Research On The Institution Dilemma And Solution Mechanism Of Urban And Rural Residents Endowment Insurance Fund Management

The Urban and Rural Residents Endowment Insurance of China, with thebackground of the abolition of urban and rural barriers and the coordinated developmentof urban and rural areas, was restructured by the New Rural Social Pension Insurance andthe Urban Residents Endowment Insurance in early2014. Its purpose is to close the gapbetween urban and rural areas and ensure the basic life of rural and urban residents intheir old age. By the end of2014, the number of insured residents of this insurance hasreached50,107, as well, the insurance fund accumulated is up to363.6billion yuan,which shows us the importance and complexity of the work.As a key part and one of the most important question of the pension system, fundmanagement has always been paid high attention by theoretical and practical departments.However, the Urban and Rural Residents Endowment Insurance fund in our country, asthe material basis for the orderly operation of the system, has shown weak managementsituation. As the Urban and Rural Residents Endowment Insurance has just started, thesupporting system has not been followed up. Combined with the lack of a set of effectiveinstitution for a long time, the Urban and Rural Residents Endowment Insurance fundmanagement is being faced with multiple difficulties.The Urban and Rural Residents Endowment Insurance fund as an important part ofChina’s pension, its management has the commonality with others’. But it also has itsown uniqueness, mainly in its large but relatively weak beneficiaries, its fundaccumulated huge but highly dispersed and so on, which offers higher demands and morechallenges to the proper management of the fund. It also tells the urgency and seriousnessof the situation. In the absence of the necessary management guidance mechanism,management responsibilities of local governments is not sufficient diffusely, whichlimits the fund value’s maintaining or increasing, even leads to an continuousdepreciation of the fund. Becoming a fuse of the system crisis, it not only restricts therunning effect of the Urban and Rural Residents Endowment Insurance, but also infringesthe legitimate rights and interests of the insured person, posing a threat to urban and rural residents to spend their twilight years.Referencing the related theories of New Institutional Economics, Political Economy,Neoclassical economics, Public Management theories, this article is just based on theinstitution dilemma problem, try to find out the problems existing in the fundmanagement institution through detailed arrangement of Urban and Rural ResidentsEndowment Insurance fund management status. Learning the experiences fromrepresentative countries Chile, Singapore, the United States on pension managementreform, put forward the proposal on the top design and pension system, the Urban andRural Residents Endowment Insurance fund collect-spending system,investment-operation mechanism, fund supervision system construction, etc. Aimed atbreaking the Urban and Rural Residents Endowment Insurance fund managementinstitution dilemma, this article can help achieve healthy functioning of the insurance.