Comparative Issues of Social Security Fund Raising Models
The primary link and core issue in the reform of the social security system is to establish social security fund raising channels that meet the overall requirements of the market economic system, because according to certain The principles and models of raising and establishing social security funds are the prerequisite and financial guarantee for the establishment and normal operation of the social security system.
1. The current status and problems of fund raising in my country
Looking back at the development process of my country’s social security system, it can be roughly divided into two stages: the first stage is from the establishment of New China Before the Third Plenary Session of the Eleventh Central Committee, this stage began with the promulgation of the "Labor Insurance Regulations of the People's Republic of China" in 1951 by the Government Affairs Council, and gradually established a system with labor insurance as the core content in urban enterprises owned by the whole people and administrative institutions. In the social security system, the fund raising at this stage is mainly borne by the state and enterprises, and individual employees do not bear any social security expenses. The second stage started with the reform and opening up, especially after the Third Plenary Session of the 14th Central Committee of the Communist Party of China proposed to establish a social security system as the content and goal of the economic system reform. Our country gradually carried out social security focusing on pensions, medical care and unemployment. System reform has introduced a series of interim regulations on pensions, unemployment, employee medical care, etc., and a number of cities across the country have been selected as pilots to accumulate experience, identify problems, and lay the foundation for nationwide promotion. At this stage, step-by-step reforms were carried out in the financing methods, and a variety of financing plans were implemented. Later, the social pooling method for enterprise employee pensions was implemented on a large scale across the country. In the initial stage, cities and counties were the basic units for pooling, and enterprises participating in the pooling adopted a "pay as you go, pay as you go" approach. By the end of 1993, all state-owned enterprises had achieved coordination at the city or county level; collective enterprises had coordinated employee pension insurance in 1,927 counties; foreign-invested enterprises had coordinated in more than 800 counties. On this basis, the state decided to gradually raise the level of social coordination in various regions, and gradually transition from city- and county-level coordination to provincial-level coordination.
It can be seen that after several years of reform, the sources and financing methods of my country's social security funds are currently in a special stage of alternation between the old and the new. On the one hand, the fund raising model under the old traditional planned economic system has gradually disintegrated; on the other hand, the new financing method that adapts to the requirements of the market economy system has just begun and is far from meeting the requirements of standardization and systematization. This current situation of alternation between the old and the new has led to the coexistence of various contradictory approaches at this stage, the emergence of unique characteristics of the transition stage, and the existence of obvious problems.
First of all, although the state no longer takes charge of the financing of all social security funds, the burden on the state and enterprises is still heavy. The heavy burden on the state is not only due to the fact that projects supported by state finance, such as social relief, social welfare, special care and resettlement, etc., continue to be borne by the state, but also because the state currently bears a part of the social insurance costs that should be shared by the three parties. For example, at present, the retirement fees of retirees in administrative institutions are actually borne by the state finance; although the employee medical system reform has been carried out in "Liangjiang" and other places, nationwide, the basic framework of the publicly funded medical system remains the same. There are no substantive changes. The burden on enterprises is still too heavy at this stage. According to statistics, by the end of 1993, there were a total of 590,000 enterprises of various types of ownership in the country, with more than 80 million employees and nearly 20 million retired workers participating in the social pooling of retirement expenses, accounting for 60% of urban enterprise employees and 60% of retirees respectively. 80%. However, as far as the sources of fee raising are concerned, most of them are coordinated by enterprises, and the individual contribution rate is less than 1.5%.
Secondly, it is related to the overburden on the state and enterprises, especially the overburden on enterprises, which makes it difficult to collect social security funds. In some places, compulsory coordination has even evolved into "friendly" recruitment. Taking the collection of pension insurance funds in 1993 as an example, the national average collection rate was 86%, a decrease of 7% to 8% compared with previous years. The situation in some cities and counties was even more serious. There are objective reasons for the difficulty in fund collection. At present, state-owned enterprises are suffering from serious losses. Under such circumstances, it is really unbearable to bear excessive social insurance fees. In the case of national administrative compulsory co-ordination of fees, enterprises can only resort to default.
Third, due to the administrative approach, the overall pooling fund is levied according to the specific conditions of each place, and the scope of pooling is mainly cities and counties. There are various levels of provinces, prefectures, and counties. Those who pay the pooling fund There are differences in proportions and calculation methods in different regions and different ownership properties, which leads to a prominent problem, that is, local governments are independent, and the burden levels of local finances and enterprises are extremely uneven. As a result, the social nature of social security cannot be fully reflected. It reduces the overall fund’s ability to share social risks.
Fourth, multiple funds are responsible for raising funds, the management system is not smooth, and fund raising is not standardized. At present, the raising of social security funds in our country involves labor, personnel, health, civil affairs, finance, industry system coordinating departments and insurance companies. In particular, many departments mistakenly regard pension insurance as a piece of fat, and each fights for it, resulting in political The "multiple dragons playing in the water" situation of having multiple branches, multiple managers, different standards, and overlapping businesses will directly affect the reputation of the social security system. The establishment of the Ministry of Labor and Social Security this year marks that social security work will gradually become unified, and this problem will be solved accordingly.
It can be seen that from many aspects such as overcoming the shortcomings in the current raising of social security funds in our country, standardizing the financing channels of social security funds, and reducing the burden on the state and enterprises, our country should learn from foreign experience and establish a system composed of the state and enterprises. The raising model of social security funds is jointly borne by individual tripartite governments to provide a reliable source of funds for my country's social security undertakings.
2. Financing channels for the state, enterprises, and individuals to raise funds
According to the principle of equal burden among the three parties, the state, enterprises (economic units where workers work) Individual workers must be responsible for raising social insurance funds in a certain manner and proportion, and this is usually clarified in the form of national legislation.
(1) The status and role of national finance in the raising of social security funds. In the process of raising social security funds, the status and role of national finance cannot be ignored. For a long time, the raising of my country's social security funds has mainly relied on the state finance and enterprises. Under the conditions of the planned economy, enterprises have unified revenue and expenditure, so they are still a financial burden. One of the directions of the reform of the social security system is the socialization of social security, which should gradually reduce the heavy burden on the state's finances. Therefore, the role of national finance in raising social security funds in the future should be mainly reflected in the following aspects:
First, it plays the role of organizer and manager. Its primary task is to establish and improve the social security system as soon as possible, do a good job in the legislative work of social security to unblock and rationalize the channels for raising social security funds, and provide a stable and legally based source of funds for social security funds. In addition, as organizers and managers, we provide appropriate preferential treatment to social security undertakings in relevant economic policies such as taxation and interest rates to promote the development of social security undertakings. For example: According to the "Basic Plan for Rural Social Pension Insurance at the County Level (Trial Implementation)" of the Ministry of Civil Affairs, the state must provide policy support for the raising of rural pension insurance funds. The support method is mainly to pay collective subsidies to township and village enterprises and provide them with tax benefits. The branches are reflected.
Secondly, we must bear an appropriate share of the raising of social security funds. When raising social security funds, the government should mainly undertake security projects that can only be supported by finance, including social relief, social welfare, special care and placement, and community services. Because social relief, preferential care and resettlement and social welfare belong to the category of redistribution of national income, reflect the state’s responsibility to assist people who cannot reach basic living standards and special groups, and reflect the principle of fairness, they can only be paid by the state finance. funds. The initial stage of community services is also a project funded by financial support. The raising of funds for the above guarantee projects is a major part of the national finance.
In addition, from the perspective of state finance’s support for social insurance, the state finance is mainly responsible for the following two aspects: First, the administrative costs of managing social insurance expenditures. This is because social insurance management agencies It is a non-profit institution, and its personnel and public expenditures should naturally be financed by the government. The second is to make up for the insufficient revenue and expenditure of social insurance fees through fiscal appropriations. That is, in the process of raising social insurance funds, the national finance plays the role of "last appearance" and is the backing of social insurance. When various projects of the social insurance fund encounter difficulties and cannot cover their expenditures, the national finance, including local finance at all levels, must provide appropriate subsidies. True. Social insurance funds should be raised in accordance with the principles of insurance and should be borne mainly by enterprises and individuals. Most countries in the world currently adopt this approach. However, once social insurance is unable to cover its revenue, the finance must provide subsidies. Because the management of social insurance funds does not allow for imbalances in revenue and expenditure, specifically when pension insurance funds have payment difficulties. Appropriate subsidies will be provided by the finance department at the same level; when difficulties arise in the unemployment insurance plan, subsidies will be provided by the local finance department.
The share of the above-mentioned social security funds borne by the government is allocated through the fiscal budget. That is, it is completed through transfer expenditure items of the national budget. The source of funds is the government's general taxation, and the expenditures belong to the national budget expenditure items. In the absence of a separate social security budget and insufficient national financial resources, the social security funds that can be allocated by the government are also affected by the state of the entire country's fiscal revenue and expenditure. However, from the perspective of regulating the financing methods of social security funds, it should be clear what share the national finance should bear, what final subsidies should be given, and the proportion of this part should be calculated. This will be of great help in overcoming the shortcomings of lack of rigidity and non-standardization in the current collection of social security funds in our country. At present, relevant experts in my country believe that the national finance should bear the share. The proportion is about 30% to 40% of the total social security expenses (including social welfare and social relief fund expenditures). If it is between this proportion, the burden on the country should be said to be reduced. Another point worth mentioning here is that the share of social security borne by the finance does not only refer to the central finance, but also includes local finance at all levels. If there are difficulties in unemployment relief, local finance will provide subsidies.
It can be seen that in the raising of social security funds, the state is mainly responsible for those security projects that can only be supported by the state finance, such as social relief, social welfare, etc. As for the raising of social insurance funds, the state They only appear as supporters and backers, and they mainly rely on companies and individual employees.
(2) Responsibilities and obligations of enterprises and individuals in raising social insurance funds
Under the principle that the three parties share the responsibility for social security funds, the economic unit where the employee works ( Enterprises) and individual workers must bear the corresponding share of social insurance funds according to their own affordability. According to the overall goals and requirements of the reform of my country's social security system, my country must gradually adopt the method of having enterprises and individuals jointly bear social security fees (taxes), and implement social pooling of pension and medical insurance combined with personal accounts. Social security fees (taxes) will become the main source of my country's social insurance funds.
The social insurance premiums are jointly borne by enterprises and individuals. The specific operation method is: first, the enterprise unit where the employee works and the employee himself shall submit the payment to the social insurance management agency in accordance with the prescribed proportion based on the total salary. Pay social insurance premiums. Then, a certain proportion is extracted from the social insurance premiums paid by the enterprise for its employees to form a coordinating fund to reflect the social mutual assistance nature of social insurance. The other part of the social insurance premiums paid by individual employees and the social insurance premiums paid by the enterprise for its employees is recorded. Employee personal account. Among them, the unified fund is mainly used for the pension or medical expenses of the elderly who have retired or are about to retire before implementing individual accounts. Personal accounts are mainly used for payment of employees’ personal pensions or medical expenses. As for the specific proportions borne by enterprises and individuals, each fund is different:
1. The proportion of pension insurance funds raised. In March 1995, the State Council issued the "Regulations on Deepening the Reform of the Pension Insurance System for Enterprise Employees" Notice" requires all regions to reform the basic pension insurance system for enterprise employees in their respective regions in accordance with one of the two urban enterprise employee pension insurance system reform plans recommended by the State Council. The two plans have a certain impact on the fundraising channels of my country's pension social insurance funds and the fund's Specific provisions were made for the establishment. Fund-raising efforts were quickly organized in various places according to the proportions stipulated in the selected plan. So far, 22 provinces, cities, and districts have introduced reform plans that combine social pooling with personal accounts, and 617,000 enterprises, 87.382 million employees, and 22.412 million retirees across the country have participated in local reforms. Retirement expenses are socially coordinated, with a total coverage of approximately 120 million people. According to incomplete statistics, the basic pension insurance fund income of urban enterprises reached 102 billion yuan in 1996. However, the implementation of the two plans has also led to differences in the proportion of personal accounts, corporate payment proportions, management levels and benefit payment standards across the country. For this reason, in August 1997, the State Council announced the "On Establishing a Unified Basic Pension Insurance System for Enterprise Employees" "Decision", all regions should be unified as soon as possible in accordance with the new unified plan. The plan redefines the proportion of enterprises and individuals.
The new plan stipulates that the proportion of basic pension insurance premiums paid by enterprises shall generally not exceed 20% of the total salary of the enterprise (including the part transferred to personal accounts), in a few provinces and autonomous regions. Due to the large number of retirees in municipalities directly under the Central Government, the burden of pension insurance is too heavy. If it really needs to exceed 20% of the total salary of the enterprise, it should be reported to the Ministry of Labor and the Ministry of Finance for approval. The proportion of basic pension insurance premiums paid by individuals shall not be lower than 4% of their own paid wages in 1997, and will increase by 1 percentage point every two years starting from 1998, eventually reaching 8% of their paid wages. In areas where conditions permit and in years when wages grow rapidly, the rate of increase in individual contribution proportions should be appropriately accelerated. At the same time, it is stipulated that basic pension insurance personal accounts should be established for employees based on 11% of their own wages, and the rest should be transferred from corporate contributions. As the proportion of individual contributions increases, the portion contributed by enterprises will gradually be reduced to 3%.
From the provisions of the above-mentioned new plan, we can see the following points: It stipulates the overall social security burden level of enterprises, which is conducive to reducing the burden of old state-owned enterprises and eliminates the unfair phenomenon of unevenly light and heavy burdens among enterprises. It provides a basis; among the shares borne by enterprises and individuals, as the share of personal burdens increases year by year, the burden of enterprises shows a downward trend year by year. This embodies the spirit of reducing the burden on enterprises and giving full play to the role of individuals in raising funds.
2. The proportion of medical insurance expenses raised. Because my country’s original medical insurance system (publicly funded medical system and labor insurance medical system) lacks a reasonable medical financing mechanism and a stable source of medical expenses, for a long time, Our country has always had the problem of tight medical expenses for employees, and on the other hand, the limited medical resources are wasted at an alarming rate. After the reform of the economic system, the state organized pilot reform of the employee medical system in Zhenjiang, Jiangsu Province and Jiujiang, Jiangxi Province. Starting in April 1996, the pilot program was gradually expanded to 57 cities. These pilot projects all adopted a medical and social insurance system that combines social pooled medical funds with personal medical accounts. Its funding sources are composed of employer contributions and individual employee contributions.
As for the proportion paid by the employer, "Liangjiang" stipulates that at the beginning of the reform, the sum of the total wages of the unit's current employees and the total expenses of retirees will be the base, and 10% will be withdrawn temporarily. In the future, adjustments will be made in a timely manner based on economic development and changes in actual medical expense levels. The proportion of individual employees' contributions will be temporarily based on 1% of their annual total wages at the beginning of the reform, and will gradually increase with economic development and wage increases in the future. In order not to increase the burden on employees too much, individual employees should pay medical insurance premiums on the basis of increased wages.
The medical insurance premiums paid by individual employees and employers according to the above proportions must be allocated to social overall medical funds and personal medical accounts in a certain proportion. The implementation plan for the reform of the employee medical system in Zhenjiang stipulates that the funds in personal medical accounts come from three parts: first, the employee’s payment of 1% of the total annual salary; second, the employer’s medical contribution based on 10% of the employee’s total annual salary. The insurance fund must be included in the personal medical account in different proportions (over 45 years old and under 45 years old); third, the medical insurance fund withdrawn by the employer based on 10% of the retiree's personal annual retirement expenses, half of which is transferred to the personal medical account. The remaining portion of the employer's contributions to employees and the other half of the medical insurance fund withdrawn by the employer based on 10% of the retirees' personal annual retirement expenses will go into the social overall medical fund, which will be centrally allocated and used by the local social insurance agency. Jiujiang City also has similar regulations on the sources of personal medical accounts and social pooling funds.
Facts have proved that the new medical insurance system has well implemented the problem of raising channels for medical insurance funds, so it can not only meet the medical needs of sick employees, but also avoid problems such as drug waste, and improve Effective use of medical resources.
3. Raising ratio of unemployment insurance funds my country's unemployment insurance system was gradually established after the State Council promulgated the "Interim Regulations on Unemployment Insurance for Employees of State-owned Enterprises" in July 1986. Since the establishment of unemployment insurance, a large amount of unemployment benefits and medical expenses have been paid, and a series of job transfer training bases and production self-rescue bases have been established, which have played a good role in solving the basic living problems of my country's unemployed people.
At present, the unemployment insurance fund is mainly funded by unemployment insurance premiums paid by enterprises. Enterprises must pay unemployment insurance premiums to social insurance agencies at the rate of 0.6% to 1% of the total wages of their employees. The specific payment rate is determined by the social insurance agency where the enterprise is located (province, autonomous region, municipality directly under the Central Government) based on the local unemployment situation; When the unemployment insurance plan encounters difficulties, local finance will provide subsidies. Individual employees do not pay unemployment insurance premiums.
Judging from the situation in most countries in the world, the raising of unemployment insurance funds is different from pension insurance. It is generally borne by the government and enterprises (employers), and individual employees do not pay or only pay nominal contributions. However, in view of my country's current and future population and employment pressure, our country should broaden the channels for raising unemployment insurance funds and raise unemployment insurance funds in accordance with the principle of equal burden among the three parties. In the initial stage, the portion paid by individual employees can be Adopt a lower ratio so as not to impose a burden on individual employees.
To sum up, when raising social security funds, the state mainly supports social security undertakings through financial allocations. Enterprises and individuals must pay various social insurance premiums in certain proportions. Social security funds mainly come from these two channels and are jointly responsible by the three parties. So how can we clearly reflect the rights and obligations of the three parties, regulate the behavior of the three actors, and ensure that the three parties strictly perform their responsibilities? In addition to strengthening the legislation, law enforcement, and publicity of various social security measures, integrating the collection of social security funds into the national budget for unified management can fundamentally help solve the problem.
3. The raising of social security funds should be integrated into the national budget
At present, although our country has established the principle that the state, enterprises and individuals jointly bear social security expenses, And it has begun to implement or pilot projects in elderly care, medical care, etc., but now only the security projects directly allocated by the state finance are included in the national budget, such as social relief, social welfare, military pensions and social security of administrative institutions, and administrative Although the social security funds of public institutions are included in the budget, they are confused with the recurrent expenditures of administrative institutions. As for the income and expenditure of enterprise employee social security funds, various social security funds including enterprise employee pension insurance, unemployment insurance, and housing provident funds are currently managed by their competent departments. This part of social security funds currently belongs to the category of extra-budgetary funds. This situation has caused chaos in fund management to a certain extent, resulting in high withdrawal ratios and management levels from various funds, chaotic investment operations, and frequent losses, misappropriations, and waste. According to investigations, Shaanxi Province has used 250 million yuan of pension insurance funds in the past five years. Therefore, in order to ensure that the social security funds raised by the state, enterprises, and individuals can be used exclusively for social security undertakings, the current decentralized management pattern within and outside the budget must be changed as soon as possible, and social security funds must be unified into the national fiscal budget management.
To be unified into fiscal budget management, a separate social security budget must be established. To this end, the current double-entry budget consisting of regular budget and constructive budget must first be changed to a government public budget. , a three-part budget composed of the social security budget and the state-owned assets operating budget, and re-divided revenue and expenditure. All social security revenue and expenditures will be included in the social security budget for unified accounting and unified management, including some social security revenue and expenditures that have not yet been included and are extra-budgetary funds. The social security budget and other government budgets must remain independent of each other. In particular, social security revenue must not be used to make up for the government's public budget deficit or be diverted for other purposes. This is a common experience gained from the implementation of social security budget practices in many countries.
Secondly, we must determine the source of social security budget revenue. The revenue of the social security budget mainly comes from three aspects: first, the social disability tax levied by the state from the whole society in accordance with the principle of equal burden among the three parties. Currently, our country collects various social insurance premiums in accordance with this principle; second, The government's social security appropriation; and the investment income accumulated by the social security fund. The social security tax is jointly formulated by the fiscal and taxation authorities and the labor insurance business department based on the needs and possibilities of social security work. The tax rate and collection scope are jointly formulated by individuals and employers respectively; the government social security allocation is the social security that should be borne by the national finance. Expenditures can be transferred directly from the government's public budget; investment income is the income earned by the government from investing the balance of revenue and expenditure of the social security fund.
At the same time, social security budget expenditure items must also be determined. Social security funds must be earmarked for special purposes and are mainly used to allocate funds to the labor insurance department to establish various social security funds, including pension insurance fund expenditures, unemployment insurance fund expenditures, work-related injury insurance fund expenditures, medical insurance fund expenditures and social welfare fund expenditures. Relief expenditures and other items. The amount of each fund. It should be included in the unified arrangement of social security budget by the financial department.
Finally, there is the question of balance of payments in the social security budget. Establishing a unified social security budget must maintain a balance between revenue and expenditure. The social security budget is different from other government budgets and is generally not allowed to run a deficit. If a deficit occurs, the social security tax rate should be increased or the scope and standards of social security expenditures should be readjusted, or the government's social security allocation should be increased to ensure a balanced budget. The social security surplus should be used for operations, mainly for the purchase of government bonds and bank savings, and can also be used for government-guaranteed investment projects to ensure the maintenance and appreciation of social security funds.
Integrating all social security funds into the national fiscal budget will help strengthen the management of social security funds, but some related issues must also be resolved. If necessary, corresponding social security laws and regulations must be promulgated as a guideline; the responsibilities and work of various social security management departments must be coordinated and standardized. The most important thing is to change the payment of various social security fees into a unified social security tax and solve the problem of the low level of social security fund coordination. Many articles have been written about replacing the current form of fees with social security taxes, so I won’t go into details here. The solution to the problem of the low level of social security fund coordination depends on several factors: First, the introduction of social security taxes, taxation at a unified tax rate, and unification of basic security levels in various regions will help solve the problem; second, the economic development of various regions and the development speed and extent of social security itself. At present, the state has decided to unify the basic pension collection ratio across the country, which is a major breakthrough in solving the problem of low coordination level. It is believed that with the further deepening of the reform of the entire social security system, the above series of problems will be gradually solved, and standardized social security fund raising channels will be gradually established.
In summary, in order to adapt to the overall requirements of the socialist market economic system, in the future, the raising of social security funds in our country will be based on the principle of equal burden among the three parties and mainly rely on two channels: one is social To protect the taxpayer, it comes from the social security tax paid jointly by the employer and individual employees in a certain proportion; one is the transfer expenditure of the state finance, which comes from the state's general tax revenue. Among them, social security tax will gradually become the main channel for raising funds for my country's social security funds, and finance will form a strong backing for my country's social security funds. The above two financing channels should be integrated into the national fiscal budget, and a social security budget should be established for management and supervision.
The difference between pension insurance and commercial insurance
1. The principles are different. Basic pension insurance is a social system established and implemented by the state through legislation and is a government act. It is protective, mandatory, reciprocal, welfare and social; commercial insurance is operated by insurance companies on a voluntary basis and establishes a relationship of rights and obligations through a contract between the policy holder and the insurer, which is an enterprise behavior.
2. Different properties. Basic pension insurance is non-profit in nature and is backed by state finances. The state and government are responsible for the payment risks of pension insurance funds. Commercial insurance is for profit and is responsible for profits and losses.
3. The objects are different. Basic pension insurance targets citizen workers as defined by law; commercial insurance targets natural persons or all companies.
4. The functions are different. The role of basic pension insurance is to protect workers' basic living conditions after they lose their ability to work and retire; commercial insurance operates in accordance with the rights and obligations stipulated in the contract.
5. Different levels. The insurance level of basic pension insurance takes into account the original living standards of workers, the average social consumption level and the state's financial affordability, and is also adjusted with rising prices; commercial insurance determines the insurance level based on the amount paid by the policy holder, without taking into account factors such as prices and inflation. .
6. The scope of legislation is different. Basic pension insurance falls within the scope of national labor legislation; commercial insurance is the financial activity of enterprises and falls within the scope of economic legislation.
In short, there are strict differences between national statutory pension insurance and commercial insurance, but they are not antagonistic or competitive. Commercial insurance is a useful supplement to the national statutory pension insurance.
Any legal person or individual that should participate in statutory pension insurance shall not refuse to participate in statutory pension insurance on the grounds that it has already participated in commercial insurance; commercial insurance companies and their employees must also participate in statutory pension insurance in accordance with regulations.
Contents of the social security system
The social security system is the general term for a series of social insurance, assistance, subsidies and other systems formulated by the state through legislation. One of the most important social and economic systems in modern countries. Its role is to protect the basic survival and living needs of all members of society, especially to protect the special needs of citizens when they are old, sick, disabled, unemployed, have children, die, encounter disasters, or face difficulties in life. It is realized by the state through the distribution and redistribution of national income. The entire social security system consists of social security systems of different natures, functions and forms, such as social welfare, social insurance, social assistance, social preferential care and resettlement. Modern countries must formulate social security laws and regulations to ensure that the social security system is truly implemented. Including the following aspects:
(1) Social insurance system. It refers to a system established by the state in accordance with the law to enable workers to obtain material assistance from society when they are old, sick, disabled, have children, or are unemployed.
(2) Social welfare system. In a broad sense, it is synonymous with social security, and in a narrow sense, it refers to a social system in which the state or society provides financial assistance and optimized services to all citizens within the scope of laws and policies.
(3) Social relief system. It refers to a system in which the state provides assistance through the redistribution of national income to members of society who are unable to maintain the minimum standard of living due to natural disasters or other economic and social reasons, in order to ensure their minimum living standard.
(4) Social preferential care system. It refers to the social security system implemented by the state in accordance with legal forms and government actions to commend and provide relief to military personnel and their families who have made special contributions.