Britain's pension agreement withdrawal mechanism

下面为大家整理一篇优秀的essay代写范文- Britain's pension agreement withdrawal mechanism，供大家参考学习，这篇论文讨论了英国的养老保险协议退出机制。二战结束后，西方许多国家开始建立福利国家制度，开始发放慷慨的养老金，英国也在其中，但是到了70年代，迅速膨胀的养老金制度使英国财政不堪重负，于是英国政府开始建立多支柱养老保险制度，其中推行的协议退出机制为减轻政府财政负担作出了巨大贡献。

Since the bold and drastic reform of the pension system in the 1970s, Britain has gradually formed a three-pillar system of basic state pension, state second pension and private pension, among which the agreement withdrawal is an important part to maintain the balance of the three pillars and reduce the financial burden of the government. By studying the development process and operation mode of the protocol withdrawal mechanism, this paper expounds the disadvantages of the protocol withdrawal mechanism.

After the second world war, many western countries began to build system of the welfare state, began to issue generous pension, also in Britain, but in the 70 s, the rapid expansion of overwhelm Britain's chancellor of the pension system, so the British government began to build the multi-pillar pension system, including agreement of exit mechanism made huge contribution to reduce the government financial burden.

Before 2012, the British Pension system was mainly composed of three pillars: Basic State Pension, State Second Pension and private Pension. Basic state pension is defray by national finance, mandatory hire personage and oneself are hired ginseng protect, its extend amount is fixed, the capture that keeps a person with ginseng is expended fixed number of year is concerned, but the historical capture that keeps a person with ginseng is expended forehead have nothing to do, it is to collect now pay now make, reflected social fairness principle. The second state pension, also paid for by the government, is pay-as-you-go but paid only to employed people, with the aim of providing a higher pension for the elderly. The pay of national 2nd annuities and basic country annuities are different, it is the historical capture that keeps a person with ginseng to expend forehead photograph hook up, because this country the income redistribution effect of 2nd annuities is inferior to country basic annuities. Private annuities is contributive by employer and employee, government does not pay cost, those who take is to join of one's own accord protect a form, execute complete accumulation to make.

Since enrollees withdraw from DB plans, DC plans, hybrid plans, or individual pension plans and depository pension plans from the agreement of supplementary state pension plans to occupational pension plans, the history of these six pension plans should be reviewed to find out the law of their reform.

In the mid - 1960 - s, almost all British public-sector workers are added to the pension plan, the pension rate has been below the speed of state aid, but at the same time, private pension income growth is fast, so many people think that "two countries" pensioners: those who earn quite rich because the employer pension and depends on who won the social assistance and social investigation. This has put pressure on the state to provide the same generous social benefits as private pensions, and the fiscal pressure is mounting. Thus, in 1978, the state income-linked pension scheme was born, with SERPS pension payments based on a quarter of the average salary in the 20 best years of personal income.

In April 2002 the Labour government set up a state second pension, or S2P, for low earners to replace the SERPS. The main target group of S2P is irregular workers, such as low - and middle-income workers, long-term sick or physically disabled workers. Any employee who has paid the basic state pension premium and has no occupational pension or private pension will automatically qualify for S2P pension. As the direct care of vulnerable groups, under the same insurance premium of pay national number, S2P ginseng protect people divided into threshold is relatively low income, low threshold, high income threshold, each level has different conversion ratio, ginseng protect after weighted income amount of income is the ginseng protect people should get pension. Although from the perspective of absolute amount, the income of high-income people is still inevitably more than that of low-income people, but the replacement rate of the lower income people is higher, which undoubtedly tilts the low-income people and is also a redistribution strategy for the higher income people.

After the subprime crisis in 2008 plunged the UK economy into its first recession since the early 1990s, the government raised national insurance contributions for all employees from 11 per cent to 12 per cent and for all employers from 12.8 per cent to 13.8 per cent from April 2011. Since the national insurance premium is paid only when the salary of the employee exceeds the threshold of low income, this regulation only targets the high-income group, and does not harm the interests of low-income groups, which strengthens the fair role of S2P plan.

When SERPS were created in 1978, employees could opt out of SERPS for the first time in a DB plan, a defined-benefit scheme set up by their employer. Employers who opt out of SERPS pay less in national insurance, but they must guarantee that they can provide a minimum pension to employees who participate in DB plans. Due to Britain in the 70 s the government's social security's main goal is to provide more adequate public pension is given priority to, the British pension spending expands rapidly, so during the conservative ruling from 1979 to 1996, the British government at that time my on the pension system reform, to mandatory measures to reduce the social welfare spending. As a result, the British conservative government relaxed the restrictions on occupational pension in the pension act of 1995. The occupational pension plan that was withdrawn from the agreement did not need to guarantee the minimum pension payment, but only to provide a pension equivalent to SERPS.

From 2014 to 2015, the British government regulations, employees from the S2P plan agreement type exit to the employer to establish the DB plan, employees only pay 10.6% of the national contribution rate, employers pay only 10.4% of the national contribution rate, which means employees are a 1.4% discount, the employer is a 3.4% discount, a total of 4.8% discount, but the discount is 4.8% contribution rate must type into the DB plan.

The social security act of 1986 provides that, for the first time since 1988, contributory defined-contribution plans set up by employers have been allowed to opt out of the agreement. The British government stipulates that from 2011 to 2012, when employees withdraw from the agreement of S2P plan to the DC plan established by the employer, the employee only pays 10.4% of the national contribution rate, and the employer only pays 12.4% of the national contribution rate. In other words, the employee is reduced by 1.6%, while the employer is reduced by 1.4%, a total of 3%. The 3% rebate must be used to fund the employee's pension investment. Tax credit and investment returns what is known as the "protected rights", "protected rights" mainly includes: starting from the age of 55 to pay pension provision can be used to buy a pension annuity or income, you can buy anything you want to buy an annuity, but under the "protected rights" annuity rates must be not gender-specific treatment; If you're married, you can't buy a single annuity that pays more. You have to buy a combined annuity; If you die before retirement, your partner or spouse can receive your pension; Unlimited withdrawal is not allowed. In May 2006, the government issued a white paper, first proposed the abolition of the occupational pension of DC plan, personal pension plan, depository pension plan can deal out S2P plan, because the government think that because of the three plans of pensions is depends on the rate of return on investment and annuity rates, but these three plans and can not accurately predict the amount of pension, so you should make it difficult to make in S2P plan, or exit to the judgment of the three plan agreement. So in order to simplify the pension system, the British government in the 2007 pension act formally abolished in the second pillar of DC in the occupational pension plan, personal pension plan, depository pension plan can deal out of S2P plan, ginseng protect people must be automatically added to the additional state pension plan, and shall come into force on April 6, 2012. After April 6, 2012, the "protected rights" will cease to exist and the insured will have to pay a standard national insurance premium, but the insured will still be able to join these three plans in addition to participating in S2P.

Hybrid pension plan is a combination of the characteristics of DB pension plan and DC pension plan. For example, the insured can continue to participate in DB pension plan after participating in DC pension plan for a period of time, or the insured can obtain pension benefits of DC and DB at the same time.

The 1986 social security act, which began in 1988, eliminated annuities and replaced them with individual pension plans. The UK's individual pension scheme is a tax-favoured personal investment vehicle set up and run by regulated financial institutions such as Banks or insurance companies, mainly to provide retirement benefits, as well as death benefits. Anyone, even self-employed, can set up an individual pension plan, and employers can contribute to an employee's individual pension plan, but they are not required to do so.

Employee agreement after exit to personal pension plans, employers and employees still pay the full amount of the first class national insurance, payment, after the central government in accordance with the preferential standard DC plan, the transfer of 3% of the national insurance contributions to check out the fund accounts, but immediately after the transfer is not in the individual pay cost, but the check out where their after 18 months after the beginning of the fiscal year, the government does not pay the interest on this period, delayed transfer aims to reduce overhead. With spending. The government's action is designed to ensure that the pensioners' pensions are at least as generous as the state pension.

Exit a mechanism agreement despite can alleviate national financial burden, promote capital market competition, make people have more options, and so on merits, but as Britain gradually cancel agreement exit mechanism, we should also reflect on the weakness of the it, lest exit mechanism when the agreement when applied to the endowment insurance system reform in our country have the same problem.

As long as meet certain conditions because the participants can exit the S2P free agreement plan to other pension plans, pension plans, different income, different fund managers make the UK pension system fragmentation serious, therefore, pension system fragmentation is the British government gradually cancel exit mechanism is the main reason for the agreement. In 2012, the number of private sector pension plans that agreed to withdraw from DB reached 2,500, according to the UK's national statistics. Fund provider, such as Banks, insurance companies, in order to enhance their competitiveness, to attract consumers, and also introduced pension in a wide range of designs, complicated pension plan dazzled contributor, but participants and fund provider exists the phenomenon of information asymmetry, participants are unable to get funds provider and the complete information of the market, thus an effective judgment.

In the private sector, there are two types of occupational pension plans, DC and DB, while in the public sector, there are only DB types of occupational pension plans. In 2012, in the UK private sector DC scheme, the average contribution rate for employees was 3.1%, and the average contribution rate for employers was 6.6%. In the UK private sector DB scheme, the average employee contribution rate is 4.9 per cent and the average employer contribution rate is 15.2 per cent. Data can be seen from this, DC pension plan employee employer contribution rate is far lower than of DB pension machine program, and DC pension plans without commitment to employees after retirement pension payment, can will risk shifting employees, so employers are willing to choose agreement out to DC plan, the figures show, in the private sector is only 35% of the DB plan open to new members, and 91% of DC plans to open to new members. Although choosing a DC plan can free an employer from the burden of commitment, it can be detrimental to employees.

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