The "five pillars" model of old-age security is an upgrade of the first two models, which can mobilize the government, enterprises, individuals, families, society and other parties to participate in old-age care, covering social groups including low-income groups, formal employment groups, informal employment groups and so on. It is of great significance to fully mobilize all aspects to support the elderly and effectively guarantee and improve the old-age security system.
Zero pillar
Non-contributory "zero-pillar" mainly provides social endowment insurance for the lifelong poor, the elderly who are not suitable for any social endowment insurance system in the informal and formal sectors, or the elderly who are unable to work.
The "zero-pillar" old-age security system belongs to the bottom welfare system that meets the welfare needs of some bottom members of society. It includes two levels: one is the social assistance system aimed at eliminating the poverty of the elderly; The second is the social welfare system aimed at improving the basic living standards of all elderly groups. In China, the first-level system is the rural "five guarantees" system and the minimum living security system for the elderly, and the second-level system is the old age allowance system. The "five guarantees" system in rural areas can be traced back to 1956 "National Agricultural Development Program" promulgated by the State Council. 1999 and in 2007, the State Council promulgated the Regulations on the Minimum Living Security for Urban Residents and the Notice of the State Council on Establishing the Minimum Living Security System for Rural Residents, respectively, which marked the realization of the full coverage of the social assistance system for urban and rural residents with financial difficulties.
The old-age allowance system is an inclusive social welfare old-age security system, which is mainly based on the clause "The State encourages local governments to establish an old-age allowance system for low-income elderly people over 80 years old" in the Law of the People's Republic of China on the Protection of the Rights and Interests of the Elderly, which was revised in 20 12. At present, the old age allowance system has achieved full coverage at the provincial level.
The first pillar
The contributory basic old-age insurance is a compulsory social security annuity system, which mainly provides lifelong protection for the elderly with the lowest living standard through the redistribution of social wealth.
China's basic old-age insurance scheme originated from 199 1 the State Council's Decision on the Reform of the Old-age Insurance System for Enterprise Employees. 1995, 1997 and 2005, China successively carried out the reform of the old-age insurance system for urban workers nationwide, and the old-age insurance system gradually changed from the pay-as-you-go system to the mode of combining social pooling with individual accounts. Among them, in the payment link, the proportion of unit and individual contributions has changed greatly, and finally the unit contributions are all included in the social pooling account, and the individual contributions (including deemed contributions) are included in the personal account. In fund management, counties and cities make overall plans, and pensions are mostly operated by bank deposits or purchasing government bonds. In 20 15, after the State Council issued the Notice on Printing and Distributing the Management Measures for the Investment of Basic Endowment Insurance Fund, the operation mode was changed to that all provinces and cities should co-ordinate the surplus pension, and special pension investment institutions should make diversified market-oriented investment to realize the preservation and appreciation of the pension. In the payment link, the way of pension calculation and payment has changed from the wage proportion system to the model of social pooling account plus individual account. The pension payment standard is related to the payment period, payment base, retirement age, price level and other factors. Pension payment has changed from unit payment to socialized payment, which has greatly improved the fairness, efficiency and service of the old-age security system.
The second pillar
The second pillar is the enterprise annuity and occupational annuity system established by individuals and employers paying certain fees during their employment.
The enterprise annuity system first began in 2000 with the "Notice on Printing and Distributing the Pilot Scheme for Improving the Urban Social Security System" issued by the State Council. For the first time, the circular refers to the supplementary pension insurance system as "enterprise annuity", which stipulates that the enterprise annuity system shall implement a fully accumulated personal account system, which shall be paid by enterprises and individual employees, and give tax incentives to enterprises within the system. The enterprise annuity system has been improved in the Trial Measures for Enterprise Annuity promulgated in 2004 (promulgated in 20 17) and the Interim Measures for the Qualification of Enterprise Annuity Fund Management Institutions (revised in 20 1 1 year); The Notice on Issues Concerning Individual Income Tax on Enterprise Annuities and Occupational Annuities, published on 20 13, clarified the preferential tax policies for all aspects of enterprise annuities. In 20 15, "Notice of General Office of the State Council on Printing and Distributing Occupational Pensions for Government Offices and Institutions" made preliminary arrangements for the occupational annuity system for employees of government offices and institutions, and the enterprise (occupational) annuity system was basically established in China.
At present, China's annuity system adopts the personal account system of complete accumulation system. In terms of tax incentives, individuals who pay less than 4% are not taxed, and the tax incentives for unit contributions are 5%; In the payment link, the proportion of state-owned enterprises and private enterprises is slightly different, and the proportion of occupational annuity and enterprise annuity is similar; In operation, the annuity system adopts the trust management mode, with the trustee as the main body, and the account manager, custodian and investment manager perform their respective duties to jointly manage the fund; In accounting management, the personal account in enterprise annuity adopts bookkeeping accumulation system, and the personal account in occupational annuity paid in full by finance adopts bookkeeping accumulation system, which is included in fund income according to regulations.
The third pillar
The third pillar is the pension plan determined by voluntary contributions of enterprises or individuals, which specifically refers to the individual savings pension and the group pension insurance system organized by units.
The defined pension plan with individual voluntary contributions is closely related to residents' savings behavior and commercial endowment insurance, but it is not exactly the same. China's residents' saving behavior has a long history, but saving is not only for the elderly, but also to prevent other risks or events such as marriage, parenting, education and medical care in advance. Commercial endowment insurance purchased by individuals is an important part of the "three pillars". Exclusive pension insurance, such as personal fixed income (non-fixed income) pension insurance, personal tax-deferred pension insurance and reverse mortgage pension insurance, universal and long-term dividend insurance products have certain pension functions, but the pension security function is relatively impure.
The fourth pillar
The "fourth pillar" of informal security mainly comes from children's support, relatives' support and family transfer of funds to make up for the shortage of personnel beyond the coverage of the first four pillars.
The "four pillars" are mainly economic or non-economic support for the elderly, medical care and housing between family members and generations. In a strict sense, the rural family planning pension plan also belongs to the category of "four pillars". In essence, this system is an economic incentive (compensation) mechanism for rural couples who have one child or two daughters. This system began with the Opinions on Developing the Pilot Work of Family Planning Reward and Support System in Rural Areas promulgated in 2004. According to this system, couples who meet the requirements of family planning in rural family planning can get no less than 600 yuan's bonus every year after reaching the age of 60, until they die.