(2) Financing method:
1. Taxation method: unified standard, compulsory collection and unified collection and use.
2. Collection method: generally limited to social insurance, with certain flexibility.
3. Free financing method: it is not fixed and flexible, and comes from the voluntary participation of the public, such as issuing welfare lottery tickets.
Financing mode of social insurance fund;
1. The pay-as-you-go system is equivalent to intergenerational transfer.
Pay-as-you-go system is a kind of financing method which is based on horizontal balance and implemented in accordance with the prescribed income model, and social security institutions carry out social financing according to the required insurance amount. Generally speaking, employers and employees pay social insurance tax or social insurance premium according to a certain proportion of total wages. This financing mode requires that the expenses that a social security measure needs to pay in the current year or in recent years should be budgeted first, and then distributed to the units and individuals participating in social insurance according to a certain proportion, and then paid in the current year. This model generally determines income by expenditure, leaving no accumulation.
2. Complete accumulation is to determine the appropriate rate standard from the perspective of pursuing the long-term balance of income and expenditure of endowment insurance, after macro-calculation of relevant social and economic development indicators. The social security fund raising mode of complete accumulation system is based on the principle of long-term vertical balance. Its essence is the intra-generational redistribution system in individual life.
3. Partly cumulative, with fixed income and slight balance.
Partial accumulation system is a combination of pay-as-you-go system and complete accumulation system, and it is a financing model compatible with the principles of horizontal balance and long-term vertical balance.
The smooth raising of social insurance funds is the premise and foundation for the normal operation of social security system. In the process of raising social insurance funds, we should always implement the basic principle of balance of payments (including horizontal balance and vertical balance) and classify the raising modes of social security funds.
Legal basis:
People's Republic of China (PRC) social insurance law
Article 64 Social insurance funds include basic old-age insurance funds, basic medical insurance funds, industrial injury insurance funds, unemployment insurance funds and maternity insurance funds. In addition to the basic medical insurance fund and maternity insurance fund combined accounting, other social insurance funds are accounted for separately according to social insurance types. Social insurance funds implement a unified accounting system throughout the country.
The social insurance fund is earmarked for special purposes, and no organization or individual may occupy or misappropriate it.
The basic old-age insurance fund will gradually implement national overall planning, and other social insurance funds will gradually implement provincial overall planning. The specific time and steps shall be stipulated by the State Council.