What does social security fund mean?

Social security funds refer to special funds raised through various channels and forms for various purposes of social security in accordance with national laws, regulations and policies to meet the needs of social security. The social security fund in China is mainly composed of three parts: social insurance fund, national social security fund and supplementary security fund.

The social insurance fund formed by enterprises and individuals is the most important part of the social insurance fund, which mainly includes basic pension, unemployment, medical care, work injury and maternity insurance funds. In recent years, China has adjusted the system structure of social security, pushed the system from a single system to a multi-pillar system, and turned from pay-as-you-go to partial accumulation, and the social insurance fund began to have savings. The pension and unemployment insurance benefits that ordinary people usually receive are paid from this part of the fund.

The national social security fund refers to the central financial allocation, the reduction of state-owned shares and the transfer of equity assets, the funds raised by other means approved by the State Council and the investment income. The fund is centrally managed and used by the central government.

Supplementary security fund is an enterprise annuity and supplementary medical insurance formed by enterprises and individuals. Since the end of 1980s, some provinces, cities and industry departments in China have started to establish supplementary old-age insurance system for enterprises. In 2000, the State Council standardized enterprise supplementary endowment insurance as the concept of enterprise annuity.

Social security fund refers to the fund formed by paying various social insurance projects, which can be divided into pension, unemployment insurance fund and medical care. In a broad sense, it is all the funds accumulated by a country to protect social undertakings, usually including social assistance funds and social insurance funds. In China, there is also an institution called Social Security Fund Council, which is mainly used for investment, maintaining and increasing the value, and coping with the pressure of social insurance payment in the future peak of aging.

legal ground

People's Republic of China (PRC) Social Insurance Law Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance to protect citizens' right to get material help from the state and society in the event of old age, illness, industrial injury, unemployment and maternity.