On The Development Of China's Enterprise Annuity

According to the general project design of the social security system .old-age insurance system consists of three pillars: basic national old-age insurance, occupational pension and individual deposit for old-age insurance .As early as 13 years ago ,the policies for developing the occupational pension system were issued As a matter of fact , it has very slowly, aad the evidence shows the coverage of the occupational pension on the social scale only accounted for the 7% of that of the bate old-age insurance., so its original aim of the second pillar is still far from fulfillment. Beginning with the present condition this text gives a detailed analysis of the key problems and obstacles in its development process and try to come up with some insights in how to speed up me occupational pension system development on the basis of the occupational pension system experience in the developed countries.Chapter 1 is the introduction of the occupational pension system .while giving an account of the definition and characteristics of the occupational pension .we make use of many examples to show the popularity and large coverage of the occupational pension in the developed countries . we also place an emphasis on the tax preference and theory related.In Chapter 2 ,we give an account of the necessity and importance of developing the occupational pension .which has been evident: from the social angel, it helps to ease the pressure from the aging society on the social security system which in fact counts too much on the basic old-age insurance . On the commercial enterprise's standpoint, it proves a effective way of human resources management in mat it promotes the employer's welfare and attracts talents. In the meanwhile, it can enhance the development of capital market of our country.Chapter 3 presents the current conditions of China's occupational pension in terms of the institutional background, the common characteristics and the practice in some profession units .we point out the key problems in the development of China's occupational pension (l)irregular management; (2) the lack of tax preference policy (3 )the incomprehensive organizational structure; (4) the narrow investment channel of annuity funds and its low efficiency.; (5) lack of professional management agents.On the basis of the above analysis , we come up with the following suggestions in Chapter 4: (I) establish the legal status of the occupational pension; (2)reduce the substitute rate of the basic old-age insurance, and provide more room for the annuity; (3) establish comprehensive organizational structure; (4)the choice between DC and DB; (5) take advantage of life insurance company; (6) enhance the construction of the capital market, widen the investment channel and improve investment performance; (7) establish the annuity supervision mechanism to push the occupational pension on a steady and healthy development route.