Research On The Application Of Pension Institutions Ppp Model Based On VFM

China has stepped into the aging society since the late 20 th century. Rapid aging with aged population increasing and “empty nest” makes provision for the aged become a knotty problem to be solved,the supplementary role of institution endowment is increasingly prominent. But pension institutions are faced with severe fund gap because funding for institution endowment is restrained by the financial budget. PPP model,however, integrating government power and social capital, effectively adds service supply of pension institutions. This paper systematically studies the operation mode of PPP item in pension institutions based on VFM, in attempt to provide some ideas to resolve the contradiction between demand and supply in pension services of our country.Firstly, the current situation of domestic pension institutions was analyzed, based on which market investigation on the wishes of the elderly towards institution endowment was conducted via questionnaire survey and in-depth interview. This provides evidence of market positioning for PPP project development and operation in pension institutions.Secondly, the necessity and feasibility of introducing PPP model into pension institutions were analyzed and operation framework and operation flow of PPP project were constructed. The theory of VFM(Value for Money) was employed to evaluate the economic feasibility of PPP project in pension institutions. And real-estate investment trust was adopted to solve financing problem. Two core contents of operating PPP model were elaborated, including risk sharing and benefit distribution. Risk-sharingplans and early warning system were created to scientifically handle risks. Meanwhile,starting with the interests of central parties involved in the project, principle for benefit distribution was developed taking risk factors into account and shapley method was used to build benefit distribution model.Lastly, the feasibility of PPP model in pension institutions was empirically verified in the actual context of a pension institution from the aspects of operation framework,profit model, risk sharing and benefit distribution.The conclusion of this study contributes to promote the application of PPP model in pension institution development.