basic old-age insurance, occupational pension and individual pension.
1. The first pillar is the basic old-age insurance established by the government. It mainly includes employee pension insurance and resident pension insurance. The employees participating in the employee pension insurance are employees who have formed a labor relationship with the employer. The insured population of the urban and rural residents' pension insurance is at least 16 years old (excluding students in school), staff of non-state organs and institutions and urban and rural residents who are not covered by the employee basic pension insurance system.
2. The second pillar is initiated by enterprises and institutions. Occupational pensions operated by commercial institutions, including enterprise annuities and occupational annuities.
3. The third pillar is the personal pension purchased by individual residents voluntarily and provided by commercial institutions. At present, it is mainly personal savings pension insurance and commercial pension insurance. In the future, banks may provide bank wealth management products, securities provide fund products, and insurance provides commercial endowment insurance products.
Because the basic old-age insurance system still needs to be improved. The development of the second pillar and the third pillar is not yet mature, and the specific system design and policy system are still unclear. In accordance with the principle of solving key and difficult problems first and advancing the three pillars step by step, the work of the Ministry of Human Resources and Social Security has focused on reforming and improving the basic old-age insurance system over the years.
Legal basis
Opinions of the General Office of the State Council on Promoting the Development of Individual Pensions
III. System Mode
Individual pensions are subject to individual account system, and the payment is entirely borne by the participants, with complete accumulation. Participants establish personal pension accounts through the personal pension information management service platform (hereinafter referred to as the information platform). Personal pension account is the basis for participating in the personal pension system and enjoying preferential tax policies.
participants can use the paid personal pension to purchase financial products in qualified financial institutions or their legally and legally entrusted sales channels (hereinafter referred to as financial product sales institutions) and bear corresponding risks. Participants shall designate or open a unique personal pension fund account for personal pension payment, income collection, payment and payment of personal income tax. Individual pension fund accounts can be designated or opened by participants in qualified commercial banks, or designated by other qualified financial product sales institutions. The personal pension fund account is closed, and its rights and interests belong to the participants, and it shall not be withdrawn in advance unless otherwise stipulated.
when a participant changes the bank where the personal pension fund account is opened, it shall transfer the funds in the original personal pension fund account to the new personal pension fund account and cancel the original fund account after verification by the information platform.
VI. Personal Pension Investment
The funds in the personal pension fund account are used to purchase financial products that meet the requirements, such as bank wealth management, savings deposits, commercial endowment insurance, Public Offering of Fund, etc., which are safe, mature, stable, standardized and focus on long-term preservation and meet the preferences of different investors. Participants can choose independently. Financial institutions and financial products involved in the operation of personal pension are determined by the relevant financial supervision departments and released to the public through information platforms and financial industry platforms.
Social Insurance Law of the People's Republic of China
Article 1 Employees shall participate in the basic old-age insurance, and both the employer and the employee shall pay the basic old-age insurance premium.
individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.
The measures for endowment insurance for civil servants and staff managed by reference to the Civil Service Law shall be formulated by the State Council.
article 11 the basic old-age insurance shall combine social pooling with individual accounts.
The basic old-age insurance fund consists of contributions from employers and individuals and government subsidies.
article 12 an employer shall pay the basic old-age insurance premium in proportion to the total wages of its employees as stipulated by the state and record it in the basic old-age insurance pooling fund.
employees should pay the basic old-age insurance premium according to the proportion of their salary stipulated by the state and record it in their personal accounts.
individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employing unit and other flexible employees who have participated in the basic old-age insurance shall pay the basic old-age insurance premiums in accordance with state regulations and record them in the basic old-age insurance pooling fund and individual account respectively.
article 13 before employees of state-owned enterprises and institutions participate in the basic old-age insurance, the basic old-age insurance premiums that should be paid during the period of deemed payment shall be borne by the government.
when the basic old-age insurance fund is under-paid, the government gives subsidies.