A Study For Book-entry Form On The Replenish Of Individual Account Of Basic Old Age Insurance

Since the 80s of the 20 century, a rapidly ageing population makes pensions a particular worry for many countries. Because of the increasing fiscal pressure, a profound reform in the Old-Age Insurance System is taking place throughout the world. By following the demand for social progress and economic development, china begins partial funds system reform in its Old-Age insurance system, from"cash payment"to"social overall plan and individual account". In the process of implementation, the funds of personal accounts have been occupied and diverted for many reasons: the public pension funds could not meet the payment needs; public pension plans and personal accounts'management is confusing and so on. Empty account phenomenon not only violates the principle for the settings of personal accounts and also makes the part accumulation foundation develop difficultly. So the reform of replenishing of individual account is urgently needed. The key to this question lies in the choice of Book-entry form: a separated and divided form or a whole and unification form. The latter has the incomparable advantage compared with the former. The advantages of a whole and unification form lie in: it can protect the interests of the workers; maybe easy to be operated; it well expects to achieve pension fund value and increment and reduce the surpluses of finance.This paper begins with a brief description of three basic models on individual accounts: the privatization of the Chilean pension system, NDC mode of Sweden and Central Provident Funds of Singaporean Model. Through analysis on comparing with them, we can use the experience of other countries for reference. Then, we analyze the current situation of the experiments at chosen units. By analysis, I think the whole and unification form fits our country better. This paper expresses the necessity and feasibility of replenishing of individual account, and then points out why and how we should choose the form. At last, the author presents concrete proposals for improvement.