China's pension empty account size is about 1.3 trillion

Government officials said: "If there is a pension deficit, it will be fallback by the state, the insured do not worry about the damage of rights and interests" Beijing News reported that China's pension "empty account" is estimated to be about 1.3 trillion; 2004 was 740 billion.　　Zheng Bingwen, Director of the World Social Security Research Center at the Chinese Academy of Cass, revealed yesterday at an international symposium on pension Systems in China and Latin America. Experts say learning Latin America is not a success "compared to Latin American countries, China's system is not successful." Zheng Bingwen said that 1.3 trillion of the "empty account" is one of the unsuccessful Chinese learning of the Latin American system.　　The analysis of Latin American Endowment Insurance system reform to the way of subscription coupons, better solve the pension system transformation costs, but China has not been able to solve the problem. A government official who declined to be named said there should be no undue concern about the "empty account", with one of China's differences from Latin America: if there is a pension deficit in China, it will be fallback by the state, while individual account funds are used to pay the current pension, but this is endorsed by the National credit　　The insured does not have to worry about the damage to future interests. "Complete accumulation model is not necessarily the best" 30 years ago, Chile first introduced and established a personal account system for endowment insurance in the world, and capitalized on the fund operation mode, pension investment yield as high as 12%. In reference to Chile's practice, China has pioneered the integration of the pension insurance model.　　But Zheng Bingwen bluntly, China's introduction of personal accounts is unsuccessful, and the function of individual accounts has failed.　　The unnamed official said that, along with China's rapid economic growth is the high rate of social average wages, which makes the pension rate of return than the wage growth rate is almost impossible, in the context of China's rapid economic growth, the full accumulation of the model is not necessarily the best choice. Pension benefits run out of CPI "in 2009, China's pension accumulated balance of 1.25 trillion, five insurance accumulated balance 1.93 trillion, but China's pension account investment yield of less than 2%, in the face of higher than the yield of CPI, formed a huge welfare loss." "In the past 9 years, CPI averaged 2.2%, meaning a billions of loss per year," Zheng Bingwen said of the figures. At the same time, the real purchasing power of pensions has been reduced by an average of 15% per cent growth over the past 10 years in urban society.　　Zheng Bingwen called for the early introduction of pension investment operations to address the issue of the rate of return to run the CPI.　　Chen, director of the Social Security Fund Supervision Division of the Ministry of Human Resources and social welfare, said that China's basic pension investment and operation policy should be further strengthened with the relevant departments to further strengthen the research, select the less risky and relatively stable income investment varieties, and safeguard the rights of the insured. Whether the pension can be invested in the securities market, Zheng, a member of the NPC Standing Committee and a professor of Renmin University, said that it is not appropriate to enter the securities market, if you want to enter it must control the scale, and long-term investment.