What is endowment insurance? Endowment insurance is an important part of social insurance system and the most basic part of the whole social security system. In today's world, it is almost unthinkable to talk about social insurance or social security without pensions. Due to the irreversible trend of population aging and family miniaturization in modern society, the traditional family security is in a dilemma in meeting the basic needs of the elderly. Therefore, society has to take care of these elderly people who have contributed to social and economic development and human development, but now they can no longer rely on labor as their main means of livelihood due to physiological or social reasons. This is the social and economic background of the emergence and development of endowment insurance. Old-age insurance is a social insurance project aimed at ensuring that the elderly within the legal scope still have a stable and reliable source of income after completely or basically withdrawing from social labor, which is enough to meet the basic needs of life. The definition of this concept includes three meanings: ① Old-age insurance will take effect automatically after the elderly within the legal scope completely or basically withdraw from social labor career. The "complete" mentioned here is characterized by being separated from the means of production in order to "retire"; "Basic" here means that participation in production activities is no longer the main content of social life, but for "supporting the elderly". It must be emphasized that the legal age limit is the actual standard. The purpose of endowment insurance is to provide a stable and reliable source of life for the elderly and ensure their basic living needs. (3) Endowment insurance is realized through social insurance.

Legal objectivity:

As a retirement security system linked to enterprises, enterprise supplementary endowment insurance can guarantee participants to maintain their original living standards to the greatest extent after retirement; At work, people deposit enterprise contributions and part of their income into the enterprise pension insurance account, gain income through the investment and operation of relevant institutions, and then withdraw money from the account when they retire. It has greater flexibility in investment tools, which can mobilize social capital to the greatest extent and realize the optimization of capital allocation. The significance of establishing supplementary old-age insurance for enterprises is mainly reflected in the following aspects: First, for the country: (1) The state encourages capable enterprises to establish supplementary old-age insurance for enterprises to ensure and improve the living standards and quality of retired workers, which fully embodies the "people-oriented" development concept advocated by China, creates a harmonious social atmosphere, and is conducive to people's living and working in peace and stability and progress. (2) With the deepening of China's industrial restructuring and system reform, especially after China's accession to the WTO, a large number of foreign capital and foreign enterprises have entered, making the market competition more intense, and many powerful China enterprises will also "go global", and China enterprises will face more severe challenges. The establishment of an internationally common enterprise supplementary endowment insurance system will undoubtedly help China enterprises to better integrate with the international community, thus enhancing their international competitiveness. The reform and development of enterprises in China should follow their own laws of development and act according to their abilities. At the same time, we should learn a lot from the successful experience of foreign countries, including the successful experience of enterprise supplementary endowment insurance system, and give full play to the positive role of this system in enterprise human resource management, so as to promote the business development of enterprises and the development of the whole national economy. (3) It is conducive to coping with the crisis of population aging. When the aging trend of the population intensifies, the number of contributors does not change much, and the number of retirees increases sharply, it will inevitably lead to a payment crisis. Enterprise supplementary endowment insurance, as a retirement security system linked with occupation, can ensure the insured to maintain the original living standard after retirement to a great extent. Secondly, for enterprises: (1) to enhance the competitiveness of enterprises, the competition between modern enterprises has largely evolved into the competition between human capital and high-quality talents. The insurance system organically combines the interests of enterprises and employees, and unifies the actual interests and expected interests of employees. It has become an effective incentive mechanism for enterprises to mobilize the enthusiasm and creativity of employees and attract and retain high-quality talents. It can not only improve the labor productivity and competitiveness of enterprises, but also enhance employees' sense of belonging and loyalty to enterprises. (2) Enhancing enterprise cohesion can further realize employees' participation in enterprise benefit distribution and management, thus combining the interests of enterprises and employees more closely. Enterprise supplementary endowment insurance can improve the comprehensive welfare security system of employees, relieve the worries of employees' pension, and better stabilize the workforce. Thirdly, for individuals: (1) The individual account of enterprise supplementary endowment insurance consists of two parts: individual contribution and enterprise contribution, that is, in addition to individual contribution, the enterprise will also match the payment amount for employees accordingly. As a supplement to the basic old-age pension, enterprise supplementary old-age insurance can make up for the shortage of social security replacement rate in the future to a great extent and improve the standard of old-age living after retirement. (2) Ensure the safety of "pension money". The enterprise supplementary pension insurance fund is operated by trust, and the restriction mechanism of separation of financial rights can effectively reduce the risk of operation and management and effectively protect employees' own interests from infringement. (3) The assets of the enterprise supplementary pension insurance fund can only be used to pay the beneficiary's pension. It will not change its payment purpose because of the change of company management or the bankruptcy of enterprises, which is also a big advantage different from ordinary commercial insurance. (4) From the perspective of investment, the investment managers of enterprise supplementary pension insurance funds are all major first-class fund companies, insurance companies and securities companies. And their professional ability has been fully affirmed by the market, and the investment income is unmatched by most individual investors. As an institutional investor, no matter the types and scope of investment products involved, or their professional skills and ability to greatly reduce investment risks through economies of scale, personal investment is hard to reach. It is beneficial for enterprises to supplement the endowment insurance fund and obtain stable income. What needs to be reminded is the personal income tax of enterprise annuity: according to the provisions of the Trial Measures for Enterprise Annuities (Order No.20 of the Ministry of Labor and Social Security) of the Ministry of Labor and Social Security, the enterprise annuity expenses paid by enterprises and individual employees belong to the nature of supplementary old-age insurance. According to the provisions of Article 25 of the Regulations for the Implementation of the Individual Income Tax Law of the People's Republic of China, the enterprise annuity expenses paid by an enterprise shall be included in the employee's personal salary income in the month when they are included in the employee's personal annuity account, and personal income tax shall be levied; The enterprise annuity expenses paid by individual employees shall not be deducted from the taxable income of taxpayers. Personal income tax will no longer be levied on employees who retire or settle abroad and withdraw annuities according to regulations.