The Study On Solvency Of Pension Insurance Fund In China

Pension Insurance is the most important and critical contents of the social insurance system. National basic pension insurance in china implements the system combined with social unified planning and individual account, establishing basic pension insurance funds by the partially accumulating system. The aging of population has been made the revenue and expenditure of the basis pension insurance more and more seriously, and because of the crack of the management system, the basic pension insurance was confronted with huge stress of revenue and expenditure. It is necessary to make sure that the pension fund has solvency by fund investment in order to guarantee the sustainable existing of pension insurance. The paper discusses the solvency of national pension insurance deeply based on investment factor by using qualitative analysis, the Markowitz Efficient Frontier Model and those solvency models usually applying in commercial insurance.The chapter 1 is an introduction.It mainly introduces the study's background, intention,structure and also defines several terms which are relevant with solvency of pension insurance fund;The chaper 2 of the paper analyzes the pension system. This chaper traces the evolvement of pension systems and funding scheme, discusses the representative Nordic welfare system. Then introduces the Finnish Statutory Employment Pension System TEL distinctly and summarize its significance; The chaper 3 is the theoretical study on solvency of pension fund. This part introduces the Markowitz Efficient Frontier Model which is proper for pension insurance fund investment research, the Finnish TEL system and the Ratio model of solvency; The chaper 4 is empirical analysis which is the most critical, by discussing the feasible investment tools in the capital market in our country and by applying Markowitz Model, the dissertation constructs a portfolio of pension insurance funds, including various investment tools such as bank deposit, treasury band and common stock. Moreover, this chaper discusses the impact of investment decision on the Solvency of pension insurance fund based on investment portfolio. And according as the Ratio model, the dissertation offers another two quantitative description methods for the solvency of pension insurance funds; Based on the analysis of the previous chapers, the chaper 5 puts forward some conlusions and policy proposals;The chaper 5 introduces some conclusions and advices.The significance of the Research has two aspects.Firstly, compare with the limitation of investment tools ratio in《Temporary investment administration provisions of social security fund in country》, the paper puts forward the optimal investment proposals which offers our government reasonable and valuable advices on pension insurance fund investment; Secondly, the paper obtains some conclusions relating how investment portfolio impact pension fund solvency, which are meaningful for future solvency analysis and regulatory system constitution of pension insurance fund.