Housing Provident Fund: How To Protect Workers' Interests?

Recently, a report put the housing provident fund system on the cusp, triggering the debate about whether the abolition of housing provident fund is feasible.

Some experts believe that the housing provident fund system is no longer suitable for the new situation. However, "one is eliminated" is not the best policy. How to protect the interests of workers? There are irreplaceable means of financial support in the housing security sector. What aspects of the existing policy can be fine-tuning should be further explored.

With housing prices rising, the topic of "housing" will touch the sensitive nerves of homebuyers.

Recently, Su Hainan, vice president of the China Labour Association, said in an interview with the media, "it is proposed to abolish the housing provident fund".

The reason is very direct. The utilization rate of housing provident fund is low, which is mainly obtained by high and middle income earners.

It has violated the original intention of the policy.

The annual report of the national housing provident fund 2015 shows that in 2015, 123 million 933 thousand and 100 employees were paid in the housing provident fund, and 3 million 125 thousand personal housing loans were issued throughout the year.

It is estimated that the number of people who took the provident fund in that year accounted for only about 2.5% of the total number of subscribers.

"Workers pay housing provident fund is not only pay for one year, nor is it all used in the same year, the proportion of the crowd is not a good indicator."

Li Shi, Professor of School of economics and management, Beijing Normal University, told me how much the system serves and how much it needs.

In 2015, the national housing provident fund loans accounted for 70% of the deposit.

"Even if 70% is not high, this means that the housing provident fund's annual deposit is still in balance, not being fully utilized."

With the form of financial support for housing purchase, housing provident fund loans and commercial loans, who are the buyers willing to choose? "Most buyers will choose business loans instead of provident fund loans". Wang Meng, a chain real estate agent who has worked for 5 years, told me that the advantage of provident fund loans is that the profit rate is low. At present, the interest rate of commercial loans is not high. The most important thing is that commercial loans can get high loans and low down payments.

At present, the loan interest rate of provident fund loans over 5 years is 3.25%, which is slightly lower than that of commercial lending rate, and the loan interest rate of 20 years is 4.9%.

If we use the provident fund loans and commercial loans 1 million yuan separately, the equivalent amount of principal and interest is repaid in 20 years, the difference between the two monthly payments is less than 1000 yuan.

The interest rate advantage is not obvious, but the total amount of loans has been exported to many businesses, which has become the main reason that most buyers do not use the provident fund loans to buy houses.

According to the information released by the central government housing fund management center, the maximum amount of the first suite purchased by the state provident fund loan is 1 million 200 thousand yuan, and the maximum amount of two sets of loans is 800 thousand yuan.

"Commercial loans do not have a ceiling, up to 70% of the maximum loan assessment price.

The general material is to submit a salary certificate. If the loan amount is too large, it depends on the bank's running water.

Wang Meng said that the amount of loans available for commercial loans is high and the lending period is short.

For the provident fund loan examination and approval materials complex, procedures are numerous, is in the process of Miss Qi has a deep understanding.

Miss Qi applied to the unit for the extraction of housing provident fund, but was asked to provide her husband's information and marriage certificate at the same time, "because the house first wrote her husband's name."

"It is useless to change the order now. After all, the husband is the principal lender, and the procedure on his side will be even more troublesome."

Miss Qi is worried that the name of the house will affect other pactions. The house is a joint purchase after marriage, but it has indeed applied its own purchase qualifications.

The proposal to abolish the housing provident fund system originally came from a report issued by the China Income Distribution Research Institute of Beijing Normal University in August this year.

In Li Shi's view, the housing provident fund system is not suitable for current housing security needs.

On the one hand, the development of business loans is relatively perfect, which can completely complement the housing finance system, and the market operation effect is better. On the other hand, the public servants and employees of public institutions are much more involved in the payment of the crowd. This compulsory subsidy mode will increase the inequality of income distribution.

For ordinary workers, whether or not to cancel is not the key point. Whether there is a better solution to purchase housing finance as an alternative is their greatest concern.

Beijing girl Jiang Tong supports the abolition of the housing provident fund. "First, if the provident fund is converted into wage payment, there will be more income every month, and no need to wait for retirement." two, even if the house is purchased again, business loans can also be replenished.

"

No damage is the basic principle. If we cancel the provident fund system, we should make a supplement in the links between loans and enterprise subsidies. "

Li Shi explained in detail that in the loan link, business loans can be used as an effective substitute. In addition, the form of discount loans is also worth exploring, and the management method is simpler. In the aspect of enterprise subsidies, the housing provident fund can be changed to a part of wages and distributed to employees.

Faced with the question of whether discount loans can achieve the effect of provident fund subsidies, Li Shi said that discount loans should be resolved by the government. By lowering interest rates, the overall cost of home buyers' loans will be reduced so as to achieve financial support for people who need to buy houses.

In opposition to the abolition of the housing fund industry insiders believe that the housing provident fund system is indeed defective, but has not yet been "abolished" this step.

Yan Yuejin, director of the center for think-tank of Yi Ju Research Institute, told the author, "cancel the provident fund.

It is not very realistic. We can not deny its practical role because of the defects of the housing provident fund system.

Moreover, the role of provident fund in supporting the first suite is still relatively large.

Xu Xun, a member of the National Policy Research Association and senior economist, also pointed out that the housing provident fund is related to people's livelihood and the fundamental interests of the people.

"The common reserve funds paid by the civil servants at a higher monthly rate are all hard money. If canceled, what is the money paid? How to compensate?"

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"Provident fund is like buying serious illness insurance, do not know which day will be used to help you maintain a cash flow."

As early as 2012, he used his housing provident fund to purchase his own house in Beijing. He had his own consideration. Who can guarantee that he will not buy a house now? He will not buy it in the future. Even if he really does not have such a demand, it will be good to take out his pen as an old age pension after retirement.

Since housing provident fund system is "difficult to reform", local fine-tuning is also a choice. Many experts and scholars prescribe "prescription".

For housing provident fund loans can not be enough loans.

Yan Yuejin suggested blocking the loan channel of the provident fund for the two suites, that is, giving priority to the convenience of the first set of home buyer's provident fund loans to fully meet their loan needs.

The provident fund system has the nature of mandatory savings, which has both advantages and disadvantages.

Li Shi believes that "mandatory" to allow some people who do not have housing demand to occupy funds, so that housing provident fund can not benefit more people in need.

"It should be changed to mandatory choice for independent choice, whether employees should choose to participate in provident fund payment independently. At the same time, the relevant management center can check whether there is real demand for housing through data audit, so that special needs people can join the system."