In this paper, published in the "insurance", 2012 fifth.

 

 

America pension law guarantee and experience value reference

 

Hu Jiye[1]

 

Abstract

 

Due to the lack of laws and regulations, Chinese knot of five social insurance fund the remainder trillion yuan for the existence of a large number of banks facing devaluation risk, enterprise annuity and the national social security fund is also facing strategic reserves added challenges. The financial markets of developed American during the global financial crisis, because of "Social Security Act", "trust law", "the Employee Retirement Income Security Act", "tax law" and other legal protection, solves the problem of preserving and increasing the value of pension: the first column of the Federal Social Security Fund for nearly 100% investment in special national debt and avoid the financial tsunami, the 2008 yield up to 5.1%; the second pillar of the private pension despite the loss, but due to the diversification strategy and the decline is far lower than the stock market. China should learn from USA fund legal governance structure added, "social insurance law" in the implementation of the occasion, to speed up the "social insurance fund supervision and management regulations", "the National Social Security Fund Ordinance", "personal accounts of endowment insurance fund investment management approach" and other laws and regulations, rules and regulations of the legislation, to ensure that our country increasing the value of the pension.

 

Keywords: financial crisis, increase the value of pensions legislation

America subprime crisis began in 2007 and thereafter gradually evolved into the global financial crisis. After the crisis and the crisis Chinese, most economists are highly concerned, have written articles on the influence of the crisis generated China. Unfortunately, there are few jurists can take his rational, hold the point of view to explain the financial crisis.[2]The analysis and discussion of the financial crisis, the legal person should not apparently absent.[3]This article attempts from the legal angle increment of pension, to discover the financial crisis in the hurricane "eye" in the USA law is how to avoid the risk of the pension, thought Chinese reference.

 

One, the social security fund is facing challenge: to preserve and increase the value of a missing sample China law

By the end of 2011, China's five social insurance fund total income 2.37 yuan, than going up year of growth 26%; total expenditure of 1.79 yuan, up 21.1%, five social insurance fund balances accumulated a total of 2.87 yuan, of which the accumulated balance of 1.92 yuan of endowment insurance,[4]Coupled with the enterprise annuity and the national social security fund, "social security" concept of pension assets amounted to more than $3. What are the laws to preserve and increase the value of huge fund this multibillion dollar? This is a problem for the government, law and economics.

At present, scholars mostly increment of hedge fund is analyzed from the angle of economics, focused on the responsibility of the government, the investment direction, investment tool. Yang Yansui (2007) think: the first duty of a government is to implement GDP to a portion of the social security transfers and payments, pension plans, because the property rights of free time is very long, the government needs to provide security management and operation mechanism, in order to protect the interests of the beneficiary.[5]Zhu Fuling (2007) suggested by setting up social security policy banks, responsibility subject of the social security fund management to maintain and increase the value.[6]According to the planning part of the balance fund, Zheng Bingwen (2004) think we should leave, leave the capital market infrastructure and property, leaving the other industrial areas such as investment, but unified by the central government to issue oriented special social security bond.[7]According to the personal account pension, Zheng Gongcheng (2002) think the old-age insurance fund investment operation is achieved through value is an inevitable trend in the world, to explore the old-age insurance fund (especially a personal account real account after the operation of fund and the capital market) is the combination of ways and means have urgency.[8]Hu Jiye (2007) through the empirical analysis that: provide the basic tools in the capital market to increase the value of personal account of pension insurance and annuity, although the stock market risk Chinese larger pension, but to some extent in the stock market, can not only enjoy the dividends of economic growth, but also can get portfolio risk diversification results.[9]

The study puts forward the social security fund to preserve and increase the value of the problem, but also provides a solution to the partial, but in the "rule of law" today, the legislation and the law to ensure the value of social security fund? "Labor law" stipulates that the seventy-fourth agencies in charge of social insurance funds in accordance with the stipulations in laws, management and operation of social insurance fund, and assume the responsibility of social insurance funds to preserve and increase the value of. But in fact, because of the social security law existed in the field of national vacancy problem, lawmakers have not provided effective criminal legislation to guarantee the collection of social insurance premiums, the social insurance agencies lack of social insurance fund task subject qualification.[10]Jurist Wang Liming had called for a separate "social insurance fund supervision law" as soon as possible, and form a complete fund supervision system and the social insurance law and other laws and regulations of social security, can effectively guarantee the value of pension funds, put an end to the illegal misappropriation of social security funds and other adverse events, and ensure that the masses of "the life of money," and "life-saving money" security.[11]In order to solve the problem of the legal level is relatively low, Feng Guo (2007) proposed: lawmakers need to consider developing a high legal level administrative regulations or laws as soon as possible, nature of the social security fund, sources of fund, investment operation, regulators power boundary, dispute settlement mechanism especially legal responsibilities clearly defined, the social security fund supervision and the value can realize the benign.[12]

One can learn from the examples of value fund is China financial industry. By the end of 2011, the commercial bank system 111.5 trillion of assets with "law of the people's Bank", "commercial bank law", "the banking supervision law" three laws of regulation and supervision,[13]The total assets of the securities industry 109 securities company for 1.57 yuan, has the "Securities Law", "securities investment fund law" escort,[14]Assets of the insurance industry $5.75 a "insurance law" to regulate,[15]Of course there are thousands of financial regulations, rules and regulatory documents together with the law for the financial industry "escort". The social security fund of the total system has more than 3 yuan, such a huge capital regulation laws which are? Great contrast between supervision laws and weak supervision system, deletion, questioning our country's social security fund supervision legal system: who will ensure the value? How to ensure the value?

There are a lot of people since 2007 has begun to enter the legislative process of the "social insurance law" expectations, hope to be able to solve the problem of preserving and increasing the value of social security fund. Unfortunately, the law on sixty-ninth July 1, 2011 to begin the implementation of the provisions: "is a general social insurance fund on the premise of ensuring safety, in accordance with the relevant provisions of the State Council to increase the value of the investment operation". Lacking the specific "the relevant provisions of the State Council still pay". Found in 18 provinces in the country under the auspices of the social security fund supervision legislation research: the purchase of treasury bonds is the greatest desire of local social security agencies, but due to large amount of social security funds, because each is limited and can not meet the. The Treasury Department has issued in 2002 for the National Council for social security fund and the social security reform pilot in Liaoning Province special national debt, unfortunately there is no formation of the institutional mechanism of social security fund to issue bonds. The huge investment demand and the narrow investment channels to form a great contrast, hand without legal protection, and the lack of financial sector on the other hand (the issuer) and the social security department (purchase debt agency) coordination mechanism. At present, causing huge social insurance balances eaten up by inflation.

As can be seen, due to the lack of laws and regulations and the system is not perfect, the social security fund in our country huge faced with the value of the challenge. The global capital market is one of the most developed, has just experienced the financial crisis in the social security fund America, value is how to do? These laws played what role? What experience can use for reference in China?

 

Law two, America pension increment in the role of

Look from the amount, America social security fund is mainly divided into not to invest in the stock market the federal social security fund can invest in the stock market and private pension, the local civil service pension, the investment ways and to ensure the maintenance and appreciation of different laws.

(a) the Federal Social Security Fund and the "Social Security Act"

Which build on 1935 President Roosevelt signed the "Social Security Act" national mandatory insurance is America the most extensive coverage of the first pillar of social security system, this access the world of "social security" refers to the act of. By the end of 2010, the system's coverage has reached 156000000 people, including from the government official to the barber of more than 95% kinds of employment. Based upon the "Social Security Act" of the "federal old age, survivors and disability insurance trust fund" (Federal Old-Age and Survivors Insurance and Disability Insurance Trust Funds, referred to as the Federal Social Security Fund OASDI) was raised by the imposition of the tax, paid by employers and employees by 6.2% of wages, a total of 12.4%. OASDI consists of USA social security administration unified management of highly centralized, with more than 1400 branches set up throughout the country, all the staff of 75000 people, engage in specific social security tax records, benefit eligibility, consulting, pensions and other work. According to the seventy-first annual report of the OASDI Council in 2011, by the end of 2010, USA about 54000000 retired, disabled employees and beneficiaries to a pension, accounts for the population aged over 65 years more than 90%. The collection of the tax revenue of $663600000000, and the expenditure of $712500000000, has for many years been close not to branch, if not the balance of funds the interest income of $117500000000, there will be a deficit. By the end of 2010, the total assets of the federal social security fund balance of $2609000000000.[16]The fund to implement the national plan of the PAYG system.

In the face of the huge federal social security fund balances, Americans have been advertised, advocating free market, but in the investment of public funds issue but very cautious, conservative anomaly. "Social Security Act" the second chapter "the federal old age, survivors and disability insurance trust fund (OASDI) 201st (c)" stipulates: Director of group OASDI Council by the social security director, finance minister, Minister of labor, health and welfare minister, two bits to represent the interests of the public, the Minister of Finance Executive Director (director long). Two public members must be from different parties, the Senate passed appointed by the president. Due to delays in respect for both parties cannot reach an agreement, 2010 the two vacancies, until 2011 was appointed. The council system, because the Treasury Secretary at the same time as the chairman of the OASDI, the Ministry of Finance on the value of social security funds in the "first responsibility" status can not shirk.

The provisions of OASDI investment mainly in the "Social Security Act" 201st (d), OASDI investment can only be "American government shall be secured to the principal and interest, the fruits of securities",[17]In fact is specifically for the social security fund issued special treasury bonds. Under the bill, now all of OASDI's assets are annualized interest rates from the 4%-6.5% over the special national debt and debt securities, even the interest of OASDI funds have been deposited. So severely restricted plus the collection rate of nearly 100%, in the recent 20 years, the OASDI balances increased from $42000000000 in 1985 to $2.6 trillion in 2010, an increase of 60 times. In 2007 America subprime crisis began in 2008 began sweeping the world, known as "caused a huge financial crisis of the financial tsunami," bring on the global financial market challenges hitherto unknown. The private pension as an important investor in the capital market, the vast majority of suffered huge losses in the financial crisis. However, The seas are in turmoil. show the true colour of a hero, although the Federal Social Security Fund in the storm of the financial crisis the "eye" - USA financial markets, but because of "Social Security Act" (d 201) strict restrictions and protection provisions, make OASDI almost 100% investment in the special national debt, on the one hand to ensure the safety of the social security fund assets -- the state credit guarantee, on the other hand, to ensure that the benefits of the social security fund assets, particularly in the most serious financial crisis in 2008, the total OASDI yield as high as 5.1%, and the fluctuation of the financial market has almost nothing to do.[18]Enormous assets trillions of dollars of high income so robust, unique in the world. At the same time, because the payroll tax instant 100% investment special treasury bonds, treasury bonds for the payment of pension before treatment, after the actuarial such a cycle model of investment to meet the social security fund liquidity requirements, America federal social security fund is the safety, profitability, liquidity model, truly value.

Of course, to ensure that the federal fund's "Social Security Act" 201 (d) terms are not all people agree. In the era of President George W. Bush in 2002, America domestic about the federal social security fund can privatization had abnormal incentives debate,[19]The focus of the debate is whether it can be part of the Federal Social Security Fund to invest in the stock market, reform minded Republicans a hope to enter the stock market through the practice of law of the social security fund to avoid security, investment yield is not high question through equity investment. Sticking to the principle of the Democratic faction that read: whether long or short term, if the federal social security fund part of income transfer to personal accounts, stock investment, America social security system's ability to pay will be seriously weakened on the whole.[20]As a law country, the Federal Social Security Fund has since set up never entered the market to buy shares, once the stock investment, we must first amendment "Social Security Act" 201st (d) and related terms, and repair of the draft law did not even enter the congressional debate program. Therefore, has not been modified in the financial crisis the federal law to ensure the maintenance and appreciation of social security funds, legal effect here how to not be overemphasized.

(two) investment in the stock market, increasing the value of the pension

According to Nick (Nick, 1998) calculations, in the 1926-1996 70 years American capital market, despite the heavy fall in 1929, the great depression brought about stock index of 90% 1973-74 years of oil crisis caused by the stock index fell more than 50%, the stock market's average annual compounded rate of return reached 10.7%, and long-term bond USA the government's annual compound rate of return of 5.1%,[21]Less than half the stock market returns. Therefore, in the long history, the stock is the best varieties of investment all investment tools, can share the achievements of economic and social development, not because of the financial crisis gave up investment in the capital market.

America private pension at present is the most important institutional investors in the capital market. The main feature is sponsored by an employer, individual voluntary participation, the government to give preferential tax, its history can be traced back to the 1875 USA express company (American Express Company) of the first private employer pension plans, history and even than in the federal social security fund more long.[22]Private pension is divided intoDefined benefit (Defined Benefits, DB) and defined contribution (Defined Contribution, DC) two categories, mainly through investment in the capital market to achieve increasing the value of the pension, but also become one of the most important institutional investors in capital market.

Characteristics of DB plan refers to the payment was not determined, no matter how many employees retirement pay, when treatment is determined, according to the general retirement entire career salary level, especially in the last few years, and qualifications, seniority, level and the contribution of factors to determine. Characteristics of DC plan is individual payment completely included in the individual account, the level of pension payments depends almost entirely on the payment and investment income. America private pension development in the history of the development of more than 100 years and its capital market synchronization. In 1985, the DB assets of $814000000000, is about 20 times of the OASDI; DC assets of $417000000000, is about 10 times of OASDI.[23]After 20 years of operation, to 2008, OASDI, DB, DC three are basically located in an order of magnitude. However, because OASDI almost 100% investment in bonds, at the same time, the number of insurance because of the number of migrants and new recruits increased with the increasing amount of steady increase, balance. Before the 1983 payroll tax rate adjustment, OASDI is a typical PAYG, almost no balances. The starting point of the highest DB pension in 1985, amounted to $814000000000, but 23 years with an average annual growth rate of only 3.89%. Between DC pension increase between OASDI and DB in 1985, the starting point of the assets of $417000000000, 23 years with an average annual growth rate of 8.19%, is 2 times the DB growth above.[24]Due to the rapid growth of DC pension assets, from the beginning of 1997, DC began to surpass DB assets assets. In 2007, DB and DC America private pensions and reached its historical peak 6.2 trillion dollars, but in the financial crisis of 2008 two because of a large number of investing in the stock market has shrunk more than 27%, is the single biggest annual loss in the past twenty years suffered.

DC pension growth rate is greater than DB, the main reason is the DC has much to be DB no superiority. For employees, DC is simple and easy to understand, stick out a mile, payment and future treatment associated very closely, the calculation is convenient employee, salary is not promised to change with the investment returns, but the yield is higher than DB, and employees "job hopping" very good portability, pay more, clear property rights, can inherit, high transparency, can query, economic difficulties can even apply for a loan. For employers, DC without actuarial, payment level is low, do not need to make an extra payment commitment to employees, relatively small burden, save alone bear the investment value of trouble; for the government, DB private pension management directly by a special government "insurance company" pension benefits to guarantee DC regulation, and relatively easy and simple, mainly for compliance supervision, the responsibility of the government is relatively smaller.

DB, DC type of private pension become the largest institutional investors American capital market, has become the cornerstone American stability in the capital market to a certain extent. Among them, the California public employees retirement fund American (California Public Employees' Retirement System, CalPERS) is similar to DB type private pension, is currently the largest civil service pension fund, the world's third largest pension fund, the fund according to the law of California was founded in 1932, before the America federal social security fund, to accumulate and provide pensions for state governments at all levels civil servants, is considered to be a typical pension investment in the stock market. As a civil servant occupation (state, city, county, government employees and teachers of school non employees) to join the characteristics of pension plans, respectively, payment by employer and employee, the trust fund in the form of operation. By the end of 2011, the number of participants is more than 1600000, with $234300000000 in assets, including the international, domestic stock ratio as high as 66% or more.[25]Due to the pension investment stock, its asset volatility and volatility in capital markets are basically the same: in 2002 due to the bursting of the Internet bubble and the "911" double blow the assets shrink, in 2008 due to the impact of the global financial crisis is to shrink by more than 20%. However, even after heavy losses in 2008 Standard & Poor's 500 index fell 38.5%,CalPERSOnly when the shrink 5.02%, in the past 20 years the average profit rate is still as high as 7.75%.[26]

(three) the law to ensure that investment in the stock market and add the value of fund?

From OASDI, DB, DC three balances assets value found in the problem of different changes in past 20 years can be. The first pillar of the Federal Social Security Fund OASDI as the government's important responsibility of social security, the covering almost all adult citizens, through the "restricted the Social Security Act", the current value is the primary goal, the federal social security fund safety, liquidity, profitability sequence. In addition, "labor law", "Securities Law", "investment company law", "investment adviser" also respectively from different aspects of private pension investment supervision, to ensure the healthy development of private pension funds to preserve and increase the value.

Risk based on the existence of stock investment, stock of pension fund investment has experienced a long process of legislation and practice. Pension investment is a typical trustBehavior, in common law system, trust "prudent man rule" is derived from the trustee's duty of care (duty of care) and the fiduciary duty (duty of loyalty), the former requires trustee trust affairs must take reasonable care and attention, which should be like a prudent businessman dealing with their own affairs to deal with the same transaction; the latter requires trustee shall faithfully for the interests of the beneficiary of the trust transaction, shall not conflict with the interests of the beneficiaries themselves into position. The initial investment is considered too high risk and is not suitable for Prudential trustee, trustee General can only invest in the "legal list" (legal list) of bonds. In 1830 USA Massachusetts Harvard College vs. Armory case, the judge pointed out: the trustee should be prudent, careful and strategy to perform their duties, pay attention to long-term position they trust fund and the investment capital is the pursuit of profit and investment security, rather than to consider how to speculation, resulting in the formation of "prudent course one rule" as a classic case, known as the "Harvard College rule".[27]Since then, effect of Harvard College rule in American gradually, and USA private pensions in at the beginning of using Harvard College rules, can invest in stocks.

In 1952 America economist Machowicz published "portfolio selection" one article, opened the first modern portfolio management theory. Machowicz carried on the quantification to the risks and benefits, to determine the optimal portfolio model,[28]He also won the 1990 annual Nobel prize. Although it is a typical financial economic theory, portfolio theory has far-reaching influence subsequent legislation and practice, the "Harvard College rule" the emergence of the new standard, prudent investor rule new rooted in "restatement of trusts (third)" (Restatement (Third) of Trusts) and "uniform prudent investor method" (Uniform Prudent Investor Act, UPIA), these two laws legislation and amendments adopted modern portfolio theory of Machowicz, that the trustee has the obligation to portfolio diversification (Diversification), so as to achieve the investment objectives of maximum benefit under the premise of risk aversion. Research results of economics as theoretical basis of legislation and practice, between law and economics divide in gradually be filled.

American Congress in 1974 passed the "Employee Retirement Income Security Act" also followed the Machowicz theory of portfolio diversification"Prudent man" rule. The 401st article of the law:"...... The trustee according to the participants and the interests of the beneficiary to fulfill its responsibilities...... (b), must take the necessary attention, skill, prudence and diligence, refers to the circumstances at the time, one with the same capacity and same familiar with cautious person related things, will use in the business the same properties and also to cause attention, skill, prudence and diligence (; c) through pension plan investment diversification, risk minimization, in order to realize the main loss in addition, can be convinced that the other way of action is cautious in other cases......". That is to say, considering the high risk characteristic of the capital market, legal requirements, investment management person must be to avoid risk through diversification and different investment portfolios, with long-term value as the goal, embodies the combination of private pension benefits, safety.

In 1978 USA "tax law" established a qualified retirement plan tax deferred payment terms, the famous 401 (k) of the employer for the pension plan for employees, the pension tax expenses certain contribution, the personal income tax to pay off for decades has the very strong attraction to the employees, the DC pension tax deferred incentives also play an important role in. According to the terms America second pillars of the private pension has obtained the unprecedented development, "2001 economic growth and Tax Relief Reconciliation Act" increased personal account payment amount, allowing the age above 50 years old employee additional payment, to allow the establishment of tax Ross 401 (k) and the establishment of tax deferred 403 (B) plan, the employee pension investment more. Many America big company employees will be a large amount of funds into the stock in their pension funds, such as Coca-Cola, general electric, McDonald's and other companies, more than 3/4 of the employee pension funds were used to purchase the shares of the company, and Procter & Gamble and even as high as 95%. In view of this too concentrated investment shares of the company, from the investment portfolio theory, "tax law" also proposed the portfolio diversification requirements, in order to prevent the provisions of employees to participate in the employee stock ownership plan when the company went bankrupt and the loss of pensions and allowances. "Tax law" 401st (a) (28) the provisions of section, when an employee stock ownership plan participants reached 55 years old and have participated in the program for 10 years, it must give the disperse investment risk choice, must have its individual account of the employer's stock 25-50% diversification to other employer stock portfolio outside in the. "Don't take risks the egg in a basket" decentralized thought had penetrated into the legal system America, and become a basic principle of legislation and the law.

Therefore, to ensure that the value of private pensions, American "trust law", the "unification", "Prudent Investor Act the Employee Retirement Income Security Act", "tax law" constitute a relatively perfect legal system. One is through tax incentives encourage employees to invest in private pension; on the other hand is the requirement of investment management person to perform the prudent management responsibilities, through diversified investment portfolio approach, minimize the risk of established conditions to maximize the return on investment, the investment rate of return given circumstances. The theory of financial economics because of the protection of the legal system, as the financial crisis tsunami "eye" USA avoid risk of market fell sharply during the financial crisis of private pension to a certain extent, whether it is from the DB, DC pension data or the California Civil Servants Pension data can be seen in the diversified investment portfolio the advantage of.

According to the latest "America 2010 Wall Street reform and Consumer Protection Act", regulators will set strict new rules, to ensure that the investment advisory, financial brokers and Rating firm's transparency and reliability; emphasize the Wall Street brokers fiduciary duty (fiduciary duty), customer interests above the interests of brokers. Financial regulatory reform bill the new law known as the "Great Depression" since the reform, the largest since the most far-reaching, reflects the America opposition from the government to the Congress, from the legal community to academia overall reflection on 2007 to the 2009 financial crisis, in which pension investor protection can see it with the tradition of common law trust "prudent man rule" come down in one continuous line. According to Laporte et al. (La Porta et al, 19982008) legal origin hypothesis, originated in the tradition of common law emphasizes "fiduciary duty", degree of investor protection to be significantly higher than those in continental law legal origin (especially the French Civil Law) the traditional state. Because the legal origin of different shapes in different legal system, political system and rules, and further to create different financial system, and ultimately resulted in the different economic performance, the common law countries, civil law countries than capital market, especially the national law is originated from the law to the more developed.[29]In fact, the major international financial centers such as London, New York, the Hongkong, Singapore, are common law countries or regions. Future pension investment in the stock market as the most important capital market institutional investors will be more strict protection, preserve and increase the value of pension gain legal protection to the real.

 

Three, summary and reference: through legislation and law to protect Chinese pension value

From the above data and legal provisions can be seen: America federal social security fund the first pillar and second pillar pension value is through legislation, practice and to ensure the. According to the "law" the basic strategy, reference USA according to different fund legislation and practice, should be the value of China's social security fund value mentioned in legislation and practice schedule.

(a) five social insurance fund balance value

Endowment insurance, according to "the people's Bank is still effective Chinese a preferential interest rate for demand deposits of endowment insurance fund notice" (Yinfa No. [1997] 567), pension insurance fund into the commercial bank demand deposits in three months time deposit interest rate; precipitation funds deposited into the social insurance of financial accounts, according to the three annual installment savings deposit interest rates, not lower than the grade level of interest rates. According to the "basic old-age insurance system for enterprise employees of the State Council on the establishment of a unified decision" (State Council document No. [1997] 26) Rules: the balance of social insurance funds in addition to reserve equivalent to 2 months of payment fees, should be to buy government bonds and deposit accounts, strictly prohibited into other financial and operational business. These regulations and normative documents, is currently China's social security fund legal basis value.

According to the law and economics research center of China University of Political Science and Law in Beijing, Shanghai, the Hunan, Liaoning and other 18 provinces the social security fund supervision legislation research situation, the increment of five social insurance fund balances is not optimistic. Pension insurance at the provincial level in China although nominally has been achieved at the end of 2009, but in fact a lot of pooling funds in city and county level of operation. Most of the provinces are complaining about no place to buy treasury bonds, financial accounts of the fund balance exists only, while the financial accounts are generally in the local state-owned commercial bank, the commercial banks based on their own interests will certainly hope for survival, there have all kinds of connections with the relationship between the coupled with the County, municipal government and commercial banks, the preferential interest rate stipulated by the people's Bank of deposit is very difficult to implement, but the relevant departments on deposit also no law hard. In recent years China's high CPI, and pension account annual yield less than 2%, which means an average annual pension loss 200-300 billion yuan.

Learn from the experience of America "Social Security Act" on the federal social security fund investment, in order to make the five social insurance fund the first pillar of our truly value, need the basic law of human resources and social security department as a department in charge of the responsibility, at the same time to clear the Treasury in full directional issuance of "social insurance special treasury" responsibility, solve the local social insurance agencies cannot purchase debt problem. Unfortunately, "social insurance law" although officially implemented in July 1, 2011, but to ensure that the social security fund is a principled terms, and no clear financial department, security department responsibilities. At present, five social insurance fund balances the most local financial accounts, in 2010 the State Council passed the "on the implementation of social insurance fund budget opinion", will start the five social insurance funds into the budget range, if the Ministry of Finance for the fiscal accounts the issue of social insurance special national debt should not exist problems of any technology the. Can learn from America "Social Security Act" 201 (d) in terms of the essence, the restrictive clauses prohibited strictly, five investment in basic social insurance fund balance in addition to government bonds and bank deposits of any investment tool, on the spot value as the first priority. In the interest rate options can adopt floating rate, can determine the social insurance special treasury rates according to the CPI data, such as CPI+0.5%, to ensure that social insurance fund rate of return higher than the rate of inflation.

With the future of old-age insurance at national level, five social insurance fund surplus value is the bounden duty of governments at all levels, is a people's livelihood as a responsible government should bear.

(two) the individual account pension and enterprise annuity value

From the view of nature, and part of the money and the other four are similar in nature to the social insurance fund, PAYGO, hedging shall be as the primary goal; the accumulation of personal accounts pension and enterprise annuity span decades, should be to fight inflation value as the priority target. The two different types of funds must be separately managed to prevent misappropriation and diversion, and one of the 2006 Shanghai social security case problem is confused the two funds. Based on the nature of the analysis, the existing second pillar pension and the first pillar accumulation of personal accounts pension for the nature of close, can be given by competitive fund management company, focused on solving the problem of fund investment operation efficiency.

To ensure that the accumulation of personal accounts pension and enterprise annuity value, should establish long-term pension characteristics of the portfolio, investment tools, investment structure of term structure, so as to achieve profitability, safety and liquidity target. At the same time, the accumulation of personal accounts pension and enterprise annuity managed by the independent financial institutions, can reduce local government intervention, to prevent funds misappropriation, ensure the safety of funds. Due to the dispersion of the portfolio and the market competition, the competition of business management of pension investment return rates are higher than the government management of public funds, such as China developing countries, to deal with the fund accumulated inflation risk in the process, must have high guaranteed rate of return on investment, and the management and operation of commercial competition the market competition strength, to ensure greater efficiency. National Council for social security fund has accumulated a lot of experience in this regard, through open selection of fund management company managing assets, its rate of return higher than the money, the capital market average rate of return. The national social security fund investment in the stock in 2003 June, the total investment income 132600000000 yuan, total investment 46%; annual investment return rate of 18.61%, than all the fund accumulative total average rate of return of 8.41% more than 10 percentage points higher.[30]The experience of individual account pension and enterprise annuity reference in the future investment operations, through investment in the stock as the representative of the capital market, to avoid inflation phagocytosis of principal and interest.

Of course, the idea must be implemented through legislation to. America second pillar pension whether DB or DC were invested in the capital market, the "tax law" provides tax incentives for employees, increased pension entrance; through diversified portfolio to ensure that the value of its assets, protect the ordinary working-class retirement living. In China, investment in the stock market is mainly the pension individual account pension and enterprise annuity, pension fund and co-ordinate the PAYG, characterized with "the future return", due to the need for dozens of years of accumulation, individual account pension can be as enterprise annuity, occupational pension, through investment in the capital market to preserve and increase the value, the core is how to manage the operation.

Individual account pension must enter the capital market has formed a consensus, but the investment subject of operation have been unable to identify. Human resources and Social Security Council, the national social security fund, the local social security agencies Each one has his good points.: National Security Council has over 10 years of investment experience, an average of more than 9% rate of return performance, and has been operating agent 9 provinces by the central finance supplementary pension in personal accounts; the Department have national organization system and the agency system, organization and human resources There is nothing comparable to this; the local social security fund agencies are familiar with local conditions, can achieve more local service, and multiple operators can achieve a certain degree of competition, in order to promote the development of the whole industry. But these three aspects have their own drawbacks: the National Council for social security fund has undertaken the National Pension Reserve task, recently received only not supporting, not to take the personal account pension management tasks; the Department as part of the government to invest directly in the law law, regulations on barrier; local social security fund management Department investment experience, talent is scarce, there is a risk of local leaders influence investment decisions.

Based on this, our country can the relevant departments by the Ministry of human resources and social security, the Council, the national social security fund investment companies have the experience of financial investment, joint venture Chinese "national individual account pension trust and investment center," the individual account annuities entrust the investment center. The advantage of this is to give full play to the enthusiasm of local government intervention, avoid the pension fund investment, and formed the Council and the national social security fund competition and cooperation of moderate. From the "Interim Measures" of the national social security fund investment management, throughThe "measures" trust and investment management of the national pension individual account legislation to regulate the behavior of investment. Needs to be pointed out is, the fund management in accordance with the traditional method of early, strict restrictions on the number of rules, will gradually introduce Anglo American pension management "prudent man rule", investment restrictions should be compared to the national social security fund is more relaxed, can include overseas investment, financial derivatives, commercial real estate, long-term to hedge against potential. In the choice of investment managers, can learn from the successful experience of the national social security fund, the selection of qualified investment managers in the world through bidding, through China increasingly large individual account pension investments around the world, to meet the world's largest "silver hair tide", guarantee every Chinese future.

(three) the National Social Security Fund

Compared with other countries in the world, China due to its "one child" policy and the aging problem is more outstanding. Study on prediction of the National Working Commission on aging shows that: by 2020, Chinese elderly population will reach 248000000, the level of aging will reach 17.17%, of which, 80 years of age and older population will reach 30670000 people, accounted for 12.37% of the elderly population. By 2050, elderly population will exceed 400000000, aging level to more than 30%, of which 80 years of age and older population will reach 94480000, accounting for 21.78% of the elderly population. In 2050, Chinese basically realize modernization at the same time, huge pressure can carry 4 million elderly people a variety of needs, is a serious issue.[31]Save, the national social security fund is carried out for the future aging of the national strategic reserve fund, it is formed to raise funds, funds from state-owned shares by the central financial shares and reduce the transfer of assets, the other way and the income of investment funds. The national social security fund as the central government control of the fund, is an important strategic reserve is stable, long-term national financial condition, to ensure the sustainability of social security system, to meet the challenge of aging, so as to ensure the important material guarantee of the reform measures carried out smoothly.

From now on, the national social security fund is the value of all types of the social security fund value-added do best, since its establishment in 2000 the average annual return of 8.41%, excellent performance. Unfortunately, the national social security fund investment management legislation only departmental regulations level, level is very low, inconsistent with the national social security fund large scale of assets, future bear the national strategic reserve fund status, therefore should consider to improve the legislative level, the two national social security fund regulations existing modify, enrich, in the "social insurance law" based on higher order shall be formulated by the State Council's "investment of the National Social Security Fund Management Ordinance", to ensure that the national social security fund in the legal level.