China's Basic Pension Insurance Personal Accounts And Corporate Annuity Comparative Study And Reform Envisaged

The individual accounts of basic endowment insurance system didn't combine perfectly with the social risk pooling system on the initial stage of introducing. That is because we have had a miss understanding on"the combinative system" itself, for example the essential roots of the individual accounts (especially the private ownership). This paper has analyzed the problems existing in the endowment insurance system at first, finding out that one of its main reasons lies in the design defect of the "Three pillars" system. The localization of the individual accounts of the basic endowment insurance was inaccurate, and it also has limited the development of the supplementary pension. Afterwards, this paper summarized the nature and characteristics of the endowment insurance individual accounts and supplementary pension system by carrying on the comprehensive contrast, and also found out its similarities and differences. Finally, it proposes policy recommendations that we can amalgamate two systems, and try to design a new system.Through synthetically comparing between the system of the supplementary pension and the individual accounts of the basic endowment insurance, we find out that there are many similar places on those basic characteristics in this two systems, such as the private attribute, emphasizing individual contribute responsibility, system fair, funded pooling, system goals etc.. Of course, there are lots of differences between them, and it can sum up to three main differences: Mandatory power, the relation between power and responsibility and the welfare function of the supplementary pension. Through comparing, we find out that the homogeneity is greater than the difference on the whole, and supplementary pension system has many advantages to the individual accounts, such as the management, operation and supervise structures.Through comparing, we also found a comparatively clear idea for the reform, which is to combine the same part, adjust the difference part, keep the outstanding part, and change the drawback part. At last, this paper carries on a perspective exploration to the amalgamation and roughly designs a framework for the new system; hopping to offer a kind of suggestion to the reform in the future.