects.The so-called occupational pension in our country is referring to the endowment insurance system that is established under the guidance of state policy which apply to the public officers in the Organs and Institutions. This paper will starts from the basic theory source of occupation pension, then at the basis of the summing up about the research status of occupation pension at home and abroad, explain the necessity and practicability of the implementation of occupational pension in our country from such aspects as our internal economy, technology, policy and international experiences and so on.Firstly, this paper will give a brief analysis on the policy orientation. We have achieved a lot in carried out the national program of reform and opening up and the modernization construction in all works of life. In the process of building harmony and prosperous society in all aspects, our country has raised higher requirement to the labor market. The idea of building a harmony and prosperous society give a good opportunity for the organs and institutions to build occupational pension system. Meanwhile, the "people-oriented, comprehensive, balanced and sustainable scientific development" brought up by the CPC central committee became the key to deal with problem of all kinds of people's livelihood. Our country has carried out many policies to promote the reform of endowment insurance "integration" since2008. Secondly, it will focus on the analysis on the economic base, the socialist market economy of our country grows vigorously in recent years. The stable and continuous economic benefits have provided a favorable condition for organs and institutions to establish occupational pension. And the rapid development of our country has laid a solid foundation of occupational pension in government institutions. Thirdly, it will analysis the operation feasibility. We have a lot of good experience to learn from all over the world. Fourthly, it will give the analysis from the practical level. The achievement we made in promoting enterprise annuity has provided a lot of experience in launching occupational pension. Fifthly, it will analysis from operation level. Organs and institutions are the particular social groups among our government. The asset relationship and membership was more of a single subordinate relations, the government's ability to control these units is also quite strong. At the same time, our country's insurance management system is relatively perfect. Sixthly, it will analysis the international environment. Since the implementation of the supplementary pension plan, it has made the positive influence in many aspects of the country's construction. As far as we can see, we have the perfect international trends and atmosphere for us to build the occupational pension.After ten years of exploration and brewing, China has issued ?The notice on issuing institution staff pension insurance system reform pilot program? in2008March, which officially confirmed in Shanxi, Zhejiang, Guangdong, Shanghai, Chongqing five provinces and cities to carry out pilot projects. But coming to the operational level, the financial market in China is not complete and we lack of occupation pension scheme design, pension fund investment cost and revenue budget of talent. We still have many problems in the aspects of sources of funds, fund management, investment operation, information disclosure and so on. Due to the lack of detailed guidance and model establishment, the application effect is not ideal in the pilot areas.As a result of occupational pension in our country belongs to a relatively new concept of compensatory endowment insurance,, this paper will give the clearly defined on the manage principle, applicable objects, the model of pay raise, pay rates, fees, etc according to the actual situation in our country. Meanwhile, this paper will put up the occupational pension plan pattern type for our country by giving the quantitative analysis and comparative analysis of the "Defined Benefit (DB)" and "Defined Contribution (DC)" which combined with relatively mature national general occupational pension plan in recent years of United States, Britain, France, Japan, Canada, Australia and so on.In order to promote the implementation of the occupational pension system in our country more smoothly, this paper will give a brief introduction about the situation of occupational pension of the implementation of the pilot areas. Also it will give the analysis of the on the empirical research on the implementation of the pilot areas. Based on this evidence, it will analysis the problems exist in the pilot areas.For one thing, civil servants of administrative departments and institutions of social security benefits for a long time has carried out such as salary system and the different system for enterprise employees and cut off the civil servant system and the free flow of labor market between enterprises. At the same time, the position of the government public institutions has long been countries essentially led to the civil servants "iron rice bowl" system of lifetime employment. In the process of reform for organs and institutions from "double track" to "integration", China has found it was difficult to just promote the reform of endowment insurance simply. For another, the other impacts which influenced the deeply implementation of the occupational pension system is that the uncertainty of the operational system of the occupational pension which can be seen from the performance in the dock with the basic old-age insurance system's problem. Namely, one is that problem of occupational pension and the basic endowment insurance at the level of replacement rate. Second is the problem of the occupational pension account and the account of the basic old-age insurance. Third is the internal ginseng in government institutions and retirement problem between different populations. Meanwhile, when it comes to the terms of policy support, our country has not issued a guidance and binding plan or regulations, taxes like other countries which give clear preferential tax policy incentives that directly affects the establishment of the occupational pension. In addition, if we see from the point of pilot industry occupational pension operation and management, the operation of the annuity fund yields are not satisfactory. Funds are basically used to buy Treasury bonds, bank, or by the insurance company into fixed-income asset class. Compared to the price index fluctuation in our country, the fund value effect is not very ideal. In the end, in terms of fund regulation, our country still have many problems to solve, the incomplete regulatory legal environment, the low regulatory professional level, the insufficiency of powerful supervision coordination mechanism and insufficient information opaque, etc, And these are the main problems we should focus on in the deepening the reform of endowment insurance "integration".This paper will put forward suggestions and advices of the construction of the occupational pension system in government institutions in China according to the actual situation of our country and the reference of experiences. It will including fully leverage of national revenue, support and guide the development of occupation pension problem; occupation pension realization value need strengthen all aspects of management; strengthening the construction of relevant legal system in China; the linking problem between the problem and the occupation years gold and the basic pension insurance and annuity and orderly development of occupation pension standard. Especially the key problems--management of pension fund question to occupational pension. This paper costs a lot of work to do the research and suggestions in detail. Not only it analyzes the classification of occupation pension management mode of international and its characteristics, based on summarizing the typical countries Australia, Britain, America of occupation pension management model, combined with the status of occupation pension management present situation and the development of market economy in our country. It will give suggestions on occupation pension management. First step is to establish a reasonable system of occupation pension management; secondly, to choose the appropriate operational pattern; And also our country should broaden the investment channels, reduce the risk of investment; establish a fair competitive market mechanism which realize the market occupation pension fund; at the same time we should strengthen the fund purchase returns and risk balance management etc.. In terms of occupation pension supervision, we need to put forward to perfect occupation pension regulators, including the clear regulation of the main institutions, government regulatory role; the establishment of risk supervision mode based on; clear the contents of supervision, strengthen professional supervision level; and the establishment and improvement the occupation pension law system etc In the end, this paper will give the design scheme of smooth transition between the new and old systems.