Research Of Account-divided Investment Operations On Basic Pension Fund Of China

Pension issue is a eternal and no terminated topic of human society. At present, the pension systems of various countries all over the world are facing varying degrees of the impact of the aging population. Since China implemented the family planning policy, as well as the extension of life expectancy, the aging of China's population structure will be faster pace. Our country started from the late 1970s to carry on the economic reform, the reform of the endowment insurance system also follows with them. Started from 1995, with the transition from the pay-as-you-go system to the partially funded system, a unified enterprise worker's basic insurance system of China was definitely put forward. In theory, the partially funded system which unified the social plan and individual accounts is better to cope with China's aging population crisis and promote the development of China's capital market. However, judging from the current practice, it does not really achieve the transition to the partially funded system and cause an empty individual account. So the pension system has received a severe challenge and the enormous impact.It's the socialization of production and the development of the social division of labor that caused the family pension community, and then to have the pension system. The purpose of the endowment insurance is for the protection of the basic needs of life of older persons, and to provide stable and reliable source of livelihood. In the endowment insurance system, the pension fund will be to deal with the eventualities in the future, to deal with the needs of future pension payments, and to ensure the smooth implementation of old-age insurance and in a planned manner accumulation reserve funds and interest. Therefore, it's extremely important for the majority of workers after retirement life. At the same time, the design of the pension system which is very profound to the entire socio-economic impact, directly relates to a series of important economic and financial issues of a country, such as the inhabitant savings ratio, the balanced tax structure of the labor market, the development of the capital market.The basic pension fund is the foundation of the social pension funds system as a whole. All along, considering of the security of fund and the immature capital market, the Government has carried on the strict limit to the basic pension fund's investment scope, that it can only be able to deposit to bank and purchase treasury bonds. On the surface, the stipulation is advantageous to control the risk, but in fact, it actually has a hidden risk. Constructing the fund portfolio through the econometric model, the author separately carries on the empirical analysis from the bank deposits and treasury bonds to the value-preserved and value-added issue of the basic pension fund's investment portfolio now. so, he discovered that this sole investment method simply does not have the ability to avoid the interest risk and inflation risk of the funds. It's not optimistic. Therefore, we must consider in addition to the purchase of bank deposits and treasury bonds from other types of investment, that is, the funds will be invested in the capital market.China, however, to achieve the fund's market there are many factors operating constraints. In China, the basic pension fund's scale grows year by year, but the investment operation's situation is not good, largely subject to China's immature capital market environment and management system is not sound. These deficiencies have caused the system exist in various types of investment risk which the investor undertake, that will further expand the capital market systemic risks. However, although China is still not fully meet the pension fund safe and effective investment requirements, this does not mean that we have to wait until all the constraints are fully resolved to carry out the basic pension fund operation of the market between the two promote each other. In the pension investment management and the capital market construction issue, the countries in the world in the long-term process of development has accumulated a very rich and successful experience, our country may study and profit from the successful experience, to enhance the investment operation of ours, and find suitable business model. On the basis of the principle of investment which is adhering to safety, liquidity, profitability and social benefits and through the deep analysis, the author suggested the basic pension funds should choose the account-divided investment operations, that is it should be divided into the social plan account and individual account which respectively take different managements and adopt different investment patterns to carry on the operations.Regarding the social plan fund, because implements the pay-as-you-go system, and mainly is used for the pension payment of elderly people and"middle"people, it's high to secure and liquid request. So, this part of the fund should be managed by the fund management institution that is independent with the Government and non-profit for public management model. And investment, it should mainly invest in fixed investment, such as the purchase of treasury bonds and bank deposits. In the implementation process, according to the actual situation in China at present, the social plan fund can still manage by the social insurance agency previously, but must strengthen its institutional independence. It recommended that independent from the Government departments, under the direct leadership of the State Council, establishes the social insurance agency headquarters, consul-generals provincial social insurance institutions, and truly achieves the provincial level.Regarding the individual account fund, our country may adopt the relative centralism management pattern entering the capital market. That is, establishing the individual account fund management committee, on behalf of the benefit of the individual account fund, through open tender by a number of selected forms, such as stable performance, sound management and efficient low-cost asset management companies. In compliance with the Government on its pension investment rules, these companies are stipulated the minimum rate of return by the Government which makes the guarantee by the state finance to it. In view of China's capital market, outstanding professional fund management companies is not a lot, so at this stage individual account fund's management can choose the fund management companies, which are entrusted the national social security to invest in bank deposits, treasury bonds, corporate bonds and financial bonds, stocks, securities investment funds, overseas capital markets and products investment and so on, which make investment tools, channels and methods diversified.In brief, it's an inevitable choice that the basic pension fund invests in the capital market to preserve and increase the value-added. On the one hand, account-divided investment can solve the investment efficiency itself, on the other hand, it can prevent the social plan accounts continue overdraft the individual accounts. According to the nature and the goal of the two accounts, it is benefit to the Government to decide the two accounts' investment operation way, and to preserve and increase the value-added effortfully.