Smes In China Set Annuity Plan Study

With the acceleration of China's aging population, an effective mitigation of old-age pension system is needed as an important measure to decrease the pressure. Pension funds has prospered all over the world. Pension funds in China has also been in rapid development, but is limited to a big enterprises. Pension fund market for SMEs is in crisis, most SMEs failed to establish pension fund programs. Small Annuity caused mainly due to difficulties for SMEs in China failed to establish a collection of pension annuity system development.Relative to the single annuity, Collective pension funds (CPFs) refers to a collection of many corporate pension funds.The main advantage of the collective pension funds (CPFs) is economies of scale in fund investment, especially for SMEs. Generally speaking, there are two models, i.e. industry funds, with membership restricted to a particular industry or group of related industries, and retail pension funds open to all types of company and operated by financial companies. Industry fund is a internal model established by the participating enterprises and mannaged by the pension fund committee. Retail pension funds is a typical external model, genarally it will be entrusted to commercial financial institutions for management and investmentThis article details a comparative study of Hong Kong, Australia and the U.S. collective pension funds, on this basis, combined with our national reality, a series of targeted development measures for collective pension funds for SMEs is proposed.