The development of China's Enterprise Annuity Problems and Countermeasures1832.doc

The development of China's Enterprise Annuity Problems and Countermeasures     Abstract: With the advent of an aging society in China, enterprise annuities in the pension insurance system has played a pivotal role. Annuity is the enterprise and the workers under the guidance of national policy, according to the law to participate in basic social insurance, based on the situation of their own economic strength and established for the enterprise to provide workers a certain level of retirement income security of the complementary pension system. However, continued to show the development of China's Enterprise Annuity slow, failed to fully play its role. Accurate information on enterprise annuity status quo, a correct understanding of the development of enterprise annuity issues and problem-rational response to the proposed development of China's Enterprise Annuity is currently the top priority.      Key words: enterprise annuities; old-age insurance system; pension supervision      Annuity is the enterprise and the workers under the guidance of national policy, according to the law to participate in basic social insurance, based on the situation of their own economic strength and established for the enterprise to provide workers a certain level of retirement income security of the complementary pension system. With the sustained development of China's economy in the social pension insurance system, as well as the continuous improvement of the promulgation of relevant laws and policies, enterprises in the old-age security pension system, their status has been confirmed, but also has made some achievements. Can not be denied, however, continued to show the development of China's Enterprise Annuity slow and can not meet China's aging population the status quo, but also failed our country's economic development level, income status adapt, making enterprise annuity in China's old-age security system should be in the play a role has not been fully realized.           First, the development of China's Enterprise Annuity Problems           (A) for capital market development of immature, unable to meet the requirements of the development of enterprise annuity      Generally adopt an entirely accumulation of enterprise annuity system, such a fund pension system is bound to face tremendous pressure to preserve and increase the value of this pressure is only through the development of a mature capital market can be resolved. However, there are not enough standards of capital market operation, the system not perfect, speculative risks remain, the Government's regulation of investment activities are also serious flaws, which are increasing the enterprise annuity in the market to run risks. Moreover, a serious shortage of investment in financial products, corporate annuity fund investment tool for small, limited investment channels can not meet the market needs. In short, stunted capital markets affecting the development of enterprise annuity is an important constraint.      (B) The right of the enterprise annuity system, policies, laws and regulations not in place, resulting from the establishment of the enterprise annuity management, operation, monitoring various aspects of the system is not perfect, the operation is not standardized      1. The basic endowment insurance system is not uniform. At this stage is still the local implementation of China's pension system, and the implementation of standards varying degrees of strictness, collection rates vary, our old-age insurance system is not unified. The statutory basic pension of enterprise annuities to develop the fundamental, only the statutory basic pension insurance mature shape, the establishment of enterprise annuity be stable.      2. At present, the legal status of China's Enterprise Annuity has been fully affirmed and issued the "Interim Measures for Enterprise Annuity" and the "Interim Measures for Enterprise Annuity Fund Management," but some specific operational rules have not yet introduced.      (1) lack of a unified, clear-cut preferential tax policies      Countries want to develop enterprise annuity, you must give businesses tax "support." A preferential taxation policy has always been run through the collection in the enterprise annuity, operation and welfare of the whole distribution process. In recent years, countries have in the tax policy, made some breakthroughs, but these policies only in the pilot districts and across the country is not pushing. The country and has not formed a system of strong, workable system of a unified tax policy.      (2) the lack of relevant laws and regulations      At present China's Enterprise Annuity with the relevant specific legislation, or blank, leading to China's current enterprise annuity operation mechanism is not standardized, enterprise annuities to run no laws. For example, the Pension Fund as a trust property in the investment process needs to operate in the strict sense of the "Trust Law" to regulate the principal-agent relationship, but China's "Trust Law" is not mature, in addition, "Investment Companies", "investment adviser law "The development is debatable.      (3) lack of standard enterprise annuity management and operation of the provisions of      At present, China's Enterprise Annuity mode of operation of the enterprise self-management, social security institutions such as handling and insurance companies handling of three parts, although the implementation of enterprise annuity established "market-oriented management and transportation management" principle, but a context of specific operational and management was not yet set standards to regulate the other hand, is handling the fund has not yet been implemented accreditation system, the lack of a unified operation and management of pension provisions.      (C) The enterprise annuity market demand is insufficient, the external environment facing the development of room for improvement in      The development of China's Enterprise Annuity has been a decade, but covers only the workers participating in basic pension insurance, about 5% coverage is lower, which means that China's Enterprise Annuity demand was seriously inadequate: China's basic old-age insurance, the average replacement rate is too high; preference immediate interests of workers, the lack of long-term awareness of the broad masses of workers required to improve the economic situation of the real desire is much higher than the anticipated future; enterprises to establish a pension system capacity is limited, companies bear too heavy a burden on various types of insurance, affect the competitiveness; China's Enterprise Annuity concentrated in developed areas and monopoly industries, regions and uneven development between sectors.      (D) the lack of regulatory coordination mechanism      Enterprise annuity market is a multi-sector market for the provision of services involving finance, taxation, social security, and regulatory and other control subjects. Although the relevant departments jointly issued a number of regulatory rules, but provides more scattered, unity is not enough, has not really set up an enterprise annuity synergistic regulatory mechanisms, and the different regulatory authorities need to further clarify responsibilities between the rational division of labor.      (E) financial institutions and enterprises lack the appropriate expertise      Enterprise Annuity operations management related to investment, legal, marketing, etc., their own need professionals. The enterprise annuity system in China at an early stage of development, a weak foundation, lack of experience, but also the lack of professional skills of a large number of annuity business managers.      (Vi) propaganda is not enough understanding of the enterprise annuities are not in place      Although the enterprise annuity become the second pillar of pension insurance, but many businesses and employees have been closely linked with their own enterprise annuity and its related policies are quite strange and at a loss, as if enterprise annuity for them, there is no relationship between them. Some enterprises are still short-term human resources, there is no long-term consideration that the enterprise annuity is a matter of several decades later, it is better to increase the present income. Reposted elsewhere in the paper for free download http:/      Second, the reform of China's Enterprise Annuity Suggestions           (A) vigorously promote the development of capital markets      Enterprise annuity to achieve real progress, no one has sufficient thickness, there is a sufficient number of products, there is a strong innovative mechanisms and support the vitality of capital markets is not enough. Improve the capital market, measures can be started in two ways:      1. A rich trading tools, increasing variety of long-term investment. Enterprise annuity can be invested to expand investment channels and varieties, we should vigorously develop new financial products, speed up the money market and capital market development. At the same time, encourage enterprises to invest in the annuity industry for China's pension fund to open up more investment.      Two. Capital market system. Fully competitive market, financial institutions, universal banking, interest rate liberalization, establishment of credit system to monitor the implementation of the system is to ensure healthy and efficient enterprise annuity system, fundamental to development.      (B) a sound enterprise annuity-related laws and regulations      The so-called fragmentation radius of no rules, enterprise development and perfection of the annuity must have a corresponding law, rules and regulations as a guarantee. Only a sound legal system of enterprise annuity in order to establish and improve the enterprise annuity management structure to ensure that management responsibilities and oversight responsibilities rational division between the two. At present, China has not yet formed the establishment of enterprise annuities, management, operation and supervision aspects of the regulatory policies run the system, which the enterprise annuity plan of the management and supervision will be adversely affected.      (Iii) the development and application of preferential tax policies for corporate annuity      1. To develop a unified national enterprise annuity preferential taxation policies. At present there are a number of China's provinces (municipalities and autonomous regions) issued a tax preferential policies on enterprise annuity. However, the country does not have a unified enterprise annuity preferential taxation policies. In order to regulate the development of China's Enterprise Annuity market, urgent need to develop a unified, authoritative enterprise annuity preferential taxation policies.      2. The use of tax incentives. Preferential tax policy is the government's most important business enterprise annuity organized support, encouragement means. The use of tax reduction and exemption, deferred tax and other preferential policies to encourage employers and employees to actively set up an enterprise annuity, but also indirectly involved in the government enterprise annuity field, to guide the development of enterprise annuity standards as one important means.      (D) to build in line with market-oriented system of supervision and management of investment      Enterprise Annuity business involves a number of government departments and different market players, corporate annuity management and supervision system is also related to handling, investment, operation and supervision of other aspects. We shall, in accordance with the nature of the enterprise annuity business processes, from the establishment of the enterprise annuity to the investment direction, risk management, income distribution and various aspects of effective supervision and management.      (E) to promote old-age pension system to increase the intensity of      We should reasonably define the enterprise annuity in a multi-pillar pension insurance system's status, clear the nature of the enterprise annuity and increase policy advocacy efforts to address the business, employees and regulatory agencies at different levels there is insufficient awareness of issues, from the overall situation and long-term perspective to develop the vision to realize the enterprise annuity.      Enterprise annuity issues relating to many aspects, we are facing many difficulties and challenges is limited to our current economic situation, many problems can not look to solve, but as long as we continue to believe that in the near future, China's Enterprise Annuity system will gradually go on the right track, and play an important role.           References:      1 Lin. Social insurance M. Beijing: China Financial Publishing House, 2003.      2 Sun Jianyong. Enterprise annuity operations and supervision of M. Beijing: China Financial and Economic Publishing House, 2004.      3 Deng-song, LIU Chang-ping. China's Enterprise Annuity System in M. Beijing: People's Publishing House, 2004. Reposted elsewhere in the paper for free download http:/