The Research On Pension Fund Financing And Investment Of Old Industrial Bases

From the foundation of pension fund,social conflict and individual burden has been eased remarkably.While the contradiction of overall planning in districts and generations is more violent,which causes a heated discussion on the sustainable development of pension fund in academia.Moreover,it is being considered as a policy that transfer a proportion of state-owned capital to social insurance funds,arising highly public concern on pension fund.Scholars generally tend to analyze that as a whole in theory,thus conclusions mainly reflect macro situation.Doing research in Huangshi is not only conductive to have a better understanding of pension fund and state-owned capital transfer issue,but offer advice for old industrial bases to solve pension fund burden.As a typical old industrial base,pension fund in Huangshi has been in debt for years.The deficit tends to expand which means unsustainable risk may be out of control in the near future.Figures display that the expenditure growth of pension fund is higher than revenue,causing more burden for government.Combined with life table method,we predict retirees and other indexes in the next twenty years,concluding that if keep pension increase constant as 5%,the gap of fund will be 764.48 billion in 2037.Also,there are five main reasons why pension fund is unsustainable that is population,economics,public finance,history and policy,including population structural change,heavily growth of aging,historical burden,implementing the policy of retirement in advance and so on.In the pension fund financing,we analyze the state-owned capital as a new method.Set the transfer proportion as ten percent in all cases.Realizing all transferred equity without the consideration of lock-up period,can make up around 0.42 year gap of pension fund.Then we take the lock-up period into consideration and analyze three situations respectively.We find that under the average increase,cash dividends from transferred equity will make up 1.69 year gap of fund in the three years and the revenue will expand in the long run.Currently,state-owned enterprises generally face various business problems such as more retirees,overspending budget of pension,higher rate of bad account,weak financing capacity and so on.Therefore,if government want to realize state-owned capital transfer plan,state-owned assets should be invigorated first of all.Then,lacking relative laws,intangible assets loss,decision-making dilemma,function vacancy all seriously hinder the process of equity transfer.In short,It is vital to perfect relative laws and regulations.Although,the pension fund investment is increasing,the management of the current pension fund still requires improvement in terms of higher "empty account".According to the stress testing and scenario analysis,extreme loss of pension fund in 2011 may reach to 2896.11 billion,which is 39.71 times as large as that under the general stress test.On the one hand,more provisions for risks should be prepared,on the other hand,enhancing rate of return is central to the sustained development of the pension fund.Even though government permits pension to be invested in stocks and expands the scope of investment,current formal transaction amount is still little for absence of blue chips and high risk in our securities market.Pension fund can choose blue chips and small caps to earn dividends along with the improvement of relative laws and investment environment.In conclusion,in order to solve unsustainable risk of pension fund in Huangshi,government can try to expand the scope of retirement insurance,broaden methods to financing,strengthen management of pension fund investment,support other other forms of pension and so on.