What Is a Hybrid Annuity?

Enterprise annuity refers to the supplementary nature of the government's public pension or national pension, which is established under the guidance of national policies and based on its own economic strength and economic conditions to provide employees with a certain level of retirement income protection. Pension system.

Enterprise Annuity System

China's improving urban workers

Improve corporate competitiveness

The essence of competition between enterprises is the competition for talents. Enterprise annuity system as a supplement

Lack of understanding

Our employees and executives

The enterprise annuity system, as a supplementary pension system for the social security system, plays a positive role in improving the employee pension system. However, due to historical and practical reasons, corporate annuities have not yet spread to most corporate employees. This is inconsistent with the current declaration of "a harmonious society for everyone's participation and economic development results shared by everyone." After retirement, the employees of the enterprise "have a good old age and have fun", and make them "have something to do with old age." They should have a rational understanding of the system and a scientific plan, and do the following work.

Define the status of the enterprise annuity system in the law

Enterprise annuities are mainly to make up for the deficiency of basic endowment insurance. Under the current condition that the replacement rate of basic endowment insurance is declining, this is a necessary mechanism and a trend to improve the development of the endowment insurance system. Therefore, the legal status of the enterprise annuity should be properly characterized in the "Social Insurance Law", and it should be clearly defined as supplementary insurance with relevant policy support in the field of occupational welfare, and make a basic legal positioning. At the same time, the State Council should promulgate special enterprise annuity management regulations to systematically stipulate the enterprise annuity system and determine the legal organization form and main issues of China's enterprise annuities to ensure the security and independence of enterprise annuity assets.

Increase publicity

More enterprises and employees can participate in order to expand the market; credible market norms can attract more enterprises and employees to participate, and finally achieve the original intention of establishing an enterprise annuity system. Although the enterprise annuity system has been in place for more than ten years, quite a few employees still know little about it. Therefore, in order to make most of the main body of enterprise annuity actively participate in the action, we must first start with the basic work of enterprise annuity-publicity and training. Through propaganda and training, employees are known and understood emotionally, and the system is identified and accepted ideologically, which translates into conscious participation in action. Through various forms, it is necessary to promote the common understanding and concern of enterprises and employees, as well as the establishment of the enterprise annuity system, and create a good social atmosphere for the development of the enterprise annuity system.

Good investment and management mechanism

First of all, the investment and operation of China's enterprise annuity funds must follow certain principles: we must carry out portfolio investment to reduce the risk of investment; we must adhere to the principle of strict separation of duties between investment managers and fund custodians, and clarify the responsibilities of both parties; On the premise of ensuring that risks remain at a reasonable level, implement an active investment strategy; secondly, based on market competition, entrust investment operating agencies to operate enterprise annuity funds on their behalf; again, accelerate the reform of the enterprise annuity management system and establish compliance with market-oriented investment requirements Finally, we need to broaden investment channels, gradually expand investment channels for enterprise annuities under the premise of controllable risks, and appropriately allow corporate annuities to invest in infrastructure debt plans, trust plans, bank wealth management products, hedging tools, etc., and expand entrustment. The choice space for people and investment managers to better realize multiple asset allocations, to achieve a balance between investment risk diversification and maximization of returns, and to improve investment returns.

Study and introduce tax preferential policies

The preferential tax policy for enterprise annuities is to mobilize the enthusiasm of enterprises to establish enterprise annuities from the institutional level. The establishment of enterprise annuities aims to reduce the financial burden of the state on the macro level and to help an enterprise solve the problem of pensions for its employees in the micro level, thereby stimulating the enthusiasm of the employees, which is also crucial to the development of the enterprise. Therefore, the government should give preferential policies for enterprise annuities at the tax level, and encourage enterprises and individual employees to pay contributions together. Study and introduce preferential tax policies for corporate annuities as soon as possible, improve related regulations, promote the development of corporate annuities and personal voluntary pension insurance, and encourage them to invest in the capital market through specialized investment institutions to realize the preservation and appreciation of pensions. At the same time, financial measures are used to further reduce the cost of enterprise annuity management operations, and various professional annuity management institutions are encouraged to accelerate the development of the annuity market and improve the level of annuity management.

Establish a special corporate annuity supervision agency

China currently does not have a special enterprise annuity supervision agency. In Hong Kong, in order to strengthen the supervision of mandatory provident funds such as enterprise annuities, a special "Mandatory Provident Fund Schemes Authority" has been established. Practice has proved that this specialized institution supervision is a very successful regulatory model. The scale of enterprise annuities in mainland China is much larger than that of Hong Kong. To strengthen the supervision of enterprise annuities, we can learn from Hong Kong s mature experience in establishing a regulatory agency and set up a special enterprise annuity regulatory agency. Government departments are responsible for policy formulation and professional regulatory agencies are responsible for enterprises The overall management of annuities realizes the separation of government functions from business functions.

From "non-mandatory" to "mandatory"

Practice has proved that a completely voluntary and non-mandatory system has a very limited effect on the construction of an old-age security system, and the enterprise annuity system should be gradually developed towards a mandatory direction. As far as the specific process is concerned, it can be shifted to semi-compulsory and then gradually to compulsory. The so-called "semi-compulsory" refers to the requirement that state-owned enterprises and other profitable enterprises must establish enterprise annuities, and assume more social responsibilities first. Whether enterprises that have not achieved profitability can establish voluntary choices. When conditions are ripe, all units are required to establish an enterprise annuity system to achieve "mandatory". Only through the extensive coverage of participating enterprises and participating employees, can the enterprise annuity truly reflect the fairness of the enterprise annuity.

Adopt a regional advancement development strategy

As a supplement to basic endowment insurance, enterprise annuities must follow the path of full development in all regions. We must not abandon the establishment and development of enterprise annuity systems because the economic level is backward. Otherwise, when the replacement rate of basic endowment insurance drops, people will lose the second pension. Guarantee. Due to the constraints of the actual situation, the national implementation of China's enterprise annuity system cannot be achieved overnight. Due to different economic development levels, the enterprise annuity system has different levels of development in different regions and industries in China. There is a planned and step-by-step process to promote the enterprise annuity Overwrite process. To this end, companies with good efficiency and long-term development capabilities should be selected as a pilot first, and then gradually developed to most enterprises. Large-scale enterprises such as petroleum, petrochemical, electric power, and aviation can be selected as pilot projects first. Such enterprises are not only large-scale and good, have the ability to establish enterprise annuities, but also have broad prospects for development. Employees have a high degree of trust in the enterprise. The need to establish an enterprise annuity is therefore conducive to the smooth establishment and operation of the enterprise annuity. Secondly, it will be promoted to small and medium-sized enterprises. In economically developed areas and areas where SMEs are more dense, eligible SMEs will be united. Organize corporate annuity plans. Because these SMEs participating in the union are geographically linked and are affected by the same geographical environment, the requirements for the enterprise annuity plan have a certain consistency, and the same geographical environment helps each enterprise to establish a joint annuity plan Maintain close contact and formulate a joint enterprise annuity plan that suits local conditions based on local environmental characteristics and employee needs. Then gradually develop to most enterprises, this can gradually expand the coverage of enterprise annuities in China in a planned and step-by-step manner.