What does the third pillar endowment insurance mean?

China's endowment insurance system is a "three-pillar" system. The first pillar is basic old-age insurance, which is often called old-age insurance, the second pillar is enterprise annuity and occupational annuity, and the third pillar includes personal savings pension insurance and commercial pension insurance.

First of all, three pillars support the elderly:

"The first pillar is pay-as-you-go, government-led and foundation; The second pillar is enterprise (occupational) annuity, which is dominated by employers and can help employers attract talents. The third pillar is personal leadership, paying part of the money before tax at work and paying taxes at retirement.

Second, the social impact:

The third pillar is the shortcoming of the old-age insurance system.

China's old-age insurance system is composed of three pillars: basic old-age insurance, enterprise annuity and occupational annuity, personal savings old-age insurance and commercial old-age insurance, which is undoubtedly conducive to coping with China's aging population and promoting the sustainable development of the old-age insurance system. At present, the first pillar of the basic old-age insurance is "the only one", and the second pillar of the enterprise annuity develops slowly and has a small coverage, so it is urgent to promote the construction of the third pillar of the old-age insurance.

With the aggravation of population aging, how to enrich the "money bag" of providing for the aged has become a hot spot of people's concern. 202 1 Government Work Report mentions the third pillar pension insurance for the first time, and proposes to standardize its development. The plan sparked a heated discussion.

Legal basis:

People's Republic of China (PRC) social insurance law

Tenth employees should participate in the basic old-age insurance, and employers and employees should pay the basic old-age insurance premium.

Individual industrial and commercial households without employees, part-time employees who have not participated in the basic old-age insurance in the employer and other flexible employees can participate in the basic old-age insurance, and individuals pay the basic old-age insurance premium.

The measures for the endowment insurance of civil servants and staff managed by reference to the Civil Service Law shall be formulated by the State Council.

Eleventh basic old-age insurance to implement the combination of social pooling and individual accounts.

The basic old-age insurance fund consists of employers, individual contributions and government subsidies.