| In 2006 September, Shanghai’s Case of Embezzling the Social Insurance Funds which was involving up to RMB 3.45 billion was unmasked. A series of senior officials of Shanghai government have been expelled from the public office to the judicial authorities. The crisis management of social insurance funds exposed, fundamentally speaking, is not because of the motive of preserving and increasing the value, but about regulatory loopholes and the fact that the value-hedging system is too slipshod, which led to the abuse. Social security funds managing mode is related to the basic goal of maintaining and increasing the value of our country’s social security funds.A sound social security system has always been known as a "safety net" of people’s life, "stabilizer" of the social operation and the "regulator" of the income distribution, also as one of the country’s important social systems and an important guarantee for the social stability as well as the long-term peace and order in the country. The pension fund is an important part of the social insurance fund. Its running is vital for the effective operation of the social insurance system. At present, China’s pension fund supervision has the following problems: the defectiveness of the supervision legal system; the lack of authoritative institutions of unified management; supervision’s over reliance on administrative means; the absence of the social supervision’s subject; the defectiveness of the investment supervision system; the severe lack of medium and long-term monitoring and early-warning system and so on.The problem of how to establish social security supervision and management system, as well as improve the supervision of social security funds has the important meaning of giving full play to the "stabilizer" role of social security and dealing with the connection of reform, development and stability,. Meanwhile, establishing a normative supervision system on social insurance funds operating is an urgent task at present. |
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