I. Pillar I: Federal Social Security Fund
The first pillar of American pension is the federal social security fund, which includes three plans: Old Age and Survivor Insurance (OASI), Disability Insurance (DI) and Supplementary Security Income (SSI).
Many people merged OASI and DI to obtain the reserves of the merged "OASDI"-the trust fund for the elderly, survivors and the disabled.
At present, the operation of the federal social security fund is mainly invested and operated by two independent trust funds: OASI Fund and DI Fund. As of 20021,the total amount of federal social security funds is trillion dollars, of which OASI is trillion dollars, accounting for 99.4 billion dollars, and about 65.23 million beneficiaries receive welfare payments.
Second, the second pillar: employer pension plan.
The employer pension plan is the largest part of the American pension system. /kloc-In the late 20th century, in order to stabilize employees, some American enterprises began to establish employer pension plans, which grew with the economic development after World War II, mainly including pension plans initiated by private sector and government employers. As of 202 1, the overall size of the second pillar of American pension is trillion dollars, accounting for the largest part of the entire pension assets.
Generally, the second pillar occupational pension plan has two modes. According to the different fund operation and payment methods, enterprise annuities can be basically divided into two categories: defined benefit plan (DB) and defined contribution plan (DC). The main differences are:
Under the 1)DB plan, the employer guarantees that the amount of pension received by employees after retirement will be paid according to the implementation agreement, so employees can obtain stable income; Participants in DC plan pay a certain amount every month, and the amount they receive after retirement depends on the investment income, which is relatively risky and uncertain.
2)DB plans to set up a unified account for employees by the employer. Once employees leave their jobs, the account change process is complicated; DC plans to establish a personal contribution account, and job changes will not affect future pension withdrawal.
The DB model used to be the main model, but with the increasing cost of DB plan year by year and the increasing burden on enterprises, the DC plan with tax incentives gradually replaced the DB plan and became the most important part of the second pillar of American pension.
By the end of 20021,the assets of DC plan in the United States reached one trillion dollars, accounting for the third and third pillars of employer pension plan 1987 to 202 1: individual retirement savings account.
Individual Retirement Account (IRA) is the third pillar personal savings plan established by the United States 1974 according to the Employee Retirement Income Security Law. This plan enjoys the same tax deferred benefits as the DC plan, and its purpose is to encourage individuals to reserve pension wealth for retirement through voluntary savings, which is a supplementary pension plan.
By the end of 2002 1, the total assets of IRA had reached1trillion US dollars, and there were three main plans accounting for the proportion of US GDP: traditional IRA, Roth IRAs and Employee Sponsored, among which the employer-sponsored plan was further divided into SEP, SAR-SEP and simple * * *. In terms of scale, as of 202 1, the proportion of traditional IRA is the highest in the IRA plan.