At 1. 1984, China began to explore the reform of the original old-age insurance system, and established the basic old-age insurance system (hereinafter referred to as the unified account old-age insurance system) on 1997.
2. The goal of this system is only to provide basic living security for the insured, and the wage replacement rate of pension will be gradually reduced from nearly 100% before the reform to about 60%.
3. The system implements the combination of social pooling and individual account in ownership to reflect the combination of fairness and efficiency.
4. The cost of this system is shared by enterprises and employees.
This system is a financial system combining pay-as-you-go and accumulation.
6. The basic old-age insurance payment consists of basic pension and personal account pension, and the payment condition is that the individual payment period is accumulated to 15 years.
Characteristics of social security:
1. The objective basis of social insurance is the risks existing in the labor field, and the object of insurance is the workers themselves.
2. The subject of social insurance is specific. Including workers (including their relatives) and employers;
3. Social insurance is compulsory;
4. The purpose of social insurance is to maintain the reproduction of labor force;
5. The insurance fund comes from the payment and financial support of employers and workers. Insurance coverage is limited to employees, excluding other social members. The insurance coverage is limited to all kinds of risks in labor risks, excluding other risks such as property and economy.
Remarks: Social insurance refers to the system that the state establishes a social insurance fund through legislation to provide necessary material assistance to workers who participate in labor relations when they lose their ability to work or are unemployed. Social insurance is not for profit. Social insurance is mainly through raising social insurance funds, coordinating and adjusting social insurance funds within a certain range, and giving necessary help to workers when they encounter labor risks. Social insurance provides basic living security for workers. Workers can enjoy social insurance benefits as long as they meet the conditions for enjoying social insurance, that is, they have established labor relations with employers or paid various social insurance premiums according to regulations. Social insurance is the core content of social security system.