What is an enterprise annuity and what is the contribution ratio

Enterprise annuity refers to the supplementary endowment insurance system voluntarily established by enterprises and their employees on the basis of participating in basic endowment insurance in accordance with the law.

The annual contribution of the enterprise shall not exceed 8% of the total salary of the employees of the enterprise in the previous year. The total contribution of enterprises and individual employees shall not exceed 12% of the total wages of employees in the previous year. The specific required expenses shall be determined through consultation between the enterprise and the employees.

When an employee reaches the retirement age stipulated by the state, he or she can receive the enterprise annuity from his or her personal account on a monthly basis or in installments until the funds in the personal account are fully paid; You can also use the funds in your personal account of enterprise annuity for a one-time purchase of commercial pension insurance products, receive benefits according to the insurance contract and enjoy the corresponding inheritance rights. The funds in the personal account of the enterprise annuity of the person who have settled abroad (outside the territory) can be paid to the person in a lump sum according to the person's request. After the death of an employee or retiree, the balance of the personal account of the enterprise annuity can be inherited.

When an employee changes his or her employer, and the new employer has established an enterprise annuity or occupational pension plan, the original enterprise annuity personal account shall be transferred to the enterprise annuity or occupational pension plan of the new employer.

According to the "Enterprise Annuity Regulations" issued by the Ministry of Human Resources and Social Security on June 6, 2016, Article 14 The annual contribution of an enterprise shall not exceed 8% of the total salary of the employees of the enterprise in the previous year. The total contribution of enterprises and individual employees shall not exceed 12% of the total wages of employees in the previous year.

The specific required expenses shall be determined through consultation between the enterprise and the employees.

According to the "Provisions on Enterprise Annuity" issued by the Ministry of Human Resources and Social Security on June 6, 2016: Article 15 The channels for enterprise payment and expenditure shall be implemented in accordance with the relevant provisions of the state, and the individual payment of employees shall be withheld and paid by the enterprise from the individual wages of employees.

An enterprise annuity is a supplementary pension system. The contribution ratio of enterprise annuity is 4% for individuals and 8% for units. Enterprise annuity refers to the supplementary pension insurance system independently established by enterprises and their employees on the basis of participating in basic pension insurance in accordance with the law.

For the full financial contribution unit, the part of the unit contribution is paid by the financial expenditure, and the bookkeeping method is adopted, and the interest is calculated every year according to the accounting interest rate announced by the state. For non-full contribution units, the unit payment is actually borne by the unit, and the actual account accumulation is adopted. The resulting occupational annuity** implements market-oriented investment and operation, and the interest is calculated according to the actual income.

Measures for Occupational Pensions of Government Institutions and Public Institutions

Article 4. The cost of occupational pension shall be borne jointly by the unit and the individual staff member. The proportion of occupational pension paid by the unit is 8% of the total salary of the unit, and the proportion of individual payment is 4% of the salary paid by the individual, which is withheld by the unit.

The payment base of units and individuals is consistent with the payment base of the basic pension insurance for the staff of government agencies and institutions.

According to the state of economic and social development, the state shall adjust the proportion of occupational pension contributions of units and individuals in a timely manner.

Answer 1: At the beginning of the enterprise annuity plan, the client notifies the trustee of the total amount and details of the relevant employee contributions, and the trustee provides the relevant information to the account manager. Based on this, the account manager sets up the system and enters the information.

2. Before the payment date, the account manager calculates the total amount and details of the payment, generates the enterprise payment bill and the employee's individual payment bill, and reports it to the trustee for confirmation.

3. After receiving the payment bill provided by the account manager, the trustee shall check and confirm with the client, and after the verification is correct, the signed payment bill will be fed back to the account manager.

4. On the payment date, the trustee shall issue a payment instruction to the client, and the client shall transfer the total amount of payment listed in the payment bill to the trustee and notify the trustee.

5. The trustee shall deliver the notice of collection and the total bill of enterprise payment to the custodian. After receiving the payment, the custodian shall reconcile the actual amount received with the total bill provided by the trustee and serve the payment receipt notice to the trustee and the account manager.

6. After checking the data transferred by the custodian, the trustee will notify the account manager to carry out the financial processing of the payment. After the account manager reconciles the payment details data with the total amount of contributions notified by the custodian, it will be distributed among the established individual accounts according to the agreement of the enterprise annuity plan.

Enterprise annuity contribution ratio.

Enterprise annuity is not mandatory, so there is no payment base, but there is an upper limit for payment. The enterprise annuity is jointly borne by the enterprise and the employee, and the unit contribution generally does not exceed one-twelfth of the total salary of the previous year (equivalent to the total salary; The total contribution of the unit and the employee shall generally not exceed one-sixth of the total salary of the previous year (equivalent to the total salary). The enterprise annuity implements market-oriented operation, and should choose the operating institution recognized by the Ministry of Labor and Social Security for management.

The enterprise annuity payment method can be flexibly selected, and the enterprise can choose the best according to the situation of the province. The specific methods are as follows: enterprise efficiency and employee length of service determination method, enterprise for employees unilateral payment method, wage base value method, supplementary base value method, wage proportion method, absolute distribution method.

The latest regulations on enterprise annuities in 2018.

1. The upper limit of payment is proposed to be lowered from 1 6 to 12%.

It was learned from the Ministry of Human Resources and Social Security that the Ministry of Human Resources and Social Security recently drafted the "Enterprise Annuity Regulations (Draft for Comments)" and solicited opinions from the public. The Consultation Paper lowers the upper limit of enterprise annuity contributions. The Consultation Paper adjusts the upper limit of enterprise contributions from "1 12" to "8%" of the total wages of employees in the previous year, and adjusts the upper limit of the sum of enterprise and individual employees from "1 6" to "12%" of the total wages of employees in the previous year, and clarifies that the specific payment ratio shall be determined by the enterprise and employees through negotiation.

Article 16 of the Draft for Comments proposes that, after the implementation of the enterprise annuity, if the enterprise encounters operating losses, restructuring and mergers and acquisitions, etc., it cannot continue to pay premiums in the current period, it may suspend the payment after consultation with the employee. After the enterprise and employees resume payment, they can make supplementary payment according to the actual situation of the enterprise and the enterprise annuity plan when the payment is suspended.

The number of years and the amount of the supplementary payment shall not exceed the number of years and the amount of the actual suspension of the payment.

2. The Ministry of Human Resources and Social Security revised the regulations on enterprise annuity: reduce the payment.

Under normal circumstances, the proportion of unit contribution is 8%, the proportion of individual contribution is 4%, the total proportion of payment is 12%, and the enterprise annuity and housing provident fund only have personal accounts, so the enterprise annuity paid by units and individuals is all into the individual enterprise annuity account of employees and belongs to the depositor.

Enterprise annuity is a kind of supplementary pension system, which refers to the supplementary pension insurance system established independently by enterprises and their employees on the basis of participating in basic pension insurance in accordance with the law.

Enterprise annuity is the basic pension insurance of the state.

An important supplement is the pension insurance system for urban workers that is being improved in China.

It is composed of three parts: basic endowment insurance, enterprise annuity and personal savings endowment insurance). In countries that implement modern social insurance systems, enterprise annuities have become a more common enterprise supplementary pension plan, also known as "enterprise pension plan" or "occupational pension plan", and has become an important part of the pension insurance system of the host country.

According to the relevant regulations of the state on enterprise annuity, employees can only reach the retirement age stipulated by the state.

, you can receive the enterprise annuity once or regularly from your personal account for the enterprise annuity. Employees who have not reached the retirement age prescribed by the state shall not withdraw funds from their personal accounts in advance. The funds in the personal account of the enterprise annuity of the person who have settled abroad can be paid to the person in a lump sum according to the request of the person.

When an employee changes his or her employer, the funds in the personal account of the enterprise annuity can be transferred with him. The enterprise annuity system is not implemented during the period of advancement of employees, joining the army, unemployment, or new employment.

The personal account of the enterprise annuity can continue to be managed by the original management institution. After the death of an employee or retiree, the balance of the individual account of the enterprise annuity shall be received in a lump sum by the beneficiary or legal heir designated by the employee.

Legal analysis: occupational annuity = unit payment + individual payment, of which the payment ratio is: 8% of the total salary of the unit; 4% of the wages paid by the employee, and the total contribution of enterprises and individuals shall not exceed 12% of the total salary of the employees of the enterprise.

Legal basis: "Dissipation of the Measures of the People's Republic of China for Enterprise Annuity".

Article 2 The term "enterprise annuity" in these measures refers to the supplementary pension insurance system established independently by enterprises and their employees on the basis of participating in basic endowment insurance in accordance with the lawThe state encourages enterprises to establish enterprise annuitiesThe establishment of enterprise annuity shall be implemented in accordance with these measures.

Article 3 The expenses required for enterprise annuity shall be paid by the enterprise and the individual employeesEnterprise annuity** implements complete accumulation, establishes a personal account for each employee who participates in the enterprise annuity, and invests and operates in accordance with the relevant provisions of the stateEnterprise annuity**Investment and operation income is merged into enterprise annuity**.

Legal analysis: occupational annuity = unit payment + individual payment. Among them, the contribution ratio is:

8% of the gross salary of the unit; 4% of the salary paid by the employee shall be withheld by the unit. According to the state of economic and social development, the state shall adjust the proportion of units and individuals who do not imitate occupational pension contributions in a timely manner.

Legal basis: Social Insurance Law of the People's Republic of China

Article 13 Before the employees of state-owned enterprises and public institutions participate in the basic endowment insurance, the basic endowment insurance premiums that should be paid during the deemed payment period shall be borne by the first employee.

When the basic endowment insurance is insufficient, it will be subsidized.

Article 71 The State shall establish a national social security system, which shall be composed of funds raised from the budget appropriation and other approved means, and shall be used to supplement and adjust social security expenditures. The national social security ** is managed and operated by the national social security ** management and operation agency, and the value is maintained and increased under the premise of ensuring safety.

The national social security ** shall regularly announce to the public the situation of revenue and expenditure, management and investment and capital judgment. The financial department, the social insurance administrative department, and the auditing institution shall supervise the revenue and expenditure, management and investment operation of the national social security.

According to the current relevant policies, there are two restrictions on the contribution ratio of enterprise annuity, the first is the part of enterprise payment, which does not exceed 8% of the total salary of the employees of the enterprise every year; The second is the contribution of enterprises and individual employees, and the total amount shall not exceed 12% of the total wages of employees of the enterprise. The maximum amount of the current payment of the enterprise into the personal account of the employee's enterprise annuity shall not exceed 5 times the average amount.

1. What is an enterprise annuity?

In fact, enterprise annuity is also known as "enterprise pension plan" or "occupational pension plan", in some developed countries, enterprise annuity has been very common, in China, enterprise annuity is an important supplement to China's basic pension insurance. At present, China's urban workers' pension insurance system consists of three parts, namely basic pension insurance, enterprise annuity and individual savings pension insurance.

Among them, the basic endowment insurance of the enterprise is mandatory, as long as the enterprise has signed a formal labor contract with the employee, then the endowment insurance must be paid, but the enterprise annuity is not mandatory, at present, it is more of an advocacy, as for how to pay, what is the proportion of payment, the enterprise itself formulates the "enterprise annuity plan" and reports to the local social security bureau for approval and can start to pay.

Of course, for enterprise employees, if they want to participate in the enterprise annuity, they must meet certain conditions.

Clause. 1. Must participate in the basic endowment insurance, only employees who increase the basic endowment insurance are eligible to participate in the enterprise annuity plan;

Clause. 2. The enterprise annuity is not mandatory to participate temporarily, and it is completely up to the enterprise and the individual to decide.

2. What is the contribution ratio of enterprise annuity?

According to the current relevant policies, there are two restrictions on the contribution ratio of enterprise annuity, the first is the part of enterprise payment, which does not exceed 8% of the total salary of the employees of the enterprise every year; The second is the contribution of enterprises and individual employees, and the total amount shall not exceed 12% of the total wages of employees of the enterprise. The maximum amount of the current payment of the enterprise into the personal account of the employee's enterprise annuity shall not exceed 5 times the average amount.

Let's take a simple example, if the average salary of an employee is 8,000 yuan per month, then the part of the enterprise contribution cannot exceed 640 yuan; The total annuity of enterprises and individuals shall not exceed 960 yuan.

For these paid annuities, the money will be managed in the exclusive annuity ** account management, and the annuities will be managed and invested by these **, and the final enterprise annuity will be composed of three parts, and the individual payers will accumulate investment income.

3. What is the use of an enterprise annuity?

To put it bluntly, enterprise annuity is a kind of supplementary pension insurance for employees, which can further guarantee the pension life of employees, and for those enterprises that have the ability, it is a win-win situation for both enterprises and employees to pay annuities.

For enterprises, although the annuity has to pay an additional cost, it is conducive to attracting and retaining talents, which is also very helpful to promote the development of enterprises.

For employees, after participating in the enterprise annuity, they have an additional guarantee for their own pension, which can eliminate employees' worries.