Study On The Value Management Of Pension Fund In China

With global social and economic development, the pension system already becomes a common social economic system of the international community. But the growth and aging of the world population brings more and more pressure to pension payment. Pension system is facing serious challenges. In this background, our pensions are faced with a can-not-out-run CPI dilemma. To resolve our society aging crisis, ensure future retirees to enjoy annuities of pension treatment level which is equal to the price level of retirement, the key problem is to ensure and raise the value of pensions through pension investment.Firstly, this paper introduces the development and evolution of China's pension system, concretely analyzes the formation and characteristics of each part in it, and after that analyzes the present problems existing in the pension system. Then, the paper introduces the pension fund investment tools in foreign countries, and analyzes the characteristics, yields and risks of pension fund investment tools in our country in detail. On this basis, we take the National Social Security Fund as an example to analyze the current tool types and earnings situation of pension fund investment in China. Then we select data from 2000 to 2009 on three main investment tools including bank deposits, national debts and stocks to conduct an empirical study on the yields and risks of investment portfolio using the CAMP model.The results of the study shows that in order to guarantee the safety of pension fund investing in stocks, the proportion of investment should be stable at 20% to 25%. Our country's current investment proportion has reached the proportion, and cannot be further expanded. So at present, improving pension investment yields couldn't rely on increasing the proportion of stock investment, but to enrich the pension investment tool types and optimize the investment portfolio. Finally, the paper proposes several advices on the system construction, capital market construction, supervision construction and enriching investment tools to improve the value management level of pension funds according to the front analysis.There are basically three achievements and innovations as follows. One is proposing merger management of individual accounts of primary pension system and individual accounts of company pension after analyzing the formation and characteristics of each pillar in China's "three pillar" pension system. It could help save the management cost and improve the supervision efficiency, and it is helpful for the pension fund investment to play scale effect. The second is finding the investment tool types which are valid for current pension fund to invest after analyzing the yields and risks of investment tool types in our country. The last one is taking the National Social Security Fund as an example to analyze the current tool types, earnings situation of pension fund investment, and conducting an empirical study on the yields and risks of investment portfolio using the CAMP model. The results of the study could provide reference and advice for pension fund investment.