The Research On The Management Mode For The Social Security Funds

Nowadays, with the increasing aging population in China, a perfect social security system is essential to secure the further improvement of economic reform. After more than 20 years of reform, the social security system of China has been initially established. However, the system has narrow coverage and low securing level, and cannot meet the requirements for the development of the society, which has been indicated in the increasing deficiency of social pension funds and the difficulty to maintain and increase the value of the funds. In order to solve this problem, the government must manage social security funds effectively, take appropriate management mode, make efficient, unified and reasonable investments, preserve and increase the value of pension funds.In this thesis, on the basis of documents survey and standard analysis, the present situation and problems in the management of pension funds of China is presented. The management of the pension funds in other developed countries is studied for comparison, with the specific analysis of the advantages and disadvantages of each mode, and the development tendency. The application of these management systems to China is also considered. The scientific managerial approach is used to probe the pension funds, by applying experience of other countries to the actual conditions in China.The policy finance institution of social security is proposed, and some measures of implementation is given, including cope of business, funds and account management, investment and supervision, exposure rating. These measures may provide some useful solution for the management and running of the social security funds.The thesis includes five chapters:Chapter One:the history of the pension insurance system and changes of the management mode are reviewed, with detailed description of the management modes for each part of China’s present social security funds. The existed problems of the mode are investigated from three aspects:management body, funds management, funds supervision.Chapter Two:Firstly, the manage systems of some foreign countries are introduced, in which Chile mode, NDC mode, Singapore mode are deliberately discussed, and the management effectiveness of these systems is reviewed. Secondly, the advantages and disadvantages of each mode are given through comparative analysis, and the development tendency is also concluded. Finally, the application of these modes to China is considered. The scientific managerial approach is used to probe the pension funds, in which the experience of other countries is utilized as the references and is combined with actual conditions of China.Chapter Three:With a careful theoretical analysis of the policy finance institution, the emergence and development of the policy finance institution are reviewed and its theoretical bases are discussed. Moreover, the necessity to establish social security policy finance institution is presented and discussed from four aspects:government functions in macro-control system, the improvement of social security system, the management of pension funds and management socialization. Meanwhile, the feasibility of the policy finance institution is discussed from several aspects.Chapter Four:the tentative assumption of the social security finance institution is proposed, with discussion about the management mode, scope of business, funds and account management, investment and supervision, exposure rating, which may provide some useful suggestions for the management and running of the social security funds.Chapter Five:the obstacles that prevent the establishment of the social security finance institution are discussed, including social security law system, the system itself, imperfect capital market and invalid supervision system, and corresponding corrective measures are provided accordingly.The first innovation of this thesis is that the Policy Finance Institution of Social Security is proposed, and its operation frame is explicitly discussed from legal assurance, independence of funds, the distribution of powers, and external supervision etc. These studied are significant for both theoretical research and practical application. The second innovation is based on practice. In this thesis also included are discussions about the management mode, scope of business, funds and account management, investment and supervision, exposure rating of the Policy Finance Institution of Social Security, which may provide some useful suggestions for the management and running of the social security funds. Last, a completed organizing system of risk management is designed according to the principle of mutual constraint, in which diversified effective supervisions are combined.