Supplementary Pension Insurance: Principles, Operations and Management

Author: Cui Shaomin
Publisher:
Publish Date: 2003-04-01
Features:
Supplemental pension insurance is an important way for countries worldwide to provide retirement living security for their citizens. China, undergoing reform and transition, is no exception. As early as the early 1990s of the last century, the Chinese government proposed establishing a multi-tiered pension insurance system combining basic pension insurance provided by the state, supplemental pension insurance sponsored by enterprises, and personal savings-based pension insurance. However, due to China's gradual approach to economic reform, the development of the socialist market economy, and the formation of enterprises' principal status in the market, there is still a long way to go. As a result, the social security system, including pension insurance, remains imperfect, and supplemental pension insurance has naturally been in a spontaneous state to this day, lacking institutional norms and clear operational and management entities. Nevertheless, with the deepening of reform and opening-up, especially in state-owned enterprises and the social security system, the establishment and standardization of supplemental pension insurance complementary to basic pension insurance have become increasingly urgent. Based on this preliminary idea, several authors collaborated to research and write this book, hoping to contribute to the theory and practice of China's supplemental pension insurance system reform. The book references a large number of foreign literature and includes chapters contributed by two renowned international pension insurance experts, Chris Daykin and Bruce Schobel, translated into Chinese by the authors.
This book strives to comprehensively and systematically elaborate on supplemental pension insurance from both theoretical and practical perspectives, providing a thorough discussion of its principles, operations, and management. The book is divided into seven chapters, covering three main aspects: a qualitative analysis of supplemental pension insurance; a comprehensive analysis of the design of supplemental pension insurance schemes and micro-level operations and government macro-level supervision and management; and a careful analysis of the current state of China's supplemental pension insurance development and prospects for the future.
Through this book, the authors hope to further enhance people's understanding of the system and role of supplemental pension insurance in China's pension insurance system, encourage a coordinated approach to reforming the multi-tiered pension insurance system, and promote the establishment of China's pension insurance system.
According to the authors' views, to develop supplemental pension insurance in China, the first step is to resolve the "positioning" issue of the basic pension insurance system to help it find its accurate place. The second step is to consider its potential impact on the macro economy, especially the operation of financial markets. Finally, attention should be paid to diversification, granting individuals and entities full choice, while also emphasizing gradual development. In terms of micro-level operational models, it is necessary to learn from and adapt advanced international experiences while fully considering China's national conditions. In the design of the macro-level supervision system, first, relevant laws and regulations suitable for China's national conditions should be formulated, such as basic requirements for entities to sponsor supplemental pension insurance, distribution forms, and restrictions on benefit levels, funding channels, tax policies, investment and operation policies, etc., to guide and regulate the establishment, management, and operation of China's supplemental pension insurance and its funds through policy measures. Second, a relatively independent administrative supervisory agency should be established to conduct daily supervision and management of the implementation of the supplemental pension insurance system in accordance with the law.
In summary, supplemental pension insurance is in a period of major development worldwide, while in China, it is still in its early stages, with many theoretical and practical issues requiring further research and exploration. We are willing to engage in discussions and research on this significant topic with everyone.