Occupational annuity refers to the supplementary old-age insurance system established by institutions and their staff on the basis of participating in the basic old-age insurance of institutions.

Annuities are also divided into the following categories:

1. Enterprise annuity refers to a supplementary pension system established by enterprises under the guidance of national policies and according to their own economic strength and situation, in addition to the government-mandated public pension or national pension, to provide a certain degree of retirement income protection for enterprise employees. Enterprise annuity fund refers to the supplementary endowment insurance fund for enterprises formed according to the funds raised by enterprise annuity plan and the income from its investment and operation.

2. Occupational annuity is a mutually beneficial and compulsory social insurance project implemented by employers under the guidance and supervision of national policies on the basis of participating in the national basic old-age insurance, and it is a supplement and assistance to the basic old-age insurance.

3. Personal annuity refers to a trust method in which employees withdraw a certain percentage of money from their wages every month during their work and deposit it in a trust bank. After retirement, the trust bank will allocate it to employees for personal use in stages. At present, it is more common abroad. The newly popularized individual supplementary savings pension in China belongs to this category.

Legal basis:

Measures for occupational annuities of government agencies and institutions

Article 4 The expenses required for occupational annuities shall be borne jointly by the unit and individual employees. The proportion of occupational annuity paid by the unit is 8% of the total wages of the unit, and the proportion of individual contribution is 4% of the wages paid by the unit, which is withheld and remitted by the unit. The payment base of units and individuals is consistent with the payment base of basic old-age insurance for staff of government agencies and institutions.

According to the economic and social development, the state adjusts the proportion of occupational annuity contributions of units and individuals in a timely manner.

Article 5 The occupational annuity fund consists of the following items:

(1) unit payment;

(2) individual payment;

(3) Income from investment and operation of occupational annuity funds;

(four) other income as prescribed by the state.

Article 6 Occupational annuity funds shall be managed by individual accounts. Accumulated actual account of individual contributions. For the unit that pays the full financial fee, the unit pays the fee by bookkeeping according to the information provided by the unit, and calculates the interest every year according to the bookkeeping rate uniformly announced by the state. Before the staff member retires, the accumulated storage amount of his occupational annuity account is recorded by the funds allocated by the finance at the same level; For non-financial fully funded units, the unit payment shall be accumulated in real accounts. The occupational annuity fund formed by the accumulation of real accounts shall be market-oriented and bear interest according to actual income.

The investment management of occupational annuity funds should follow the principles of prudence and risk diversification to ensure the safety, profitability and liquidity of occupational annuity funds. Specific investment management measures for occupational annuity funds shall be formulated separately by Ministry of Human Resources and Social Security and the Ministry of Finance jointly with relevant departments.

Article 7 The unit payment shall be included in my personal account of occupational annuity according to 8% of the individual payment base;

Personal contributions are directly included in my personal account of occupational annuity.

The income from the investment and operation of the occupational annuity fund shall be included in the personal account of the occupational annuity in accordance with the regulations.

Derivative problem:

What's the use of personal annuity?

1. Solve the problem of large income gap between employees before and after retirement caused by the decline in the replacement rate of basic pension, make up for the shortage of basic pension security level, meet the objective needs of retirees to enjoy a higher quality of life, and play its supplementary and security role.

2. The institutional arrangement of personal account management and trust management for accumulating pension funds constitutes the second pillar of China's social pension system, and together with the first pillar of basic pension insurance and the third pillar of individual voluntary savings insurance arrangement, it constitutes a multi-pillar pension system in China, which plays an important role.

3. Reduce the pressure of government's social endowment insurance, improve the security level of the whole society, and improve China's social security system.

4. Annuity is a kind of deferred treatment payment. By setting transfer or payment conditions, employees can be encouraged to serve the enterprise for a long time. Annuity system is a part of enterprise's salary and welfare system, and the distribution principle of enterprise's contribution can effectively improve employees' work enthusiasm; The annuity plan closely links the treatment of employees with the operating conditions of enterprises, and the combination of current interests and long-term interests will make employees care about the long-term development of enterprises; Establishing an annuity plan is conducive to promoting the reform and improvement of the enterprise personnel system and enhancing the cohesion and attractiveness of the enterprise.