There are three modes of raising endowment insurance funds: pay-as-you-go system, complete accumulation system and partial accumulation system. 1, Pay-as-you-go system, in a nutshell, is a mode of calculating the total expenditure of a country's endowment insurance in a certain period in advance, and then determining the payment ratio of employers and workers according to this, and collecting and paying the current expenditure with the current income. 2. Full accumulation system means that employers and employees manage and invest in an investment fund according to a certain proportion of the endowment insurance premiums paid in all employees' individual endowment insurance accounts, so as to maintain and increase the value. After retirement, the fund will return the investment income to them in the form of annuity for monthly payment. 3. The partial accumulation system is a combination of the pay-as-you-go system and the complete accumulation system, that is, the endowment insurance premium collected in the current period has a certain reserve on the premise of meeting the expenditure demand in a certain period.

legal ground

Eleventh basic old-age insurance to implement the combination of social pooling and individual accounts.

The basic old-age insurance fund consists of employers, individual contributions and government subsidies.

Article 12 The employing unit shall pay the basic old-age insurance premium according to the proportion of the total wages of employees stipulated by the state and record it in the basic old-age insurance pooling fund.

Employees shall pay the basic old-age insurance premium in accordance with the proportion of wages 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 accounts respectively.