Study Of Employer Pension Management Of Our Country Based On Financial Perspective

For the sake of the fast increasing of elderly population, many countries have built up multiple-arrangement endowment insurance policy. Chinese government has also made pension system reform and in May, 2004 three-arrangement endowment insurance system including basic national pension plan, employer pension plan and personal commercial endowment insurance was established in China. Currently, the scale of our country's employer pension fund is about 100 billion RMB. In 2010 it will be 1000 billion RMB and become the main power of our country's three-arrangement endowment insurance system. The scale of the employer pension fund is huge and it has the characteristic of social guarantee, so it is very important to carry out the funds management and control. Althouth the employer pension in China has developed since ten years ago, it is still in poor condition because of its birth during the stage from Planned Economy System to Market Economy System and the pressure of elderly population.This paper has selected the process of employer pension fund from being raised to investment as an object and studied it based on our country's employer pension fund management theories and financial management theories. I hope it will do some help for the construction of the employer pension theory and the development of the financial management theory.The content of employer pension management is composed of three parts, financial operations management, financial monitoring and financial operating performance evaluation. Through the analysis of employer pension management experience in America, Australia and Britain we come to Chinese employer pension management revelations. Employer pension system needed the creation of perfect laws and regulations, it depends on the form and structure of the legal framework and market environment, principles of employer pension's investment are required and funds safety and employees'pension rights should be protected by the means of laws. Finally, employer pension management based on financial perspective is designed in details from three aspects, financial operations management, financial monitoring and financial operating performance evaluation.In the aspect of the designing of financing management, DB and DC modes should be allowed to compete with eath other and at the same time the investment of employer pension should abide by certain principles. As for the issue of tax supervision this paper focuses on existing problems and solutions of tax benefits, while investment supervision should be in the way of quantitative restrictions and gradually transferred to prudent regulation. And this paper analyzed the focus of return security mechanism of DB and DC plans respectively. Finally, indicators of financial operating performance evaluation are designed in three aspcets, profitability, liquidity and solvency.