On The Law Of The Pension Funds Investment's Supervision In China

The pension insurance system is an important component of the social security structure. The sound pension insurance system not only relies on the perfect laws, but also takes the pension insurance funds as its material basis. with the setup of the cooperating payment pattern of public account and private account, the collection of the funds transfer from overall payment to part of accumulation. The huge pension funds of the private account are faced with the danger of devaluation. It is an inevitable trend to invest the money of the private account effectively to add its value. In order to prevent the blind and speculative investment, guarantee the safe operation of the pension funds and pay on time, we should supervise the pension funds effectively. The most important way to keep the investment in order and the healthy development of the pension insurance industry is to build the sound pension funds investment supervision legal system. But as regard to our country, the reality is the investment market is not standard, the supervision system hasn't been built up, and the supervision is lack of experience and so on. Therefore, it is necessary to combine the foreign experience with the civil reality to take the supervision pattern of the indirect government control and the strict limit ,namely, the government endows the professional Funds Management Companies with the rights of operating the pension and set up the professional Fund Management Committee to supervise the Fund Management Companies strictly. At the same time, consummating the related supervision rules and regulations of pension funds insurance and pension funds investment, then the legal system with clear structure and responsibilities will come into being. What's more, the multiple supervision structure of the pension funds investment will be build up, such as, the department of social security is the core supervision organ and the departments of finance supervision, securities supervision, and bank supervision are the assisted organs in macro level; The Pension Funds Management Committee supervises professionally in meso level; The Funds Management Company cooperates with the supervision departments and the committee in micro level to supervise. In this supervision system, all the supervision bodies will try their best to supervise the investment and increase the benefits of pension funds effectively. So the aim of healthy reformation and development of pension funds system will be attained.