(1) Support from relevant national policies.

In 1993, the "Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Establishment of a Socialist Market Economic System" stated that "the pension and medical insurance premiums of urban employees shall be borne jointly by units and individuals, and shall be combined with social pooling and personal accounts."

".

In 1997, the State Council issued the "Decision on Establishing a Unified Basic Pension Insurance System for Enterprise Employees" (Guofa [1997] No. 26), which further clarified the system model of basic pension insurance that combines social pooling and personal accounts.

In accordance with the spirit of the instructions of the Central Committee of the Communist Party of China and the State Council, various localities have successively established a basic pension insurance personal account system based on individual contributions.

In order to prevent the pension risks brought by the peak of aging, the State Council clearly requires in the "Pilot Plan for Improving the Urban Social Security System" (Guofa [2000] No. 42) that "social pooling funds and personal account funds shall be managed separately.

The overall fund cannot occupy personal account funds." (2) Pilot experience of some domestic provinces and cities.

A series of problems brought about by the mixed use of social pooling and personal accounts have attracted great attention from the country and provinces and cities. According to the relevant national spirit and combined with the actual conditions of various places, Guangdong, Liaoning and other provinces and cities have successively implemented pilot projects.

As one of the pilot projects in Guangdong, Guangzhou began to have cash in personal pension accounts in 2005.

This changes the situation in the past where personal accounts have been running empty.

Immediately afterwards, qualified cities in the Pearl River Delta region will also gradually implement reforms to strengthen personal accounts.

In 2000, the State Council organized relevant departments to conduct a large number of investigations and studies, formed the "Pilot Plan for Improving the Urban Social Security System", and decided to conduct a pilot project in Liaoning Province.

The focus of the pilot is to consolidate and consolidate personal pension insurance accounts.

From July 1, 2001, the proportion of basic pension insurance premiums paid by individual enterprise employees in Liaoning Province has been adjusted to 8% of their own wages; individual practitioners and freelancers must pay 18% of their basic pension insurance premiums.

, 8% of which is credited to personal accounts.

Social pooling funds and personal account funds are managed separately, and social pooling funds cannot occupy personal account funds; personal account funds are transferred to the provincial level through the treasury of the People's Bank of China, and are uniformly managed and operated by provincial-level social insurance agencies.

The operating return rate of personal account funds is higher than the bank deposit interest rate for the same period, and is announced to the public annually by provincial social insurance agencies based on fund operations.

Personal account funds implement a provincial-level accounting and hierarchical payment management system.

Liaoning Province has issued a series of relevant policy regulations and management measures around the social security pilot project, including the "Interim Measures for the Management of Personal Account Funds of Basic Pension Insurance for Urban Enterprise Employees in Liaoning Province". Social insurance agencies at all levels and relevant departments have coordinated and cooperated to comprehensively promote the

Save time to do personal account work.

Facts have proven that, with the exception of Liaoning Province, which served as a pilot project and has accumulated more than 7 billion yuan in funds in the past two years, even regions such as Shanghai that had previously accumulated more funds also experienced huge deficits in revenue and expenditure that year.

(3) Some advanced experiences from abroad.

In standard textbooks on social security, the reserve fund system implemented in countries such as Singapore has always been relegated to a separate volume, with predictions that it “will be replaced by social insurance schemes in due course” (International Labor Office, “Introduction to Social Security, 1984”).

But the development of practice broke this prediction. Not only did the reserve fund system of 19 countries including Singapore remain unchanged, but after the 1980s, a more "alternative" Chilean model emerged - simply handing over the reserve fund to the private sector.

Organization management, in the subsequent 1990s, this model became popular in the South American continent.

Regardless of the length of this model, this phenomenon alone has had a strong impact on the traditional social security concept (which our country has always followed).