In 1980s, in order to meet the needs of economic system reform, China began to reform the urban endowment insurance system. After years of exploration in 10, the mixed endowment insurance model characterized by the combination of social pooling and individual accounts was formally established in 1997. In this model, the social pooling part is 20% of the total wages of enterprise employees, which is formed by enterprise contributions, and the personal account part is 10 of individual contributions.

In 2005, "the State Council's Decision on Improving the Basic Old-age Insurance System for Enterprise Employees" stipulated that "in order to link up with the reality of personal accounts, from June 2006, the scale of personal accounts was adjusted from 1 1% of the salary paid by myself to 8%, all of which were formed by individual contributions, and the unit contributions were no longer included in personal accounts".

Extended data

fundamental function

1, which is conducive to ensuring labor reproduction.

The establishment of the old-age insurance system is conducive to the normal intergenerational replacement of the labor force, the retirement of the elderly, the smooth employment of the newly growing labor force and the rationalization of the employment structure.

2, conducive to social security and stability.

Endowment insurance provides basic living security for the elderly and makes them feel safe. With the arrival of the aging population, the proportion of the elderly population is increasing and the number is increasing. Old-age insurance guarantees the basic life of elderly workers, which is equivalent to ensuring the basic life of a considerable number of people in society.

For on-the-job employees, participating in endowment insurance means that they have expectations for their future old-age life and are free from worries. In terms of social mentality, more people are stable and less impetuous, which is conducive to social stability.

3. It is conducive to promoting economic development.

The pension insurance system designed by many countries links fairness with efficiency, especially the partial accumulation and complete accumulation pension fund raising model. The amount of pension received by workers after retirement is directly related to their wage income and payment during their on-the-job work, which can undoubtedly stimulate workers to work actively during their on-the-job work and improve efficiency.

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