Supplementary Pension Insurance (Principles, Operations, and Management)

Author: Cui Shaomin
Publisher:
Publish Date: 2003-04-01
Features:
Supplemental old-age insurance is an important way for countries around the world to provide retirement life support 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 old-age insurance system that combines the basic old-age insurance provided by the state, supplemental old-age insurance organized by enterprises, and personal savings-based old-age insurance. However, as China's economic system reform follows an incremental path, the development of the socialist market economy system, particularly the formation of enterprises' principal status in the market, still has a long way to go. As a result, the social security system, including old-age insurance, is not yet fully developed, and supplemental old-age insurance remains in a spontaneous state to this day, lacking institutional norms and clear operational and management entities. However, with the deepening of reform and opening-up, especially in state-owned enterprises and the social security system, the establishment and standardization of supplemental old-age insurance complementary to the basic old-age insurance have become increasingly urgent. Based on this preliminary idea, several authors jointly researched and wrote this book, hoping to play a role in inspiring further theoretical and practical reforms of China's supplemental old-age insurance system. The writing of this book references a large number of foreign literature, and two renowned international old-age insurance experts, Chris Daykin and Bruce Schobel, each contributed a chapter, which was translated into Chinese by the authors.
This book strives to comprehensively and systematically elaborate on supplemental old-age 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 old-age insurance; a comprehensive analysis of the design of supplemental old-age insurance schemes and micro-level operational and management issues; and a serious analysis of the current state of China's supplemental old-age insurance development, with an outlook toward the future.
Through this book, the authors hope to further enhance people's understanding of the system and role of supplemental old-age insurance in China's old-age insurance system, encourage a coordinated approach to the reform of the multi-tiered old-age insurance system, and promote the establishment of China's old-age insurance system.
According to the authors' views, to develop supplemental old-age insurance in China, the first step is to solve the "positioning" issue of the basic old-age insurance system so that it can find its accurate place. Secondly, it is necessary to consider its potential impact on the macro economy, especially the operation of the financial market. Finally, attention should be paid to diversification, granting individuals and entities sufficient choices, while also ensuring a gradual approach to development. In terms of micro-level operational models, it is essential to learn from and adapt advanced international experiences while fully considering China's national conditions. In the design of the macro-level regulatory system, it is necessary to: first, formulate relevant laws and regulations suitable for China's national conditions, such as basic requirements for entities to organize supplemental old-age 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 old-age insurance and its funds through policy measures; second, establish a relatively independent administrative regulatory agency to conduct daily supervision and management of the implementation of the supplemental old-age insurance system in accordance with the law.
In summary, supplemental old-age insurance is in a period of major development worldwide, but it is still in its early stages in China, with many theoretical and practical issues requiring further research and exploration. We are willing to engage in discussions and research on this significant topic together with everyone.