The Study About Government Responsibility In Enterprise Annuity Establishment

Establish a multi-level old-age security system. It is the inevitable choice of current China improving the basic old-age insurance as the first pillar at the same time developing annuity business and personal savings and other pillars as a supplement. China's Enterprise Annuity is still at the fledgling stage, the government should shoulder their due responsibilities. This responsibility is not to give financial support or direct intervention, but to support the institution. However, China has proposed to develop a multi-level old-age security system for more than 10 years but the establishment of supplementary pension insurance has not been properly developed, and many problems. In addition to the limit of China's economic development and enterprise annuity is still at the fledgling stage in the process, what is the reason in government responsibility that the Enterprise Annuity development has not been effective.In part one we research the necessity that the Chinese government institution support to enterprise annuity from a realistic point. From a practical angle, the development of enterprise annuity institution is the inevitable choice for China. First, the difficulties which faced by the basic old-age insurance require the development of enterprise annuity institution. Second enterprise annuity institution is in line with the advent of the inevitable aging of the population. Third enterprises and enterprise annuity institution is an effective mechanism for individuals to share responsibility of the government. The last enterprise annuity institution can promote the development of the capital market.In part two we discuss the Chinese government's responsibility for the enterprise annuity in theory. To meet trend of aging population the multi-pillar social security theory believe that States need to set up a system containing basic old-age security system supported by the government, private enterprise annuity institution and voluntary pension savings. In the process of establishing a multi-level old-age security system government must assume the role of institution designer and systems coordinator. From the institutional theory, the government is the most important main supplier for institution, especially in China's national condition our government is the main institution supplier. Government has incomparable advantages compared with non-governmental organizations and individuals in solving the shortage of resources which is the key to the institution. Through the multi-pillar pension theory and the institutional theory we conclude that Chinese government must bear the responsibility to coordinate institution and supply institution in the development of enterprise annuity.In part three we study the role of the government in enterprise annuity by international comparisons. In this paper, we choose the United States and the United Kingdom. As a typical liberal welfare state the United States government provide pension integration plan to link and coordinate the basic pension and enterprise annuity pension also provide preferential tax policies to encourage enterprises to join the enterprise annuity. To protect the interests of pension plan participants the government makes institutions to provide a safe and effective protection of enterprise annuity. The government has also established a monitoring system to improve efficiency. Britain was the world's first welfare state. Yet the government carried out a major reform of the social security system, it is important to encourage enterprise annuity system to shared responsibility of the State in the 1970s and 1980s. The British government taked some concrete measures to promote the development of enterprise annuity such as personal and national termination institution also provided tax preferential policies to promote the development of personal savings. These measures are worth for China.In part four, we hope to discover potential problems in the enterprise annuity through inspection of the course of China's Enterprise Annuity development. China's Enterprise Annuity has achieved some results after 10 years of development, but there are still a lot of problems. These issues include the development of enterprise annuity has been slow, leading to the current scale is too small, narrow coverage; Enterprise Annuity uneven development, there is a structural problem; investment channels blocked, unable to achieve the increase in value of capital; enterprises are not enthusiastic about the development of enterprise annuity.In part five we analyze the obstacles to the development of enterprise annuity system, the same time find the deep-rooted reasons that led to these factors. Hinder the development of enterprise annuity institution currently consists of two main factors: the basic endowment insurance has a regulation to enterprise annuity. The basic old-age insurance institution for enterprise annuity value orientation is not clear blurring of the institution positioning. The deteriorating financial situation of the basic endowment insurance limit business and personal needs for enterprise annuity. Narrow coverage of the basic endowment insurance is not conducive to expanding coverage for enterprise annuity; the lack of laws and regulations, preferential tax institution and supervision institution resulted in inadequate supply of institutional support for the development of enterprise annuity. It is detrimental to the health standard for enterprise annuity system operation and development of the system because of lack of sound and reasonable rules regulating. In my view, these factors form the deep-seated reason is insufficient supply of an effective institution of government for enterprise annuity. From the theory of the institution is to create an effective institution of the main reasons for inadequate supply of the following factors : Path Dependence and the cumulative effect of non-neutral institution and the impact of interest groups, external to the enterprise annuity development and the center of power preferences and "bounded rationality" effect. Deep-seated reason is the Chinese government's policy-making institution. It is necessary to reform of the political system effective to solve the problem of insufficient supply system.In part six we propose some suggestions on the development of enterprise annuity institution. Fundamental measures to promote enterprise annuity institution must run an effective institution to address the problem of inadequate supply. First design of the institution should be doing, strengthen the government's self-building to ensure the effectiveness of the institution. Second, in order to push the institution to avoid the impact of interest groups and ideologies and change the traditional cost-benefit calculation method willing to invest to facilitate institution development costs. Once again, it was considering the development of non-governmental organizations and the role of the market. After all, but simply measures take a long time to play a role, the current paper also made some specific recommendations are : institutions design, the basic old-age insurance and annuity business development, improve legislation and formulating effective laws and regulations, quickly identifying and implementing enterprise annuity tax concessions, establish and improve a strict regulatory institution.The paper research government liability for enterprise annuity institution from perspective of the institution supply theory. and clarify the government's responsibility lies in the enterprise annuity institution security, institution support includes : co-ordination between enterprises and basic old-age insurance and annuity to provide enterprise annuity institution supply. This paper attempts to tap the same time developing effective enterprise annuity institution caused the current inadequate supply of the deep-seated reasons, preliminary conclusion is that China is centralized style of decision-making that can not be overcome, path dependence. External factors such as interest groups and the impact of the supply institution costs are too high.