Study On Management Of Private Pension Fund In U.S.A.

With the challenge of population aging, many countriesreform retirement system. "Three pillars" retirement system,brought forward by The World Bank in 1994, profoundly effectson establishing and reforming for retirement system around theworld. Retirement system in U.S.A. is a typical example of the "three-pillars" model.American Express Company established the first privatepension plan in 1875. Since then, private pension plandeveloped rapidly and plays an important role in resolving thecrisis of retirement. Private pension fund of the paper meansthe assets funding by employer-sponsored pension plans andindividual retirement accounts.Private pension fund raises a lot of assets by three parts,which are defined benefit pension fund, defined contributionpension fund and hybrid pension fund, and also injects massivefunds into capital markets. Private pension funds is a specialdebt, and be paid to its participants in the form of pensions.It is precisely because the private pension fund assets of theparticularity of the United States with particular emphasis onthe investment and regulation. On one hand, diversificationinvestment is put in practice for private pension fund,prohibited transaction and prudent expert principle forinvestment managers which effectively preventing privatepension fund from various risks, and achieving benigninteraction between private pension fund and capital market;on the other hand, prudent regulation has been adopted byprivate pension fund for effective supervision andauthoritative institutions have been established forconducting inspections and supervision. Meanwhile, EmployeeRetirement Income Security Act (ERISA) and Internal Revenue Code provided a legal basis for private pension fundregulation.Finally, according to private pension fund managementexperience in U.S.A., combining the fact of development ofoccupation pension fund of our country, the paper put forwardviews and recommendations for the development of China' soccupation pension fund.