Problems And Countermeasures On The Merger Of Endowment Insurance Between Government Institution And Enterprise

Owing to the complicated historical causes, government institutions and enterprises form two different endowment insurance system. Government institutions and their staffs don't need to pay the fee, b ut after their retirem ent the pension is higher than the enterprise employees who need pay for the pension by the individual. With the developm ent of the socialist market economy of our country, the treatment disparity between the two is more and more obvious, this affect the social equity a nd intensify social cont radictions continuously, the reform of endowment insurance system has come to the urgent time. In this case, the State Council issued “Decision on the refor m of the governm ent institution staffs' endowm ent insurance system”(Hereinafter referred to as “Decision ”) and “Rule of governm ent institution's enterprise annuity”(H ereinafter referred to as “Rule”). This means the merger reform of endowment insurance system formally launched and refined the m easures of this reform.Based on this background, first of all, this paper elaborates the relevant concepts and theories, and then research the differences of endowment insurance system between the government institution and the enterprise from the financing method, the calculation method and the treatm ent level after re tirement with using the met hods of com parative analysis, following describe the effect s of the difference between government institutions and enterprises.This paper focus on the “Decision ” and the “Ru le”,researching the problem that may arise after the merger of government institutions and enterprises from five aspects: The first is the enterprise annuity, the secon d is indi vidual account empty operation of enterp rise employees, the third is “the m iddle” of the gov ernment institutions, the forth is maintaining and increasing the value of endow ment insurance fund, the fifth is the transition cost of the merger.Finally, I put forward some suggestions according to the problems. For example, we can use the m ethod of improving occupational pens ion, regard enterprise annuity as clean government pension, reducing pension rate to so lve enterprise annuity problem. We can use the method from nominal account to replenish i ndividual account, raising the overall lev el, expanding financing channel and the m ethod of extending retirement age. We can use the method of choosing a reasonable fund operating company, expanding the investment channels and setting a sensible investment portfolio to solve the problem of maintaining and increasing the value of endowment insurance fund.