Occupational annuity refers to the supplementary old-age insurance system established by institutions and their staff on the basis of participating in the basic old-age insurance of institutions.

Pension, also known as pension and retirement fee, is the most important social pension insurance treatment.

2. Different in nature

China's enterprise annuity is a supplementary old-age security system, which is neither social insurance nor commercial insurance, but a unit welfare system. It is a security system established by public institutions and their employees according to their own economic conditions, and public institutions and their employees bear all risks arising from the implementation of the occupational annuity plan.

Pensions are accumulated and operated according to the principle of accumulation by the state, the collective and the individual. When people are in their prime of life, part of the wealth created is invested in pension plans to ensure a sense of security in their later years.

3. Different functions

Occupational annuity is essentially a deferred payment of employees' wages. The purpose of this deferred payment is to prepare for future retirement and avoid the decline of living standards due to the lack of basic old-age insurance. In this sense, occupational annuity is a supplementary endowment insurance.

After a worker is old or incapacitated, according to his contribution to the society and his eligibility for old-age insurance or retirement conditions, the monthly or lump-sum payment of insurance benefits in the form of money is the need to benefit the society and is mainly used to ensure the basic needs of employees after retirement.

Baidu encyclopedia-pension

Baidu encyclopedia-occupational annuity