A Study On Fully Fund Personal Account Of Enterprise Staff Basic Endowment Insurance

Social security is the mechanism by which the balance and coordination of interest are kept in order to ensure social equity under the condition of market economy. It is an important part of the construction of a harmonious society, which bears on the immediate interests of the general public. And the establishment of basic individual endowment insurance accounts is key to the reform of Chinese endowment insurance system based on social planning with the individual accounts combined. Based on the awareness of the deficiency in the endowment insurance system of pay-as-you-go and the operation of notional individual accounts (that is, often lacking real money), the central government conducted a pilot project of real individual accounts moving in Liaoling province. First, the present article briefly recalls the development of employee's basic endowment insurance in Chinese enterprises, analyzes the reasons for real individual accounts moving, and surveys the pilot project of real individual accounts moving in Liaoling province.Second, the author analyzes the main problems in real individual accounts moving, taking a sample of the pilot project of real individual accounts moving in Liaoling province. The analysis of real individual accounts moving is mainly on its impact on the prompt payment of socially pooled funds; its impact real individual accounts moving on financial payout; the impact of inflation on securing its funds against losses; the impact of present capital market on making its funds profitable; and its inner system deficiency. In consideration of various factors, including the press of term payment on the fund, the governmental financial state, and the capital market etc., the author proposes that the objective conditions for large-scale real individual accounts moving are not satisfied yet, more attempts and efforts are required to develop the operation pattern, and the capital market, based on which the fund of individual accounts is implemented, is expected to be further developed.Finally, the author suggests that one problems must be solved in the real individual accounts moving:The apportionment mechanisms of hidden debts. It concerns on the amount, the partakers, and the apportionment methods of those hidden debts, and how to apportion those hidden debts cross years. Accordingly, the portrait apportionment mechanism, hedge, is suggested to deal with the financial burden owing to the aging of population year after year. Simultaneously, some transverse apportionment mechanisms of the hidden debts should also be promoted, which includes compensating with state-owned assets, compensating by adjusting financial payout structure, issuing social welfare lottery to fill the deficit in social security fund, widening the coverage of endowment insurance, and funding within the system.