What Are the Different Types of Retirement Expenses?

Social pooling of employee retirement costs is an important part of the employee endowment insurance system, which refers to a system that collects, manages, and adjusts retirement costs uniformly within a certain range by social insurance management agencies.

Social coordination of retirement costs

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In order to meet the needs of the reform of the economic system, China has implemented a major reform in the field of endowment insurance since 1984. This is the implementation of social pooling of retirement costs. It is necessary to carefully analyze and study the problems in the overall planning of retirement costs, to give them a proper evaluation, and to explore the internal relationship between the coordination of retirement costs and the construction of a multi-level pension insurance system.

1. Change the method for enterprises to bear their own retirement expenses. Instead, social insurance agencies or tax authorities will collect the retirement expenses from enterprises and employees in accordance with a certain calculation base and withdrawal ratio to form a retirement fund managed by the society.

2. Retirement expenses of enterprise employees are directly paid by social insurance agencies, or entrusted by banks, post offices, and enterprises to achieve balance and reduce the burden of retirement costs of enterprises, and create conditions for equal competition among enterprises;

3. With the increase of socialization, retirement costs are adjusted not only between enterprises in cities and counties, but also between regions, and gradually transition from the city and county to the provincial level.