Significance of dual-track system of endowment insurance

The dual-track system of endowment insurance is related to the labor and employment management system under the original planned economy in China. In fact, at the beginning, whether it is a state-owned enterprise or a public institution, the treatment of its employees after retirement is solved by the unit itself. It is only because of the unsynchronized reform of the social insurance system that the current dual-track system of the old-age insurance system is led.

1, during the planned economy period, enterprises in China were basically state-owned, and their employees were all "unit people", and their wages at work and pensions after retirement were entirely the responsibility of the unit. The reform of state-owned enterprises, which began in the mid-1980s, has impacted the traditional labor insurance system. The burden of providing for the aged for employees is heavier, and the treatment of employees in different industries is very different. In order to balance the burden of retirement expenses of different enterprises, Guangdong and other places began to try out social pooling of retirement expenses. With the deepening of the reform of enterprise employment system and wage and welfare system, in 199 1, the State Council promulgated the "Decision on the Reform of Enterprise Employees' Pension Insurance System", which stipulated that the social pension insurance expenses should be shared by the state, enterprises and individuals, and social pooling should be implemented. The large-scale coverage of the endowment insurance system of enterprise unified accounts began in the middle and late 1990s. At that time, state-owned enterprises in China generally encountered operational difficulties, and many enterprises could not provide pensions. Some enterprises use products that can't be sold to pay for retirement, while others simply don't give retirement. In this context, the basic old-age insurance system for employees in urban enterprises has expanded rapidly, and the task of "ensuring the timely and full payment of pensions" has been put forward to solve the most prominent contradiction that employees can't get pensions. Enterprise employees' pension is moving from "unit security" to "social security". With the development of the social security system, the pension has achieved social pooling and ensured the payment of pensions for retired workers.

2. In fact, in the planned economy period, the employees of our administrative institutions are also "unit people", and the units themselves bear the pension benefits for retired employees. Because institutions and enterprises have different economic organizations and have no independent operating income, only through financial allocation can we solve the problem of pension benefits for retired workers. At this stage, the endowment insurance system of government agencies and institutions has also been studied and explored, but the reform process is relatively backward. Up to now, the unit retirement pension system is still implemented, that is, the social security benefits of retired employees are solved through financial allocation rather than social insurance.

As can be seen from the above, due to the unsynchronized reform, the two systems are different in terms of financing methods, adjustment of treatment schemes and management methods, forming the so-called "dual track system" for providing for the aged.

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