Analysis of Social Security Fund Management in China (Speech 15 minutes)

Problems existing in the current social security system

1, the existing social security system is not perfect.

First of all, there are still some imperfections in the existing social insurance systems such as pension, unemployment, medical care and work injury. For example, the current social insurance policy pays more attention to income management and ignores expenditure management. Although the focus is on expanding coverage and improving the collection rate, the expenditure management has not kept up in time, and the social security fund is in short supply, and the contradiction is still very sharp. The contribution rate of old-age insurance is too high, and the statutory payment period 15 is much lower than the internationally accepted 30 years. The distribution ratio between individual accounts and social pooling is constantly changing, and the payment level is not intrinsically related to the payment period and payment amount, and the payment ratio varies from region to region. The unemployment insurance fund overlaps with the minimum living guarantee for laid-off workers in enterprises and the minimum living guarantee for urban residents, and the shortage of funds and insufficient investment coexist, and the conditions for issuance are too loose, which breeds an inert mechanism. It is necessary to reasonably divide the proportion of individual accounts and social pooling in medical insurance funds and determine their consumption procedures and quotas. There are some problems in the work-related injury insurance fund, such as determining the conditions for enjoying work-related injury insurance and who manages and operates it. In short, the existing social insurance system needs to be improved.

Secondly, the social insurance system of administrative institutions has not been put on the agenda, and the rural social security system has not been introduced. China's social insurance system has been reformed for nearly 20 years, covering state-owned enterprises, collective enterprises, foreign-funded enterprises and individual industrial and commercial households, but administrative institutions have not been included in the social insurance coverage. Obviously it is inconsistent with the sociality and unity of the social system.

2. The role of government in social security. The lessons of some high welfare countries tell us that social security will be borne by the government and will be overwhelmed. China's social security system has been reformed for nearly 20 years. Judging from its development process, it is still repeating the old road of high welfare countries, and the contribution rate of basic old-age insurance is constantly improving. It also has to undertake tasks such as social special care, social relief, urban minimum living security and poverty alleviation. Therefore, we can neither exaggerate the role of the government in social security nor ignore the role of the market, enterprises and individuals. Therefore, China has stepped up the development of enterprise annuity.

3. The reform goal has not reached the established goal. First, the current situation that social security was covered by enterprises and the government has become a pot of rice covered by the government. The government should not only run social security, but also undertake the compensation responsibility of social insurance, which may become a situation for the central government. The reason is that the current social insurance contribution rate is as high as 40.6%. Despite this, some places are still raising the relevant payment rate. In this way, on the one hand, the payment burden of enterprises and individuals will increase, and some low-profit enterprises will be unable to bear it; At the same time, for low-income people, low-income and poor people will be unbearable. On the other hand, high payment is always accompanied by high replacement rate, which not only increases the hidden debt of social insurance, but also increases the subsidy burden of policies, and falls into the experience of some high welfare countries. Second, there is a lack of clear division of social security affairs between the central and local governments, and the separation of powers and responsibilities is very serious. Social insurance is basically in the decentralized management of local (county, city and province) governments. As long as the responsibilities, rights, obligations and risk constraints of fund management are consistent, decentralized management is unnecessary. Due to the inequality of responsibilities, rights and interests, decentralized management is seriously threatened. Although the central government has unified regulations on the income and expenditure of pension, unemployment and medical insurance, all localities can set their own payment levels and grades according to the actual situation, which increases the payment burden of enterprises and employees and damages the vested interests of social insurance objects. At present, the central government manages subsidies and local governments manage money, which is a social security fund management system with separation of powers and responsibilities.

4. Management socialization lags behind. Socialization of social security funds involves many aspects such as raising, supporting, managing, supervising and serving. It is a very arduous task to establish and improve the socialization mechanism of social security fund management. First, the socialization of collection and management of social insurance funds cannot be on the right track. The flexibility of payment mechanism leads to the softening of payment constraints and the phenomenon of non-payment and deferred payment, which can not realize the coercion supported by tax law. The investment and operation channels of social insurance surplus funds are single, so it is difficult to achieve the goal of maintaining and increasing value. The construction of social security fund supervision system lags behind, which leads to the loss and insecurity of funds. Second, the social insurance fund will be included in the management of extra-budgetary funds stored in the two lines of revenue and expenditure and special accounts, but not in the unified budget management of the government. Third, the construction of supervision system lags behind, which is not conducive to ensuring the safety of funds and increasing losses.

Problems in the Management of Social Security Fund in China

As the source of social insurance, the management of social security fund directly affects the normal operation of social security system. At present, China's social security fund management faces some problems.

1. It is difficult to maintain and increase the value of social insurance funds.

The accumulation of social insurance funds, especially endowment insurance funds, needs to maintain and increase value, which is an objective requirement to meet the growing demand for payment in the future. At present, according to the investment and operation requirements of the labor security endowment insurance fund, we can only buy government bonds and bank deposits to achieve the purpose of maintaining and increasing value. Objectively speaking, the investment channels of social security fund are not smooth, and the development of capital market is not smooth, which leads to the lack of corresponding selectivity.

2. The hidden debt is serious.

According to the World Bank's budget, the hidden debt of endowment insurance for employees of urban state-owned enterprises in China will reach 3 trillion yuan, which is mainly caused by the transformation cost of "old people" and "middle people" in the process of transformation. The gap between these two kinds of people's pension income and expenditure directly constitutes the implicit debt of pension.

3, the social security fund income exceeds expenditure.

Due to the continuous improvement of the wage level in recent years, it is difficult to meet the pension payment under the high wage level, which has aggravated the arrival of the pension payment crisis. At the same time, due to decentralized supervision, decentralized management, lack of safe investment channels and other factors, social insurance funds have been misappropriated, bad debts, impersonator and other phenomena, which has aggravated the contradiction between income and expenditure.