Protection Mechanisms For The Employee Under Pension Plans

Enterprise annuity system is the enterprise which on the basis of attends social insurance, in order to further improve the living standards of the retired workers, which is in the guidance of relevant state policies and regulations in our country. Protection of the worker pension rights is the core value of the appeal of national pension system generally, and takes it for granted, which becomes the target of building enterprise annuity system in our China. However, I find that the reality of our country worker pension rights which are being violated from companies and financial institutions. With the expansion of the annuity fund, the worker pension assets will face the risks of damaging. The emergence of the above phenomenon has two reasons, which one is the irrationality of the enterprise annuity system itself and the other is the "failure" of the internal trust mechanism and "aphasia" of external supervision mechanism. With reference to the western experience, when in the development of enterprise annuity system, our country is trying to use the trust system to establish the internal restriction mechanism. However, in the trust legal relationship, there exists a legal role conflict between the worker and the enterprise. So it is a difficulty for the trustor and the trustee to exercise the relevant rights; however, as the functional managers of financial institutions, they can easily escape from the obligation of the trustee from the Trust Law. The above reasons eventually led to the "failure" of the trust mechanism in the protection of the rights and interests of workers annuity. Originally, the "failure" of the internal trust mechanism can be offset by the external supervision mechanism. However, China has appeared the "overlap" problem and the "regulatory vacuum" problem. The two problems have concentrated on the most important areas of regulation in annuity running, which are pension scheme of fair regulatory domain, the security of the pension investment regulatory domain and pension related transactions regulatory domain. The reason one is legislation seriously lagging behind the market development. And the present situation of the lack of annuity legal definition led to "grab" the notion of "vertical gauge organizational system" for the policy making between the relevant government departments, around the nature of the annuity, the quota restrictions of pension plans and tax incentives. And the other is that the enterprise annuity fund operation involved in four types of industry which are banking, securities, insurance and trust; and the existing separated regulation system is not adapt to this new industry, causing the power and responsibility unclearly in some regulatory process.Through the analysis of the first three parts, at the end of the article, Building the workers’ pension rights protection mechanism of legislative proposals and the implementation path are put forward.