Study On The Policy Of Enterprise Annuity Payment And Tax Preference Based On Uniform Replacement Rate

With the increase of aging trend in China, the pension issue has become the common concern of society and academic circle. Although the policy of endowment insurance system has been introduced for years, and the basic endowment insurance reforms several times, residents endowment in China still relies on the basic endowment insurance. Enterprise annuity develops lags behind, while personal pension has hardly been established. Both the government and scholars recognize the necessity of enterprise annuity development. The controversy is what level should enterprise annuity reach, and how to promote the development. Starting from the related dispute, the paper determines the level of enterprise annuity payment rate and the preferential tax policies based the payment rate, according to the actual situation and the fundamental objective of endowment insurance system. This paper is composed of five chapters. Chapter one briefs background and purpose of the research, and the literature review. Chapter two introduces the history and current situation of multi-level endowment insurance system and enterprise annuity in China, and proposes the development direction of endowment insurance system, in order to solve the problems derived from the existing system. Chapter three calculates consensual replacement rate of old-age insurance from both demand and supply, and obtain the consensual replacement rate and payment rate limit of enterprise annuity. Introduced the concept of annuity growth rate, chapter four establishes fund balance model of enterprise annuity. The payment rate based on consensual replacement rate has been calculated from the model, which should be12.1%at this stage, and gradually increased to33.6%. Based on the cost-benefit analysis of the preferential tax policies, Chapter five puts forward the corresponding policy recommendations:Implementation of the EET mode of preferential tax policies with higher proportion of tax-free payment rate; Long-term mechanism of preferential tax policies to build a solid foundation for the further development of endowment insurance system; strengthening construction and supervision of the relevant systems to reduce the social cost of the tax incentives.