The Research On Hongkong Mandatory Provident Fund System

Research shows that the condition of the three pillars of the old-age insurance is reasonable when the replacing rate is 40%, 30%, and 10% respectively. However, our country's rate is up to 85% and 90%.Obviously, this was unreasonable, which will bring huge burden and risk for the management of the fund. At the same time, this will make the old-age self-assistance to be in an useless condition. Conversely, this will also enlarge the burden of the social old-age insurance and turns out to be an awful cycle. Nowadays, our country is trying to adapt the volunteering model, which is similar to 401K of USA. However, If we intend to gradually combine the individuals'account with the enterprises'annuity in the future, then the model of our country's annuity system will undoubtedly move closer to the mandatory provident fund system of Hongkong. The mandatory provident fund plan is the second pillar of the three-pillar supporting system in the whole social insurance system in Hongkong. The mandatory provident fund is a kind of supplementary old-age insurance plan in practice as DC plan, which shares some similarities with the enterprises'annuity plan in the mainland China. Therefore, to learn from the processing management of the Mandatory Provident Fund mean great to the construction of our own enterprises'annuity plan.Chapter 2 analyzes the theories and process of the old-age insurance, and the concerning concepts of it. The old-age fund was introduced from 2 aspects, according to the way the fund raises, namely, Pay as you go and Pay as you in. Then this paper uses the theories as the Anticipated Income Theory and deposit cycle theory to explain the old-age plan; Finally, through the introducing the contents of some prominent old-age plans in some countries, such as Singapore's Central Provident Fund, the Chilean Pension System, 401K of USA to lay foundation for the next introduce of the mandatory provident fund plan of Hongkong so as to put the plan into an overall framework to make the international comparison and lighten its character.Chapter 3 mainly introduces the mandatory provident fund plan. First, it talks about the designing idea of the social security system of Hongkong. The current low welfare policy was connected with its history and culture tradition, as well as it unique politic ideas, which all manifested by the social security ideas of Hongkong and proposes more angels for the introduce of the mandatory provident fund plan. Second, the paper introduces the establishing background, developing process, and current situation of the mandatory provident fund plan. By introducing its main content, types, investment and supervision management to let us understand the mandatory provident fund plan in a good way.The last chapter is the model choice of the mainland's enterprises'annuity from the aspect of the MPF, which means to learn something from it. And proposes some suggestions from the aspect of the fund arrangement, participation way, investment management and investors'guarantee.