What does the social security fund include?

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One: Social Security Fund

Social security fund is the abbreviation of social labor security fund, also referred to as "social security fund", which is managed by the state and local social labor security bureaus. The funds raised through various channels of the state, localities, units, collectives and individuals are mainly used for social security and social welfare of workers who participate in social security, which is the "pension" that provides the most basic guarantee for the insured's future life and the "life-saving money" for the rescue or treatment of future life accidents. The social security fund is converted into an investment fund by the relevant state and local administrative departments in accordance with the operating procedures allowed by the norms, also known as the "social security fund". Social security fund is different from social security fund, which comes from social security fund.

Two: social security fund:

The social security fund is the abbreviation of the National Social Security Fund, which refers to the social security fund centrally managed by the central finance, managed by the National Social Security Fund Council (hereinafter referred to as the Council), and consists 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.

Social security funds are not open to individual investors. Social security fund is a part of the endowment insurance premium paid by the state to enterprises and institutions managed by professional institutions in order to maintain and increase the value.

The basic principle of social security fund investment operation is to realize the appreciation of fund assets on the premise of ensuring the security and liquidity of fund assets.

The state stipulates that social security funds can enter the stock market, of course, not all, and there are proportional restrictions. The main purpose is to maintain and increase the value of social security funds and ensure the interests of the people.

Social security fund assets are assets independent of the board of directors, social security fund investment managers and social security fund custodians.

The Ministry of Finance and the Ministry of Labor and Social Security shall formulate relevant policies on the management and operation of social security funds and invest in the operation of social security funds.

Social security fund picture

Social security fund picture

There is also the issue of custody.

China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) and the People's Bank of China shall, according to their respective functions and powers, supervise the business activities of investment managers and custodians of social security funds.

"Social Security Fund" is a simplified generic term with five concepts.

One is the "social insurance fund";

The second is the "social pooling fund";

Third, the personal account fund in the basic old-age insurance system is called "personal account fund";

Fourth, the supplementary guarantee funds of enterprises include the supplementary endowment insurance fund of enterprises (also called "enterprise annuity") and supplementary medical insurance of enterprises;

Fifth, the national social security fund.

The current chairman of the Social Security Fund Council is Dai Xianglong, former governor of the central bank and former mayor of Tianjin. Chairman Dai is also the party secretary of the Council.

Three: use:

There are nine social security funds stipulated in China's Social Insurance Law, including basic old-age insurance (enterprise employees' basic old-age insurance, new rural social old-age insurance and urban residents' social old-age insurance), basic medical insurance (urban employees' basic medical insurance, new rural cooperative medical care and urban residents' basic medical insurance), unemployment insurance, industrial injury insurance and maternity insurance.

On the one hand, all parties call on the state to establish an accountability system for social security funds, announce the income and balance of each social security fund overall account to the public, and severely deal with violations. In addition to further improving the social security system and regulations, on the basis of consolidating and improving the provincial-level overall planning of basic old-age insurance for enterprise employees and clarifying the powers of old-age insurance, we will promote the national overall planning of basic pensions.

According to international practice, no matter what investment channels are used for pensions, outperforming inflation is the bottom line for maintaining and increasing value. Pensions managed by local governments can only be deposited in banks and bought in government bonds, but the income is lower than inflation. In other words, pensions are depreciating every year.

At present, there are a large number of short-term and medium-and long-term bills, treasury bills, financial bonds and other almost zero-risk products in China, as well as medium-and low-risk products such as corporate bonds, corporate bonds, local bonds and asset securitization. The annual income of these investment products ranges from 5% to 20%, which enriches the investment options of pensions. About 45% of the assets allocated by the national social security fund are invested in fixed-income products, such as bank deposits, government bonds and corporate bonds. About 30% invest in stocks; About 25% is used for PE investment and other types of investment. In addition, industrial investment is also an important part, especially the industrial investment given priority by the state.

The diversified securities investment of social insurance funds needs the healthy and benign development of China's stock market, bond market and industry, and fundamentally improves the system and changes. It is urgent to reform the management system of social security fund to realize its security and profitability.

Four. Social security function:

1. The objective basis of social insurance is the risks existing in the labor field, and the object of insurance is the workers themselves.

2. The subject of social insurance is specific. Including workers (including their relatives) and employers.

Social insurance is compulsory.

The purpose of social insurance is to maintain the reproduction of labor force.

5. The insurance fund comes from the payment and financial support of employers and workers. Insurance coverage is limited to employees, excluding other social members. The insurance coverage is limited to all kinds of risks in labor risks, excluding other risks such as property and economy.