I. Definition of enterprise annuity:
Enterprise annuity is a supplementary old-age insurance system, which refers to the supplementary old-age insurance system independently established by enterprises and their employees on the basis of participating in the basic old-age insurance according to law.
Second, the role of enterprise annuity:
Enterprise annuity is an important supplement to the national basic old-age insurance, and it is the "second pillar" to improve the old-age insurance system for urban workers in China (consisting of basic old-age insurance, enterprise annuity and personal savings old-age insurance).
In countries with modern social insurance system, enterprise annuity has become a common supplementary pension plan for enterprises, also known as "enterprise annuity plan" or "occupational annuity plan", and has become an important part of the old-age insurance system in the host country.
Functions of enterprise annuity:
1, distribution function
Enterprise annuity has the nature of primary distribution and redistribution of national income. Therefore, the supplementary pension plan in the form of enterprise annuity is regarded as a deferred payment for the distribution of wages and income of employees.
2. Incentive function
The enterprise annuity plan pays the employee annuity personal account according to the profits of the enterprise and the performance of the employees, which can attract high-quality talents for the enterprise, stabilize the staff, protect the interests of the employees, and maximize the enthusiasm and creativity of the employees.
It is also an active and effective means to improve employees' sense of pride and responsibility in serving the enterprise, thus enhancing the cohesion and market competitiveness of the enterprise and obtaining the maximum economic benefits.
3. Guarantee function
The establishment of enterprise annuity can improve the pension treatment level of employees after retirement to a certain extent, solve the problem of large income gap before and after retirement caused by the declining replacement rate of basic pension year by year, make up for the shortage of basic pension protection level, meet the objective demand of retirees to enjoy a higher quality of life, and play its supplementary and guarantee role.