Why must retirees of state-owned enterprises implement territorial socialization management?

Social security fund raising, retirement approval and basic pension payment should adhere to the principle of territorial management. However, the central and provincial enterprises are responsible for unified management and pension payment by the provincial human resources and social security department where the unit is located and its social security business agencies. Related management services are managed and operated by enterprises themselves. It can be said that the past management and service work was a combination of territorial management and rule management.

According to the spirit of Guiding Opinions on Socialized Management of Retirees in State-owned Enterprises, it is required that retirees from state-owned enterprises who have not yet implemented socialized management should be handed over to streets and communities for socialized management before the end of 2020. At the same time, it is also clear that after the socialized management of state-owned enterprises, the new retirees management service will be separated from the original enterprise units.

Obviously, the socialized management and service of enterprise retirees are on the road of separation from the original enterprise. This is the general trend and imperative, and it is a realistic need to speed up the divestiture of state-owned enterprises to run social functions, solve problems left over from history, establish a reasonable cost-sharing mechanism, reduce the social burden of enterprises, and participate in fair competition in the market. It is an inevitable development trend and basic orientation in the future to adopt management services, separate from the original enterprises, implement socialized pension distribution, hand over personnel to urban streets and communities, implement localized management, and provide corresponding management services by community service agencies.