Pension Insurance Fund Trust Management And Operation Of The Legal System

Since the reform of the endowment insurance in cities and towns in 1984, our country has set up a tri-level mode of endowment insurance step by step, which is composed of the basic pension insurance of the country, the supplementary old-age pension in enterprise and the endowment insurance based on individual savings. According to the statistics of the labor department, the endowment insurance fund was $70,740,000,000 in 1994, $95,000,000,000 in 1995 and reached $325,300,000,000 in 2000. How to preserve and increase the value of this sum of money has become a problem to which the society attaches much importance.Moreover, the current policy regulating the endowment insurance in our country provides that except to save the circulating capital which is enough for two months, the whole endowment insurance fund should be deposited in banks or used to buy national bonds. Enacting this provision is for the sake of the security of the endowment insurance fund, and preserving and increasing its value. But the current simplex way of investment is hard to preserve and increase the value of the endowment insurance fund.Through an in-depth analysis, the author finds out that managing the endowment insurance fund in the way of trust is the best among various ways of the management of the endowment insurance fund. Besides, by means of risk comparisons, profit comparisons and analyzing the legal adaptability, the author proves the feasibility to manage the endowment insurance fund in the way of trust, and is of the opinion that the trust and investment corporation is the best choice to solve the problem of preserving and increasing the value of the endowment insurance fund. Meanwhile, the author points out the deficiencies of the legislation of the Trust Law, and gives his own opinions about the legislation of the Trust Law.