The Anaylsis Of The Function Of The Enterprise Annuity System

Social security is an important aspect in the modern life in terms of socialand economic perspective, it embodies relevant rights for maintaining theworker’s basic life, as well as a obligation that the government should be bore tosocial labor insurance, which plays significant role on assuring the civil life,safeguarding the social stability and promoting the domestic economies, it isregarded as the "stabilizer" and "safety net" in the whole society. There exists anobjective phenomenon that cannot be avoid in any times and social systems is theoldness, weakness, illness, disability, pregnancy and labor capacity forfeited ofthe members of the society. The function of social security is to give appropriatesupport and compensation to guarantee the basic living standard apply to thesituations mentioned above, and further preventing the appearances of unrestelements, therefore propel the society forward. Regarding the insurance with thecoadjutant characteristics, reflects more mutual cooperation in the spirit of socialpoint of view.Social endowment insurance is one of an material complement of the socialsecurity system, which is a GSP (generalized system of preferences) socialwelfare from the nation to the citizens, and it is also a symbol and sign of moderncivilized, democratic society, which can give citizens the most basic guarantees ofretirement and medical health security, to maintain social justice and advanced thesocial development steadily.An enterprise annuity is a form of supplemental retirement savings programthat is voluntary, and based on the establishment of compensatory endowmentinsurance. The essence of the nature is a supplement pension system. Everycountry has its own supports with relevant national policies and tax incentives,and this will be one of Chinese pillars of pension security in near future.In order to promote a better, faster and more healthy development ofenterprise pension system in our country, this article takes the current Chinese endowment insurance situation as a start point, systemically analyzed theenterprise annuity system in China; moreover, make a comparison by introducingthe mature system from the United States, Germany and Britain etc., andintegrating the overall practical policy implement and operation, to drawing thefollowing conclusions:1, At present, China gradually enters into the aging society, the problems ofaging population are becoming more and more outstanding. How to dispose theendowment of retired employees and make it play a well role in China’s socialsecurity system is a very important topic to be faced. The "three pillars" theory putforward by The World Bank has the very vital significance for establishingChina’s new pension system. Any of the "three pillars" is indispensable in China’sendowment system and need to be coordinating developed.2, Analyzing the annuity system comprehensively through the westerndeveloped countries, there has nearly hundred years of development for theirs, andthe formulation and implementation of the system have already relatively perfect.It is recovered by making a comparison with the related reality in China that, itshould not be simply copy but strengthen the reference using in the changingprocess of annuity system to construct our own characteristic ones, which fullyembodies the principles for government, society, companies and employees takingthe risks independently, improving the efficiency, and playing the role of themechanism.3, The construction of the annuity with Chinese characteristics has alreadybegun to take shape. From the present practical pension security situationobservation, the enterprise annuity system act irreplaceable function on whetherimproving people’s living standard of retirement or easing the relatively financialburden of the government. We should learn from practical lessons in terms of taxoptimal supports, account management, operation regulation, investmentincentives, as well as public opinion propaganda to realize the enterprise annuitysystem further perfection.4, Currently, the enterprise annuity remains developing prospect in goodshape, accompanied by heavy difficulties. The way of solving the problem is to use half compulsory system changing model, that is, to further improve theefficiency of the policies and regulations and enhance simultaneous propaganda tochange the "information asymmetry" status quo hence. Policy and regulationsneed both guidance and the seen potential "external benefit", but shouldn’t be tooharsh to use the mandatory means by imposing government excessively. The abetter and faster new way of developing China’s enterprise annuity is to utilize thepreferential tax, human resources management, policies, laws and regulations asthe guide, and not too much intervention the half compulsory system.