By He Ping

GUANGZHOU (Fund China) – Pension insurance individual accounts is expected to further expand the scope of investment to fund, financial bonds, and other products. According to China Securities News reported that the “personal accounts pension fund investment Interim Measures,” recently completed consultation, will be submitted to the State Council, if passed, is expected to raise operating capital through pension insurance carriers personal investment accounts capacity. It is learned that the current pension insurance fund major individual accounts invested in bank deposits and treasury bonds.

In addition, the future of personal pensions only ICBC and the post office can receive the situation is expected to be broken, retirees is expected to choose from any residence recently a financial institution to receive pensions.

Investment funds, financial bonds, 100 billion yuan pension investment channels relax.

Reportedly, in order to ensure the good management of public funds security, and achieve preserve and increase their value, the “Procedures” strictly personal pension accounts provided by the Fund’s investment decision-making mechanisms, risk control mechanisms. In addition, the “Procedures” on the pension accounts and individual accounts managed care rates to the minimum requirement in order to avoid vicious competition. Accordingly, the pension insurance individual accounts is expected to further expand the scope of investment to fund, financial bonds and other products to improve old-age insurance personal investment accounts operating capacity.

From 2005, China began co-ordinating the implementation of social and individual accounts of the social integration of old-age insurance system. Experts predict that with the old-age insurance personal accounts do it, my old-age insurance accumulated in individual accounts in each of the new funds will reach 100 billion yuan.

It is learned that China has established a relatively complete pension support system. The first is the basic old-age insurance; The second is supplementary medical insurance; The third is the strategic reserve, there are now 270 billion yuan; The fourth is 8% of the individual accounts. In addition is the commercial insurance, which is young people themselves, money deposited, and the old with a future as a pension.

Pension funds already have market conditions, risk control is the top priority.

Industry analysts believe that, in order to solve China’s population on the state’s basic retirement pension in accordance with the excessive lazy, and gradually achieve their personal accounts and the rapid accumulation of Enterprise Annuity, achieved through the capital market and pension funds to preserve and increase the value has become an inevitable choice. From international experience, the current Western countries, such as Britain and the United States were allowed to enter the stock market, such as pension funds to the capital market capital operation, which will also help improve the lives of ordinary people.

Experts pointed out that the pension fund system changes and innovations is the development of a sound capital market one of the important driving force, and a sound and efficient capital markets and pension funds to achieve the major carriers maintain and increase the value and the principal ways. At present, the Shanghai and Shenzhen market value of the stock market over 20 trillion yuan, has become one of Asia’s largest securities market. More than 1,600 listed companies, has a group of the super-market and blue-chip industry leading blue-chip companies. Pension funds can invest products in addition to bonds, equities, which includes all types of equity funds and short-term bond funds. After years of temper, it has also trained a number of high-quality investment management institutions and management personnel. China’s securities market has accepted custody with the pension fund on the market conditions.

But at the same time, because pension funds related to the lives of ordinary people, for the operation of pension funds should exercise caution. It is learned that the United States had the secondary loan-to-escalation of the crisis which led to the global stock market crash and had aroused people’s worries. Therefore, experts say that the operation of pension funds should be very careful.

Issuance of commercial channels, a number of banks that want to be part.

Apart from the relaxation of investment channels for pension payment to the channel improvement has become an urgent need to address the people of important issues.

This reporter has learned that the next addition to the post office and the Industrial and Commercial Bank and other commercial banks will also join the ranks of pension payment. It is learned that the current CITIC Bank, China Bank of Communications has already begun to staff the task of the system is not yet external liberalization. Labor and Social Security Bureau stakeholders said that while on the expansion of the scope of the problem and some financial institutions and made contacts and consultations, but some financial institutions are implementing market-oriented operation, has no intention to take unpaid pensions for work.

Industry analysts believe that, due to the handling pension business needs a certain costs, many commercial banks are not willing to release the agent for pension business. Even if the government subsidizes the handling cost, but each institution’s customer base, operational concepts vary commitment to the business and also consider the different agencies. While Judging from the current situation, and the fees and pensions and the agency to expand the scope of old-age pensions has become a solution and the key to the work.

Copyright Fund China 2009.

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