On The Establishment And Improvement Of China's Enterprise Annuity System

The system of enterprise annuity can be defined and described as a complemental system to the endowment insurance which the company establishes on its own initiative for its own employees. As an important form of the employee's assurance of welfare and an active participant in the capital market, the system of enterprise annuity has not only made up for the deficiency of social security-type pensions ,but also performed a vital function in several aspects such as creating long-term mechanism of incentive, attracting and stabilizing the human resource, stimulating the development of economy, improving social security, besides, establishing the harmonious society.Following the promulgation of sequential decree and policy about enterprise annuity issued by Chinese government, the system of enterprise annuity which was the second mainmast of Chinese endowment insurance will have a cheerful prospect. At present the enterprise annuity has been considerd by many companies as a new type of management of human resource and also has gradually gain more recognition from these companies. the antiquated perception adopted by Chinese enterprises that the enterprise annuity is merely a employee's living security and a kind of welfare after their retirement now has converted into a new notion in which the enterprise annuity is judged as a feasible method in employee's incentive especially the long-term mechanism of employee's incentive by means of integrating enterprise annuity into the system of the human resources strategy management of enterprise. Nowadays preliminary success has been gained in a certain quantity of enterprises .The employee's loyalty and the degree of satisfaction also have promotion at different levels.Although some Chinese enterprises have recognized the importance of enterprise annuity, the current situation in China is that the system of enterprise annuity is still stalled at its initial stage in which the employers only consider and design the enterprise annuity as a kind of employee's welfare and do not promote it to a position which aims at creating and consummating a long-term mechanism of employee's incentive, and even most of the employees themselves also neither have the profound systematic understandings about the basic system of the enterprise annuity nor judge it as an affair intimately concerning their personal livelihood and careers. The incentive is a...