Issues Related To Research, The Establishment And Improvement Of China's Enterprise Annuity System

The current substitute rate of old-age pension is relatively high in China. Nowadays, with increasingly severe aging population, the pressure of the pension system is getting heavier and heavier. The "Pay-As-You-Go" pension system cannot afford adequate old-age pension, thus the accumulated pension fund, which enterprises established independently, also known as enterprise annuity, is growing rapidly and becomes the second pillar of pension system and hence constructs the framework of "three pillars" for pension security system. Since 2004 when the Ministry of Labor and Social Security of P.R.C promulgated and executed the "Provisional Measures on Management of Enterprise Annuity", despite the imperfection at the stage of development, the enterprise annuity system has been standardized gradually.This paper studies enterprise annuity with the methodology of vertical comparison, case study, qualitative analysis and quantitative analysis. The author first introduces successful development and experience of foreign enterprise annuity system, reviews the development course of enterprise annuity in China, makes an in-depth analysis of the major problems thereof, expatiates on the necessity of establishing and completing enterprise annuity system in China and finally puts forward feasible suggestions on standard administration over Chinese enterprise annuity.Practice testifies that a society can never be harmonious without social security system, and that social security system can never be complete without enterprise annuity. With huge development space, Chinese enterprise annuity system is entering into a golden age. As the second pillar of Chinese pension system, enterprise annuity plays an important role in relieving the pressure of basic pension insurance, tackling the crisis of aging society and "aging before getting affluent", assuring quality life of the retired and maintaining harmony and stability of the society. In addition, great development in enterprise annuity system also helps accumulate fund for economic development of the country, promote capital market development and creates a favorable environment domestically for the economic boom of China.