Pay-as-you-go system is a recent financing model guided by the principle of horizontal balance of payments. The so-called recent horizontal revenue and expenditure refers to the difference between the total collection of social security funds in that year and the expenditure of social security funds in the same period.

The specific method of pay-as-you-go system is to budget the social security expenses needed in that year, and then allocate them to all enterprises and individuals participating in social security according to a certain proportion. Under the principle of "fixed income by expenditure", the income in the current year is paid in the current year.

2. Fund accumulation system

Fund accumulation system, also known as "fund system" and "savings system", is a financing model based on the principle of long-term vertical balance of payments. The so-called long-term vertical balance of payments means that the sum of the social security fund paid by the insured and its investment income is in balance with the total amount of benefits enjoyed by the insured during the whole insurance period.

The specific practice of the policy-holder fund accumulation system is to determine a total average rate that can ensure the balance of payments in a long period of time on the basis of long-term prediction of social and economic indicators (including retirement rate, mortality rate, wage growth rate, inflation rate, interest rate, etc.). ) and spread to the entire insurance period of the insured. Accumulate the unused insurance money for investment and operation.

The fund accumulation system requires enterprises and individuals to pay social insurance premiums according to a certain proportion of wage earners, and these expenses will be included in personal accounts for accumulation, and the accumulated funds will be distributed to individuals in a certain way when they meet the conditions for receiving.

3. Partial accumulation system

Partial accumulation system, also known as "partial fund system" and "mixed system", is a financing model combining short-term horizontal balance of payments with long-term vertical balance of payments. The partial accumulation system includes two management methods: increasing a certain proportion of accumulation on the basis of pay-as-you-go, and implementing fund accumulation combining social pooling with individual accounts.

The first way is to accumulate the outstanding funds in the current year under the framework of pay-as-you-go, according to the principle of "fixed income with expenditure, slightly surplus, and accumulated" to form a fund, which will be used to supplement the income and expenditure gap in the current year at the peak of payment.

The second way is to divide the collected social security funds into two parts: social pooling account and personal account. Social pooling accounts are raised by pay-as-you-go method, with fixed income and no balance; Personal accounts are completely accumulated.

Partial accumulation system can concentrate the advantages of pay-as-you-go system and fund accumulation system, effectively overcome its shortcomings, and can not only make social overall planning according to short-term payment demand, but also form moderate accumulation. The accumulated part can be preserved and increased through investment and operation, which can reduce the burden of the next generation and alleviate intergenerational conflicts.

At present, China's basic old-age insurance and basic medical insurance are based on the combination of social pooling and personal accounts. 1993165438+10. In the resolution of the Third Plenary Session of the 14th CPC Central Committee, the principle of "combining social pooling with individual accounts" was put forward for the first time.

1In March, 1995, the State Council issued the Notice on Deepening the Reform of the Old-age Insurance System for Enterprise Employees, clarifying that the basic old-age insurance should combine social pooling with individual accounts, and gradually form a multi-level old-age insurance system of basic old-age insurance, enterprise supplementary old-age insurance and individual savings insurance.

Legal basis:

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

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 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.