Study On The Problems And Solutions Of The Chinese Occupational Pension's Development

According to the general project design of the social security system, old-age insurance system consists of three pillars: basic national old-age insurance, occupational pension and individual deposit for old-age insurance. In some industrial nations, the occupational pension system has become a main pillar of the old-age insurance system, which has developed a series of stable institutions and management standards. As early as 12 years ago, the policies for developing the occupational pension system were issued. As a matter of fact it has progressed very slowly as the evidence shows the coverage of the occupational pension on the social scale only accounted for the 5% of that of the basic old-age insurance. So its original aim of the second pillar is still far from fulfillment. Beginning with the present condition this text gives a detailed analysis of the key problems and obstacles in its development process and try to come up with some insights in how to speed up the occupational pension system development on the basis of the occupational pension system operation experience in the industrial countries.Chapter 1 is the introduction of the occupational pension system. While analyzing the common categories of the occupational pension, we develop a division of the Chinese annuity from the perspective of annuity payment and annuity management methods. Moreover, we place an emphasis on the theory introduction (the three-pillar theory) and the enlightenment on the Chinese occupational pension development. From the above analysis, the necessity of developing the social annuity has been evident: from the social angel it helps to ease the pressure from the aging society on the social security system which in fact counts on too much on the basic old-age insurance. On the commercial enterprise's standpoint, it proves a effective way of human resources management in that it promotes the employer's welfare and attracts talents.Chapter 2 presents the current conditions of China's occupational pension in terms of the institutional background, the common characteristics and the practice in some profession units. Specifically we introduce the practice in the 11 profession units for 2 reasons: one is the China's occupational pension experience mainly concentrates in these profession units. The other is their annuity practice reflects the general trend of China's occupational pension development. From the above analysis, we point out the key problems in the development of China's occupational pension (1) the obscure policy for developing the occupational pension (2) backward laws and rules (3) lack of preference policy and stimulation mechanism (3) irregular management (4) the narrow investment channel of annuity funds and its low efficiencyChapter 3 presents the development of the occupational pension in the abroad andits enlightenment on China's practice. In the late 19th Century the industrial countries started exploring the proper development path for the occupational pension. Notably after the World War 2 the governments took many preferable policies to encourage the enterprises to take up the annuity for their employers. Now in the industrial countries the occupational pension has been rather mature and become an important source of income for the retiring citizens. We specifically introduced the operation of the 401(K) scheme-the most famous annuity scheme-- in the United States, whose name comes from the 401(K) provision in the taxation law. In addition, we have referred to many valuable experience of the annuity operation in the developed countries. We got such enlightenments (1) the establishment of occupational pension scheme must be based on the comprehensive laws and rules (2) the form of the annuity scheme depends on the legislature framework and market environment concerning the schemed payment structure (3) it must clearly specify the institutions in charge of organizing the annuity scheme, charging fees and payment (4) the law must specify the investment principles of occupational pension funds (5...