Ministry plans to beef up investment (2)

Yin revealed that the ministry is forming an operation plan for the investment of social security funds and will submit it to the higher authorities.

Liu Shangxi, deputy director of the Research Institute for Fiscal Science under the Ministry of Finance, said,"Investments are an important way to maintain and increase the value of the fund, but the government should take a few measures to ensure its security.

"After all, the social security fund is the lifeline of ordinary people.”

Liu pointed out that the investment procedure as well as the operating mechanism has to be established by law, "otherwise it will leave a loophole for embezzlement”.

He said the responsible organization should set up investment plans and report them to the National People's Congress.

"In addition, the entire process should be transparent, with each investment, profit or loss published to the public.”

However, Liu is not so pessimistic about the social security funding gap.

"Social security is not social welfare. It only covers retired people who paid for it when they were working — in other words, it only covers part of the total retired population,” he said.

"On the other hand, labor productivity is increasing, so it would not be so difficult for the labor forces to support the retirees by 2030.”

Wei Tian contributed to this story.

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