Study Of China's Enterprise Annuity System

Enterprise pension is a very important pillar in China social security system, which have a important strategic position in the construction of social security system covering the city and countryside. The enterprise pension is playing a very important role in dealing with the aging of populations crisis, lightens the country basic old-age insurance burden, the promotion labor market growth, enhances the enterprise competitive power, perfecting capital market. Since "Enterprise Annuity Implementation Means" have promulgated,in 2004. The enterprise pension obtains a rapid development, but at present, our country's Enterprise pension also has some problems, such as the development basis of existence is also weak, development power insufficiency, system not perfect and so on.This article reviewed enterprise pension's development process in detail, analyzed the present existence question, introduced the overseas enterprise pension's advanced experience, elaborated the establishment enterprise pension system's necessity, and finally put forward the feasible proposal to Our country Enterprise pension's development and the consummation.It is deserved to pay attention to the institutional trap that the coverage of pension plan can not be elevated efficiently while the replacement ratio of basic social old-age insurance decreases substantially. We should seek proper balance between compulsion and unconstraint and induce enterprises to establish pension plans by tax credit. We should take trust fund pension plans as basic pattern which contains contractual plans too. DC and DB plans should coexist and compete with each other. To enhance the flexibility of the pension plans, hybrid plans should be encouraged. To keep injustice, principle of nondiscrimination should be followed strictly. The institutional arrangements for investment of pension funds includes gross control, information revealment and risk reimbursement.