A Study On The Distribution Of Housing Accumulation Fund Incremental Benefit In China

After decades of development, the basic framework of Housing Provident Fund System has achieved great improvement. However, its defects have become increasingly prominent as well, which imposed negative impacts on implementing this system. In 2015, the State Council has collected suggestions on amendment of Housing Provident Fund management regulations (revised draft), which aimed at modifying the improper and outdated provisions to make this system continuously meet the needs of social development. Currently, China is in a crucial stage of social transformation, and the injustice in allocating resources is now becoming a major social concern. After a long-term development of the Housing Provident Fund System, Housing Provident Fund has accumulated a large number of value-added benefits. As a result, problems like how to allocate this fund, what criteria should be used to allocate this fund, how to set up corresponding safeguards etc. are inevitable issues during the procedure of improving Housing Provident Fund System. This paper will focus on one aspect of the procedure of improving Housing Provident Fund System-the allocation of value-added benefits in procedure of improving Housing Provident Fund System.This paper first discussed the concept and historical evolution of housing accumulation fund. In view of the current Housing Provident Fund System, personal view on the dispute of whether the system should be abolished or not was put forward that Housing Provident Fund System should not be abolished. Then the connotation and denotation of value-added benefits of Housing Provident Fund was discussed. The theory of Housing Provident Fund value-added benefits were elaborated from four aspects-protection of human rights, social security, government intervention and distributive justice. The distribution of value-added benefits of housing provident fund was discussed in terms of distributive justice. Subsequently, this paper discussed the current situation of the Housing Provident Fund value-added benefits from many aspects. Results showed that some problems existed in the China’s housing provident fund value-added benefits distribution-the unreasonable direction of income distribution, the lack of regional balance in income distribution, the impropriety in income distribution system etc. These problems blocked the allocation justice of housing provident fund value-added benefits, while unsystematic relative law systems, inappropriate internal management structure and unclear legal nature of value added benefit are the main reasons that lead to these problems. As a result, the law behind the value-added benefits of the Housing Provident Fund was discussed to find out solutions in this paper. There were two legal theories related to the value added benefit of Housing Provident Fund-state ownership and personal ownership. After comparing them, we found that both theories had fatal defects, which could not fully explain the law behind the value-added benefits of Housing Provident Fund. On the basis of that, by drawing upon the Housing Provident Fund modes of Germany, Korea and Singapore, personal views on the law behind the value-added benefits of the Housing Provident Fund was put forward that Housing Provident Fund management center was the subject of right of the Housing Provident Fund value-added benefits, and the subject of benefits is determined by law, while value-added benefits is managed by Housing Provident Fund management center. Finally, according to the analysis of Housing Provident Fund and its ownership clarification, some specific recommendations on realizing allocation justice of housing provident fund value-added benefits were put forward:expanding the ways of preserving and increasing the value of housing provident fund, implementing separation of management and operation of housing provident fund, adjusting the quota allocation of the housing provident fund management committee, determining value-added benefits optimal allocation principle, establishing the new regulations to establish housing grants, establishing a risk management grant of national housing provident fund and improving relevant law and regulation.