Research On Old Age Insurance Fund Deficits And The Countermeasures In China

Old age insurance is the key point of social insurance system and the success or the failure of old age insurance system will influence both political stability and economic development Insurance funds, the basis, decide whether the operation of the system is smooth and successful. This paper illustrates the definitions, characteristics and functions of old age insurance and old age insurance fund, analyses the present situation and causes of old age insurance fund deficits, and discusses the countermeasures to solve the problem with the basic theories of subjects as management, sociology and economics.In fact, the deficits of old age insurance fund have internal cause and external cause. Comprehensibly, there are four reasons: IThe old age insurance fund expense rises greatly with the aging. 2.The poor performance of the economy leads many enterprises into the trough. 3.The inherent defects in the system. 4.The weak management of fund. The inherent defects can be summarized as: the management system of "strip" "piece" division which is bad for fund security; too young retiring age; ineffective fund operation. Ineffective management includes low compliance; narrow coverage; false contributory wage; false claim of pension; and too many early retirements.With regard to the reasons, the main countermeasures to the fund deficit are: 1. Manage to collect fund through various channels.2. Perfect the system. Implement vertical management; prolong legal retiring age and invest in multicultural way. 3. Enforce management, increase compliance by all means; widen coverage; standardize payment management; rigorously enforce application regulation; take efficient measures to prevent faces claim of pensions; oppose too early retirement firmly.Although experts and scholars have already made in-depth study on the causes of old age insurance fund deficits as monographic study, there are still no theses that completely and comprehensively analyze the causes hi China, This papertakes the initiative to analyze in an all-round way and put forward feasible countenneasures. Meanwhile, this paper also probes into such things as implementing vertical management system, strengthening management of residence and funeral, and preventing false claim of pensions on which detailed studies have hardly been touched before.