Occupational Pension Governance Structure Risks Control Under Trust Mode Of China

Occupational pension governance structure risks control is a new research area.The author intends to analyse the risks that occupational pension governance structure faces and control these risks according to occupational pension governance structure that was put forward by professors and scholars of China.On 1st May 2004,the implementation of《Trial Measures for occupational pension》and《Trial Measures for occupational pension fund management》indicates that occupational pension of China enters a new stage of development.The new system decides that occupational pension adopts trust mode.Trust mode can ensure the independence of fund property,specify the responsibilities of trustee definitely,embody and safeguard the benefits of beneficiaries better.However,occupational pension fund management involves many parties in this mode. It needs several ten years from levying fund to drawing pension.These lead to risks control chain longger.This dissertation bases itself on trust mode that occupational pension of China adopts,analyses the risks that occupational pension governance structure faces,draws on the experience that other countries or areas obtains and puts forward corresponding risks control measures according to the reality of China.This dissertation is divided into six parts.The main content and points are as follows.The first part is the introduction.The introduction includes the backgroud,meaning,methods and frame of the research. The second part is the necessity of perfecting occupational pension governance structure risks control of China. Occupational pension governance structure is the relationship among benefits related parties of occupational pension plan.Occupational pension governance structure of China includes two types law relationships.One is trust relationship between enterprise,workers and trustee.The other is principal-agent relationships between trustee and account manager, custodian,investment managers.Occupational pension governance structure of China includes trust and principal-agent relationships,fund operation is divided into trustee council trust and corparate trust two modes and it involves trustor,trustee,beneficiaries,account manager,custodian and investment managers etc.Because workers can draw the property only after retirement and it may need several ten years from entering the plan to drawing property accumulated after retirement.The reasons above lead to many risks that occupational pension governance structure exists.The third part is the theoretical analysis of occupational pension governance structure risks control under trust mode.Because it is very difficult to distinguish trust and principal-agent,so this part discusses the difference between them at first.Both company and occupational pension exist lots of principal-agent relationships,therefore,company governance and occupational pension governance are similar to each other to a certain degree.In occupational pension,besides lots of principal-agent relationships,it also exists trust relationship.Although trust relationship and principal-agent relationships have lots of difference,both of them base themselves on the believement relationship amony persons concerned,so they have many similarities.By drawing on the experience that company governance obtains,we can guarantee that occupational pension governance makes few detours and takes up a healthy development road faster.The forth part is risks analysis of occupational pension governance structure under trust mode.This part is one of the core contents of the dissertation.Occupational pension of China adopts trust mode definitely and it can be divided specifically into trustee council trust and corparate trust two modes.Both of them are trust mode,therefore,their occupational pension governance structure must exist many genaralities.At the same time,as two specific types of trust mode,one is the trustee council constituted by natural persons,the other is the entity which has corparate qualification,their occupational pension governance structure risks must have some difference.As to the genaralities,this part points out that occupational pension governance structure mainly faces policy risk,institution risk,independence risk,maral risk,operation risk,trade related risk and credit risk.As to the difference,this part points out that under the trustee council trust mode,occupational pension governance structure still faces"unclear law position",the offside and vacancy of the trustor,unprofessional trust management and inadequate damage compensation ability.The fifth part is the experience and enlightment of pension governance structure risks control of other countries or areas,such as OECD,Chile and Hongkong.OECD includes the representatives of trust mode,such as Britain,America,Australia and Canada,the representatives of foudation mode,such as Switzerland and the representatives of corparate mode,such as Denmark.Old age insurance of Chile is not the occupational pension that this dissertation explicates,however,it also adopts the fully funded mode of individual account.In this point,it has no difference with occupational pension of China.Old age insurance of Chile belongs to contract mode and the experience of pension governance has drawn world-wide attention,so we can draw on the experience of Chile.The forced accumulation fund of Hongkong is also not the occupational pension that this dissertation explicates,but it also adopts the fully funded mode of individual account.The forced accumulation fund of Hongkong belongs to trust mode.Although it was established very late,it develops very fast, so we can draw on the experience of the operation.The sixth part is occupational pension governance structure risks control under trust mode of.At first,this part analyses the operation conditions and restraint conditions of occupational pension governance structure risks control under trust mode.Next,this part points out the measures of occupational pension governance structure risks control under trust mode.Efficient capital market,sound fund management institutions,compact law system and perfect supervision mechanism are operation conditions of occupational pension governance structure risks control under trust mode.However,inefficient capital market,inefficient fund management institutions,imperfect law system and imperfect supervision mechanism lead to many restraints that occupational pension governance structure risks control faces under trust mode.Through perfecting inner control,mutual restraints and supervison mechanism,we can control the risks that occupational pension governance structure faces.This dissertation draws on lots of research achievements of many professors and scholars.The author only does a little job to a large degree.However,there are a few professors and scholars researching occupational pension governance structure risks control and many points haven't been achieved unanimity.Therefore,the author has to think over carefully in order to put forward the points that are qualified with the reality.All in all,the innovations of this dissertation are as follows. First,the choice of the theme is original.Occupational pension of China adopts trust mode and because of the transition of the old and new mode,it is in a vital important period.Whether the new mode can gain the approval of broad enterprises and workers is the key factor to determine the development of occupational pension.Occupational pension governance is attached much importance under this background.Occupational pension governance structure includes trust and principal-agent two relationships.Professors and scholars of China have no dispute on this point.However,occupational pension governance structure risks control is a problem that the anthor first puts forward.According to the analysis angle,the topic of this dissertation has some originality.Second,this dissertation explicates separately the genaralities and difference of occupational pension governance structure risks control under trustee council trust mode and corparate trust mode. Occupational pension of China adopts trust mode definitely and it can be divided specifically into trustee council trust and corparate trust two modes.Both of them are trust mode,therefore,their occupational pension governance structure must exist many genaralities.At the same time,as two specific types of trust mode,one is the trustee council constituted by natural persons,the other is the entity which has the corparate qualification,their occupational pension governance structure risks must have some difference.Explicating them separately can guarantee shooting the arrow at the garget and it also confronts to the reality of the enterprises of China.Third,this dissertation explicates the operation conditions and restraint conditions of occupational pension governance structure risks control under trust mode.Occupational pension governance structure risks control is in a big background of the development of economy and society of a country.Whether it can suceed or not depends on whether it possesses some operation conditions. Efficient capital market,sound fund management institutions,compact law system and perfect supervision mechanism are operation conditions of occupational pension governance structure risks control under trust mode.However,inefficient capital market,inefficient fund management institutions,imperfect law system and imperfect supervision mechanism lead to many restraints that occupational pension governance structure risks control faces under trust mode.Through analyzing the operation conditions and restraint conditions of occupational pension governance structure risks control,we can adopt aimed measures during the real operation.Finally,it will be useful to the healthy development of occupational pension.