China's Social Security Fund Management Problems And Countermeasures

Social security funds are the material basis of the social security system. The sign of the setting up of social security system is the establishment of the social security funds. Therefore, strengthening the management of social security funds and achieving the goal of complete security and efficient operation in preserving and increasing the value to meet the payments, are the core aspect to run social security system.The management of social security funds includes the management of the whole moving process of a variety of social security funds, from the income to the expenditure, then to the balance and investments of social security funds. During the management of funds moving, risk management and supervision of social security funds management should also be considered. At present, there are still some problems in the social security fund management. They mainly are: the social security system is not sound, so we need a complete financial management system support. The social security laws are not perfect and in a low level, so we are in want of rigid fund management legal safeguards. Social security funds management costs high and there is much risk. Supervision and control of funds are inadequate. These problems are due mainly to fewer experience, more conflicts and the complicated situations because our country's social security system started rather late and is still in transition from a planned economy to a market economy. Also at the reality of fragmentation, different local interests and benefits department were formed. Society of all aspects'awareness of the law and the obstruction because of urban-rural dual economic structure is another reason.From the reality of the social security situation of Dongying City, the city has formed the social security system framework which combines the social insurance with social assistance. Its channels of funding sources are unblocked. It has standardized management procedures, and its supervision and management are strict. And various of its work has been at advanced ranks of the whole province and even the country's. But there are still some difficulties and problems. For example, the main burden of social security are more and more heavy, the funding gap will continue to increase; the level co-ordination is low, regional differences are apparent; the level of protection is relatively low in some of the items; industry differences caused by system design are larger; social security budget is incomplete, not detailed and so on.In the long run, to improve the social security fund management, one should firstly define the duties of social security funds management between the government and the market, central and local governments, local governments at all levels and among various government departments, in accordance with the basic principle which unit the powers and responsibilities. Secondly, one should strengthen the legal construction of social security funds management, improve social security and financial management legislative level, expand the coverage of the social security legislation, improve the social security law enforcement mechanism to make it more authoritative, normative and mandatory. Thirdly, combined with our country reality, one should explore actively targeted social security fund management approach, set up management model in which the powers of conduct and public affairs are divided, decentralization and integration of assets and liabilities, reducing management costs and manage risks. Fourth, one should use the foreign social security fund management experience for reference, such as financing for multi-channel and multi-pillar operations, government regulation and an appropriate competition, bring social security into the overall situation and long-term socio-economic considerations.As China's economic and social development and building a harmonious socialist society proposed objectives, especially in the current economic crisis triggered by financial storm the international context, the necessity and urgency of the management of social security funds are more highlighted. To push forward the social security and financial management reform gradually, the following aspects should be done well. First, it is necessary to build a unified, scientific and standard management framework for social security, to carry out a unified policy management by the social security management institutions, to regulate strictly the fund management by the Financial Department, to carry out regular supervision by the parties composed of representatives to the collection, use, safety of the social security, etc. Second, to establish the social security budget, to strengthen the responsibility of the section units and agencies that use the fund, to strengthen the state's financial macro-control functions. Third, to promote actively the provincial co-ordination on the basis of perfecting city co-ordination level, in order to facilitate the movement of persons, capital transfers and funds management. Fourth, one should set up and perfect rural social security system that is around the level of economic development according to the reality. Fifth, one should speed up the legislation of the social security system, and enact the normative, authority social security regulations. Sixth, give full play to the Financial Department in the functions at social security reform to avoid one-sidedness of policy.