BIZCHINA / Top Biz News |
Public supervision vital for social security fund control(China Daily)Updated: 2006-11-11 09:46 Public supervision is vital for fair management of social security funds, says a signed article in the Oriental Morning Post. An excerpt follows: Xiang Huaicheng, chairman of the National Social Security Fund Council, told CCTV that the social security fund should not chase high profits. With a substantial shortfall in the fund it's time to allocate State assets to replenish the fund now, he said. The national social security fund is based on a different concept to regional social security funds. It's a national strategic reserve, designed to meet the need for social security generated by the aging population. Its safety and stability need to be higher than those of local social security funds, many of which have been plagued by misappropriation. It is a pity that some media are tempted to jumble the two concepts together. And the public has even less knowledge about it a retired accountant is said to have spent eighteen months trying to figure out what had happened to his medical insurance fund. He contacted the medical insurance bureau, learning that it had to follow 20 different documents and papers. Should social security funds be so mysterious? Social security funds guarantee national welfare and social harmony. The money should both support the public and generate interest. It certainly shouldn't be used for risky investments, and cannot merely aim for high profits. It must not be lent out illegally for personal benefit. During Minister of Labour and Social Security Tian Chengping's visit to the United States in September, his US counterpart Elaine Chao introduced an operation rule for the United States' social security funds. Chao stressed prudence in social security fund management. In the US the fund is not allowed to run risks, such as investing in stocks or real estate. The many scandals in regional social security fund management are actually power manipulating money behind the scenes. All the money in the social security fund comes from the public but the public has never had the right to know about the management. If not properly managed, the social security fund will easily be misused and lost. Just a single official's signature can trigger big losses. Therefore the security of the fund is very important and it is necessary to reform the supervision of the social security system. Social security can guarantee a harmonious society, and it is an important responsibility of the government to build a complete social security system. (For more biz stories, please visit Industry Updates) |
|