Chinese And Foreign Enterprises Annuity Mode Of Operation And Management Cost Comparison Study

Enterprise Pension sponsored by employers is supplementary pension contributed by both employers and employees. In general, every employee has individual account, in2004, it was set up, marked by the rules,such as REGULATIONS OF ENTERPISE PENSION, which were established by Ministry of Human Resources and Social Security and other authorities. In our country, Enterprise Pension is still in the initial stage. With the continuous development of the economy and changes in the labor market, it will be prosperous in the future. Enterprise Pension has a decades’process of investment, so a tiny difference in fees will have a huge influence to the account balance. Accordingly, researching its cost is necessary.In order to reduce the cost of the management of Enterprise Pension, so that it could play better as the second pillar of social security. I compared operation of five different Defined Contribution Plans, which are well-known in the world. Many reasons influencing expense are pointed out. According to the above, I deduct some measures to reduce the cost of Enterprise Pension Management.The paper is divided into five parts. In the first part, there was background that why the author chose the title, the other summed up present situation which had been researched domestic and overseas. The author also told the frame and the significance of the paper in the part. In the second part, the paper introduced the actuality of Enterprise Pension in our country, and analyzed the mode and structure of its management, also introduced the expenses and fees in operation and identified defects in the pension operation. In the third part, five different Defined Contribution Plans all over the world were researched. The relationship between management mode and cost were especially focused on. The fourth part included some conclusion based on the above, which were many factors in the management mode affecting cost of the Enterprise Pension system. This part also pointed out designs in account management and investment management how to influence the expenses. In the last part, the author presented a lot of measures to reduce cost in Enterprise Pension’s operation of main land. Among the measures, how to extend the scale of participants, account balance, total assets and investment strategy were concentrated on.