(1) Determination of the supplementary level of supplementary endowment insurance for enterprises The government usually formulates certain preferential tax policies to encourage enterprises to establish supplementary endowment insurance; At the same time, the government has also restricted the level of supplementary old-age insurance that enjoys preferential policies. In order to promote the development of supplementary endowment insurance, our government should also formulate corresponding preferential tax policies, and at the same time limit the level of supplementary endowment insurance to prevent enterprises from evading state taxes.

The goal of the whole old-age security is to ensure that retirees can maintain their living standards before retirement. Generally speaking, the pension replacement rate of about 80% can ensure that the living standards of retirees will not decline. The target replacement rate of basic old-age insurance in China is 60%, so the replacement rate of supplementary old-age insurance for enterprises should be limited to 20%. According to experts' calculations, assuming that the wage growth rate is equal to the return on investment, to achieve the replacement rate of 20%, the required payment rate is 5%~8%. Therefore, the supplementary level of enterprise supplementary pension insurance in China can be determined as follows: the upper limit of contribution rate is 5%~8%, and the upper limit of pension replacement rate is about 20%.

It should be noted that the average replacement rate of basic pension in China is above 80%. Due to the imbalance between regions, the replacement rate of basic pension in some areas is below 80% (some even close to 60%), and there is still room for development of supplementary pension insurance. The level of supplementary pension insurance should be determined according to the actual replacement rate of local basic pension (80%- actual replacement rate = supplementary pension replacement rate); For areas where the replacement rate of basic pension is higher than 80%, there is basically no room for the development of supplementary pension insurance. What these areas should do first is to reduce the replacement rate of basic pension, instead of developing supplementary pension insurance.

(II) Management forms of supplementary pension insurance In foreign countries, although there are various specific management forms of supplementary pension insurance, independent pension funds are more common. Pension funds are jointly established by one enterprise or several enterprises (or an industry or a region). The management of the fund is independent and completely separated from the sponsoring enterprises. The independence of the foundation can prevent the sponsoring enterprises from interfering with the management and operation of the pension fund; The combination of multiple enterprises or an industry or a region can effectively reduce management costs, which is the main reason for the widespread existence of pension funds. China may wish to consider establishing an independent supplementary pension fund to undertake the responsibility of managing supplementary pension insurance. Enterprises can independently determine the level of foundation according to their own actual conditions: large-scale enterprises and enterprise groups with strong capital management ability and risk-taking ability can independently establish supplementary pension funds, but the management of foundation and its funds should be separated from the management of enterprise management and enterprise operating funds; Industries with small internal differences and close ties may consider establishing a unified industry supplementary pension fund initiated by trade unions; In areas with relatively balanced development, local trade unions can organize regional supplementary pension funds; And those enterprises with small scale and weak risk-taking ability can unite on a voluntary basis (through trade unions) to establish cross-enterprise supplementary pension funds. Diversified management levels not only ensure the voluntary choice of enterprises, but also help to adapt to the actual situation of enterprises in different regions, different industries and different economic affordability. At present, the supplementary pension insurance managed by social insurance institutions should be separated as soon as possible and managed by the supplementary pension fund selected by enterprises.

The investment operation of the supplementary endowment insurance fund shall be entrusted by the supplementary endowment insurance fund with institutions with fund investment experience, such as fund management companies, insurance companies, commercial banks and investment companies. The government should define the qualifications of entrusted investment institutions and formulate supplementary investment rules for endowment insurance funds; Supplementary pension funds exercise the rights of clients and supervise entrusted investment institutions.

(III) Investment management of supplementary pension insurance funds Supplementary pension insurance has no government financial resources and must bear its own risks. Therefore, it is very important to supplement the investment and operation of the endowment insurance fund, not only to improve the investment efficiency, but also to ensure the safety of the fund. At present, according to the relevant policies and regulations, the supplementary endowment insurance fund can't be invested in the market, but can only be deposited in banks and purchased with government bonds, which emphasizes the safety rather than efficiency of the fund. In foreign countries, the high return on investment of supplementary pension insurance is an important factor to attract employees to actively participate. Without efficiency, supplementary endowment insurance will have no vitality. Therefore, first of all, supplementary pension insurance should be separated from social insurance institutions, managed by independent supplementary pension funds, and entrusted to professional investment institutions for market-oriented management; Secondly, gradually liberalize the investment channels of supplementary pension insurance funds and allow supplementary pension insurance funds to enter the capital market within a certain range. In recent years, China's capital market has developed rapidly, the number of investment institutions has been increasing, the management ability has been improved, and the market investment tools have been increasing. It should be said that China has initially met the conditions for pension funds to enter the capital market. Of course, in order to ensure the safety of the fund, on the one hand, the government should adopt the method of piloting first and then gradually promoting, so as to minimize the impact of pension funds on the capital market and the inherent risks of pension fund investment; On the other hand, according to the development of China's financial market and referring to foreign advanced experience, the government should formulate the investment ratio of various financial instruments suitable for China and make corresponding adjustments with the changes of the capital market.

(IV) Financing and treatment payment of supplementary endowment insurance Supplementary endowment insurance is established by enterprises for employees, and enterprises must pay fees. However, employees should be encouraged to participate in the payment. In the 40 1K plan in the United States (a form of occupational annuity plan), only employees pay contributions, and employers should cooperate in a certain proportion. This cooperation mechanism has promoted the rapid development of 40 1K plan in the United States. At present, enterprises are reluctant to establish supplementary endowment insurance. It is also an important means to promote the development of supplementary endowment insurance in China to urge enterprises to cooperate with payment through employee payment. As for the government, in addition to giving preferential tax policies, it does not assume the responsibility of payment, nor does it assume the responsibility of making up the financial deficit of supplementary pension insurance.

At present, China's supplementary old-age insurance all implements the individual account model of fund accumulation system, and the treatment adopts the way of determining the payment by payment, that is, according to the length of service and payment situation of employees, the enterprise payment is decomposed into each employee's individual account, and the pension treatment is determined according to the accumulated amount of individual account. The advantages of this method are: for enterprises, enterprises do not bear the investment risk of supplementing the endowment insurance fund, and enterprises do not need to promise certain pension benefits for employees when they retire in the future; As far as employees are concerned, personal accounts are adopted to facilitate the transfer of their pension rights when employees move. Personal account also has its own defects, such as the complete transferability of personal account greatly reduces the role of enterprises in retaining employees in this way, which is not conducive to mobilizing the enthusiasm of enterprises to establish supplementary endowment insurance; The investment risk of personal account funds shall be borne by employees. Due to the fluctuation of financial market and the success or failure of investment, it will lead to the uncertainty of supplementary pension benefits for employees. Weighing the advantages and disadvantages, we should adhere to the current personal account model, and personal account should become the dominant model of supplementary old-age insurance in China, and control and reduce its disadvantages through policy standardization and strengthening management. Of course, according to the voluntary and diversified characteristics of supplementary old-age insurance, enterprises should also be allowed to establish supplementary old-age insurance with complete enterprise contributions and certain benefits, and some large enterprises and enterprise groups with economic affordability should be allowed to establish such supplementary old-age insurance with stable benefits. In foreign countries, large enterprises often establish supplementary endowment insurance with certain benefits as the stable welfare of employees, so as to encourage employees to stay in the enterprise for a long time.

(V) Transfer of supplementary old-age insurance In foreign countries, employees must reach a certain number of working years before they can obtain full supplementary old-age rights, and their supplementary old-age insurance can be transferred with the flow of employees; Those who fail to reach the required working years cannot be transferred or can only be partially transferred. Restricting the acquisition and transfer of workers' supplementary pension rights indirectly shows that supplementary pension insurance has the characteristics of "delayed income" (income that can only be paid after retirement) and "enterprise welfare" provided by enterprises. The dual characteristics of delayed income and enterprise welfare determine that the supplementary pension rights of employees are incomplete. However, the requirement of working years to obtain pension rights limits the mobility of employees, which conflicts with the policies of various countries to protect the free flow of labor. Some countries have taken measures to gradually shorten the working years. For example, Canada is prepared to shorten the working years from 10 to 2 years; The Netherlands shortened the working years from five years before 1972 to 1 year; The United States has also shortened the working years from 10 to 5 years. As far as China is concerned, at present, in order to encourage enterprises to establish supplementary endowment insurance, relatively long working years (such as 4-5 years) can be stipulated to better reflect the characteristics of their enterprise welfare; In the future, with the establishment of supplementary pension insurance, the working years will be gradually reduced to 1~2 years (that is, employees can completely transfer their supplementary pension rights after working for 1~2 years), which further reflects the characteristics of their employees' delayed income. In addition, when employees move before reaching the required working years, it should be stipulated that employees can partially enjoy supplementary pension rights.

(VI) Tax Preferential Policies The government's tax preferential policies are an important means to encourage enterprises to establish supplementary old-age insurance. In some countries, voluntary supplementary pension insurance has reached a high coverage level (such as Britain and the United States), which is largely due to the incentive of preferential tax policies. At present, according to the relevant national policies and regulations, the payment of supplementary endowment insurance in China can only come from the enterprise's own funds and incentive welfare funds, and can not enjoy tax incentives. However, in a few areas, local governments have made relatively flexible regulations. For example, Fujian Province stipulates that the supplementary endowment insurance premium does not exceed 5% of the total wages of enterprises, which can be included in the cost; Jiangsu, Hubei, Guangdong and other places have also made provisions to include some supplementary pension insurance contributions in the pre-tax expenses. Therefore, the central government should make national regulations as soon as possible: 5%~8% enterprises are allowed to enjoy the preferential tax-free policy of supplementary old-age insurance payment, and local governments should determine the specific tax-free rate of supplementary old-age insurance according to the existing basic pension level; Income from investment and operation of supplementary endowment insurance funds also enjoys tax exemption. As for the supplementary pension, it should be included in the income base for paying personal income tax.

(VII) Monitoring of Supplementary Endowment Insurance In order to promote the healthy development of supplementary endowment insurance for enterprises, it is necessary to monitor supplementary endowment insurance for enterprises. China can refer to the British practice, and on the basis of formulating relevant laws and policies, set up a national supervision committee for supplementary old-age insurance (members are composed of representatives of enterprises, trade unions, relevant experts and representatives of social security authorities, and the office can be located in the social insurance fund supervision department of the Ministry of Labor and Social Security) to undertake the government's supervision function for supplementary old-age insurance. The duties of the National Supervision Committee for Supplementary Endowment Insurance are: (1) to determine the supplementary endowment insurance scheme for enterprises; Enterprises supplement the qualifications of endowment insurance management institutions; Monitor the investment and operation of supplementary endowment insurance funds of enterprises; Check the implementation of laws, regulations and policies on supplementary endowment insurance in various places; Accept complaints from enterprises about supplementary endowment insurance, and investigate, correct and punish violations of relevant laws and policies. In addition to the government's supervision, it is more important to set up a supervision committee composed of enterprise managers and employees to directly supervise the supplementary endowment insurance fund, safeguard the safety of the supplementary endowment insurance fund and protect their own interests.