Social insurance fund refers to the funds used to protect the basic needs of workers when they lose their ability to work or opportunities by collecting social insurance premiums from workers and their units or directly allocating them by the state finance. Social insurance fund is the core issue of social insurance. Implementing two lines of revenue and expenditure, increasing financial intervention, taking the road of marketization and socialization, and standardizing through legislation are important ways to solve the problems existing in the current social security fund management.

Social security fund management

There are still many problems in the management of social security funds in China. On the whole, the following four problems are more prominent.

1. Social security fund management institutions are scattered and there are too many management levels, which leads to the lack of concentration of funds. All levels and departments participate in the overall management of social security funds, which makes it difficult for regions and departments to coordinate and concentrate their operations, unable to exert the scale effect, and at the same time expands the investment risk of social security funds. In addition, each department has a separate management organization, which leads to institutional reset, overstaffed personnel, low efficiency and serious waste;

2. The fund has a single investment channel, so it is difficult to maintain and increase its value. China's social security fund management focuses on ensuring its security, with a single investment model. In addition to ensuring normal expenses, the balance is limited to deposit in professional banks or purchase of government bonds. In recent years, due to the continuous downward adjustment of bank deposit interest rate, the rate of return on funds has been declining, and the interest rate of national debt has also been greatly reduced by the bank deposit interest rate. The investment benefit of social security fund is getting worse and worse. In addition, inflation makes the preservation of capital a problem, let alone appreciation.