Pension Trust (Pensions Trust) Pension trust is established based on the establishment of the pension system.

Pension trusts mainly refer to occupational pension schemes.

That is, a trust institution is entrusted to manage the company's pensions and is responsible for using the regularly accumulated pensions and paying them in the form of annuities after employees retire.

Therefore, the essential feature of a pension trust is that it is funded by corporate employees to form a fund (usually including listed stocks or insurance policies), which is held in a trust to provide pensions to employees when they retire.

As a professional financial management department, trust institutions have good management experience and can ensure the benefits of pension funds; pension funds are independent as trust property. Once handed over to the trust, they will not be affected by the deterioration or even bankruptcy of the trust company and the trustor's financial status.

This ensures the safety of pension funds.

Pension trusts are established by trust contracts signed between pension insurance agencies and financial trust institutions.

The trust management of pension funds mainly involves four major entities: the pension insurance agency is the client, the financial trust institution is the trustee, the employees are the beneficiaries, and the social insurance management agency is the supervisor.

The trustor is responsible for handling pension insurance registration, insurance premium collection, pension payment, etc. The trustee independently invests and manages the trust insurance fund in accordance with the provisions of the trust contract. Fund management must be independent of the trust institution's own assets, beneficiaries and entrustment.

Manage other accounts to ensure the safety of trust property.

The supervisors can be designed as the Insurance Fund Council and the China Securities Regulatory Commission. The Social Security Fund Council mainly supervises the qualifications for pension fund management, and the China Securities Regulatory Commission mainly supervises the daily investment behavior of pension funds.

Using the pension trust method to manage and use pension insurance funds, there is basically no possibility of illegal misappropriation of pension insurance funds. At the same time, financial trust institutions can flexibly adjust investment directions with their strength and professional capabilities, diversify market risks, and obtain higher than market average

Earnings level of return on investment.

Financial trusts are one of the best options for managing pension funds.

Judging from the experience of managing pension funds abroad, managing and using pension funds in a trust manner is an extremely feasible option.

Trusts have property management functions and medium- and long-term financing functions, which are consistent with the requirements for the operation of pension insurance funds.