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China to Enhance Management of Social Security Fund
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China will further enhance the management and investment operation of its social security fund by means of adopting international standards and experience, Liu Yongfu, vice-minister of labor and social security, said Monday at a three-day seminar on social security fund supervision in Shanghai.

As an important component part of the social security system, the fund is facing a series of problems and potential risks as it lacks efficient supervision and a management mechanism, said the official.

Last year, authorities uncovered quite a number of cases in which the social security fund had been embezzled or seized illegally, and recovered more than 16 billion yuan (about 1.93 billion U.S. dollars).

Statistics show that the income and expenses of the national social security fund reached over 730 billion yuan (88 billion U.S.dollars) with a surplus of 300 billion yuan (36 billion U.S. dollars) in 2002.

In order to realize effective management of the fund, Liu said, authorities will focus on setting up separate accounts, standardizing operation and avoiding cheating.

(Xinhua News Agency January 21, 2003)

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