International Comparison Of The Management And Investment Of The Basic Old Age Insurance Fund

With the rapid growth of the economy, the Basic Old Age Insurance System’s reform is smoothly moving on. Although the Basic Old Age Insurance System has been experiencing some improvements, it still faces many challenges such as mismatch of the real and book value of the individual account, policy differences, management confusions and so on. All those problems seriously influence the sustainable development of the Basic Old Age Insurance System.Recently, we have many different kinds of old-age insurance systems such as the Canada Pension Plan, Singapore Central Provident Fund, Chile Individual Account Pension System and so on, all of which are typical successful cases. In Canada, employers and employees fund together for the employees’ future pension income; in Singapore, government is responsible for the management and investment of all the central pension funds; in Chile, employees choose one Fund Administration Institution to manage their pension funds. This article believes that through detailed comparison of the pension systems of this four countries, we can draw some conclusions on how to improve and perfect our Basic Old Age Insurance System.This article compares the four countries’ pension systems via Comprehensive Comparison Method and tries to find the similarities and differences of these pension plans. The article is separated into four chapters. The first chapter illustrates the research background and its significance and then studies the Basic Old Age Insurance System in China. The second chapter researches into the Canada Pension Plan, Singapore Central Provident Fund and Chile Individual Account Pension System, which includes the background, administration mode, investment policy and so on. The third chapter is about the comparison of the four countries’ pension systems including sources of funding, administration mode, investment policy, market supervision and so on. The forth and last chapter demonstrates the conclusions and policy suggestions.