What is an enterprise annuity, and what does it have to do with the social security paid in peacetime?

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Hello! Enterprise annuity refers to the supplementary old-age insurance system voluntarily established by enterprises and their employees on the basis of participating in basic old-age insurance according to law. Enterprise annuity is not only an important supplementary form of employee retirement security, but also an important means for enterprises to mobilize the enthusiasm of employees, attract high-quality talents, stabilize the workforce, and enhance the competitiveness and cohesion of enterprises. The relationship between enterprise annuity and social security in peacetime is that social security is the basic social security stipulated by the state, and enterprise annuity is established on the basis of social security, which can fully supplement social security.

The main functions and functions of enterprise annuity include:

1. Distribution function: Supplementary pension plan in the form of enterprise annuity is also regarded as deferred payment of wages and income distribution for employees.

2. Incentive function: It is also a positive and effective means for enterprises to attract high-quality talents, stabilize the workforce, safeguard employees' interests, give full play to employees' enthusiasm and creativity, and improve employees' sense of pride and responsibility in serving enterprises, thus enhancing enterprise cohesion and market competitiveness and obtaining maximum economic benefits.

3. Security function: it can improve the pension benefits of employees after retirement to a certain extent, solve the problem of large income gap between employees before and after retirement caused by the declining replacement rate of basic pension year by year, make up for the shortage of basic pension security level, meet the objective needs of retirees to enjoy a higher quality of life, and play its supplementary and security role.