On The Problem Of Endowment Insurance Fund Gap In China And Its Countermeasures

Establishing the social security system which fits the level of economy development is the important content of deepening economic restructuring and perfecting the socialist market economy system, is the objective need of developing the socialist market economy, is the important guarantee of social stability and long-term the national peace, and also is the important manifestation of the human-oriented scientific concept of development. How to perfect the operational mechanism and the management mechanism of social security systems and enhance the operating efficiency and the safeguard effect of the social security systems, with the premise of maintaining high rate of rise in the national economy, is one arduous and complex task.With the most stable insured status, the longest term of effectiveness, and the biggest expenditure, the endowment insurance is exerting greater influence to the society than any other form of insurances. The function of endowment insurance is manifested through the revolution of endowment insurance fund. Without enough endowment insurance fund to meet both current and the long-term needs, social endowment insurance will be meaningless. The problem of being financially unsustainable in the endowment insurance system is prominent, besides problems in system design; there are also ample problems in the management of endowment insurance fund. The fund gap assumes the tendency to expand year by year, which is restricting the development of national economy and the social stability. Under this background, studies on the problem of endowment insurance fund gap have great significance both theoretically and practically.Starting with case analysis, the first part proposes the problem of insufficiency of basic endowment insurance fund in our country. From the perspective of supply-demand relation, the supply of endowment insurance fund is far behind people's demand. Thus points out the important status of endowment insurance fund in the entire social security system. Through discussing the implication, the nature and the characteristics of the endowment insurance fund elaboration, this part highlights the endowment insurance fund as the core constituent of the social insurance fund, and its central status in the entire social security system. With the arrival of population aging, the problem of fund gap problem is drawing increasing attention from all walks of life.The second part elaborates the present situation of endowment insurance fund gap in our country from three levels. It divides the fund gap into two aspects: the cash capacity gap (revenue and expenditure gap) and the cost of system transformation. It also analyzes the reality of retiring personnel's increasing demand of pension as the population aging draws near. The first level is the cash capacity gap of endowment insurance fund. Firstly, the elaboration starts from the origin of basic endowment insurance fund in our country, and then transits to the introduction of endowment insurance fund's condition of revenue and expenditure, thus it analyzes the main contradiction. The second level is the recessive debt brought about by system transformation. Firstly, it points out the recessive debt is the extension system cost which occurs during the transition period, and then it enumerates the computation results of our country's endowment insurance fund by both domestic and foreign scholars according different standards, all of which show the cost of system transition is huge. The third level is the strong impact of population aging to our country's endowment insurance fund. Firstly, the elaboration starts from the present situation of population aging in our country and the trend of its development, then it analyzes the impact and challenge population aging brings about. Because the retiring personnel' s unceasing increase means the quantity of pension receivers is increasing, the expenditure of endowment insurance fund is increasing; however, the endowment insurance fund is still facing a major difficulty in fund collecting.The third part analyzes the problem of endowment insurance fund gap in our country, which contains two aspects: the fund gaps caused by the system design flaws and the fund gaps in the actual management operation. The first aspect is the fund gaps caused by the system design flaws: First, the internal system design flaws, namely the recessive debts brought about during the cause where the mechanism of endowment insurance transforming from cash payment system into planned account system. Second, people retire too young. As our country enters the aging society, the retiring personnel's demand of pension raises to a great extent, so does the fund disbursement. Third, the level of endowment insurance treatment payment is high, which enlarges the disbursement of endowment insurance fund. The second aspect is the fund gaps caused by the management loopholes of endowment insurance fund, analyzes from the following aspects: The endowment insurance fund are diverted seriously, the phenomenon that people retire too early is serious, the cardinal number of payment is not solid, the levying rate drops, and the operational way of endowment insurance fund is too unitary.Centered on the cause of endowment insurance fund gap, the fourth part puts forward five proposals: First, make clear the government's responsibilities, melt the cost of system transformation, including enhancing the financial investments; switching partial state asset into cash; releasing social security lottery tickets to collect funds. Second, enhance the supervision and management of endowment insurance fund; establish and perfect fund mechanisms of supervision and management. It puts forwards the proposal of establishing a social insurance fund supervisory board which is composed by social representatives from all walks of life. Third, widen the channels of investment, and enhance the social insurance funds to guarantee the investment income, including establishing investment organization of social insurance fund to carry on the investment operation; the government should create good system environment for the fund investment operation; enlarge the adjustment of investment structure, and widen the channels of investment. Fourth, transform the payment system to tax system, and begin levying social insurance tax. Although there are still very great disputes in the academic circles, but levying the social insurance tax is one inevitable tendency with feasibility and necessity analysis. Fifth, adjust the disbursement structure of endowment insurance fund through technical methods, including reducing the rate of retirement pension substitution gradually to make the basic endowment insurance based upon the basic need of safeguard; properly raise the retirement age. Adjust the disbursement structure of endowment insurance fund through technical methods to reduce the retiring personnel's pension demand and reduce the disbursement of endowment insurance fund.