China's labor minister on
Thursday warned administrators of social security funds not to take risky
investments that might jeopardize the safety of the funds.
"For the management of social security funds, safety always comes before
increasing the value," said Tian Chengping, Minister of Labor and Social
Security, when addressing graduate students from the Chinese Academy of Sciences
By the end of 2005, China's social security funds totaled 1.84 trillion yuan
(233.35 billion US dollars), according to official statistics.
"Strict rules should be set for the management of these funds and any
investment should be carried out with extreme caution," Tian said.
China's current social security framework includes five main insurance
programs: pension, unemployment, medical treatment, injury at work, and pre-and
postal-natal care for female employees.
The misuse of social security funds has been highlighted this year. In
September, the Shanghai scandal, involving misconduct over 3.2-billion-yuan loan
of city funds in Shanghai, brought down Chen Liangyu, Party Secretary of
Shanghai and member of the Political Bureau of the Chinese Communist Party
Chen is China's highest ranking official to be sacked in a corruption scandal
in the last decade.