Study Of China's Social Security Fund Operations And The Regulatory Approach

Social security is a system that the nation and the society according to the law protect the basic living level of the social members, which means that the social members can get the basic living protection from the nation and the society according to the law when they are old, ill, unemployed, disable, bearing, obituary etc. while the national social security fund is the money comes from the decrease holding of the stock of state owned corporation, the stock rights assets, the appropriation from central finance, the raise from other ways authorized by the state department, and the investment returns gathered by the central government, which are all under the control of the national social security fund council.This article compared the manipulate and the management model to the international standard based on the full analyzing of the social system and the social security fund, and draws the following conclusion: though the financial system of the world social security fund has each own traits, they are all basically three models: cash & carry, total accumulation and partly accumulation. According to the situation of our country, the best way is social plan as a whole in addition to personal account partly accumulation. The raise of the social security fund include 2 sides. One is to solve the problem of the history debt, which means to repay the convert cost during the transformation of the social security system through all kinds of ways. In this way to strengthen the raising power of social security fund; the other is to build a safe and stable fund raising system in order to secure the raising of social security fund. Using Chile's successful experience for a reference while considering the situation of our country, we shows that the convert cost could be simulated through the following fund raising methods: 1 .the circulation of the stock from the decreasing holding of state owned corporation, liquidating or appropriating parts of state owned assets, levy special duty and use it to simulate some convert cost. 2. Through issuing welfare lottery to raising money to simulate convert cost in the same time levy social security duty in order to solve the problems in raising social security fund. The investment channel of our nation's social security fund should also be reform, too. The targets are:1. Use variant financial tools to multi-investment.2; allow the security fund to invest in stock in order to circulate in the market. While as for the manage model, the social security fund should have the model of the fund management corporation instead of being managed by the social security department.