Reform of the national social security agency is imminent

I: Social Security Funds

Social Security Funds is the abbreviation of Social Labor Security Funds, also referred to as "Social Security Funds", is the national and local social labor security bureau coordinated by the state, local, unit collective and individual multi-channel fund-raising, mainly used for social security and social welfare of workers participating in social security, is the most basic protection for the future life of the participants "pension" and the future life-saving money for accidental rescue or medical treatment. Social welfare is the "pension" that provides the most basic protection for the future life of the insured, and the "life-saving money" for the rescue or medical treatment of future accidents. Social security funds are invested by the relevant national and local management authorities in accordance with standardized and licensed operating procedures to increase their value, i.e., they are converted into investment funds, which are also called "social security funds". Social security funds are different from social security funds, which are derived from social security funds.

Two: social security fund:

Social security fund is the abbreviation of the national social security fund, refers to the national social security fund council (hereinafter referred to as the council) is responsible for the management of state-owned stocks and equity assets, the central financial allocation of funds, approved by the state council in other ways to raise funds and their investment income formed by the central government centralized social security fund.

The social security fund is not open to individual investors. The social security fund is a part of the funds from the pension insurance premiums paid by enterprises and public sector workers that the state hands over to professional organizations to manage and realize value preservation and appreciation.

The basic principle of the investment operation of the social security fund is to realize the value-added of the fund's assets on the premise of ensuring the safety and liquidity of the fund's assets.

The state stipulates that the social security fund can enter the stock market, but of course not all of it, there are restrictions on the proportion. The main purpose is to let the social security fund to realize value-added, to ensure the interests of the people

Social security fund assets are independent of the council, social security fund investment managers, social security fund custodian assets.

The Ministry of Finance, in conjunction with the Ministry of Labor and Social Security, formulates policies related to the management and operation of the social security fund, and supervises the investment and operation of the social security fund

Pictures of Social Security Funds

Pictures of Social Security Funds

and trusteeship.

The China Securities Regulatory Commission (hereinafter referred to as CSRC) and the People's Bank of China (PBOC) supervise the operation of the investment managers and custodians of the social security funds in accordance with their respective mandates.

The term "social security fund" is a simplified umbrella term, and *** there are five concepts.

-One is the "Social Insurance Fund";

-Two is the "Social Co-ordination Fund";

-Three is the fund on individual accounts in the basic pension insurance system, known as the " Individual Account Fund";

-Fourth, the Enterprise Supplementary Guarantee Fund, which includes the Enterprise Supplementary Pension Insurance Fund (also known as "Enterprise Annuity") and the Enterprise Supplementary Medical Insurance;

-Fifth, the "National Social Security Fund

-v is the "National Social Security Fund".

The current chairman of the Social Security Fund Council is Dai Xianglong, a former central bank governor and former mayor of Tianjin. Chairman Dai also serves as secretary of the council's party organization.

Three:Use:

There are nine social security funds*** under China's social insurance law, including basic pension insurance (basic pension insurance for enterprise workers, new rural social pension insurance, social pension insurance for urban residents), basic medical insurance (basic medical insurance for urban workers, new rural cooperative medical care, basic medical insurance for urban residents), unemployment insurance, labor injury insurance, maternity insurance, etc.

On the one hand, all sides called on the state to establish accountability for social security funds and publicize both the income and balance of each social security fund's coordinated account to the public, and deal with irregularities severely. In addition to further improving the social security system and regulations, national coordination of basic pensions should be pushed forward on the basis of consolidating and improving the provincial-level coordination of basic pension insurance for enterprise workers and clarifying the authority of pension insurance.

According to international practice, no matter what investment channels the pension funds go through, beating inflation is the bottom line for preserving value. The local government-managed pensions can only be deposited in banks and buy treasury bonds, but the return is lower than inflation. In other words, pensions are losing value every year.

China now has a large number of short- and medium- to long-term bills, treasury bills, financial bonds and other almost zero-risk products, as well as corporate bonds, corporate bonds, local bonds, asset securitization and other medium- to low-risk products, which have annual yields ranging from 5-20 percent, enriching the investment choices for pensions. In the asset allocation of the NSSF, about 45% is invested in fixed-income products, such as bank deposits, treasury bills, corporate bonds, etc.; about 30% is invested in stocks; and about 25% is used for PE investment and other types of investment. In addition, industrial investment is also an important component, especially those given priority by the state.

The diversified and safe investment of the social insurance fund requires the healthy and benign development of China's stock, bond and industrial markets, as well as fundamental improvements in the system and changes. Reform of the social security fund management system to achieve its safety and profitability is imminent

Four: social security features:

1. The objective basis of social insurance, is the risk that exists in the field of labor, the subject of insurance is the worker's person

2. The main body of social insurance is specific. It includes workers (including their relatives) and employers

3. Social insurance is compulsory

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

5. The insurance fund comes from the contributions of employers and workers and financial support. The scope of insurance objects is limited to workers, excluding other members of society. The scope of insurance is limited to various risks in labor risks, excluding other property, economic and other risks.

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