What are the models that exist in the world to implement the pension insurance system

This article is about the three models that exist in the pension insurance system. Countries around the world to implement the pension insurance system there are three models, can be summarized as insured funded (also called traditional) pension insurance, compulsory savings pension insurance (also known as provident fund model) and national co-ordination of pension insurance. 1, the traditional type of pension insurance system Traditional type of pension insurance system is also known as and employment-related program (employment-relatedprograms) or self-insurance public assistance model, the earliest for the German Bismarck government in 1889, the enactment of the pension insurance law created, and later adopted by the United States, Japan and other countries. Expenditures are then used to determine the total contribution rate. The wage replacement rate of an individual's pension, and then the expenditure is used to determine the total contribution rate. The individual's right to receive an old-age pension is linked to the obligation to make contributions, i.e. individual contributions are a prerequisite for receiving an old-age pension. The level of the old-age pension is linked to the individual's income, and the basic old-age pension is calculated on the basis of the employee's average indexed monthly salary for the calendar year prior to retirement and the substitution rates for different grades, and is adjusted automatically at regular intervals. In addition to the basic pension, the State also encourages enterprises to implement supplementary pension insurance through preferential policies in terms of taxation and interest, basically implementing a multi-level pension insurance system. 2, the national integrated pension insurance system national integrated (universalprograms) is divided into two types: 1) welfare state locations generally taken, also known as welfare-type pension insurance, the earliest for the United Kingdom to create, the current application of this type of countries also include Sweden, Norway, Australia, Canada and so on. The system is characterized by a full "pay-as-you-go" system, with pension levels determined on a "defined benefit" basis. Pension insurance premiums come entirely from government taxes, and individuals are not required to make contributions. Pensions are available not only to workers, but to all members of society. The level of pension protection is relatively low, and usually only guarantees a minimum standard of living rather than a basic standard of living; for example, in Australia, the level of pension benefits is only equivalent to 25 per cent of the average wage. In order to solve the problem of the low level of basic pension, it is generally advocated that enterprises should implement an occupational pension system to make up for the inadequacy of the basic pension. The advantage of this system is that it is simple and easy to operate, and provides basic livelihood protection for the elderly through income redistribution to offset the negative impact of the market economy. However, the system also has obvious shortcomings, the immediate consequence of which is an excessive burden on the Government. Since an equivalent portion of the Government's fiscal revenue is spent on social security expenditures, and in order to maintain such a large amount of social security expenditures, the Government must adopt a high tax policy, thus adding to the burden of enterprises and taxpayers. At the same time, members of society generally enjoy old-age insurance benefits, and there is a lack of incentives for individuals, emphasizing fairness at the expense of efficiency. 2) Another type of state-coordinated type was created by the Soviet Union seat, whose theoretical basis was Lenin's theory of state insurance, and later adopted by Eastern European countries, Mongolia, North Korea, and China's pre-reform seat. This type is the same as the welfare state's old-age insurance system, the state to take over the old-age insurance activities and fund-raising, the implementation of a uniform level of insurance benefits, workers do not need to contribute to the individual workers can enjoy a pension after retirement. However, unlike the previous system, the target group was not all members of society, but rather active workers, and there was only one level of pension, with no multi-level pension insurance in place, and generally no regular adjustments to the level of pensions. With the dissolution of the Soviet Union and Eastern European countries and China's economic system reform, the number of countries adopting this model is also decreasing. 3, mandatory savings type mandatory savings type there are two main Singapore model and Chilean model. 1) The Singaporean model is a provident fund model. The main feature of this model is to emphasize self-protection, the establishment of individual provident fund accounts, by the workers in the period of employment and their employers *** with the payment of pension insurance premiums, the workers in the post-retirement period from the individual account to receive pension, the state will no longer be any form of payment of old-age pensions. The funds in the individual account can be received in a lump sum with interest or in installments after retirement. The State manages and operates and invests the funds in individual accounts through the Central Provident Fund Board, which is a fully accumulated and small-scale financing model. In addition to Singapore, some developing countries in Southeast Asia and Africa have also adopted this model. 2) The Chilean model, as another type of compulsory savings, also emphasizes self-protection and also adopts the model of individual accounts, but unlike the Singaporean model, the management of individual accounts is completely privatized, i.e., the individual accounts are handed over to self-sustaining private pension insurance companies stipulating a maximized rate of return, while a minimum pension insurance system is implemented. The model was introduced in Chile in the 1980s and has been replicated in a number of Latin American countries. The most important feature of the mandatory savings-based pension insurance model is that it emphasizes efficiency but ignores fairness, making it difficult to reflect the protection function of social insurance.

Article 2 of the Social Insurance Law The state establishes a social insurance system for basic old-age insurance, basic medical insurance, work-related injury insurance, unemployment insurance, maternity insurance, etc., and guarantees the right of citizens to obtain material assistance from the state and society in accordance with the law in the event of old age, sickness, work-related injury, unemployment, or maternity.