What Should I Consider when Choosing a Pension Beneficiary?

The social endowment insurance fund refers to a special fund reserved for the establishment, maintenance and development of endowment insurance business, which is mainly used for the basic life of the elderly after quitting social work.

Endowment insurance fund

Endowment insurance funds, also known as retirement funds, are the main means of realizing endowment insurance systems in various countries. That is, the benefits that employees receive from their employers after retiring for a certain number of years can be one-time or regular life-long benefits.

(1) Sociality. Endowment insurance, as a social policy that promotes socioeconomic development and social stability, targets all members of society and has a strong social character in fund collection, payment, and operation of fund assets, both in the management process and specific links. Reflects social or government behavior.

(2) Savings. A considerable part of the social endowment insurance funds are pre-funded through personal accounts, especially the accumulation funds, which are mainly pre-funded through personal accounts, and are saved for future payment of pension funds.

(3) Mutual assistance. The collection and payment of social endowment insurance funds are implemented with a certain degree of social co-ordination to achieve social mutual assistance and reduce the pension risk of workers. The main manifestations are: the fund raising is borne by the state, the employer and the individual, and part of it is allocated as a social pooling fund; the fund's operating income, all of which are incorporated into the fund and are exempt from tax, are shared by all policyholders, and are not Share according to how much individual contributions are paid; Except for the individual contribution savings, in the case of the insured person's death, the amount of savings in his personal account or the uncollected part is included in the social pooling fund.

Chapter I General Provisions

Article 1 In order to strengthen the management of enterprise employee endowment insurance funds (hereinafter referred to as funds) and ensure that the use of funds is safe and effective, according to Article 10 of the "Decision of the State Council on the Reform of Enterprise Employee Endowment Insurance System", Article 10 The state's policies and regulations establish and improve the various systems of fund management, and these regulations are specifically formulated.

Article 2 The Ministry of Labor is responsible for formulating the various systems and policies for the management of pension insurance funds for labor contract workers in enterprises and government agencies, and supervises and inspects the management of funds across the country. Local labor administrative departments at various levels are responsible for formulating the implementation methods of the local fund management system, and supervising and inspecting the local fund management situation.

Article 3 The social insurance management agency of the Ministry of Labor is responsible for the management of national funds and guides the management of funds by local social insurance management agencies at all levels. Local social insurance management agencies at various levels are responsible for the management of funds in their region. The social insurance management agency that implements the system coordinating department with the approval of the State Council is responsible for the management of the funds of the state-owned enterprises directly under the department and the head office.

Article 4: Social insurance management agencies at all levels must manage endowment insurance funds for enterprise employees in accordance with these regulations.

Chapter II Solicitation of Funds

Article 5 Source of Funds

(1) Basic endowment insurance premiums paid by units and employees;

(2) supplementary endowment insurance premiums paid by the unit for employees;

(3) Individual savings pension insurance premiums paid voluntarily by employees;

(4) Late fees collected in accordance with regulations;

(5) Interest on fund deposits;

(6) Income from the preservation and appreciation of funds;

(7) Financial subsidies;

(8) The income transferred from the labor contract employee fund;

(9) Other income.

Article 6 Based on the actual need to pay the endowment insurance costs and the affordability of the enterprise and employees, the basic pension insurance fund will gradually implement a uniform ratio of all employees of the enterprise in accordance with the principle of fixed income, slight balance, and partial accumulation. The fund should have some accumulation, and the accumulation rate is 3% of total wages, and it will be adjusted gradually with economic development in the future.

Article 7 The basic endowment insurance premium paid by an enterprise shall be deducted from the management expenses of the enterprise according to the total wages of the employees of the enterprise (consisting of the total salary stipulated by the National Bureau of Statistics) and the proportion prescribed by the local government. pay.

Individual employees pay basic endowment insurance premiums at 2% of their wage income (the same caliber of total wages), which is collected by the company when it is paid, as part of the basic endowment insurance fund, and recorded in the Employee Endowment Insurance Manual.

The enterprise and the employees must pay the basic endowment insurance premiums at the same time in order to calculate the employee payment period.

When the basic endowment insurance fund is inadequate, the state will give appropriate subsidies.

Article 8 Enterprise supplementary endowment insurance is established by the enterprise for its employees based on its own capabilities. Individual savings endowment insurance is voluntarily participated by individual employees.

Enterprise supplementary endowment insurance funds and personal savings endowment insurance funds are entered into the employee's personal account by the social insurance management agency according to the social security number (national standard GB11643-89) issued by the State Technical Supervision Bureau.

Article 9 When an enterprise with financial difficulties does not have the ability to pay basic endowment insurance premiums, it may apply for the postponement of basic endowment insurance premiums during the prescribed payment period, which shall be implemented after approval. The specific measures for deferred payment shall be implemented in accordance with the regulations of the people's governments of provinces, autonomous regions and municipalities.

Article 10 When an enterprise participating in basic endowment insurance cannot continue to perform its obligation to pay basic endowment insurance premiums due to bankruptcy or shutdown, etc., it shall, in accordance with relevant state regulations, give priority to the settlement of outstanding contributions to the social insurance management agency in the liquidation of corporate property Basic old-age insurance premiums and the one-time payment for the retirement expenses of retirees of the enterprise. The specific amount of one-time payment for retirement benefits shall be implemented in accordance with the regulations of the people's governments of provinces, autonomous regions and municipalities.

Chapter III Payment of Funds

Article 11 The social insurance management agency shall pay the pension insurance expenses to the retirees participating in the basic pension insurance costs coordination in full and on time in accordance with the overall planning stipulated by the local people's government. Other endowment insurance expenses not included in the overall planning project shall still be paid by the original unit in accordance with the current regulations and shall not be included in the fund.

Article 12 The supplementary endowment insurance fund and the employee's personal savings endowment insurance fund belong to the individual employee, and the social insurance management agency shall pay it once when the employee retires. When an employee dies before retirement, he or she may be paid a lump sum to his legal heir in accordance with the relevant provisions of the Inheritance Law of the People's Republic of China.

Chapter IV Management of Funds

Article 13 The basic endowment insurance premiums paid by enterprises and individual employees and the financial subsidies provided by the state are transferred to the special accounts for endowment insurance funds opened by banks of social insurance management institutions; supplementary endowment insurance premiums for enterprises and personal savings endowment insurance premiums are transferred. Special accounts for supplementary endowment insurance funds opened by banks in social insurance management institutions shall be used for special storage and special funds. The funds deposited in the bank shall be calculated at the interest rate of the urban and rural residents' savings for the same period as stipulated by the People's Bank of China, and the interest income shall be merged into the basic endowment insurance fund, supplementary endowment insurance fund and personal savings endowment insurance fund, respectively.

Article 14 The social insurance management agency must timely transfer or redeem the bank deposits of the funds due and the bonds purchased with the funds.

Article 15 The social insurance management agency may retain the basic pension insurance working capital for 1-15 months from the fund based on the monthly average full settlement income of the local fund.

Article 16 The social insurance management agency of the place of transfer and transfer of newly recruited labor contract employees who are moving across regions shall handle the transfer procedures of the basic pension insurance fund. The basic endowment insurance fund is transferred in accordance with the payment standards (without deduction of management fees and interest) set by the people's government in the transfer region. Newly recruited labor contract system employees before and after the transfer of payment years are combined.

Article 17: Social insurance management agencies at all levels shall establish and improve fund management systems such as finance, accounting, statistics, and internal auditing, prepare the fund's annual income and expenditure and management service fee budgets and final accounts, and report to the local people's government in the budget. The middle column receives the expenditure. The budget, calculation and accounting statements and statistical statements of the income and expenditure of funds and management service fees prepared by the provinces, autonomous regions and municipalities directly under the Central Government shall be reported to the Ministry of Labor at the prescribed time.

Article 18 Social insurance management agencies at all levels may withdraw management service fees from the basic endowment insurance fund according to the actual needs of work and the principle of economy. The specific withdrawal ratio shall be proposed by the local labor department and submitted to the endowment insurance upon review by the financial department at the same level. Approved by the Fund Committee. The management service fee is mainly used for personnel expenses, official expenses, business expenses, equipment and vehicle purchase expenses, housing infrastructure repair expenses, retiree management activity expenses and other necessary expenses. The use of management service fees must comply with national financial and economic policies and relevant regulations. Once the annual revenue and expenditure budget for management service fees is approved, it shall be strictly implemented. If adjustment is required in special circumstances, it shall be submitted for approval in accordance with prescribed procedures.

Article 19 The social insurance management agencies at all levels have the right to audit the relevant accounts, statements, total wages of the enterprise, retired expenses and incumbent employees, the roster of retirees, the various bases of approved accrual funds and the payable Retirement costs.

Chapter V Preservation and Appreciation of Funds

Article 20: Social insurance management agencies at all levels shall, in accordance with the principle of safety and efficiency, ensure that the pension insurance funds that have been rolled over over the past years require the normal expenditure of all retirement expenses for six months, and retain sufficient working capital. You can use part of the balance fund to add value. The net income obtained from the appreciation of the fund is excluding taxes and fees. The value-added part of the fund shall be transferred into the fund in all, and it shall not be used for other purposes.

Article 21 Ways of Fund Preservation and Appreciation:

(1) purchasing Treasury bills and bonds issued by the State Bank;

(2) Entrusting national banks and national trust and investment companies to make loans.

Article 22 The social insurance management agencies at all levels shall not conduct lending business, do not operate businesses, run enterprises, purchase various stocks, or provide economic guarantees for various economic activities.

Chapter VI Supervision and Inspection of Funds

Article 23 The labor administrative departments at all levels shall strengthen the supervision and inspection of the use of management service fees of pension insurance funds and social insurance management agencies, and conduct internal audits on a regular basis.

Article 24 The establishment of a social insurance fund supervisory board is composed of representatives of labor administrative departments, enterprise representatives, employee representatives, and retiree representatives, and is responsible for the supervision and inspection of the management of pension insurance funds and the use of management service fees. Social insurance management agencies must report to the Board of Supervisors before they report fund management to the Pension Insurance Fund Committee.

Article 25 The social insurance management agency shall actively accept the supervision and inspection of the pension insurance fund and management service fees by the financial, auditing, supervisory agencies and trade unions, and provide information such as relevant accounts and original vouchers.

Chapter VII Penalties

Article 26 If a unit fails to pay the basic old-age insurance premiums after the due date, a late payment fee of 2 of the amount payable shall be added daily, and the late payment fee shall be merged into the basic endowment insurance fund. The late payment fee paid by the unit is listed in the unit's own funds.

Article 27. Units and employees who falsify and make a small number, fail to pay, or refuse to pay basic endowment insurance premiums shall be ordered by the social insurance management agency to make additional payment within a time limit. For units that have not paid within the time limit, the social insurance management agency may apply to the people's court for enforcement.

Article 28 Any unit or individual who misappropriates the old-age insurance fund shall be given administrative sanctions against the persons in charge and directly responsible persons according to the seriousness of the circumstances; if a crime is constituted, criminal liability shall be investigated in accordance with the law.

Article 29. Units and individuals who receive endowment insurance costs by illegal means shall be recovered by the social insurance management agency for all their illegal income; if a crime is constituted, criminal liability shall be investigated in accordance with the law.

Article 30: If the social insurance management agency violates Article 11 of Chapter III and fails to pay the endowment insurance costs on time and in full, the labor administrative department shall order it to make corrections; if the circumstances are serious, the person in charge and the person directly responsible shall Administrative sanctions.

Chapter VIII Supplementary Provisions

Article 31 The labor administrative departments of provinces, autonomous regions, and municipalities directly under the Central Government may formulate specific implementation measures in accordance with these regulations.

Article 32 The interpretation of these regulations rests with the Ministry of Labor.

Article 33 These regulations shall be implemented from the date of promulgation.

Social security foundations and pension fund investment management agencies within the scope of investment approved by the State Council, the use of pension funds in the investment process, the provision of loan services to obtain all interest and interest income and financial product transfer income, exempt from value-added tax.

For social security foundations and pension fund investment management institutions within the scope of investment approved by the State Council, the investment income attributable to pension funds obtained from the investment of pension funds is used as non-taxable income for corporate income tax; The income derived by an institution from its pension fund management activities is subject to corporate income tax in accordance with the tax law.

The social security foundation and pension fund investment management agencies use the stamp tax payable on the purchase and sale of securities by pension funds to implement first levy and then return; transfers of securities held by pension funds between pension fund securities accounts are not included in the scope of stamp tax collection. No stamp duty is levied. The transfer of equity of non-listed companies to pension funds managed by social security foundations and pension fund investment management institutions is exempt from the stamp duty payable by social security foundations and pension fund investment management institutions. ^[3]

Problems in regional coordination and balance

The interregional coordination and balance of social pension insurance funds is an analysis method based on the administrative area as the observation point, focusing on the coordination and balance between regions. From the current situation in China, the following problems exist:

(1) The overall level of social pension insurance funds is low and segmented. At present, the inter-regional overall level of social pension insurance funds in China is low and fragmented, and the adjustment function of pension insurance funds is not strong. Since 1986, the fundraising model of social pooling and the combination of social pooling and personal accounts has been implemented. From the perspective of its implementation, the collection of pension funds in China is not ideal. So far, the overall level of China's endowment insurance funds is still low, the scope of adjustments is relatively narrow, and the use efficiency of the funds is not high, and most of them are limited to the county-level or city-level scope. At the same time, the approval of the State Council for 11 industry sectors such as electricity, transportation, post and telecommunications to implement industry co-ordination for a long period of time, and not participating in the local pension insurance co-ordination, have affected the supply of local co-ordination funds to a considerable extent, despite the industry co-ordination work. At the end of 1998, the transfer to the local social insurance management agency was completed, and in accordance with the principle of first transfer, then adjustment, to participate in social coordination in the region, but the sequelae during the implementation period and irregular operations before the transfer of the industry, such as expanding the overall planning project It is difficult to eliminate payment rates and raise payment standards in the short term.

(2) The development of social pension insurance funds is uneven. Due to the imbalance in economic development, the supply capacity and demand pressure of pension funds vary from place to place. In areas or cities with developed economies and young population age structures, there are many accumulated pension insurance funds. Regions or cities have accumulated fewer endowment insurance funds, and a few regions have even failed to make ends meet. On the one hand, some developed regions or urban pension insurance funds accumulate more; on the other hand, some underdeveloped regions cannot receive their pensions in full and on time. In this way, the pension insurance funds cannot be adjusted to each other within a relatively large range, so that the accumulation of pension insurance funds in economically developed areas cannot make up for the shortage of pension insurance funds in economically backward areas, which affects the efficiency of pension insurance funds in general.

Problems in intergenerational coordination and balance

The intergenerational coordination and balance of social endowment insurance funds is an analysis method based on the age of the population participating in the endowment insurance, focusing on the overall planning and balance between the next generation. The current system of combining social pooling and personal accounts in China means that the current working generation must not only bear the obligation to continue to support the elderly of the previous generation, but also to accumulate personal accounts for their future retirement. Intergenerational pooling and balance contradictions have become prominent. .

(1) Pay-as-you-go method cannot meet the needs of the aging population. Under the pay-as-you-go endowment insurance model, pensions can be paid by the employer's income or assets, or paid by the government from the employer and employees' income, and generally no fund is established. This system usually has no difficulties when the working population is much larger than the retired population, or when the population structure is young, but under the situation of more serious aging, this pension transfer is unsustainable. It is predicted that the proportion of retired employees and working employees in Chinese urban enterprises will reach 48.95% in 2030 and 55.46% in 2050. If the pay-as-you-go financing model is adopted, the proportion of fund withdrawals will exceed 40% of total wages, so it must be Set up funds for accumulation.

(2) The retirement age is a basic factor affecting the level of pension burden. Generally speaking, with a certain average life expectancy and a certain level of protection, the higher the retirement age, the shorter the average pension period and the lower the pension burden. China s current statutory retirement age is 60 years for men, 55 years for women cadres, and 50 years for women workers. Workers with special jobs can retire 5 years in advance. Among the 111 state-owned bankrupt industrial enterprises in the optimized capital structure pilot cities identified by the State Council, Employees can retire 5 years in advance. These regulations are generally 5 to 10 years earlier than international policies that continuously extend the retirement age as the life expectancy of the population increases. What is more noteworthy is that in order to alleviate the pressure of laid-off workers and unemployment, some regions and enterprises have adopted the method of early retirement to solve the contradiction of reemployment of old employees. In fact, the pressure of employment is transferred to the endowment insurance, pushing the recent problems into the long run.

(3) The social pension fund is in arrears. It is a fact that the pension insurance fund collection rate in China has been decreasing year by year. The national pension insurance fund collection rate was 88.84% in 1999, and some provinces were below 85%. According to relevant data, from 1993 to 1999, the pension fund was owed 47.2 billion yuan due to insufficient pension fund collection rates. At present, this situation has not improved, and the calls for recovery from various places have come and gone, and the huge amount of arrears has undoubtedly weakened the fund's operating foundation.

On September 27, 2019, the Ministry of Finance, the Ministry of Human Resources and Social Security, and the State-owned Assets Supervision and Administration Commission jointly held a nationwide task deployment meeting for the transfer of part of the state-owned capital to enrich the social security fund, marking that the reform of the state-owned asset transfer and social security reform started in 2017 has accelerated. Sprint "stage.

According to the executive meeting of the State Council, 10% of the state-owned shares of central and local state-owned and state-controlled large and medium-sized enterprises and financial institutions will be fully transferred to the Social Security Foundation and local relevant undertaking entities as financial investors. Provide for rights such as the right to income.

With the joint issuance of a notice issued by the five departments including the Ministry of Finance, the schedule of the transfer work has been clearly defined: at the central level, qualified enterprises are basically completed by the end of 2019, and enterprises with real difficulties can be completed by the end of 2020. The enterprises run by the central administrative institutions shall be transferred after the centralized and unified supervision reform is completed; at the local level, the transfer will be basically completed by the end of 2020.

The Ministry of Finance will also formulate operating methods with relevant departments, requiring the national transfer work to be strictly implemented in accordance with the operating measures, and to actively, prudently, and orderly promote the transfer work. ^[2]

Improve the multi-pillar pension system

With the rapid development of China's population aging, the shrinking of the traditional family pension security function, and the increasing pressure on government financial payments, promoting the construction of a multi-pillar pension system should be the first choice in line with China's national conditions. The first pillar: increase the implementation of basic endowment insurance. The model of government, enterprise and individual contributions, that is, enterprises and individuals, the government provides subsidies and implements pay-as-you-go financing. The second pillar: Encourage enterprises to establish enterprise annuity protection for employees, the government provides preferential policies, implements the principle of combining labor rights and obligations, the enterprise is the main, the individual is the supplementary contribution, and the accumulation fund-raising method is implemented. The third pillar: actively develop commercial life insurance protection, adopt a voluntary policy provided by the government, individuals have economic ability and preference choices, and implement an accumulation system of financing. At the same time as improving the "three pillars" system, through the promotion and demonstration of family pension security, family pension can not only reduce the pressure of social pensions, but also reflect the mutually beneficial relationship between generations. The younger generation provides care for parents and also for themselves in the future. Obtaining child care creates a moral foundation.

Expanding pension coverage

Expand the coverage of endowment insurance from state-owned enterprises to various types of enterprises, from unit employees to flexible employment personnel and residents, gradually pay pensions according to the permanent population statistics, and include non-registered and working permanent residents into the pension security system. In particular, although the majority of rural migrant workers are employed in urban areas, most of them are excluded from urban endowment insurance. A large number of young people with rural hukou and working in cities need to be gradually incorporated into the urban endowment insurance system, so as to expand pensions. The population base of insurance contributions has eased the pressure on the fund gap. There is a great deal of heterogeneity within migrant workers. Therefore, measures can be taken to protect the migrant workers at different levels. However, the key is to have a convenient transfer channel between different systems. The transfer of personal accounts is relatively easy. The overall pooling of the social account must be improved to facilitate cross-region collection.

Clarify government responsibility for pension insurance funds

The first is to strengthen legislation. The "Social Insurance Law" has clearly defined the government's responsibility in the endowment insurance fund. During the implementation of the law, it is necessary to change the randomness and uncertainty of the financial investment in the endowment insurance fund, establish a public financial system, and establish a financial input system for the endowment insurance fund. To institutionalize the financial input to the endowment insurance fund.

The second is to clarify the proportion of fiscal investment. Although the "Social Insurance Law" stipulates the government's responsibility for pension funds, it does not specify the proportion and growth rate of government financial investment at all levels. In the long run, financial investment is essential to the sustainable development of urban pension insurance funds and must be legislated and stable. Existing normal inputs of 6% to 8%, and strive to achieve a moderate input ratio of 10% to 11%. The law should also specify the linkage between the increase in financial input and the rate of economic development and the minimum wage increase.

Adjusting system rates

On the basis of surveys and studies, it is possible to increase the payment rate in small steps in a modest manner, and as soon as possible, increase the area where the payment rate is relatively low to the area where the payment rate is relatively high. The replacement rate of China's endowment insurance is relatively high in the world. On the premise of ensuring the absolute increase in retirement benefits, the replacement rate can be moderately reduced, thereby alleviating the increase in expenditure.

Improve the flexible retirement system. Shanghai has introduced a flexible delayed pension policy for professional and technical personnel of enterprises. The scope of this policy can be gradually extended to units outside the enterprise, and foreign experience can be gradually drawn on. Linking delayed retirement with an appropriate increase in pensions To form a flexible retirement system that encourages all employees to postpone retirement.

If necessary, according to the employment status and the accumulation of pension funds, learn from the international experience of delaying retirement age, and timely implement a policy of gradually extending the statutory retirement age. Starting from the reform year, the statutory retirement age will be extended by 4 months every one year. Taking into account the physiological characteristics of our population, we can retire until the age of 65 and women retire at 60, while giving women the right to voluntarily choose to retire at the same age as men.

State-owned assets enrichment pension insurance fund

There is a huge amount of hidden debt during the transition of the old-age insurance system. It is a liability for all the pension benefits accrued by the elderly and middle-aged people under the old system. Quite a long time before the reform of the old-age insurance system, China implemented a low-wage system for workers. Workers' compensation does not include the part that must be used for old-age insurance. It can only cover current living expenses, not for future periods Funds necessary for pension savings. These workers have now or are about to withdraw from their jobs, and if they are not compensated as necessary, their pension needs will not be met. Under the planned economy system, the profits of enterprises are fully submitted to the state finance. Since the remuneration of workers does not include socially necessary labor such as endowment insurance, the profits paid by the enterprise include not only the surplus labor of the workers, but also the socially necessary labor of the workers. Industrial accumulation based on this is a compulsory accumulation, and this compulsory accumulation is used for the investment in fixed assets of state-owned enterprises.

That is to say, China's existing state-owned assets not only contain the part of surplus labor accumulation, but also the part formed by the necessary labor of workers. In order to compensate the conversion cost, part of the value of the state-owned assets formed by the necessary labor of the workers must be returned to the workers who have contributed to it. In June 2009, the "Implementation Measures for the Transfer of Partial State-owned Shares in the Domestic Securities Market to Enrich the National Social Security Fund" explicitly proposed that multi-channel financing and social security funds should be raised, and one of the important ways is to realise some state-owned assets.

There are several ways to realize some state-owned assets: selling assets of small and medium-sized state-owned enterprises in competitive fields; selling part of state-owned real estate to residents; transforming large state-owned enterprises in competitive fields into shareholding systems and transferring them through listed or unlisted transactions Partial equity. For listed companies, reducing state-owned shares means giving up some or even most of them. State-owned shares can be reduced in the following ways: state-owned shares placement, that is, the placement of state-owned shares to the original circulating shareholders; state-owned shares repurchase, that is, the company uses its own funds to repurchase part of the state-owned shares held by shareholders; shares-to-debt, the state-owned The shares are converted into the company's debts, which are repaid annually by the company according to the agreement; the company's shares are sold to the public or general institutional investors. There are two types of risks in these methods: one is the irrational pricing of state-owned shares, which leads to the loss of state-owned assets; and the other is the excessive reduction of state-owned shares, which exceeds the affordability of investors, resulting in a weak stock market. The occurrence of these two types of conditions is not conducive to the preservation and appreciation of state-owned assets and the stable and healthy development of the capital market.

The reduction of state-owned shares can be transferred to pension social insurance institutions mainly through agreements, which is not only conducive to optimizing listed companies, promoting the healthy development of the capital market, but also helping to establish and improve the pension insurance system. The essence of this is to return to the workers part of the value of state-owned assets formed by the workers' necessary labor.

Improve the market mechanism of pension insurance funds

The operation, management and supervision of pension funds need to introduce and improve market mechanisms. Before the national co-ordination has been achieved, the central government can encourage local co-ordination regions to establish endowment insurance risk reserve funds. At the same time, the central government can establish a national endowment insurance risk reserve fund to achieve the value preservation and appreciation of funds through the introduction of market-oriented investment and operation methods to increase the resistance of endowment insurance funds ability.

On the basis of standardizing the operation of pension insurance funds, through the amendment of laws and regulations, the market-oriented operation principles of pension insurance fund investment are clarified, and the institutional constraints of pension insurance fund investment are reformed. Under the existing institutional framework, on the premise that risks can be effectively controlled, the investment proportion of the basic pension portfolio is optimized. The pension insurance fund is allowed to invest in industrial equity and stock securities. The pension insurance fund must first invest in industrial equity with a long return and stable income. At the same time, a certain percentage can also be used for equity securities investment, so as to maximize the preservation and appreciation of the fund and improve pension insurance Fund operation and management efficiency.

Optimize the investment management model. For the equity investment operation model with stable investment and expected income, refer to the establishment of several trust investment fund companies to obtain the best choice through market competition. Establish a corporate annuity and professional annuity multi-investment system, establish a government-approved pension fund company, and manage and operate enterprise annuities and professional annuities. The government should strengthen the management of these companies and regulate the operation of fund companies.

The savings-type supplementary pension paid by individuals should be different from ordinary personal commercial insurance. The government should entrust several fund companies with good management performance to manage individual supplementary pension insurance. Individual pension supplementary insurance should be diversified to meet the psychological needs of different groups of pensioners.

"Retirement by housing" is a form of personal savings pension. Actively encourage citizens to provide pensions by housing to alleviate the shortage of pension insurance funds. In cities and towns with mature conditions, the housing for the elderly will be incorporated into the urban pension insurance system, and a standardized management system and incentive mechanism will be formulated. At present, it is first necessary to adopt pilot schemes to formulate rules for the management of housing reverse mortgages, regulate housing reverse mortgage loans, and encourage the elderly to use their own housing to obtain more supplementary pensions through policies such as tax deductions for housing transactions.

Improve fund operation efficiency and ensure fund appreciation

The main way to increase foreign pension insurance funds is to invest in the securities market. According to relevant data, the United States rose from 0.8% of the total market value of pension insurance funds in 1950 to 29.6% in 1998, and the proportion of shares held by pension insurance funds in major global markets has increased by more than 20% in 20 years. According to the analysis of the "Measurement and Management of China Pension Insurance Fund" report completed by the Ministry of Labor and Social Security, China's pension insurance fund is expected to reach 100 billion yuan in the past two years, and it will increase by more than 30% in the next few years. According to expert experience, when the amount of funds of a single institution accounts for less than 10% of the market value, the entry of such funds into the market will not cause huge market fluctuations.

But at the same time, when social pension insurance funds invest through the securities market, they have high requirements for the safety of the funds and the stability of the returns. On the one hand, the securities market needs to provide a standardized and stable investment environment for the pension insurance funds and provide suitable pension insurance. Investment characteristics of fund characteristics; on the other hand, we need to pay attention to the control of investment risks of pension insurance funds, and pay attention to selecting investment types with relatively low risk, such as securities investment funds.

The asset portfolio of the pension insurance fund depends on the development of the capital market, and a diversified asset portfolio can effectively reduce the risks faced by each of these assets. According to estimates of relevant agencies, the scale of China's pension fund balance may reach 1.5 trillion yuan in the next ten years, and the issue of fund preservation and appreciation and investment outlets has become increasingly urgent. The multi-sourced fund multiplication approach is a very important issue whether it guarantees the fixed payment demand of pensions, or improves the economic benefits and promotes the national economic development. At present, the main method of fund proliferation in China is to rely on bank deposit interest and purchase of state bonds to achieve fund proliferation. Although this method can ensure the security of fund operation, the rate of proliferation is extremely low. In fact, tax financing, state-owned asset realization financing, mortgage loans, real estate investment, etc. can make up for the gap of China's endowment insurance fund and provide a realistic way for its value preservation and appreciation.

Improve the supervision system of pension insurance funds

First of all, it is necessary to strengthen the construction and restraint mechanism of the government supervision department. The financial and auditing departments have important supervision functions and regularly announce the status of the fund. China Social Security Regulatory Commission, China Insurance Regulatory Commission, China Securities Regulatory Commission, People's Bank of China and other professional supervision Institutions should also monitor by legal, economic, administrative and other means; secondly, they need to establish self-regulatory institutions for funds, establish a public opinion supervision mechanism, and strengthen the monitoring of investment standards, investment directions, and investment models. Each region should have government representatives, The pension insurance fund supervision committee composed of representatives of enterprises, trade unions and retirees, etc., supervises the daily work of pension insurance fund operating agencies and operating agencies to prevent the pension insurance fund from being overwhelmed, misappropriated and wasted. Improve its use efficiency.

Formulate and improve laws and regulations for social pension insurance funds

When the beneficiary encounters a refusal when receiving a pension or there is a dispute over the nature and amount, the state should establish a corresponding legal system to protect it. Based on this, it is suggested that the structure of China's social pension insurance legislation can be: (1) the Basic Pension Insurance Law, according to which the government establishes social insurance taxes and incorporates social pension funds into the government's social security budget; (2) ) "Enterprise Supplementary Endowment Insurance Law". According to this law, enterprises and employees jointly establish personal accounts for endowment insurance; (3) "Personal Investment Endowment Insurance Law", combined with commercial insurance, encourages individuals to purchase commercial insurance.

Endowment insurance funds are the living money of the majority of retirees, and also the support and core for the normal operation of China's endowment insurance system. Strengthen the research on the coordination and balance of endowment insurance funds, actively carry out ways to solve the crisis, and ensure that the pensions of retirees are in full and on time. Distribution is conducive to the sustained, rapid and healthy development of China's socialist market economy.