A Research On Governance Structure Problem And Optimization Path Of Chinese Basic Pension Insurance Personal Account Fund

In 1997, China established the basic pension system which connected pooling account and individual account, the pooling account implemented the PAYG system and the individual account implemented the fund accumulation system in order to realize the combination of efficiency and fairness under the combination of the two modes, take account of both current and future. However, after nearly 20 years, the mode has appeared a lot of problem under the "Mixed Management", such as the government is fuzzy about its responsibility, the individual account fund were appropriated,the lack of fund investment income and so on, Resulting the lack of rights of individuals,ambiguous government's responsibilities and lack of supervision. So many individuals become to lose confidence on the basic pension insurance and their positive contribution also continued to fall. It is difficult to achieve the original intention and purpose of the individual account and affecting the stable of the basic pension insurance system.The purpose to study of individual account fund governance structure is to distinguish the individual account and the pooling account, and clarify the property rights of individual account. It can help build a good balance mechanism to achieve the perfect governance structure and get the fund's market investment to receive a good return. At last it will enhance the individuals' incentive and realize the sustainable and stable development in the basic pension insurance system.The paper would use Corporate Governance theory, Property Right theory and Trust theory as the basic theory. Through analyzing the status and problem of the basic pension insurance to explore the problem of the individual account fund governance structure. Then after drawing lessons from the domestic and foreign relevant individual account, designed a plan which suits our country's individual account fund and put forward some policy suggestions so as to achieve the good working of the individual account and prepare for the stable and sustainable development of basic pension insurance.The paper is divided into five parts, each part of the main contents are as follows:The first chapter is the introduction, mainly introduces the research significance, literature review, theoretical framework and innovation points. The second chapter describes the theoretical basis of this paper, including Corporate Governance theory, Property rights theory and Trust theory.The third chapter mainly studies the status and problem in the basic pension insurance system which combined the pooling account and the individual account. Firstly briefly introduces the development process of the pension insurance system. Secondly analyzes the original purpose of established the individual account.Finally, summarized the problem and hidden dangers in the current basic pension insurance fund under the "Mixed Management", it make the individual account governance structure vague and the individual account facing a lot of problem.The fourth chapter mainly studies the individual account governance structure and its problem. At beginning, through the general definition of company governance structure, summarize the meaning of the individual account structure. Then from the angle of the property right of the individual account, find that it is lack of the right including:decision-making rights, the distribution rights, investment options and the right to determine the level of personal account pension fund. Finally, starting from the relationships between the managed persons. Find out the trust relationship between the individual and the government in the governance structure became unbalanced. the government has failed to effectively assume the responsibilities of the trustee and the lack of effective supervision and restraint and incentive mechanism, these are the main reasons for the fuzzy disorder of the governance structure and the operation of the low efficiency rate. At the same time, it can help lead to the next chapter.The fifth chapter studies the individual account governance structure which is Suitable for China's national conditions. The first step, draw lessons from the governance structure of Singapore's CPF and Chinese Corporate Pension, propose a plan of the individual account governance structure. The second step is to establish a good supervision and management system including the establishment of the third party supervision mechanism, the development of perfect laws and regulations, strengthen information disclosure, to play the role of the social security fund supervision committee. The last step is the introduction of investment options, enhancing the awareness of personal property rights, so as to achieve the purpose of improving the governance structure.The paper has two characteristics and innovations:First, this paper takes the individual account governance structure as the research object, analyzes of the problem of individual account governance structure from the perspective of the loss of the rights of the participantand the trust relationship, which compared with the current research which ignore the right and responsibilities and duties, The topic of this paper and the research angle of view has some innovations. Second, this paper puts forward the model of individual account fund governance structure and the balanced mechanism of interest, and put forward the establishment of effective individual account fund management and supervision mechanism and the specific policy recommendations of investment options. At present, it has theoretical significance and practical reference value to improve the basic pension insurance management system in China.