A Research On The Problem Of Pension Insurance Fund

Social security mechanism optimization is one of the most tough problems in the area of current economic and social development. Whether we can construct an effective mechanism affects the quality of social development in the future, and hence the social stability. The core of social security lies in endowment insurance, whose quality determines and influences the quality of social security, and therefore ensures the sound development of economy and society. In all, how to promote the sound development of pension mechanism and pension insurance fund deserves research and is of great practical meaning.Many experts, domestic and abroad, have already research this topic and have already made great progresses, which constitute the firm basis for the dissertation. But to some extent, their research method is not updated enough and their research topic is always constrained within just one aspect of pension insurance mechanism, and their findings always focus on just one field.The dissertation firstly introduce the definition of pension fund and its contents, pointing out definitely that it is the revenue after retirement after the employees serve the enterprise for some periods of time. It embodies the property of saving, social business and mutual help. The pension system in urban areas in China consists of 4 parts, which are state basic pension, enterprise's annual fund, personal saving insurance and commercial insurance. State basic pension covers all types of employees, business owners and freelance. State basic pension contributions are burdened by enterprises and employees, with a contribution of 20% of the salary for enterprise and a contribution of 8% of the salary for individual. For residents in rural areas, the contributions of pension consist of 3 parts, which are personal contribution, collective subsidy and government subsidy. For personal contributions, there are 5 brackets, 100 yuan, 200 yuan, 300 yuan, 400 yuan and 500 yuan. The pension members can choose one from the above 5 brackets and can obtain more pension if the contribution is higher. Then the dissertation discusses the problems of the operation of pension, such as the big gap between the contribution of pension and the payment of pension, the low efficiency of pension fund, the difficulty to raise the fund, and the lack of approaches to raise the pension and lack of investment methods for pension. Besides,the dissertation also analyzes the potential reasons for these problems. And the corresponding reasons are the potential to raise pension is weak, the low efficiency of pension management, an increasing aging society, an increasing pension burden, the poor operation of pension surplus, the inelasticity of pension insurance contribution in urban areas, the difficulty of raising fund in rural areas, heavy burden of pension payment for government, lack of effective value-adding channel for pension surplus, low efficiency of the new insurance system in rural areas and lack of effective law. In the end, based on comprehensive research approaches, this dissertation implements the findings and poses some effective suggestions to promote the sound development of our pension insurance system. These suggestions include embodiment of invisible debt for pension, clarifying responsibility to solve the problem of transition cost, lowering the pension contribution level, enlarging the number of workers to pay pension contributions, activating dynamic payment model, constructing the dynamic adjustment mechanism of pension insurance system, implementing modern financial tools to ensure the value adding of pension insurance fund and enhancing the government investment into pension insurance fund in rural areas to ensure the sound and stable development of pension system in rural areas.