Social insurance institutions raise social funds for 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.

Folding social pooling partial fund accumulation system model

It is to establish partial fund accumulation within the framework of overall social financing. On the one hand, we will continue to implement the pay-as-you-go pension for retirees. On the other hand, the principle of "fixed income by expenditure, leaving a little balance and a little accumulation" should be implemented to cope with the peak retirement period, and a few percentage points should be appropriately increased on the basis of the current overall planning rate as a long-term overall adjustment provident fund.

Folding personal account deposit fund system model

This model starts from the employees' work, and the units and individuals pay the insurance premiums according to a certain proportion of the total wages, which are credited to personal accounts. As a long-term accumulated and value-added fund, 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 accumulated amount in individual 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.

Folding fund accumulation system model

Its core is to introduce the mechanism of personal account deposit fund system, and the accumulation fund is based on personal account, while maintaining the mechanism of social co-ordination 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.