If the social security contribution is paid by the company, only the part paid by the individual is found to enter the personal account, and the part paid by the company as a whole enters the social security fund, which has nothing to do with the individual, so it is inconsistent. In other words, social insurance is in the name of an individual, and only about 1/3 of the total amount paid by the individual goes into the personal account, and about 2/3 of the other goes into the social security fund.

Four modes of overall planning of social security fund;

1. Pay-as-you-go social pooling system mode: social insurance institutions raise social funds based on the total amount of retirement pensions that retirees need to pay, that is, units and individual employees (or all units) pay insurance premiums according to a certain proportion of total wages. The burden of endowment insurance is intergenerational transfer, that is, the pension expenses of retired employees are borne by one generation of employees, while the employees themselves are borne by the next generation. The main features of this model are: flexible rate adjustment; High social economy and easy operation. There is no threat of inflation and interest rate fluctuation in the fund, and it has the characteristics of realizing fairness through redistribution.

2. The model of social pooling partial fund accumulation system is to establish partial fund accumulation within the framework of social pooling financing. On the one hand, we will continue to implement the pay-as-you-go pension system for retirees, and on the other hand, in order to cope with the peak retirement period, we will implement the principle of "fixing income by expenditure, leaving a little balance and leaving some accumulation", and appropriately increase the current overall rate by a few percentage points as an accumulation fund for long-term overall adjustment.

3. Personal account storage fund system mode This mode is that from the time employees start to work, units and individuals pay insurance premiums according to a certain proportion of total wages and record them in personal accounts. As a long-term storage and accumulation of funds, its ownership belongs to individuals. When employees reach the statutory retirement age, they will be paid to individuals on a monthly basis in the form of pension annuity according to the total amount accumulated in their personal accounts (including the principal and interest of insurance premiums). The main characteristics of this model are that self-protection is integrated into social insurance, the incentive mechanism is strong, the transparency is high, it is conducive to supervision and management, it can form funds raised in advance, accumulate value for a long time, and individuals can guarantee the future for a long time, which has the characteristics of efficiency orientation.

4. Fund accumulation mode The core of the combination of social pooling and individual accounts is to introduce the mechanism of individual account storage fund system. The accumulation fund is established on the basis of individual accounts, while maintaining the mechanism of social overall planning and mutual assistance. Most of the insurance premiums paid by the unit are used to pay the expenses of retirees, and all the insurance premiums paid by individual employees enter the employee's personal account together with some insurance premiums paid by the unit. This model has an incentive mechanism and a supervision mechanism because of the establishment of individual pension accounts. At the same time, it also retains the advantages of social co-ordination and mutual assistance, and integrates the strengths of personal account deposit fund system and pay-as-you-go social co-ordination system, preventing and overcoming their weaknesses and possible problems. Theoretically speaking, the advantages of this model outweigh the disadvantages, and it is a new model explored in China's pension insurance reform.

Legal basis:

People's Republic of China (PRC) social insurance law

Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.

Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability, and the level of social insurance should be compatible with the level of economic and social development.

Article 4 Employers and individuals who pay social insurance premiums according to law in People's Republic of China (PRC) have the right to inquire about payment records and personal rights and interests records, and ask social insurance agencies to provide social insurance consultation and other related services.

Individuals enjoy social insurance benefits according to law and have the right to supervise the payment of their own units.

Fifth people's governments at or above the county level shall incorporate social insurance into the national economic and social development plan.

The state raises social insurance funds through multiple channels. People's governments at or above the county level shall give necessary financial support to social insurance.

The state supports social insurance through preferential tax policies.

Article 6 The State exercises strict supervision over social insurance funds.

The State Council and the people's governments of provinces, autonomous regions and municipalities directly under the Central Government shall establish and improve the supervision and management system of social insurance funds to ensure the safe and effective operation of social insurance funds.

People's governments at or above the county level shall take measures to encourage and support all sectors of society to participate in the supervision of social insurance funds.

Article 7 The administrative department of social insurance in the State Council is responsible for the management of social insurance throughout the country, and other relevant departments in the State Council are responsible for the relevant social insurance work within their respective functions and duties.

The social insurance administrative department of the local people's government at or above the county level shall be responsible for the social insurance management within its administrative area, and other relevant departments of the local people's government at or above the county level shall be responsible for the relevant social insurance work within their respective functions and duties.

Eighth social insurance agencies to provide social insurance services, responsible for social insurance registration, personal rights and interests records, social insurance benefits payment and other work.

Article 9 Trade unions shall safeguard the legitimate rights and interests of employees according to law, and have the right to participate in the research on major social insurance issues, participate in the social insurance supervision committee, and supervise matters related to employees' social insurance rights and interests.