Financing Of The Pension Funds And Investment Analysis

With the rapid development of Chinese economic and the improvement of the living level and the medical technology, the people's average life is becoming longer. At the same time, the population birth rate's decreasing results in the severe population-ageingproblem. While, with the turning from the plan-oriental-economic to market-oriental-economic, the employee of SOE' s real retire-age is decreasing . This gives aheavy burden on the pension fund. According to the calculation responded by thedepartment of Labor and Social Security, under the recent system, to fill out the individual account and manage the accrued-fund and the state-funding- fund by separate-account, then the gap of the state-funding- fund in the future 25years will reach 1.8 thousand billion. It means a year-average gap of 71.7 billion. This thesis mainly researches the two important sides of pension fund- funding and Investment, and tries to solve the problem we now facing.The funding and Investment should be done in a well finance market, and there are some positive relationships between them. The basic modes for funding include DC and DB, with the system turning from "pay as go" to "accrued fund", the DC mode play a big role. In the funding, mainly there are two risks: the actuarial risk and solvency risk.Two strategies are applied to control these two risks. In the fund investment, it is required to learn from other countries, and apply divert strategy, immune technology etc.. to control the investment risk and increase the fund value. The pension fund is an asset with the nature of liability; so, an investment policy should be required. On the basis of the above study, some reforming suggestions about the system of funding and investment are put forwardedThrough the writing of the thesis, the writer feels that there are familiar relationships between technology and system. So, the technology refer in this thesis are all serving for the construction of a better pension system.