Regulations on the National Social Security Fund

Chapter 1 General Principles

 

　　Article 1In order to standardize the management and operation of the national social security fund, strengthen supervision over the national social security fund, and achieve value preservation and appreciation under the premise of ensuring safety, this regulation is formulated in accordance with the "Social Insurance Law of the People's Republic of China."

 

　　Article 2The state establishes a national social security fund.

The national social security fund is composed of funds allocated from the central financial budget, transfer of state-owned capital, investment income of the fund, and other funds raised in ways approved by the State Council.

 

　　Article 3The national social security fund is a national social security reserve fund, used to supplement and adjust social security expenditures such as pension insurance during the peak period of population aging.

 

　　Article 4The state determines and adjusts the scale of the national social security fund based on the trend of population aging and the economic and social development situation.

The plan for the raising and use of the national social security fund is determined by the State Council.

 

　　Article 5The financial department of the State Council and the social insurance administrative department of the State Council are responsible for drafting the management and operation methods of the national social security fund, which shall be implemented after approval by the State Council.

The National Social Security Fund Council is responsible for the management and operation of the national social security fund.

 

Chapter 2 Management and Operation of the National Social Security Fund

 

　　Article 6The National Social Security Fund Council shall prudently and steadily manage and operate the national social security fund, investing and operating the national social security fund in domestic and foreign markets according to the proportions approved by the State Council.

The National Social Security Fund Council shall adhere to the principles of safety, profitability, and long-term nature when investing and operating the national social security fund, and reasonably allocate assets within the categories and proportion limits of fixed income, stocks, and unlisted equity approved by the State Council.

 

　　Article 7The National Social Security Fund Council shall formulate the asset allocation plan for the national social security fund and determine major investment projects, which shall undergo risk assessment and be collectively discussed and decided.

The National Social Security Fund Council shall establish risk management and internal control methods, identifying, measuring, assessing, monitoring, and responding to risks at all stages of management and operation, effectively preventing and controlling risks. The risk management and internal control methods shall be filed with the financial department of the State Council and the social insurance administrative department of the State Council.

The National Social Security Fund Council shall formulate accounting methods in accordance with the law and submit them to the financial department of the State Council for review and approval.

 

　　Article 8The National Social Security Fund Council shall regularly report the management and operation status of the national social security fund to the financial department of the State Council and the social insurance administrative department of the State Council, submitting financial accounting reports.

 

　　Article 9The National Social Security Fund Council may entrust the investment of the national social security fund or invest in other ways approved by the State Council.

 

　　Article 10If the National Social Security Fund Council entrusts the investment of the national social security fund, it shall select professional investment management institutions and professional custodians that meet the legal conditions to serve as the investment manager and custodian of the national social security fund, respectively.

The National Social Security Fund Council shall select investment managers and custodians based on the principles of openness, fairness, and justice, publish selection information, organize expert reviews, collectively discuss and decide, and announce the selection results.

The National Social Security Fund Council shall formulate selection methods for investment managers and custodians, and file them with the financial department of the State Council and the social insurance administrative department of the State Council.

 

　　Article 11The National Social Security Fund Council shall sign entrusted investment contracts and custody contracts with the appointed investment managers and custodians, and file them with the financial department of the State Council, the social insurance administrative department of the State Council, the foreign exchange management department of the State Council, the securities regulatory authority of the State Council, and the banking regulatory authority of the State Council.

 

　　Article 12The National Social Security Fund Council shall establish evaluation methods for investment managers and custodians, and evaluate the investment management of the national social security fund by the investment managers and the custody of the national social security fund by the custodians according to the evaluation methods. The evaluation results shall serve as the basis for whether to continue the appointment.

 

　　Article 13The investment managers of the national social security fund shall perform the following duties:

(1) Invest the national social security fund;

(2) Withdraw the risk reserve for investment management of the national social security fund as required;

(3) Report investment situations to the National Social Security Fund Council;

(4) Other duties as stipulated by laws, administrative regulations, and regulations of relevant departments of the State Council.

 

　　Article 14The custodians of the national social security fund shall perform the following duties:

(1) Safeguard the property of the national social security fund securely;

(2) Handle settlement and delivery matters promptly according to the investment instructions of the national social security fund investment managers as stipulated in the custody contract;

(3) Supervise the investments of the national social security fund investment managers according to regulations and the custody contract;

(4) Execute the instructions of the National Social Security Fund Council and report on custody situations;

(5) Other duties as stipulated by laws, administrative regulations, and regulations of relevant departments of the State Council.

 

　　Article 15The property of the national social security fund shall be independent of the inherent property of the National Social Security Fund Council, investment managers, and custodians, and independent of other properties managed by investment managers and custodians.

 

　　Article 16Investment managers and custodians of the national social security fund shall not engage in the following behaviors:

(1) Mix the property of the national social security fund with other properties for investment or custody;

(2) Disclose undisclosed information of the national social security fund obtained through job convenience, and use that information to engage in or imply others to engage in related trading activities;

(3) Other behaviors prohibited by laws, administrative regulations, and regulations of relevant departments of the State Council.

 

　　Article 17The national social security fund shall enjoy tax benefits in accordance with national regulations.

 

Chapter 3: Supervision of the National Social Security Fund

 

　　Article 18The state shall establish and improve the supervision system for the National Social Security Fund.

No unit or individual may occupy, misappropriate, or illegally invest and operate the National Social Security Fund.

 

　　Article 19The financial department of the State Council and the social insurance administrative department of the State Council shall supervise the income and expenditure, management, and investment operation of the National Social Security Fund according to their respective responsibilities; if problems are found, they shall be handled according to law; if it does not fall within the scope of responsibilities of this department, it shall be transferred to the relevant departments such as the State Administration of Foreign Exchange, the State Securities Regulatory Commission, and the State Banking Regulatory Commission for handling according to law.

 

　　Article 20The State Administration of Foreign Exchange, the State Securities Regulatory Commission, and the State Banking Regulatory Commission shall supervise the investment managers and custodians of the National Social Security Fund according to their respective responsibilities; if illegal activities are found, they shall be handled according to law and promptly notify the financial department of the State Council and the social insurance administrative department of the State Council.

 

　　Article 21The supervision of the overseas investment managers and custodians of the National Social Security Fund shall be carried out by the State Securities Regulatory Commission and the State Banking Regulatory Commission in accordance with the cooperation documents signed with the supervisory authorities of the countries or regions where the investment managers and custodians are located.

 

　　Article 22The Audit Office shall conduct at least one audit of the National Social Security Fund each year. The audit results shall be made public.

 

　　Article 23The National Social Security Fund Council shall select an accounting firm through public bidding to audit the National Social Security Fund.

 

　　Article 24The National Social Security Fund Council shall publish the income and expenditure, management, and investment operation of the National Social Security Fund to the public every year through its official website and newspapers distributed nationwide, accepting social supervision.

 

Chapter 4: Legal Responsibilities

 

　　Article 25If the domestic investment managers and custodians of the National Social Security Fund violate the provisions of Article 16 and the second paragraph of Article 18 of these regulations, they shall be ordered to correct by the State Securities Regulatory Commission and the State Banking Regulatory Commission, confiscate illegal gains, and impose a fine of not less than one time and not more than five times the illegal gains; if there are no illegal gains or the illegal gains are less than 1 million yuan, a fine of not less than 100,000 yuan and not more than 1 million yuan shall be imposed; for directly responsible supervisors and other directly responsible personnel, a warning shall be given, their relevant qualifications shall be suspended or revoked, and a fine of not less than 30,000 yuan and not more than 300,000 yuan shall be imposed; if a crime is constituted, criminal responsibility shall be pursued according to law.

 

　　Article 26If the National Social Security Fund Council violates the provisions of these regulations, it shall be ordered to correct by the financial department of the State Council and the social insurance administrative department of the State Council; disciplinary actions shall be taken against the directly responsible supervisors and other directly responsible personnel according to law; if a crime is constituted, criminal responsibility shall be pursued according to law.

 

　　Article 27If state personnel abuse their power, neglect their duties, or engage in favoritism and fraud in the management, operation, and supervision of the National Social Security Fund, they shall be punished according to law; if a crime is constituted, criminal responsibility shall be pursued according to law.

 

　　Article 28Those who violate the provisions of these regulations and cause losses to the National Social Security Fund shall bear the liability for compensation according to law.

 

Chapter 5: Supplementary Provisions

 

　　Article 29With the approval of the State Council, the National Social Security Fund Council may accept the entrustment of provincial-level people's governments to manage and operate social insurance funds; the entrusted management and operation of social insurance funds shall be carried out in accordance with the relevant regulations of the State Council on the investment management of social insurance funds.

 

　　Article 30These regulations shall come into effect on May 1, 2016.