The Risks And Control Of The Interconnected System Of China's Basic Old-age Insurance

The interconnected system of China's basic old-age insurance, designed to absorb advantage of the pay-as-you-go and totally fund contribution system, the funds of the coordinate system to meet current pension payment needs, the accumulated funds of individual accounts to training personal responsibility and dealing with population ageing, reflect helping each other and personal responsibilities, and the combination of fairness and efficiency. However, in actual operation, there are many problems because of designed flaws of the interconnected system, the lack of external support and some effective measures. These problems arise not only because of designed flaws of the interconnected system, but also the results of some systems' environment and specific institutional arrangements. So research the designed flaws of the interconnected system and operational risks, explore the causes of these risks, and study how to control these risks, seek low-risk, sustainable operation of the interconnected system, have great theoretical and practical significance, provide theoretical support and policy proposal of the improvement and development of the interconnected system. On the basis of relevant research, this paper attempt to study risks of the system and the root's reasons of the interconnected system, and proposed the ideas on the system level of controlling and prevention of risks .In this paper, the risks and control of the interconnected system of China's basic old-age insurance are described. In the second part, explained the system model, system analysis, and products attribute and property rights of the interconnected system, there are many risks because of complexity of the form and the attributes, and external environment; risks of the system is the core and hub of the interconnected system of the basic old-age insurance, financial imbalances is the most important indicators of risks of the system. In the third part, we have a detailed analysis of the root reasons of the financial imbalance; In the fourth part, analyzes risks and control of the process of the interconnected system; The par V, analyzes risks of the low efficiency of the system; Part VI On the basis of risks control, proposed the development-oriented ideas of the interconnected system. The interconnected system of China's basic old-age insurance is the compatibility of redistribution and savings, this is the root reasons of the risks, so the key of preventing the risks is to establish the multi-level old-age insurance system, achieve the optimized combination and functional coordination of different levels of old-age security.