General financing models are divided into three categories:
1, pay-as-you-go system
This financing model requires raising funds under the guidance of the principle of horizontal balance of payments in the near future. The way is: first calculate the cost of a social security measure within one year, then allocate it to all units and individuals participating in the security measure according to a certain proportion, and then extract it and pay it in the same year. 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. This model is characterized by low charging rate, flexible rate adjustment, strong social economy, avoiding the influence of inflation and easy operation in the initial stage of social security implementation. This ratio will develop with the aging population in the future. The intergenerational support mode of raising funds by pay-as-you-go will face greater risks.
2. Complete accumulation system
Also known as full funding.
This model is a financing model based on the principle of long-term balance of payments, which requires that on the basis of predicting the future social security expenditure demand, a total average charge rate that can ensure balance of payments in a long period of time is determined and distributed to the insured during the whole insurance period. This method is characterized by high initial charging rate, fast financing and relatively stable charging rate for a long period of time. The reserve fund formed when social security income exceeds expenditure is used to make up the difference between expenditure and income in the future. This method needs to manage the endowment insurance fund well, and also needs to operate the fund well, invest it well and strive for better returns. Therefore, this method no longer has the inherent fairness principle of social insurance, nor can it reflect the social security principle of distribution according to needs. Countries are cautious about this method.
3. Partial accumulation type
Also known as partial fund type.
This is a financing model combining short-term horizontal balance principle with long-term vertical balance principle. On the premise of meeting certain expenditure demand, reserve certain reserves to meet future expenditure demand. This financing method remains unchanged for several years and is adjusted once every few years. A certain number of funds are formed when income exceeds expenditure. Its characteristic is that the initial charging rate is low, and then it will gradually increase and remain relatively stable. It has the advantages of pay-as-you-go system, simplicity, low management fee and easy operation; It also has the advantages of a complete accumulation system, a strong social insurance fund and safe operation in the elderly society.