Is an enterprise annuity a powerful supplement to improve retirement benefits?

For many enterprise employees, compared with pensions, "enterprise annuity" is still a relatively unfamiliar concept. The relevant person in charge of the Ministry of Human Resources and Social Security explained that the enterprise annuity is a supplementary pension insurance system established by enterprises and their employees through collective negotiation on the basis of participating in the basic pension insurance in accordance with the law, and it is also an important part of the second pillar of China's multi-level pension insurance system. In 2004, China promulgated the "Trial Measures for Enterprise Annuity" and put it into practice.

Jin Weigang, president of the Chinese Academy of Labor and Social Security, pointed out in an interview with the economic reporter that enterprise annuity has a history of more than 10 years in China, but the actual coverage is still relatively small. According to the data, as of the end of 2016, there were only more than 10,000 enterprises in the country that had established enterprise annuities, covering only more than 23 million employees, which was much smaller than the basic old-age insurance system for urban workers covering more than 300 million people.

**The basic endowment insurance established as the first pillar has a limited level of endowment security for employees after retirement. Internationally, many public pension replacement rates are not high. As a supplementary pension insurance, enterprise annuity is an important part of multi-level pension security.

Enterprise annuity is a supplementary pension added on the basis of basic endowment insurance, which plays an important role in improving the level of pension treatment and quality of life of the insured after retirement. Jin Weigang said.

Dong Keyong, a professor at Chinese People's University, believes that the establishment of enterprise annuity by enterprises is conducive to improving the employee compensation system, and can also enhance the attraction of talents and stabilize the workforce. "From the experience of developed countries, one of the functions of enterprise annuities is to attract talents to work in employers for a long time. In other words, the longer an employee works for the company, the more annuity benefits the company will pay.

In terms of expression, the "Measures" changed from the voluntary establishment of enterprise annuities to the establishment of self-determination. Although there is only a difference of one word, it reflects the attitude of the state to encourage the establishment of an enterprise annuity system. Keyong said.

Social security can be paid in a lump sum at the time of retirement, and if there is no social security account before, it cannot be paid.

The provident fund will be fully credited to the personal account after the retirement procedures are completed. Supplementary insurance is gradually paid to individuals as an annuity month until it is exhausted!

Enterprise supplementary endowment insurance refers to a form of endowment insurance established on the basis of the national basic endowment insurance, based on the national policy and the economic situation of the enterprise, aiming to improve the living standards of employees after retirement, and making an important supplement to the national basic endowment insurance. Enterprise supplementary endowment insurance is also called enterprise annuity. Enterprise supplementary endowment insurance refers to the supplementary pension provided by the enterprise for the employees of the unit under the guidance of national policies and according to the economic benefits of the unit after paying the basic endowment insurance premiums according to the regulations.

The Supplementary Insurance Center of the Shenzhen Municipal Social Security Bureau specializes in this business. Enterprise supplementary endowment insurance has the following functions: 1. It can improve the living standard of employees after the retirement enterprise supplements endowment insurance.

With the progress of society and economic development, the demand for old-age security of employees will increase accordingly, and some enterprises with better economic benefits also have the ability to improve the level of employee welfare. In this case, allowing such enterprises to establish supplementary pension insurance for their employees can meet the needs of employees at a higher level of old-age security. 2. It is conducive to close the relationship between employees and enterprises, stabilize the workforce, enhance the cohesion and attractiveness of enterprises, and promote the development of enterprises.

3. The growing scale of enterprise supplementary endowment insurance converts a large number of spot consumption funds into long-term savings funds, which helps to promote the development of the capital market and the growth of the national economy. Enterprise supplementary endowment insurance refers to a kind of auxiliary endowment insurance established by the enterprise for its employees according to its own economic strength, in the implementation policies and implementation conditions stipulated by the state. It is the second level of the three-level pension insurance system, which is guided by the national macro and implemented by the internal decision-making of the enterprise.

The supplementary pension insurance premium of the enterprise can be fully borne by the enterprise, or jointly borne by the enterprise and the employee, and the proportion of the burden shall be determined by the agreement between the employer and the employee. Supplementary endowment insurance in a broad sense includes occupational pension plans, mutual** insurance and commercial annuity plans (commercial endowment insurance). It needs to be reminded of the individual income tax issue of enterprise annuity:

According to the provisions of the Trial Measures for Enterprise Annuity issued by the Ministry of Labor and Social Security (Order No. 20 of the Ministry of Labor and Social Security), the enterprise annuity fees paid by enterprises and individual employees belong to the nature of supplementary pension insurance. According to Article 25 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China, the enterprise annuity expenses paid by enterprises shall be incorporated into the individual wages and salaries of employees in the month when they are included in the personal accounts of employees' enterprise annuities for individual income tax purposes. The enterprise annuity expenses paid by individual employees shall not be deducted from the taxable income of taxpayers. When an employee retires or settles abroad to withdraw the annuity according to the regulations, the individual income tax will no longer be calculated.

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There are differences, 1. Enterprise annuity.

It is a continuation of the supplementary endowment insurance, which has just been established in the basic endowment insurance.

In order to improve the level of pension insurance, the state stipulates that according to the enterprise's own benefits, the enterprise can establish a supplementary pension insurance according to a certain proportion of the enterprise, so as to improve the treatment of workers when they retire. 2. With the continuous popularization of supplementary endowment insurance, the establishment of supplementary endowment insurance enterprises continues to increase, and the amount of insurance.

In order to standardize the behavior of supplementary endowment insurance and the management of funds, the state refers to international practice to refer to the supplementary endowment insurance as enterprise annuity, and has issued relevant rules and regulations.

Order No. 20 and Order No. 23 of the Ministry of Labor), making the establishment and management of enterprise annuities more standardized and orderly.

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Legal analysis: enterprise supplementary endowment insurance, also known as enterprise annuity. In addition to the mandatory national pension, it is a supplementary pension insurance system established by enterprises under the guidance of national policies and according to their own economic strength and economic conditions, providing a certain degree of retirement income protection for the employees of the enterprise.

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

Article 12 The employer shall pay the basic endowment insurance premiums in accordance with the proportion of the total wages of its employees stipulated by the state, which shall be credited to the basic endowment insurance pool. Employees shall pay basic pension insurance premiums in accordance with the proportion of their wages stipulated by the state, which shall be credited to their personal accounts. Individually-owned businesses without employees, part-time employees who have not participated in the basic pension insurance in the employer, and other flexibly employed persons who participate in the basic pension insurance shall pay the basic pension insurance premiums in accordance with the provisions of the state, which shall be credited to the basic pension insurance co-ordination and personal accounts respectively.

Article 60 Employers shall declare and pay social insurance premiums in full and on time, and shall not defer or reduce or reduce social insurance premiums except for force majeure or other statutory reasons. The social insurance premiums to be paid by the employee shall be withheld and paid by the employer, and the employer shall inform the employee of the details of the social insurance premiums paid on a monthly basis. Individually-owned businesses without employees, part-time employees who do not participate in social insurance at the employer, and other flexibly employed persons may directly pay social insurance premiums to the social insurance premium collection agency.

Can the annuity of the participating enterprises be improved, and the pension treatment of retired employees? In that case, our answer to this question is yes, in other words, we can definitely increase the pension benefits of retired employees. Why?

Because this enterprise annuity is in fact simply speaking, it is a supplementary pension insurance, so as long as you participate in this supplementary pension insurance, you can get an additional pension treatment under the premise of your own pension, so the income he gets will definitely be improved.

However, the enterprise annuity itself cannot be paid and participated in immediately, and it needs to be participated and paid through the company unit to which you belong, and the enterprise annuity does not belong to the statutory duties, so many companies do not have a statement about this enterprise annuity, which is why many people do not have supplementary pension insurance, because he does not belong to the statutory duty after all.

Of course, if you want to participate in this enterprise annuity, in fact, the individual has to bear a 4% contribution ratio, but the unit to which you belong should bear an 8% contribution ratio, so for the unit, in fact, it has increased a certain amount of labor costs, so this is why many enterprises and even most companies do not have this enterprise annuity A direct reason. However, the 12% payment of individual contributions plus the company's contributions, all of this payment is actually into the personal account, he is not the same as our pension insurance, because the pension insurance is only 8% of the individual contribution can enter the personal account.

Therefore, for individuals participating in enterprise annuities, in fact, how much do you pay, and how much can you experience in the end? Therefore, for the unit that pays the enterprise annuity, in fact, it is a very good unit, and naturally it is best not to give up the payment of the enterprise annuity, in fact, you will also encounter such a problem, that is, you may have this enterprise annuity when you worked in the previous enterprise unit, but there is no enterprise annuity in the new work unit, this situation will happen, of course, it is also widespread, because after all, the unit that pays the enterprise annuity is a small number of units.

In that way, in fact, there is no way to experience the enterprise annuity treatment again. That's why I'm suggesting it to everyone as well. If you are an employer with a corporate annuity.

In that case, it is better not to choose to change jobs, and go to work in a unit that does not have an enterprise annuity, which will cause you a lot of damage. If there is no enterprise annuity unit, the first enterprise annuity will be terminated, unless you find a job in the future, there is this enterprise annuity can be paid normally, if you have not been looking for this kind of enterprise annuity unit in the future, then it is very likely that your previous enterprise annuity will be invalidated, there is no practical significance for you, you will not enjoy the treatment of this supplementary pension.

Yes, after participating in the enterprise annuity, there will be a certain increase in profit dividends, so that your salary level will also increase, and the amount of tax withheld by social security will increase, so that the pension treatment will be improved.

Yes, it can improve our retirement benefits, and it is also a part of our income, and we can participate in this kind of more.

I think the pension will definitely be higher to a certain extent, and the pension after retirement is mainly divided into two parts: basic pension and enterprise annuity.

An enterprise annuity can be understood as a type of pension. China's old-age security system has three layers, the first layer is the basic pension insurance that the state stipulates to pay compulsorily, the second layer is the enterprise annuity, which has been called supplementary pension insurance before, and it is named the enterprise annuity after 2000, and the third layer is the commercial pension insurance purchased by individuals.

I understand that the pension you are talking about may refer to the basic pension insurance. The main difference between basic endowment insurance and enterprise annuity is a mandatory provision of one country, and one is only encouraged by the state. The contribution ratio of basic pension is 20% for enterprises and 8% for individuals.

There is only a maximum amount of enterprise annuity dressing, with a maximum of 1 12 for enterprises and 1 12 for individualsAmong them, 4% of the enterprise payment can be paid before tax.

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Enterprise supplementary endowment insurance includes enterprise annuity, and annuity is only one of the forms. There are many more. However, the state is not compulsory in this regard, and each enterprise can do it according to its own strength.

The enterprise annuity needs to be composed of three parts: the bank, the operating institution, the enterprise and the individual. The specific operation belongs to the operating institution, and the specific management belongs to the bank. If the unit gives you an enterprise annuity, it proves that your unit is good and worth working hard.

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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 an important supplement to the national basic pension insurance, and is the "second pillar" of China's urban employee pension insurance system (composed of three parts: basic pension insurance, enterprise annuity and individual savings pension 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.

At the end of 2021, 10,000 enterprises across the country established enterprise annuities, with 28.75 million employees participating. At the end of the year, the scale of enterprise annuity investment and operation was one trillion yuan, and the investment income of the year was 124.2 billion yuan.

The applicant for the enterprise annuity shall meet the acceptance conditions specified in the "Interim Measures for the Qualification Accreditation of Enterprise Annuity Management Institutions" (Order No. 24 of the Ministry of Labor and Social Security, revised in 2015 according to the Decision of the Ministry of Human Resources and Social Security on Amending Some Regulations, and revised in 2016 in accordance with the Decision on the Second Batch of Clearing and Regulating 192 Administrative Examination and Approval Intermediary Services of the Ministry of Labor and Social Security). Checklist of application materials.

1.Qualification Certification of Enterprise Annuity Management Institution (National Level):

1) Eligibility application form.

2) Resource allocation description.

3) Management system and process.

4) Applicant's self-discipline commitment.

5) Relevant supporting materials.

6) Business feasibility report.

The material paradigm is disclosed in detail in the notice published on the official website of the Ministry of Human Resources and Social Security. According to the development of the annuity market, the number of qualified institutions is different, and the content of each notice issued will be adjusted.

2.Qualification Renewal Recognition of Enterprise Annuity** Management Institution (National Level): Enterprise Annuity** Management Institution shall provide an application report for the renewal of qualification and a self-discipline commitment letter from the applicant.

The paradigm of the application report and the self-discipline commitment letter are disclosed in detail in each notice issued on the official website of the Ministry of Human Resources and Social Security.

Legal basisArticle 2 of the "Enterprise Annuity Measures": The enterprise annuity referred to in these measures refers to the supplementary pension insurance system established by enterprises and their employees on the basis of participating in the basic pension insurance in accordance with the law.

The state encourages enterprises to establish enterprise annuities. The establishment of enterprise annuity shall be implemented in accordance with these measures.