How to improve the coverage of corporate pension? Experts suggest exploring tax preferential policies
With the acceleration of China's aging population, the demand for pension allocation continues to grow, and the construction of the second and third pillars in the pension security system is accelerating. The scope and scale of enterprise led annuities, which serve as the second pillar, are currently limited. Recently, experts have suggested exploring tax incentives and other methods to promote the increase of corporate pension coverage.
On the 19th, the 4th National Pension Summit Forum, sponsored by the China Social Security Society and organized by the Pension Branch of the China Social Security Society, and co organized by Ping An Pension Insurance Co., Ltd., Huitianfu Fund Management Co., Ltd., and Huaxia Fund Management Co., Ltd., was held in Beijing. The theme of the forum was "Promoting the High Quality Development of China's Pension Industry".
Zheng Gongcheng, President of the China Social Security Association, emphasized in his speech that China is currently in a critical period of deepening the reform of the pension system, and the transition from incremental reform to structural optimization will inevitably involve a profound adjustment of the existing interest pattern. Therefore, it is necessary to further consolidate the consensus on deepening reforms, and use more bold and intelligent reform strategies and implementation plans to solidly promote the rapid development of the pension insurance system towards the right goals and along the right path.
Gan Weimin, Vice President of the Pension Branch of the China Social Security Society and Chairman of Ping An Pension Insurance Co., Ltd., stated that the aging population has brought about an increasingly strong demand in the pension market. Currently, China has a large aging population, a fast aging rate, prominent health issues among the elderly population, and a significant increase in the elderly dependency ratio. Therefore, it is urgent to promote the reform of elderly care finance.
In the task of "solidifying the first pillar, increasing the second pillar, and expanding the third pillar", the current key focus is to improve the coverage of enterprise annuities. Firstly, it is necessary to change the existing short-term assessment mechanism of enterprise annuities and measure the investment return rate with a long-term period of 2-3 years, thereby improving the investment return of enterprise annuities; The second is to explore flexible setting of employee participation rates and tax incentives, allowing private enterprises to relax the employee participation rate of enterprise annuities. Profit sharing plans, employee stock ownership pension plans, stock dividend plans, and other special forms of enterprise annuities that meet certain conditions will be included in the second pillar of tax incentives.
Ren Zhiqiang, Vice President of the Pension Branch of the China Social Security Society and General Manager of Haifutong Fund Management Co., Ltd., stated that China's basic pension insurance basically covers labor and employment personnel, but the coverage rate of the second and third pillars is relatively low and the funding scale is small. Therefore, the focus should be on developing the second and third pillars.
In terms of improving the coverage rate of enterprise annuities, he suggests: firstly, optimizing tax policies appropriately, achieving full pre tax deduction for unit and individual contributions, and combining enterprise annuities and individual annuities for tax calculation when receiving retirement benefits, applying personal income tax deduction expenses and special deductions; Secondly, simplify the requirements for enterprise annuity participation procedures; The third is to significantly reduce the attribution period of enterprise annuity unit contributions, with the maximum attribution period controlled within 3 years or initially attributed to individual employees. He also suggests allowing individuals who have not participated in basic pension insurance to voluntarily participate in personal pension, and allowing the underutilized portion of individual contributions in enterprise pension to contribute to personal pension, in order to increase the enthusiasm of individuals to participate in pension insurance.
Jin Weigang, Vice President and President of the Pension Branch of the China Society for Social Security, Vice President and Researcher of the National System Research Institute of Zhejiang University, believes that currently, the development of enterprise annuities in China still faces many difficulties, such as imbalanced construction and development of the three pillar pension security system, slow development of enterprise annuities, and significant contrast with the rapid development of occupational annuities.
He believes that vigorously promoting the rapid development of enterprise annuities should be regarded as one of the key points in building a multi-level pension system and promoting high-quality development of the pension system from a strategic perspective. In order to promote the development of enterprise annuities to break through bottlenecks, he suggests: firstly, appropriately reducing the basic pension insurance rate of enterprises and coordinating the development of enterprise annuities; Secondly, increase tax incentives for enterprise annuity payments; Thirdly, allow enterprises to establish enterprise annuities for certain groups in advance; Fourthly, vigorously develop enterprise annuity collective plans; The fifth is to establish a long-term investment concept and improve long-term investment efficiency; Sixth, promote the integration and unity of enterprise annuity and occupational annuity; The seventh is to strengthen pension legislation and improve the pension regulatory system.
