The Research On The Basic Pension Fund Investment Model In China

With the population aging process, the payment crises of pension funds force all countries around the world to exert great efforts to probe into the pension fund investment models. China is a country with the quickest population aging process in the world, and its retiring population to the working population has surged from 1:8.9 in 1983 to 1:3.0 in 2002. At the end of 2003, the accumulative balance of the basic pension funds reached RMB 220.7 billion yuan, and the total assets of the National Social Security Fund reached RMB 132.501 billion yuan. However, only in Liaoning Province, the personal accounts have been implemented, and the basic pension funds have exhibited the phenomena with the simultaneous existence of nationwide "Surplus" and "Empty". Under the current basic pension fund investment models, the yielding rate is rather low and cannot meet the need of preserving and increasing the value of the funds. In this essay, the author first describes the study of the pension fund investment models, and then carries out a comparativeanalysis on the three typical investment models -European-AmericanModel, Latin America Model and Singapore Model- which have beenimplemented internationally and draws referable experience from them , then integrates with a typical case of one city in South China and the investment development history of the National Social Security Fund , and analyses the strong points as well as the weak points of the current basic pension fund investment models, and the opportunities and threats faced by the pension fund investment activities, and then, based on the analyses , the author starts from the perspectives of the relationship between the pension fund investment and the national economic development, and the sustainable development of the pension fund system and set up a double-layer basic pension fund investment model based on China's current partial pension fund system from the following five dimensions : investment bodies, organizational means, investment principles, investment portfolio and risk control. At last, the paper analyzes the shortcomings of this research and points out the fields needing further research.