An enterprise that meets the following conditions for establishing an enterprise annuity may establish an enterprise annuity: (1) To participate in the basic old-age insurance according to law and fulfill the obligation of payment; (2) Having the corresponding economic affordability; (3) A collective consultation mechanism has been established. Enterprise annuity is a supplementary pension system established by enterprises and their employees on the basis of participating in the basic old-age insurance according to law, under the guidance of national policies and according to their own economic strength and situation, aiming at providing a certain degree of retirement income protection for their employees. On the basis of collective consultation, enterprises and trade unions or employee representatives shall formulate enterprise annuity plans and determine the scale of enterprise contributions and employee contributions. This scale can be a fixed proportion of wages, a fixed amount, or a gradually changing proportion or amount. Among them, the part paid by the enterprise is included in the personal account of employee enterprise annuity, and the part paid by the individual is included in my personal account of enterprise annuity. Through the trust operation mode, the trustee entrusts a qualified account manager to manage the account, and the accumulated enterprise annuity fund is also entrusted by the trustee to be managed by a qualified trustee, and the qualified investment manager makes professional investment to maintain and increase the value. Only when employees reach the retirement age stipulated by the state can they receive the enterprise annuity from their personal accounts, either in a lump sum or on a regular basis. When the employee's work unit changes, the personal account funds can be transferred with it. If the new unit does not implement the enterprise annuity system, the personal account can continue to be managed by the original management institution. Enterprise annuity, an institutional arrangement of personal account management and trust management, which is designed to accumulate funds for the elderly, constitutes the second pillar of China's social pension system. Together with the first pillar of basic pension insurance and the third pillar of individual voluntary savings and insurance arrangements, it forms a multi-pillar pension system in China and plays an important role. First of all, enterprise annuity provides a new way for social members to accumulate pension funds. It provides a new pension support for social members who participate in enterprise annuity. Generally speaking, in order to ensure that the living standard of employees after retirement can be maintained at the state before retirement, the replacement rate of various pensions needs to be maintained at the level of 7% to 8%. Considering the huge difference between nominal wages and actual income of employees during the transition period, the existing basic pension based on nominal wages is far from meeting the future pension needs of employees, and the establishment of enterprise annuity can effectively make up for this part of the pension gap. Secondly, compared with the first pillar of the pension system, the enterprise annuity not only provides a new way to raise funds for the elderly, but also provides a tool to promote social efficiency. Compared with the compulsory and unified social basic pension, the establishment of enterprise annuity follows the voluntary principle. Within the scope permitted by national laws and regulations, enterprises and employees can completely establish enterprise annuity plans that meet their own needs according to the company's own economic strength, economic situation and the needs of employees. For enterprises with good economic benefits, the payment can be designed more. The longer the service time, the greater the contribution to the enterprise and the higher the level of protection obtained. This flexible and independent design method suitable for different enterprises can fully mobilize the enthusiasm of enterprises and employees, enhance the incentive to management and improve social efficiency. Finally, compared with the third pillar of complete individual voluntariness, enterprise annuity provides a faster and more effective way to accumulate pension funds for participating employees. Under normal circumstances, members who participate in enterprise annuities can only receive the funds accumulated in their personal accounts after retirement. This restriction on receiving funds can better ensure the continuity of the accumulation of pension funds compared with the third pillar of individual voluntary savings and insurance arrangements. In addition, enterprise annuity funds generally enjoy various tax incentives in the process of payment, investment operation and income distribution.