Social security fund refers to social insurance fund, social pooling fund, individual account fund (fund in individual account in the basic old-age insurance system), enterprise annuity (enterprise supplementary security fund) and national social security fund.

2. The enterprise annuity is a supplement to the basic old-age insurance.

The basic principle of social security fund investment operation is to realize the appreciation of fund assets on the premise of ensuring the security and liquidity of fund assets. Enterprise annuity is an important supplement to the national basic old-age insurance, and it is the "second pillar" to improve the old-age insurance system for urban workers in China (consisting of basic old-age insurance, enterprise annuity and personal savings old-age insurance).

3. With regard to risks, the principle of social security is to preserve and increase the value of old-age insurance premiums, and annuities have certain risks.

Social security funds are not open to individual investors. Social security fund is a part of the endowment insurance premium paid by the state to enterprises and institutions managed by professional institutions in order to maintain and increase the value.

The payment level of annuity insurance benefits is ultimately subject to the scale of the provident fund and the investment income of the fund, and employees have to bear the investment risks of the annuity fund.

The payment level of treatment annuity insurance depends on the salary level and working years of employees before retirement. Before the price index adjustment mechanism is fully established, it will face the threat of inflation.

4. Regarding the role, social security funds protect people's interests, and enterprise annuities improve the cohesion and attractiveness of enterprises.

The state stipulates that social security funds can enter the stock market, of course, not all, and there are proportional restrictions. The main purpose is to maintain and increase the value of social security funds and ensure the interests of the people.

The Ministry of Finance and the Ministry of Labor and Social Security shall formulate relevant policies on the management and operation of social security funds and supervise the investment, operation and custody of social security funds.

China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) and the People's Bank of China shall, according to their respective functions and powers, supervise the business activities of investment managers and custodians of social security funds.

Enterprise annuity is a kind of welfare of enterprises. In fact, there are essential differences between enterprise annuity and enterprise welfare. Welfare is current consumption, enterprise annuity is future consumption, and the consumption right of enterprise annuity occurs after retirement; Welfare embodies fairness and enterprise annuity embodies efficiency; Generally speaking, the welfare items of enterprises are directly related to the material conditions such as living needs, and have nothing to do with people's status and level. Welfare standards are not aimed at people, but at enterprise annuities, focusing on efficiency, economic benefits of enterprises and personal contributions, which can lead to different levels of enterprise annuities. Welfare belongs to the category of redistribution, and enterprise annuity still belongs to the category of initial distribution. Therefore, enterprise annuity is a good welfare plan, which not only improves the welfare of employees, but also provides an effective management tool for enterprises to solve welfare problems, and really plays a role in increasing the cohesion and attractiveness of enterprises.

Enterprise annuity is regarded as a kind of delayed salary paid to employees, which has an incentive and guarantee effect on employees. Social security funds are not open to individual investors, which means that the state entrusts part of the endowment insurance premiums paid by enterprises and institutions to professional institutions for management, so as to maintain and increase the value.

Extended data:

The investment scope of the fund

The annuity payment can be handed over to the trust manager or other entrusted investment management institutions. Annuities in International Financial Reporting Standards are divided into two categories: defined contribution plan and defined benefit plans, and the treatment of defined contribution plan is basically the same as that of supplementary endowment insurance. There is no provision in our domestic laws and regulations, and there is no provision in our practice, so there is no provision in the code.

The historical process of enterprise annuity entering the inter-bank bond market.

China's enterprise annuity system has developed rapidly since its establishment, and the accumulated enterprise annuity fund is nearly 654.38+000 billion yuan, so the demand for safe and rational use of enterprise annuity fund is very urgent.

As early as 2004, industrial and commercial bank of China enterprise annuity has entered the inter-bank bond market. Since then, all financial institutions' enterprise annuities have been allowed to invest in the inter-bank bond market. By the end of 2006, in the inter-bank bond market, the enterprise annuity custody scale of ICBC and China Merchants Bank exceeded 210.50 billion yuan, and the national inter-bank bond custody scale reached 9.25 trillion yuan in the same year. However, non-financial enterprise annuity funds have been blocked out.

On February 28th, 2007, 1000 billion enterprise annuity was allowed to invest in the inter-bank bond market, and the central bank and the Ministry of Labor and Social Security jointly issued the Notice on Matters Related to Enterprise Annuity Fund's Entry into the National Inter-bank Bond Market, which laid an institutional foundation for the enterprise annuity fund to invest and trade bonds in the inter-bank bond market in a safe and orderly manner.

Investment restrictions of funds

Enterprise annuity is completely market-oriented. In order to maintain the safety of enterprise annuity fund, the state has made strict restrictions on the investment scope of the fund.

According to the newly revised Measures for the Administration of Enterprise Annuity Funds, the assets of enterprise annuity funds are limited to domestic investment, and the investment scope includes bank deposits, government bonds, central bank bills, bond repurchases, universal insurance products, investment-linked insurance products, securities investment funds, stocks, and financial bonds, enterprise (company) bonds, convertible bonds (including separately traded convertible bonds), short-term financing bonds and medium-term notes with credit ratings above investment grade.

According to the regulations, the proportion of liquid products such as demand deposits, central bank bills, bond repurchase and money market funds invested by enterprise annuity funds shall not be less than 5% of the net asset value of combined enterprise annuity funds; Liquidation reserves, securities clearing funds and securities subscription funds in the primary market are regarded as liquid assets; The proportion of investment bonds repurchased shall not be higher than 40% of the net asset value of the combined enterprise annuity fund.

The proportion of fixed-income products such as investment bank time deposits, agreement deposits, national debt, financial bonds, corporate (company) bonds, short-term financing bonds, medium-term notes and universal insurance products, as well as convertible bonds (including separately traded convertible bonds), bond funds and investment-linked insurance products (the proportion of stock investment is not higher than 30%) shall not be higher than 95% of the net asset value of combined enterprise annuity funds.

The proportion of investment in equity products such as stocks, stock funds, mixed funds and investment-linked insurance products (the proportion of stock investment is higher than or equal to 30%) shall not be higher than 30% of the net asset value of the combined enterprise annuity fund.

Among them, enterprise annuity funds may not directly invest in warrants, but warrants derived from investment varieties such as stocks and convertible bonds shall be sold within 10 trading days from the date of listing and trading of warrants. SASAC will directly hold the equity of listed central enterprises.

References:

Baidu Encyclopedia-Enterprise Annuity (Function, Investment)

Baidu Encyclopedia-National Social Security Fund (investment scope)