The City Social Security System Fund In China

The city social security system is one of the most important social economic systems in China. Since China's opening up and reform, it has become more and more urgent to set up the city 晄ocial security system with the transition of economy. And the city social security system fund is the basic guarantee to the smooth operation of the city social security system.This paper analyses the three most important factors during the operation of the city social security system fund, which are the collection, payment and investment of the fund. Firstly, it discusses the present condition of the city social security system fund in China while at the same time pointing out the problems existing in the operation of the fund: one is that the narrow collection channel and method cannot adapt to the economic the economic development; another is that the problems such as the ageing population, high unemployment risk and high replacing rate in old age must be faced with during the payment of the fund; and the last but not least is that the biggest economic gains cannot be achieved as a result of not using the optimism investment portfolio.Secondly, under the principle of fairness and efficiency, the essay analyses adoption of the raised and individual account method in old age insurance and medicare, according to the line returns theory and the actual income of fund. In the author's view, individuals should undertake part of the social securing cost. Meanwhile, the author also puts forward some useful means to help find the optimism investment portfolioFinally, the essay brings up a series of proposal which are useful to the operation of social securing fund based on the correlated theories and foreign countries' experience in the operation of the social securing fund.