Endowment Insurance 101（2）

main feature

First, it is imposed by national law. Businesses and individuals must participate. Those who meet the pension conditions can receive a pension from the social insurance service.

The second is the source of pension insurance costs, which are generally borne by the three parts of the state, the unit and the individual or both the unit and the individual, and allow for a wide range social assistance.

Thirdly, pension insurance is social and has a great impact, it benefits a large number of people and over a long period of time, and the expenses are enormous. Therefore, special agencies must be created to implement unified planning and management of modernization, specialization and socialization.

The establishment of an old-age insurance system is conducive to the replacement of old and new ones, and makes it possible to rationalize the structure of employment; providing basic life security for the elderly and providing support to the elderly, is an important measure to deal with the aging of the population and is conducive to social stability It can encourage young people to move from before, raise wage standards, guarantee life after retirement and promote economic development aside.

The issue of care for the elderly is not only a social problem, but also a global problem. It is linked to the economic and civilized development of a country or a society, and we must pay sufficient attention to it. Since the scope of pension insurance is very broad, the insured person has been receiving treatment for a long time and the magnitude of income and expenses is enormous, it is necessary that the government establishes a special agency to implement unified legislation, unified rules, unified management and unified organization and implementation across society.

Changing the system type

The pension insurance systems of the different countries of the world are classified as follows:

1. Savings-type pension insurance. The savings-type pension insurance system is implemented in a group of emerging market economies, with Singapore, Chile and other countries as representatives, emphasizing the principle of self-protection, emphasizing implements a fully accumulated fund model and establishing different types of personal pension insurance accounts or "funds" Account.

2. National pension insurance. The national pension insurance system has already been implemented in most planned economies, with the former Soviet Union and the countries of eastern Europe as representatives. According to the principle of "national contractualization", the employer pays the costs, the State implements a unified organization, the workers participate in management, the level of treatment is unified and the level of protection is high.

3. Traditional pension insurance. Traditional pension insurance is represented by developed market economy countries such as the United States, Germany and France. It implements the principle of "selectivity", that is to say that it does not cover all citizens, but selects certain members of society to participate, with an emphasis on treatment and income and salary payments (tax). Linked, it can therefore also be called “income-related pension insurance”.

4. Provident pension insurance. Social protection type pension insurance is represented by developed market economy countries such as the United Kingdom, Australia, Canada and Japan. It implements the principle of the "generalized system of services". Basic pension insurance covers all citizens, stressing that all citizens have annuities, so it is called "type of social protection" or "Pension insurance" SPG ".

5. Mixed pension insurance. Most of the countries that used to have social protection pension insurance have now or are in the process of switching to a hybrid system. In other words, social protection type pension insurance and “income related pension insurance” coexist at the same time and together constitute the first pillar of basic pension insurance. This is the case in the UK and Canada.