China's Enterprise Annuity regulatory mechanism of
【Papers Key words: enterprise annuities; regulation; agency regulation; functional supervision
【Abstract】: article for the supervision of enterprise annuity foothold for monitoring the status quo, combined with the relevant literature on the supervision of the process there is a range of mechanisms for analysis and by drawing on the experience of developed countries, a number of observations and recommendations.
Enterprise Annuity the state, enterprises and individuals to share responsibility for the trinity of old-age security system arrangement is
the antidote to the aging crisis, the family mini-trend of longevity risk
important institutional arrangements. Corporate pension plans, however,
the risks facing the operation of complex and complicated, therefore, to achieve protection of the safety and enterprise annuity profitability, build an efficient, effective monitoring mechanism is particularly important.
First, the status quo of China's Enterprise Annuity regulation
(A) the status of the development of China's Enterprise Annuity
Since the implementation of two laws in 2004, China's Enterprise Annuity has entered a golden age of development. To the end of 2005,
China's enterprise annuity accumulation fund is 680 million; to the end of 2006, reaching 91 billion yuan; in 2007 full-year increments for the
enterprise annuity of around 40 billion, and accumulated funds reached 130 billion yuan. However, in the regulation, there are still a number of problems.
(B) The regulatory mechanism of China's Enterprise Annuity
At present, China's Enterprise Annuity the regulatory body supervising the use of the model. The so-called institutional control,
that is, in accordance with enterprise annuity operations, types of institutions involved in the design of regulatory agencies, various regulatory agencies for managing their own financial institutions. According to enterprise annuity operations involved in the main body and the relevant government departments, functional scope, the main players in enterprise annuity supervision of Labor and Social Security, the Ministry is mainly responsible for corporate pension legislation and law
enforcement supervision, is responsible for handling agency eligibility confirmation, etc.; China Banking Regulatory Commission , is responsible for the supervision of custodian banks; CIRC is responsible for supervision of insurance companies; Securities and Futures Commission to
oversee the trust, investment management companies; Ministry of Finance, is responsible for supervision of enterprise annuity in tax policy. This division of functions, according to agency institution responsible for the supervision model, in the real operation, there are many problems.
(C) The regulatory mechanism of China's Enterprise Annuity Problems
1. There is blind spot monitoring and supervision of repetition.
Supervision of the main too many subjects, including government and
non-government and governments have the main body of Labor and Social Security, the CIRC, China Banking Regulatory Commission, the Commission, the Audit Commission, etc.; the main players in the non-governmental
industry associations, intermediaries and beneficiaries, etc. . Cooperation between these subjects, the lack of effective communication and coordination mechanism can not make the monitoring system to play its best effect.
2. Trade associations and intermediary organizations, as well as lack of self-regulation by the beneficiaries
In the process of pension regulation, industry associations and intermediary organizations positioning is not clear, did not play its proper functions; while workers pay the principal and participating in a
lack of awareness of the safety and rights of each month upon payment of fees is no longer involved the operation of the enterprise annuity, making the operation of the enterprise annuity beneficiary of a lack of self-
regulation.
3. Enterprise annuity guarantee mechanism is imperfect, the ultimate beneficiaries of the lack of protection of the interests of
"Interim Measures for Enterprise Annuity Fund Management," provides for the establishment of investment management risk reserve for the
enterprise annuity fund by way of security the first line, but the low level of security. In addition, our country and no other fund guarantee system, once the pension fund investment losses occur, the risk reserve fund amounts to drop in the bucket and can not protect the interests of the beneficiaries.
Second, developed countries, the experience of enterprise annuity regulation
(A) the regulatory mechanism of U.S. corporate pension
The American corporate annuity is a state and federal governments respectively at different levels of pension scheme regulation, while the three main organizations responsible for dealing with pension regulation: Domestic tax is, the Ministry of Labor, pensions and benefits Guarantee
Corporation. The main regulatory legislation is Act ERISA (Employee Retirement Income Security Act) and the IRC bill. In the ERISA, the United States of enterprise annuity also affected by tax law, security law, in 1947 the National Labor Act, Taft Hartley Act part of the control.
(B) The supervision of the United Kingdom occupational pension plans
The British pension system regulatory agencies are: the Internal Revenue Revenue Service; Occupational Pension Authority; government
revenue related to pension plans; Occupational Pension Advisory Board; Financial Services Authority. In addition, the United Kingdom has also set up two complementary regulatory mechanisms: First, to establish a "whistle" mechanism, the introduction of professional referees, or
arbitrators, on behalf of the client's interests, misconduct on the trustee effective constraints; the second is to establish "Members complained that" mechanism, in fact encourage the majority of the members of the mechanism through which to express their opinions directly to their own opinion or dissatisfaction reflected to the regulator or the regulator. Legal aspects, mainly due to the 1986 "Financial Services Act" and 1995's "Pension Insurance Act," regulation.
(C) the regulatory mechanism of the Japanese enterprise annuity
In Japan, the supervision department of the enterprise annuity There are two: First, Ministry of Health, Labor and financial services organizations. In the regulatory approach, Japan's regulatory model from
quantitative restrictions and gradually regulation to the "prudent man" rule direction. In the legal norms, the main follow the "Labor Standards Act," "Company Tax Law," "employee pension Insurance Act", "DB Pensions
Act", "DC Pension Law." In addition, in recent years, driven by simplifying regulations, by registered pension insurance companies, trade unions, staff associations the indirect supervision of pension effects are increasing. Reposted elsewhere in the paper for free download http://
Third, to improve supervision of enterprise annuity Suggestions
Combined with the existence of China's Enterprise Annuity the current regulatory problems, learn from foreign countries the United States, Japan, the United Kingdom's experience, I believe that enterprise annuity should look at improving several aspects.
(A) to the functional supervision from the authorities to monitor changes in
The so-called functional regulation is based on two basic functions
of the financial system designed to provide for more continuity and consistency, and able to implement cross-product, multi-agency, cross-
market co-ordination of supervision. In the functional regulatory framework, the various regulatory concern is the main business activities of financial institutions and their functions that can be played, rather than the type and name of financial institutions. In this case, the Ministry of Labor and Social Security from the overall supervision, and in
the specific operational aspects, the CBRC is responsible for monitoring managed services, account management CIRC regulatory affairs, the SFC's investment management services. The Ministry of Labor and Social Security in the supervisory process play a leading role, is a statutory supervisor.
(B) The regulation of intermediaries
Clear industry associations, and agency positioning, strengthen information disclosure. Under normal circumstances, corporate pension scheme's trustees, account managers, investment managers, fund custodians and fund financial statements of the financial statements must be audited by an independent auditing body; trustees are required to employ an external actuary to assess the solvency of their ; agencies must be
approved by the credit rating agencies assessed. Intermediary bodies and industry associations to conduct a fair and strengthen information disclosure. In addition, we must establish enterprise annuity industry self-regulatory mechanism. This should draw on the British "whistling"
mechanism and "members of the complaints" mechanism. Self-regulation
should be dependent on some important professional supervision.
(C) the beneficiaries of self-regulation
To improve the safety awareness of the beneficiaries, the
beneficiaries to express their opinions to establish mechanisms to strengthen self-regulation by the beneficiaries. Reflect the views of the beneficiaries of the requirements of the beneficiaries, hope and resentment is to promote the fund managers to improve the operation and management to meet the power demand by the beneficiary. Therefore, the establishment of mechanisms for beneficiaries to express their opinions, is an important aspect of regulation is also an integral part of the
incentive mechanism.
(D) the establishment of enterprise annuity fund guarantee mechanism
At this point, you can learn from the experience of the United States Guarantee Corporation to establish pension funds. Pension Fund to
guarantee the company's funds come from pension plan sponsors to pay part of the investment income of pension funds and pension fund plans to guarantee company managed assets of more feasible. And, by giving the company pension fund guarantees a certain degree of regulatory power to
improve the monitoring mechanism to improve the efficiency of supervision. Our country is now in the development of enterprise annuity prime-time,
the establishment of enterprise annuity fund guarantee mechanism is necessary and urgent.
References
[1] Hua Jinhui. Enterprise annuity supervision of international experience and enlightenment. Hainan finance. 2005.8.
[2] Shan Mei Jiao. China's Enterprise Annuity A Comparative Study of the regulatory regime. East China Normal University, a master's degree thesis, 2005.
[3] in the sea. The study on the regulation of China's Enterprise Annuity. Capital University of Economics and a master's degree thesis, 2005.
[4] Yuan cents goods. Chinese enterprise annuity regulatory mechanism. Northwestern University, a master's degree thesis, 2007. Reposted elsewhere in the paper for free download http://