Occupational annuity is a supplementary endowment insurance system established by government institutions and their employees when they participate in the endowment insurance of institutions. What's the use of this occupational annuity? The following is the detailed information about occupational annuity compiled by the editor for your reference!
What is occupational annuity?
Occupational annuity is a supplementary pension security system, neither social insurance nor commercial insurance, but a unit welfare system. It is a security system established by institutions and their employees according to their own economic conditions. Institutions and their employees bear all risks arising from the implementation of occupational annuity plan. According to the measures for occupational annuity of government institutions, the occupational annuity referred to in the Measures refers to the supplementary endowment insurance system established by government institutions and their staff on the basis of participating in the basic endowment insurance of government institutions.
What's the use of occupational annuity?
1、 Supplementary pension
As a kind of supplementary endowment insurance, occupational annuity is the delayed payment of employees' wages. The purpose of this delayed payment is to prepare for the future retirement and pension, so as to avoid the decline of living standard when the basic endowment insurance is insufficient. From this basic function, we can also extend that occupational annuity can relieve the financial pressure of the state. So occupational annuity is the supplement of basic endowment insurance, which plays an important role in reducing the replacement rate of basic endowment insurance and alleviating the financial pressure.
2、 Welfare incentive
The essence of occupational annuity is to transfer part of employees' current wages to the post retirement period. What is the use of occupational annuity for public institutions? If it is used as a means or tool or program of human resource management, it can give employees incentives in terms of salary and welfare, improve their work efficiency and enthusiasm, stabilize the labor force of the unit, and on the other hand, it can also be used to attract and retain some excellent management and technical talents, and improve the comprehensive reality of the unit Power.
3、 Reasonable tax avoidance
Although in the current tax law system of our country, there is certain tax preference for enterprise annuity, and there is no clear provision for the tax preference for occupational annuity, from the perspective of policy guidance, it is an inevitable trend for the government to give tax preference to the unit payment, individual payment and investment benefit of occupational annuity fund in the future. So what's the use of occupational annuity.
4、 Resource allocation
Occupational annuity assets generally enter the financial capital market in the form of funds, and transfer economic resources across time, space and industry by providing aggregation funds from scattered individuals. By providing this transfer, individuals can optimize the distribution of resources in their life cycle, and at the same time, resources can be optimally allocated to the most efficient use. The investment of occupational pension fund is relatively free, which can produce higher income and optimize the allocation of funds.
What's the difference between pension and occupational pension?
First of all, occupational pension is a part of pension.
Secondly, what is pension? Pension, also known as pension and retirement fee, is one of the most important pension benefits. That is to say, according to the relevant national documents, the insurance benefits paid in the form of money on a monthly or one-off basis are the needs for the benefit of the society, mainly used to protect the basic living needs of employees after retirement, according to their contributions to the society and the qualification or retirement conditions for enjoying endowment insurance. Pension is accumulated and operated on the principle of common accumulation of the state, collective and individual.
However, occupational annuity is not social insurance, nor commercial insurance, but a unit welfare system, which is an important part of human resource management, compensation and welfare management in enterprises and institutions. The main body of occupational annuity is institutions and their employees. Occupational annuity is a security system established by institutions and their employees according to their own economic conditions. Institutions and their employees bear all risks arising from the implementation of occupational annuity plan.