| With the development of economy and the upgrade of living standards, people have derived a higher demand for social security. What's more, birthrate and mortality both become lower, and population in return has stopped growing. Thus, how to guarantee and develop the life of retirees become more and more important.Social insurance system has experienced three periods, i.e. the internal transition of the family, the pay-as-you-go system and the prefunding system. Nowadays, the three pillars are applied widely among western countries, which include the basic social security fund, the occupational pension fund and the individual saving accounts. Of the three pillars, the occupational pension fund, the second pillar, is the subject of the paper.In the paper, the author introduces the reform of social insurance system and the position of the occupational pension fund, gives its definition, and states its development in western countries, in OECD countries in particular. The average rate of assets in occupational pension funds to GDP amounts to 28.6% in OECD countries, and therefore potential market for the fund in China equals 3,000 billion Yuan, given that China can reach that rate and China's GDP can remain 10,200 billion Yuan. Due to the huge potential market, how to develop occupational pension funds in China forms the core issue of the paper. By learning the lessons of American occupational pension funds, the author points out the following: the fund should finance both from the employer and from employees; the fund must be kept separately, no matter what plan the fund applies; investment management is key to the success of the fund; the fund can be used by the employer as part of benefit package as well; related laws and regulations are important to the healthy development of the fund. The occupational pension fund has a history of 120 years in US, however, here in China it just starts up. For the time being, China is trying to form the three pillars system, which includes the development and perfection of occupational pension fund. Up to now, the National Social Security Fund has elected its investment managers and custodian banks, and the investment management will begin quite soon. In addition, such companies as National Power and Bank of Merchants have designed their own pension funds as a pilot program. Such kind of pilot programs can be quite useful for the further development of occupational pension fund throughout the country. Besides, the author emphasizes that the government plays an important role in the development of the fund. By enacting and perfecting laws and regulatory frameworks, and by applying favorable tax rules, the government can facilitate the funds' development to some extent. In chapter 4, the author defines the role of fund management companies in the business of the pension fund. With a history of five years only, the fund industry has gained an outstanding growth. Fund management companies have advantages in human capital, in innovation ability, in prudent operation and etc, and thus are qualified investment managers of the pension fund. Pension fund management opensup a huge market for fund management companies; however, these companies should gain a balanced position between mutual fund management and pension fund management. If the company positions pension fund management as its key business, it should strengthen the cooperation and communication with foreign companies and regulatory agencies. In the last part of the paper, the author points out the risk of securities investment. As return and risk always go hand in hand, pension funds should increase the investment return, and at the same time decrease the risk by long-term investment and portfolio investment. Finally, at the end of each chapter, the author states several important points in the chapter above and also makes some comment on it.It has taken half of year for the author to finish the paper. The author appreciates all the people who have given her help during the writing of the paper, especial... |
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