Study On The Operational Mechanisms Optimization Of Chinese Social Security Funds

As a mechanism to maintain social stability and safety, the social security system is likened to "cushion valve" and "safety net", playing significant roles amid economic and social development in the market economy. These roles, however, have to be backed up by fund, and social security fund provides exactly financial support and economic foundation for the social security cause, so the establishment and operation of social security fund system can directly affect the effectiveness of social security system and social stability. Ever since the1990s, the aging of population has posed an increasingly grim problem to the world as a whole, which results in mounting pressure for social security system, as well as emerging financial crisis and payment crisis. Thus, how to increase benefits of social security fund has become the most important topic in the frontier of the social security field. Within this big picture, this paper attempts to explore how to optimize the operating mechanism of social security fund in China.First of all, the paper expounds on theories concerning the operation of social security fund and defines the operation mechanism for social security fund. Secondly, it gives an analysis of the development of social security systems and operating practices of social security funds in Germany, America and Singapore, and then sums up valuable experience, further, offers some inspirations for the operation of social security fund in China. In the third part, it shifts its focus on China, investigating how social security system and fund has developed in this country, what fund raising, operation, payment, risk control and supervision of social security are like at present, and where problems lie. Based on studies above, the paper frames the idea of how to optimize the operating mechanism for Chinese social security fund, provides an optimization proposal for specific sub-mechanisms, namely fund raising, operation, payment, risk control and supervision mentioned above, along with how they could couple, and puts forward necessary measures to be taken to safeguard and support the optimization drive in China.The systematic proposal for the optimization of operating mechanism for Chinese social security fund brought up in this paper points out explicitly that the coverage of social security fund in China should be enhanced in breadth and in depth. Specifically, the whole country and locals should, according to price fluctuation, make adjustments in collection and payment of social security fund. The financial departments on the other hand should supply fund to accounts of staff members in public sectors, institutions and state-owned enterprises. The restrictions against investment of assets securitized products for social security fund should be moderately lifted, should a point be found to bond social security fund to income and risk aversion of asset securitization. Moreover, risk budget management should be drawn into the operating process of social security fund; a nationwide monitoring and management system for social security fund should be established, which is divided into national level and local level, thus shaping a nationally agreed and specialized framework for monitoring and managing social security fund.Against the backdrop featuring booming economic and social development, emerging problems and ongoing reforms for social security fund, this systematic research into the optimization of operating mechanism for social security fund will be of certain practical significance.