Sources of funds for social security in China

1. The social security fund is a special fund established for the implementation of the social security system in accordance with the provisions of relevant national laws, regulations and policies;

2. Social security funds are generally established according to different projects, such as social insurance funds, social relief funds and social welfare funds. The social insurance fund is the most important part of the social security fund;

3. The sources of funds for the National Social Security Fund include financial budget allocation, income from the reduction of state-owned shares, income from lottery public welfare funds and investment income. As a national strategic reserve, the national social security fund needs to maintain and increase its value through investment and operation.

The National Social Security Fund refers to the social security fund managed by the National Social Security Fund Council and centrally managed by the central finance, which is composed of funds and equity assets allocated by the reduction of state-owned shares, funds allocated by the central finance, funds raised by other means approved by the State Council and their investment income.

China's social insurance funds are divided into endowment insurance fund, unemployment insurance fund, medical insurance fund, industrial injury insurance fund and maternity insurance fund. Among them, the endowment insurance fund has the largest amount and occupies an important position in the whole social insurance system. The financing methods of social insurance mainly include:

1. Taxation method: unified standard, compulsory collection and unified collection and use;

2. Collection method: generally limited to social insurance, with certain flexibility;

3. Free financing method: it is not fixed and flexible, and comes from the voluntary participation of the public.

The national social security fund is not open to individual investors. It means that the state entrusts part of the endowment insurance premiums paid by enterprises and institutions to professional institutions for management, so as to maintain and increase the value.

Legal basis:

Article 17 of the Social Insurance Law of People's Republic of China (PRC): If an individual who participates in the basic old-age insurance dies due to illness or non-work, his survivors can receive funeral subsidies and pensions; Persons who have completely lost their ability to work due to illness or non-work-related disability before reaching the statutory retirement age can receive disability allowance. The required funds are paid from the basic old-age insurance fund.