1.What is an Enterprise Annuity?
Enterprise annuity is a supplementary pension system, which refers to the supplementary pension insurance system established independently by enterprises and their employees on the basis of participating in basic pension insurance in accordance with the law. It is an important supplement to the national basic endowment insurance, and is the "second pillar" of the urban employee endowment insurance system (composed of three parts: basic endowment insurance, enterprise annuity and individual savings endowment insurance) that is being improved in China. In the countries that implement the modern social insurance system, the enterprise annuity has become a more common enterprise supplementary pension plan, also known as the "enterprise pension plan" or "occupational pension plan", and has become an important part of the pension insurance system of the host country.
2.What are the characteristics of enterprise annuities?
1) Voluntary: The enterprise annuity plan is voluntary, and the enterprise will not force employees to participate.
2) Supplemental: Enterprise annuity is a supplementary pension system in addition to the basic pension insurance system enforced by the state.
3) Deferred payment: The enterprise annuity is the pension accumulated by the employee during the employment period, and can only be received after the employee retires.
4) Incentive: Enterprise annuity plans are usually linked to employees' work performance and contributions, which can motivate employees to work harder.
5) Savings: Enterprise annuity plans allow employees to accumulate a certain amount of pension before retirement, which is of a savings nature.
6) Mutual aid: The enterprise annuity plan is jointly funded by the enterprise and the employee, and has the nature of mutual assistance.
7) Protection: The enterprise annuity plan aims to provide employees with a certain degree of retirement income protection and enhance the level of pension security for employees.
3.What is the purpose of the enterprise annuity?
1) Improve employee welfare: Enterprise annuity can provide employees with longer-term and stable pension security, enhance employees' sense of belonging and loyalty, and promote the stable development of enterprises.
2) Promote the optimization of enterprise human resources: The establishment of an enterprise annuity system will help attract and retain outstanding talents and improve the competitiveness of enterprises.
3) Optimize the tax environment: Enterprise annuities can optimize the tax environment to a certain extent and reduce the tax burden of enterprises.
4.How to participate in the enterprise annuity?
Participating in the enterprise annuity usually needs to follow the relevant regulations of the enterprise, and make contributions and investments according to the requirements of the enterprise. Enterprises that implement the enterprise annuity policy provide detailed explanations and guidance to employees in accordance with the "Enterprise Annuity Measures".