The Supplementary Pension System And The Insurance Company's Strategic Choice In The Supplementary Pension Operation And Administration Of China

With the progress of industrialization and urbanization of human development, the traditional economic guarantee by way of supporting parents in the family has lost the efficiency gradually, in addition to scientific technical development, and the improvement of medical treatment and hygiene level, make population's average life-span lengthen gradually, and population structure develop to aging, the legal basic endowment insurance of various countries has fallen into more and more serious financial crisis, it is extremely urgent to reform the system of the current pension. And develop supplementary pension, set up multi-level endowment insurance system, transfer the government's responsibility to the enterprise and individual properly, can alleviate the pressure of basic endowment insurance to the finance greatly, at the same time its inherent demand of preserving value and value-adding will play a positive role of the rationally healthy development to the capital market, so it has already become a kind of inevitable choice of various countries. Though supplementary pension has tried to operate for more than ten years in our country, the improvement of institution has lagged behind seriously for a long time. Since entering 2004, a series of supplementary pension regulation system has been more frequently issued than before, and this has established the system foundation for the tremendous development of the supplementary pension. According to "Fund Management Trial Method of the Supplementary Pension", the foundation of supplementary pension system involves trustee, mandatary, account caretaker and investor etc. a lot of participators,in fact this has finally established the trust mode of the Chinese supplementary pension operation and management. Account caretaker, invest caretaker to be separated from mandatary, managed by different professional organizations respectively, not merely help to standardize operation and management of the supplementary pension and ensuring the assets security, but also have created enormous business opportunity for the financial institution that offered relevant services. Among these, what kind of role does insurance company should act on earth, how to utilize the opportunity to make it become an important step of the upgrading of industrial structure, have already become a realistic problem needing to be answered and solved urgently of the insurance. In view of this, on the basis of probing into the basic theories of supplementary pension system, through investigating paying the fees, means of payment and the management mode of the western developed country, this article demonstrates in an all-round way that the main providers of the supplementary pension market –insurance has its advantage and function in the operation and management of the supplementary pension, and proposes the strategic choice that the insurance should adopt in developing supplementary pension of our country. This article is divided into three chapters and ten sections altogether: Chapter one is the exposition to the basic theories of supplementary pension system. I proceed with the intension of the system of the supplementary pension at first, and define that the supplementarypension is a kind of supplementary basic old-age pension system between social insurance and business insurance, and I runs overall analysis and exposition to the characteristic of the supplementary pension, namely non-commercial, enterprise's behavior, government encourage, and marketing management. The supplementary pension hasn't been clearly orientated for many years, to this problem I bring my own opinion forward. Section two of this chapter analyses the reason and value orientation of government, enterprise and individual developing supplementary pension, proves the important meaning in these three sections of developing supplementary pension. As to the government, developing supplementary pension can disperse and shift the pressure that the national basic endowment insurance is facing with; ensure the living standards of the people; make work relation stable, reduce unemployment; can also promote the development of capital market and economic growth. As to the enterprise, the ones that develop supplementary pension can reduce the tax income at the same period, reduce the pressure to the enterprises that the workers want to improve the salary; take precautions against pension substituting too low, social security subsidy might be weaken, low investment yield and inflation cause pension low grade etc. a series of risk; attract and keep outstanding employees, improve enterprise's competitiveness ; can also offer the system of getting the old and weak workers withdrawing from enterprise ahead of time through supplementary pension plan. As to individual, developing supplementary pension can get the guarantee; needn't pay the Individual Income Tax to this sum of incomes at the same period; can also reduce the volume of the taxable income at the sametime. The three section of this chapter, through the analysis of the supplementary pension supply-demand curve, draw the conclusion that the factors influencing supply-demand relationship of the supplementary pension include: the legal construction of the supplementary pension does not perfect, lack the preferential policy of the tax revenue; most enterprises have not set up the modern enterprise system in complete meaning; the capital market is not standard, investment is less in variety; the financial institutions that reaching the standard of qualification are not enough, the price of the supplementary pension is high. Chapter two introduces the supplementary pension system's creation, development, its operation in the developed countries (such as America and Japan), and the instruction to the administration mode choice of China's supplementary pension system. According to the practices that have already been carried out, we can divide the supplementary pension into defined benefit pension plan and defined contribution pension plan, according to the supplementary pension's fee-paying method and pension-paying method. From the supplementary pension trial way of our country, it's clear that the enterprises of our country are mainly adopting defined benefit pension plan. Now the investment environment of our country is not very good, the stock market risk is very high, and a lot of older workers are facing the problem that the accumulating time is too short. In this condition, we can't ignore the function of the defined benefit pension plan when we mainly carry out the defined contribution pension plan, we should take different fee-paying and pension-paying methods according to the actual circumstance of theenterprise. As to the choice of the operation and administration mode, according to the international usual method, using the trust mode as the main mode, absorbing the advantage of the company-type and trust-type and containing the way of the contract-type products, we are adopting two administration modes, one is the partly-committing mode that the assignees is the account administrator or the investment administrator, the other is the completely-committing mode that the assignee chooses the account administrator and the investment administrator. But because the role-separating principle is still a new trial in our country, the insurance company should fix its own position under the new operation and administration mode, and cut new road for the development of itself. The third chapter introduces the current condition of the supplementary pension in our country, as well as its necessity, comparing with the general financial organizations, and explains that the insurance companies, especially the life insurance companies have the advantage in the supplementary pension operation. It mainly appears in the research and design of the product, the administration of the indemnificatory assets, exactly calculating technology, cash flow administration, assets and liabilities matching technology, perfect account managing system, extensive organization web and the careful inspection of the insurance itself and so on. The insurance company can enter the supplementary pension market in many ways. First, the insurance company should strengthen the product research and design, enhance the product agility, and manage to be the better investment administrator. Second, the insurance company should make use of the information system of itself and the...