Enterprise Annuity Pension Supplement And Incentive To The Worker

Accompanied by the emergence of population aging in China, pension has become a national and enterprises must face the real issues. After the one in food and clothing, is getting higher and higher demands on the quality of life, even hope to maintain a pre-retirement standard of living after retirement, so keep the original quality of life, is a measure of old age security is perfect in standards. Annuity as three major pillar of endowment insurance system, important component is social security system was to implement pension "pillar" strategy of significant institutional arrangements is an enterprise gives employees social security plan; is attracted and stable high quality talents by pay incentives.In the three pillars of the social security, the broadest coverage of government pension substitute rate is very low, there is an urgent need for additional sources to make up for inadequate retirement income. Personal savings plans generally lack detailed financial planning to be as reliable sources of retirement income. In this case, as the second pillar of social old-age security system-enterprise annuity will become a most important source of income for many employees.Occupational pension schemes are typically initiated by the company, per year, in accordance with a percentage of the wage payment, matched with a corresponding proportion of enterprises capital grants. Corporate pension plans staff to work longer the better, its greatest strength lies in not as immediate as the wages paid, but must wait to employees after retirement to be able to receive. Therefore, work longer, accumulate funds more, corporate pension plans for employees is the better. In addition, the Fund independent of the company’s business, even if the company fails, employees may receive occupational pension. Therefore, Enterprise annuity is not only a supplementary pension, and is also a private old-age security system based on private savings.From the macro perspective, Enterprise annuity system is a social security system as a whole "second pillar". But from the perspective of micro-, Enterprise annuity system mainly is part of the remuneration structure of enterprises under market economy conditions. Enterprise’s competition, the essence is that competition for high-quality, high-tech talent, Enterprise annuity system and combine the wage income distribution and human resources management of enterprises, to enhance enterprise competitiveness and cohesion of employees. It can further benefit distribution and management of employees in the enterprise, so that enterprise and staff interests closer together. In the development of enterprise annuity plan, in accordance with the combination of distribution according to work and according to productive elements of a variety of wage income distribution, in-house distribution reflect diversity. Depending on the employee’s seniority and status responsibilities exercise differential treatment, treatment of employee pension contribution and the economic efficiency of enterprises and individual labour directly linked to the staff concerned with corporate management, arouse the enthusiasm of labour, encourage competition, reward loyalty and contribution.This relationship through Enterprise annuity and the basic old-age insurance, analysis of enterprise annuity in our country’s development situation and jitong Railway (Group) company establishment and implementation of enterprise annuity as an example to explain pension supplementary occupational pension and employee incentive.