Researches On The Legal Issues In China’s Management And Supervision Of Social Security Fund

For protecting the citizens in old age, sickness, unemployment with a basic livelihood, the social security fund, which can be considered as a social policy, is established with the premiums collected from both employers and employees through compulsory national legislation and the subsidies from government revenues and managed by special agencies.The social security fund has a strong connection with the stability of the nation and society, the sustainability of its economy and a series of big social issues like the pension system. Therefore, a strict and comprehensive supervision towards the SSF is a must to reduce the risks towards the future livelihood of citizens and guarantee for the benefits of the participants. However, the present situation of the supervision towards the SSF in China is far from satisfactory. China is faced with a constantly increasing threat of an ageing society, a weak force in its regulation and frequent divert and embezzlement of the fund. The essay is concentrated on the analysis of the present situation of the management and supervision of China’s social security fund and trying to find the problems and offer its advice on building a better system.With four chapters in total, it firstly explains the contents and significance of the SSF and its supervision and regulation and proposes the need to build an improved system in the first part. In Chapter2, the author analyzes the current condition and existing problems of it: there exists a deficiency of relative legislation; a mutual dependence of supervising agency and managing subject will lead to the ambiguousness of each responsibility and restrain the effects of operation; a lack of the attention on the maintenance and appreciation of values of the funds will come up with a payment pressure; the responsible agents for the fund rarely announce the relative information and data of its investment operating condition; clear and adequate judicial regulation is needed and the legal remedies cannot play its role. The third chapter introduces some foreign national SSF methods in its investing, management and supervision and concludes their significance for China to learn from; the last part provides the author’s specific suggestions to the problems and attaches attention to some issues, such as the legal construction on SSF and income on investment. It advises a rapid establishment of the SSF Supervision and Regulation Ordinance and related special legislation. It proposes to build an independent agency for its operation to declare its responsibility and make scientific investments to assure its maintenance and increase of its values. In addition, it is suggested to strengthen the public supervision by announcing the operating conditions via media, to specify the legal duties among different agencies, to make more legal remedies and to punish the unlawful acts under clear accusations from the Criminal Law.