Shanghai Housing Accumulation Fund Security Function

In May,1991, referencing the operation system of CPF, Shanghai firstly set up the provident fund system. During the past 15 years, the provident fund have made great contribution to the reformation of traditional town housing system, innovation of housing welfare system and improvement of residents'lives, and have become the demonstrated"Shanghai Model".But, along with the complete of Shanghai public houses commercialization and the rapid perfection of socialism market economy system, the function that the provident fund can do is too small, especially facing the rapid increase of Shanghai economy, fast development of city construction, and speedy rise of house price. On one hand, the system have some problems, such as: the rate of deposit and credit is too steady, the value of the fund is hard to keep and rise, the safeguard range is too narrow, the system is not very equitable, and the function is too complex, and so on. On the other hand, it has some obvious superiorities: efficient operation, safe fund, and huge amount of fund it collected has been up to 110 billion by march, 2006.Should the provident fund be cancelled or make greater effect in larger area? It's the hot argue point in the academia in these years.Now, Shanghai are facing 3 great challenges: social aging problem, the welfare problem of Nongmingong's, the young's low ability to buy house, all these problems'solution raise high request for deep development of the system.With the development of economy, Shanghai has been walking in an aging society, the population plan made the situation more serious, but the"4-2-1"family structure alleviate the housing pressure at the same time. During the latest years, the ab-extra workforce leaped, they did great contribution to the development of Shanghai economy, but their living situation is worrying, even lack of basic welfare. If without welfare, they'll be the factor for future instability. With the rapid growth of house price, most young people are unable to buy the house by themselves, but their character is stronger and stronger in payment. All above situation shows that great development of provident fund is possible and essential.On comparing Shanghai provident fund with the CPF of Singapore, the housing deposit bank system of German and the reverse mortgage of USA, and abstracting advanced experience from them, this article bring forwards some reform measures. Aiming at the 3 great challenges Shanghai faced, this article puts forward a primarily conceived a combination of provident fund and social welfare fund: first, carry out"reverse mortgage"system to solute the more and more serious pressure of providing for the aged; second, set up housing-annuity fund to alleviate the pressure of providing for the aged and buying houses; Third, build"big provident fund"to sent up a comprehensive social welfare system.