Four levels of social insurance

The endowment insurance in China consists of four levels (or parts). The first level is basic old-age insurance, the second level is enterprise supplementary old-age insurance, the third level is personal savings old-age insurance, and the fourth level is commercial old-age insurance. In this multi-level old-age insurance system, the basic old-age insurance is the first and highest level. 1. Basic old-age insurance. The basic old-age insurance (also known as the national basic old-age insurance) is a social insurance system established by the state and society according to certain laws and regulations to solve the problem that workers terminate their labor obligations after reaching the national working age limit or quit their basic life because of old age. The basic old-age insurance is based on the principle of ensuring the basic livelihood of retirees. It is mandatory, mutually beneficial and social. Its compulsion is reflected in the legislation and law enforcement of the country, and both enterprises and individuals must participate and must not violate it; Mutual assistance is reflected in the source of endowment insurance expenses, which are generally shared by the state, enterprises and individuals, and are used and paid uniformly, so that employees of enterprises can get living security and realize extensive social mutual assistance; Sociality is reflected in the great influence of endowment insurance, the large number of people enjoying it for a long time and the huge cost. 2. Enterprise supplementary endowment insurance. Enterprise supplementary endowment insurance, also known as enterprise annuity, refers to an auxiliary endowment insurance voluntarily established by enterprises on the basis of their own economic affordability and participation in basic endowment insurance to improve the treatment level of employees' endowment insurance. Supplementary endowment insurance for enterprises is a kind of enterprise behavior. Enterprises with good benefits can be insured more, while enterprises with poor benefits and losses can not be insured. The implementation of enterprise annuity can enable resigned old employees to obtain a higher level of basic pension, which is conducive to stabilizing the workforce and developing enterprise production. 3. Personal savings endowment insurance. Personal savings endowment insurance for employees is an integral part of China's multi-level endowment insurance system, and it is a supplementary insurance form for employees to participate voluntarily and choose their own agencies. The purpose of implementing personal savings endowment insurance for employees is to expand the sources of endowment insurance funds, raise endowment insurance funds through multiple channels, and reduce the burden on the state and enterprises; It is conducive to eliminating the long-standing concept that insurance costs are entirely borne by the state, and enhancing employees' awareness of self-protection and their initiative to participate in social insurance; At the same time, it can also promote extensive mass supervision of social insurance work.

4. Commercial endowment insurance is a long-term life insurance with the main purpose of obtaining pension. It is a special form of annuity insurance, also known as pension insurance, and it is a supplement to social pension insurance. After paying a certain premium, the insured of commercial endowment insurance can start to receive pension from a certain age. In this way, although the income of the insured is reduced after retirement, he can still maintain his pre-retirement living standard with the help of the pension. Commercial old-age insurance, if there is no special provision, the time interval for the insured to pay the insurance premium is equal, the amount of the insurance premium is equal, the interest rate remains unchanged throughout the payment period, and the number of interest-bearing times is equal to the number of payment times.