Optimization Of Social Security Fund Financing Models

With the continuous development and improvement of the social security system, China has basically established a social security system covering the majority of the population. The financing mode of the social security fund builds the foundation of the social security system, and fund-raising tool selection is an important means of effective security funds sources. Population aging crisis creates enormous pressure on the safe operation of the existing social security system; the fundamental reason is that there are many problems in the existing social security fund financing model, especially the financing gap. Although China’s social security fund annually slight surplus, but the empty personal accounts, transition costs and aging trend will lead to the peak of the future pension payments. In accordance with the size and growth rate of the existing social security fund, the status of income over expenditure of Social Security Foundation will happen in2020.On the basis of scholars at home and abroad, analyzing the PAYG (pay as you go) system, fully funded system, partially funded system’s characteristics and economic effects of the funding patterns of social security fund and the advantages and disadvantages of social security taxes and the fee fund-raising tool, then demonstrate the inevitability of social security fees and "system account combined" mode of financing of social security fees. On the basis of reviewing the reform process of China’s social security system, we analyze the present characteristics of the financing system of social security funds and the outstanding problems, while taking advantage of the pension liabilities model (DB) to estimate China’s social security fund funding gaps in the future.Transferring from the after-tax profits of state-owned enterprises to the national social security reserve fund is a common international practice. State-owned enterprises in recent years, especially central corporate’s after-tax profits is growing, it is necessary for the government to improve the ratio of dividends collection, and make co-ordinate the arrangements for the collection of profits of state-owned enterprises to use more funds for social security and public services. The huge central enterprises profit to make up for the financing gap of the social security fund and optimize the mode of financing of the social security fund is becoming a viable option. The article maintains that the key of Social Security Fund financing mode optimization lies in the making up of the fund gap. Allocated from the after-tax profits of state-owned enterprises for Social Security Fund is a manifestation of the social responsibility of state-owned enterprises. To this end, the Government should improve the state-owned capital operation budget system and the interface with the public budget, to take various means in order to achieve the optimization of Social Security Fund financing mode, and ensure the safe operation of the social security system.