The Research On Investment And Risk Prevention Of Pension Insurance Funds

The pension insurance fund is an important part of China social insurance fund. The pension insurance system effects or not depending on if it can keep value and add value. The pension insurance fund of China includes the government public pension fund and the enterprise annuity fund. And the government public pension fund also consists of the national social insurance fund and the social pension insurance fund. In this paper, we would focuses on the social pension insurance fund of the government's public pension fund.Along with China stepping into the deep aging society, the proportion of population who are more than 60 years old would be raised, while the unemployment rate is increasing year by year. That brings a lot pressure to the budget of the pension insurance fund. Moreover the pension insurance fund itself is an imperfect system that makes a huge historical legacy. This problem is still unable to be made up and the overall plan level is still very low. According to the national statistics in 2009, the population who are covered by the pension insurance is 2.35 billion in cities and counties, while only 15.56 millions in rural area. Apparently the rural population proportion is small and the execution of pension is always not well done. The phenomenon that the enterprises owe pension has been difficult to solve, making the larger gap of pension insurance fund is hard to deal with future payment. It's why keeping value and adding value is so important for the endowment insurance fund.The current pension insurance fund of China put its investment on the most bank deposit and purchasing the treasury bonds to keep value and add value. Although with high safety, the weak ability against risk can't reach the basic requests of the pension insurance fund. Investing in capital market is the ideal way to keep value and add value for the pension insurance fund and is the core to carry out fund growth. The operation of investment tools in the capital market brings not only benefit but also risk to the pension insurance fund. This paper mainly analyzing the investment value-adding risks and investment management risks of pension insurance fund researches how to control the risks in the base on ensuring the profits, such as expanding investment channels, diversified investment, best investment portfolio, etc. In most major risks of investment, the funds are facing the risks in the capital market. Because the historic problems of the pension insurance fund of China makes great fund gap and the low possibility of making up the individual accounts in short-term makes the investment value-adding process too conservative. Due to the imperfect and changeful capital market, it's easy for the fund investment to meet monetary substitution risks, the inflation risk, etc. The main investment management risk is the ambiguous functions of management institution. The imperfect management system can't complete the fund investment purposes.Through analyzing the risks what the pension insurance fund investment faces, we make sure how to do the risk prevention for the pension fund investment. Based on the risk of pension insurance fund, this paper puts forward eight countermeasure from the most basic pension insurance system consummating, the overall level improving, the pension insurance laws and regulations of China strengthening, the function of national auditing and supervision enhancing, to the facts that government supports folk capital into and enrich the pension insurance. From several angles, it shows how to prevent the risks of pension insurance fund investment in capital market.This paper presents the pension fund investment, investment risk and investment risk analysis with datum enplanement. Combined with the foreign advanced investment experience of pension insurance fund, it gives relative requirements to the pension insurance fund investment of China. For ensuring fund investment value, it must strengthen the prevention of overall investment risks. And then provide the pension insurance fund with more sufficient funds which is good to the pension insurance payment in the future.