Research On The Management Of Investments Of Pension Funds In China

Pension insurance is a kind of system under which laborers can get material help to guarantee their basic life after retiring. Establishing a new kind of pension system is the crucial part of our socical security system and even the restructuring of economic system. After many years' exploration and practice we have established a new partial accumulative pension system that social planning as a whole and individual account are jointed, which is burdened by the country, enterprise and individual, so the social planning as a whole for town enterprise workers has been accomplished preliminarily and the pension system has been tranfered to partial accumulative model from the original pay-as-you-go, and the way to determine and dispense pension is in accordance with the rules of social planning and individual accounts, which got in touch with wages before retiring. Furthermore, some provinces and cities have made experiments that pension system of the members in institutions and peasants is established.The purpose of reforming pension system is to build safety netting of social security and safeguard social stability and prosperity, the crucial problem is to make pension funds safe and rise in value, so that pension funds will be sufficient enough to pay, otherwise, social stability and economic development will be affected, so will the normal operation of pension system. The management of investments must be deliberated seriously in order to make pension funds safe and rise in value. By ways of positive analysis law and comparative research law, the necessity and feasibility of the management of investments of pension funds in China is discussed, new analytic thinking and countermeasures are put forward for the valid investments of pension funds in China.By means of the positive investigation of the pension insurance in three administative levels that concludes province,district and county in Hunan Province, besides, the current situation of pension funds is analysed, from which we can find that the pension funds in China will be confronted with the great pressure of payments. Rapid ageing population in China makes the burden coefficient raise and makes growth speed of receipts slower than that of expenditure, when the income from investments of pension funds is certain, in order to keep the balance of receipts and expenditure, the rate of pension fees must be raised, which makes it difficult to enlarge the covering of pension system, so that the burden coefficient is raised greatly again. To use the fund of individual account and financial fund to make up the balance of receipts and expenditure is not a permanent way, because the fund of individual account willHimultiply the pressure of pension payments in the future, furthermore, financial subsidy can not take radical measures because the resources of financial fund is not enough, so that it can not support pension funds. The best way out of the pressure of pension payments is to raise the income from investments and make it raise rapidly. It's impossible for pension funds to raise in value at present because of the current administrative system and the policy limitation of the ways for pension funds to rise in value.We can't limit seriously the investment channel of pension funds or even forbid using pension funds for investment only because the safety of pension funds is emphasized. From the investment development of foreign pension funds, we can find that the investment limitation has been relaxed with economy environment, system environment and market environment perfect and that the income from investments has been improved. To develop the valid investment channel of pension funds and improve the income from investments is practicable according to the present macroeconomic environment, system environment and market environment. We must make a thorough study of the management of investments of pension funds to sum up a model of management of investments which accords with Chinese conditionsThe investment operation of foreign pension funds has...