Individual Pension Account "empty Account" Research

Pension insurance system is the core of China's social security system, It directly related to the later years life of all citizens and social stability and unity. In order to meet the needs of social development, protect the interests of millions of families, China has introduced personal accounts to pension insurance system in 1997 for the first time, established the "combination accounts" mode. As the long-term accounts, the accumulation and operational efficiency of Personal accounts received widespread concern., because it is an important source of their future pension. However, the "The empty of personal accounts " phenomenon become a big barrier of pension insurance system.At the end of 2008, the scale of empty individual accounts reaches to 1.4 trillion Yuan, and still increasing at the rate of 1,000 billion Yuan a year. This will affect hundreds of millions of elderly population survival and the stability of China's social security system. Recently,our government and society paid great attention on this issue, relevant departments and experts made hard study and put forward various solutions, but they received little success and widespread disputes.So, I choose to follow the footsteps of our predecessors in the field, in order to achieve more substantive breakthroughs.This paper briefly describes the situatiom of the empty personal account, use relevant theories to analyze the existence and development of this problem.The main reasons were classified as historical and practical reason. Historical reasons means the lack of clear explaination of some essential problems, such as who should undertake the transition cost? whom does the property right belong to? This kind of doubt about obligee and responsible will inevitably lead to the mistakes in understanding and mismanagement. The practical reason is that the lack of legality and efficiency in management and supervision.,multistakeholder cannot be coordinated and restricted between clients and agents.,self-interested behavior and moral risk will lead to manage and operate inefficiently.The conclusion is that the settlement of an empty account is a long-term process, it need to be thought from the perspect of history, practice and future.The cost of transition is the root cause of empty account in history and now, government should distinguish historical responsibility between new system. As the initiator and implementers of the reform government should take charge of historical debts,such as allocation of state financial funds and state-owned assets to make up. Future "empty accounts" means the size of the funding shortage which can be forecasted. This requires to reform and improve the system and associated measures. Through standardized management system, the responsibilities and interests of fund management departments, fund operating agencies, principal-agent relationship are clearer, they will make good use of their advantages and improve management efficiency. To sum up the market investment experience of social security funds and combine characteristics of individual accounts and business ideas choose a suitable investment tools and entities, make use of market enviroment to improve operational efficiency. By clarifying property rights of personal accounts, establish operation mode of multi-principal-agent relationships. Improving the legal supervision system to help people form a rational behavior expectation.so that people can be stimulated or warned.In this way management order of personal account can be protested.