A decree signed by Premier Li Keqiang at an executive meeting of the State Council on Feb 3 laying out rules for the National Social Security Fund will take effect on May 1.
The National Social Security Fund will be funded by central budget allocation, State-owned capital, fund investment profit and other approved fund-raising means.
The fund will supplement social insurance such as pension insurance at the peak of an aging population.
Department of finance and administrative department of social insurance at the State Council are responsible for the management and operation of the fund. And a board of directors at the National Social Security Fund will take charge of its operation.
Under the principle of a safe, profitable and sustainable investment, the board of directors can rationally allocate assets in categories of fixed income, stocks and private equity approved by the State Council.
The board of directors will do a risk evaluation when formulating plans on asset allocation and deciding on major investment projects.
The board of directors is also required to regularly report on the situation of the operation of the fund to the department of finance and administrative department of social insurance at the State Council, along with a financial accounting report.
If the board of directors is entrusted with the investment of the National Social Security Fund, specialized investing management institutions and entrustment institutions that meet certain legal requirements should be chosen to act as a management body and entrusted body, respectively.
The supervision system for the National Social Security Fund is set up and modified by the central government, which allows no single unit and individuals to occupy, embezzle or illegally invest and operate the Fund.
Department of finance and administrative department of social insurance at the State Council will supervise the revenue and expenses, management, and investing operations of the fund.
An annual audit will be required for the National Social Security Fund, with the results being made public.
The board of directors should publicize its revenue and expenses, management, investing operations through its official website and nationally circulated newspaper.