Regulations of Jiangsu Province on the Supervision of Social Insurance Funds
(Adopted at the Twentieth Session of the Standing Committee of the Twelfth People’s Congress of Jiangsu Province on January 15, 2016)
Chapter I General Provisions
Article 1 These Regulations are formulated in accordance with the Labor Law of the People’s Republic of China, the Social Insurance Law of the People’s Republic of China, and relevant laws and regulations, in light of the specific situation of this Province, and for the purposes of strengthening the supervision of social insurance funds, ensuring their safety and completeness, and safeguarding the legitimate rights and interests of the persons covered by the social insurance.
Article 2 These Regulations shall apply to the supervision and examination of social insurance funds within the administrative region of this Province.
Social insurance funds as mentioned in these Regulations consist of the basic old-age insurance fund, basic medical insurance fund, work-related injury insurance fund, unemployment insurance fund, and maternity insurance fund as well as other social insurance funds that are raised, used, and managed through a special account for social insurance funds within the framework of social insurance system according to the relevant provisions of the State and the Province.
Article 3 Each type of social insurance funds shall have its own account established and settled separately, with its money earmarked for designated purposes. No organization or individual may usurp, embezzle or transfer between appropriations.
Article 4 The supervision of social insurance funds refers to the supervision of the funds in relation to their revenue and expenditure accounts, management and investment operations, and mainly includes the following items:
(1) the execution of the financial and accounting systems for social insurance funds;
(2) the budgeting, budget adjustment, budget implementation and final accounting of social insurance funds;
(3) the declaration and payment of social insurance premiums by the units and individuals covered by the social insurance;
(4) the verification, collection and appropriation of social insurance premiums;
(5) the revenue and expenditure, management and operation of bank account funds including revenue account, expenditure account and special financial account;
(6) the verification of social insurance benefits and the payment of social insurance funds;
(7) the opening, utilization and management of bank accounts for social insurance funds; and
(8) other matters concerning the implementation of laws, regulations, rules, and policies on social insurance funds.
Article 5 In the supervision of social insurance funds, the principle of being open, impartial, legitimate and efficient shall be followed with emphasis on both prevention of and investigation into malpractices therein so as to ensure the safety of the funds.
Article 6 The local people’s congresses and their standing committees at or above the county level shall, according to law, carry out supervision over the budgeting and final accounting, revenue and expenditure, management and investment operations, and supervision and examination of social insurance funds by the people’s governments at the corresponding level.
Article 7 The people’s governments at or above the county level shall, under the principle of “responsibilities falling on those who are in charge of management, examination and approval”, establish and perfect the safety control system for social insurance funds, support and urge the relevant departments and organs of social insurance to perform their respective duties of supervision and administration of social insurance funds in accordance with law, and ensure the safety, completeness and efficient operation of the social insurance funds of their corresponding pooling areas. The people in charge of the people’s government shall take the major responsibility for the safety of social insurance funds.
The people’s governments at or above the county level shall take measures to encourage and support all circles of the society to participate in the supervision of social insurance funds.
Article 8 The administrative departments of social insurance of the local people’s governments at or above the county level shall be in charge of the general administration of the supervision of social insurance funds within their respective administrative regions and conduct administrative supervision over the social insurance funds of their corresponding pooling areas.
The financial departments, auditing authorities, local tax authorities, and supervisory organs of the people’s governments at or above the county level, and the branches of the People’s Bank of China shall, according to their respective functions and duties, carry out administrative supervision over the social insurance funds.
Social insurance premiums collecting agencies, social insurance operation agencies and the administrative organs for the special accounts of social insurance funds shall, according to their respective functions and duties, examine and inspect the collection, payment, and management of social insurance funds.
Article 9 The local people’s governments at or above the county level and their relevant departments and organs of social insurance shall strengthen team building for the supervision of social insurance funds so as to enhance their capability in this regard.
The posts of the supervision of social insurance funds are incompatible with that of social insurance operation and that of the finance of social insurance funds. Personnel engaged in the supervision of social insurance funds shall not concurrently assume posts in social insurance operation or the finance of social insurance funds.
Article 10 The funds needed for the supervision of social insurance funds shall be ensured and incorporated into the financial budgets at the corresponding level.
Chapter II Supervision of the People’s Congress
Article 11 The local people’s governments at or above the county level shall, under the principle of striking a balance between revenues and expenditures with slight surplus, draw up a budget for social insurance funds and report it for examination and approval to the people’s congress at the corresponding level.
Article 12 The standing committees of the people’s congresses at or above the county level shall hear and examine the special reports on the revenue and expenditure accounts, management, investment operations, and supervision of social insurance funds by the people’s governments at the corresponding level. The opinions on the special report formed through deliberation among the members of the standing committee shall be submitted to the people’s governments at the corresponding level for consideration and handling. The people’s government shall present to the standing committee a written report on the consideration and handling. Where considering it necessary, the standing committee may make a resolution on the special report; the people’s government shall report to the standing committee its implementation of the resolution.
Article 13 The standing committees of the local people’s congresses at or above the county level shall, through such ways as enforcement inspection over the people’s government at the corresponding level about its implementation of laws and regulations concerning social insurance and its efforts in ensuring the safety, completeness and efficient operation of the social insurance funds. The opinions on the enforcement inspection report formed through deliberation among the members of the standing committee shall, together with the inspection report itself, be submitted to the people’s government at the corresponding level for consideration and handling. The people’s government shall present to the standing committee a report on the result of consideration and handling.
Article 14 The standing committees of the local people’s congresses at or above the county level shall notify the representatives to the people’s congresses at the corresponding level of the following matters and make them known to the public:
(1) the special report on revenue and expenditure, management, investment operations, and supervision of social insurance funds by the people’s governments at the corresponding levels;
(2) the opinions or resolution on the special report by the standing committee Committees of the people's congresses at the corresponding levels; and
(3) the report on the consideration and handling of the opinions or the implementation of the resolution by the people’s governments at the corresponding levels.
Chapter III Administrative Supervision
Article 15 The administrative departments of social insurance shall perform the following functions and duties for supervision:
(1) to exercise supervision over relevant organizations and individuals in their implementation of laws, regulations, rules, and policies on social insurance funds, conduct inspection of the revenue and expenditure, management and investment operations of social insurance funds, and rectify existing problems in accordance with law;
(2) to accept reports on violations of laws and regulations concerning social insurance funds, organize the verification of problems discovered through supervision, and investigate into and handle violations of laws and regulations concerning social insurance funds in accordance with law; and
(3) to organize relevant departments and organs to conduct safety assessment of social insurance funds and urge them to remove safety loopholes of social insurance funds.
Article 16 The financial departments shall perform the following functions and duties for supervision:
(1) to supervise the deposit of social insurance funds into a special financial account and the separate management of its revenue and expenditure, and exercise supervision over the revenue and expenditure, management and investment operations of social insurance funds;
(2) to examine and approve the budgeting and final accounting of social insurance funds and supervise the implementation of the budget; and
(3) to establish and perfect an accounting system for social insurance funds, standardize financial management, and conduct inspection of relevant organizations and individuals in their execution of the financial and accounting systems for social insurance funds.
Article 17 The auditing authorities shall exercise supervision through auditing on the following matters:
(1) the establishment and implementation of social insurance system; and
(2) the revenue and expenditure, management and investment operations of social insurance funds.
Article 18 The local tax authorities shall exercise supervision and inspection over the payment of and default on social insurance premiums whose collection is in their charge;
Article 19 The branches of the People’s Bank of China shall exercise supervision over the opening, management and use of the settlement accounts for social insurance funds.
Article 20 The supervisory organs shall, according to law, exercise supervision over the administration and supervision of social insurance funds by relevant departments of the State and their functionaries.
Article 21 The finance departments shall establish and perfect the management mechanism for the maintenance and accrual of capital values of social insurance funds, implement the measures of risk prevention and supervision for fund safety, and, with assured safety and payment of social insurance funds as a prerequisite, conduct investment operations in accordance with the provisions of the State so as to raise the yield rate of social insurance funds and achieve maintenance and accrual of capital values of the funds.
The financial departments shall regularly inform the administrative departments of social insurance of the maintenance and accrual of capital values of the funds.
Article 22 The administrative supervision of social insurance funds may be exercised either on site or off site.
The administrative department at the higher level may, as required by its work, directly investigate into and deal with the managerial issues of social insurance funds for which the administrative department at the lower level is responsible.
Article 23 The administrative departments of social insurance, the finance departments, the auditing authorities, and the local tax authorities shall establish and perfect the on-site supervision system for social insurance funds and carry out on-site inspection of the operation of social insurance funds according to their respective functions and duties.
An annual plan shall be made for the implementation of on-site inspection of social insurance funds, with the object, scope, items and content of the inspection clarified.
Article 24 The administrative department of social insurance shall, on a regular basis, carry out on-site supervision and inspection of the social insurance operation agency on the following matters:
(1) the timely payment of social insurance benefits in full;
(2) the items, standards and scope for payment of social insurance funds;
(3) the payment of social insurance funds to employment service agencies and service providers of social insurance such as medical institutions, drug distributors, work-related injury rehabilitation institutions and work-related disability aiding device suppliers; and
(4) other matters concerning the payment of social insurance funds.
Article 25 The administrative departments of social insurance shall, together with the finance department, regularly carry out on-site supervision and inspection on the following matters:
(1) the asset completeness of social insurance funds;
(2) the transfer of capital from revenue account and expenditure account into the special financial account;
(3) the earmarked use of social insurance funds that are deposited into revenue account, expenditure account and special financial account, the tallying of those accounts with actual quantities, and the interest accrual of the funds;
(4) the timely payment of social insurance benefits in full by the special financial account of social insurance funds to the expenditure accounts;
(5) the timely allocation of social insurance subsidies in full amount;
(6) the legitimate enjoyment of social insurance benefits by the insured; and
(7) other matters concerning the management of social insurance funds.
Article 26 The administrative departments of social insurance shall, together with the local tax authorities, regularly carry out on-site supervision and inspection on the following matters:
(1) the declaration, payment, and default of social insurance premiums by the insured units and individuals;
(2) the verification, collection and allocation of social insurance premiums by the social insurance operation agencies and the social insurance premiums collecting agencies; and
(3) other matters concerning the collection of social insurance funds.
Article 27 The financial departments shall, together with the administrative departments of social insurance and the local tax authorities, regularly carry out on-site supervision and inspection on the implementation of the financial and accounting systems for social insurance funds and the separate management of revenue and expenditure accounts by the social insurance operation agencies, the social insurance premiums collecting agencies, and the administrative organs for the special account of social insurance funds.
Article 28 The financial departments, the administrative departments of social insurance, and the branches of the People’s Bank of China shall, according to their respective functions and duties, exercise supervision over the opening, managing and using of the bank accounts for social insurance funds.
Article 29 The administrative departments of social insurance, the financial departments, the auditing authorities, and local tax authorities shall, according to their respective functions and duties, establish and perfect the off-site supervision system for social insurance funds, examine and analyze the data and materials of social insurance funds that are provided by the social insurance operation agencies, the social insurance premiums collecting agencies, the administrative organs for the special financial account of social insurance funds, the deposit bank of social insurance funds, and the insured units.
The social insurance agencies, the social insurance premiums collecting agencies, the administrative organs for the special financial account of social insurance funds, the deposit bank of social insurance funds, and the insured units shall, as required, submit to relevant administrative departments the data and materials needed for the supervision of social insurance funds.
Relevant administrative departments shall organize on-site supervision over the violations of laws and regulations identified through off-site supervision.
Article 30 The local people’s governments at or above the county level shall strengthen information construction for the supervision of social insurance funds. The provincial administrative departments of social insurance shall, together with the financial departments, the auditing authorities, and local tax authorities, establish a province-wide unified information-sharing platform for the supervision of social insurance funds in line with unified planning, unified norms, unified standards, and graded responsibility.
The following information data managed or produced by the relevant departments and organs of the people’s governments at or above the county level and other relevant units shall, in line with the standards of the Province, be promptly connected to the information-sharing platform for the supervision of social insurance funds.
(1) the information data of revenue and expenditure, management and investment operations of social insurance funds;
(2) the information data of social insurance service agencies and employment service agencies related to social insurance funds;
(3) the information data about the establishment, modification and cancellation of employing units;
(4) the information data about the real-name system for the establishment of institutions;
(5) the information data about the household registration and death records in the pooling area;
(6) the information data about persons registering for employment, unemployment and insurance;
(7) the information data about the actual total payroll of the insured units and the income of the insured persons; and
(8) other information data concerning social insurance.
Article 31 The administrative departments of social insurance, the financial departments, the auditing authorities, and the local tax authorities shall carry out whole-course dynamic supervision over the social insurance funds within their administrative area through the information-sharing platform for the supervision of social insurance funds. When there is any warning information in this regard, the social insurance-related administrative departments of the place where the warning is released shall organize verification and inspection of it in a timely manner; when there is any major warning information threating the safety and effective operation of social insurance funds, the social insurance-related administrative departments of the place where the warning is released shall report it to the people’s governments at the corresponding levels and put forward a suggestion on its disposition.
Article 32 The administrative departments of social insurance, the financial departments, the auditing authorities, and the local tax authorities shall organize verification and inspection of reports on problems concerning social insurance funds, and file the case timely where it reaches the prescribed case-filing conditions.
Article 33 The administrative departments of social insurance, the financial departments, the auditing authorities, and the local tax authorities shall have the right to adopt the following measures when conducting on-site supervision and inspection over social insurance funds:
(1) referring to, recording and copying materials related to the revenue and expenditure, management and investment operations of social insurance funds, and sealing up materials liable to be transferred, concealed or destroyed for the sake of safekeeping;
(2) questioning the units and individuals involved in an investigation, and demanding them to explain and provide relevant evidence on the matters under investigation; and
(3) interdicting and ordering for rectification the acts of concealing, transferring, misappropriating or embezzling social insurance funds.
On-site supervision and inspection shall be conducted by two or more supervisors. When necessary, public accounting firms may be invited to assist in relevant specialized inspection.
Article 34 During the on-site supervision and inspection, those under inspection shall offer necessary workplace and faithfully provide relevant data, materials and information without any refusal, delay or false report.
Those under inspection shall be responsible for the authenticity and completeness of the data, materials and information provided and make a written commitment on it.
When other organizations and individuals are required to cooperate in the supervision and inspection, relevant organizations and individuals shall provide support and assistance in this regard, and faithfully provide evidence on the matters under inspection.
Article 35 When detecting any violation of laws and regulations involving social insurance funds by those under inspection, the administrative departments of social insurance, the financial departments, the auditing authorities, and the local tax authorities shall put forward rectifying recommendations, and make a punitive decision or recommend a punitive proposal to the relevant authorities according to law. Those under inspection shall, within the prescribed time limit, report their rectification to relevant administrative departments who shall in turn verify the rectification.
Article 36 The administrative departments of social insurance shall establish and perfect the safety assessment system for social insurance funds and organize relevant departments and organs to conduct safety assessment of social insurance funds. The content of safety assessment mainly includes:
(1) the supporting capacity of social insurance funds;
(2) the quality of asset management for social insurance funds;
(3) the operation of internal control system;
(4) violations of laws and regulations involving social insurance funds; and
(5) other indicators concerning the safety of social insurance funds.
Article 37 The administrative departments of social insurance shall establish and perfect the reporting system for violations of laws and regulations involving social insurance funds. When detecting any violation of laws and regulations such as embezzling or misappropriating social insurance funds, and defrauding expenditures or benefits of social insurance funds, the administrative departments of social insurance of the place where the violation occurs shall promptly report it in written form to the people’s government at the corresponding levels and the administrative departments of social insurance at the next higher level; where any major violation occurs, it shall also be reported in written form to the administrative department of social insurance of the Province.
Article 38 The administrative departments of social insurance and the local tax authorities shall establish and perfect the credibility archive system for social insurance. Where there is any violation of laws and rules by insured units and individuals, social insurance service agencies, and employment service agencies in defrauding payment and benefits of social insurance funds, refusing to fulfill their obligation of paying social insurance premiums or maliciously defaulting on payment of social insurance premiums, it shall be filed in the credibility archive of the unit or individual and submitted to the public credibility information system; where the situation is serious, the basic information and illegal acts of the violator shall be made known to the public.
Chapter IV Internal Control
Article 39 Social insurance agencies, social insurance premiums collecting agencies, and the administrative organs for the special financial account of social insurance funds shall establish and perfect the internal control system to prevent and control the defects and risks existing in the revenue and expenditure, management and investment operations of social insurance funds, and ensure the earmarked use, safety and completeness of the social insurance funds within their jurisdiction of responsibility.
Personnel in key positions for the administration of social insurance funds shall be rotated on a regular basis. Where there is any change to such major issues as the management procedures, position responsibilities and personnel in key positions, the organs involved shall promptly revise and improve the measures for internal control.
Article 40 Social insurance agencies, social insurance premiums collecting agencies, and the administrative organ for the special financial account of social insurance funds shall conduct internal examinations and assessments on a regular basis, and, when detecting any problem, rectify it or make suggestions to relevant administrative departments on it. They shall also regularly assess the establishment and implementation of the internal control system by the corresponding departments at the next lower level, and, when detecting any problem, supervise the rectification of it.
Article 41 Social insurance agencies shall exercise the audit system for social insurance by formulating annual audit plan and conducting general audits or targeted audits on the following matters, and shall, when detecting any problem, ascertain the cause of the problem and correct it in a timely manner.
(1) the declaration and payment of social insurance premiums by the insured units and individuals;
(2) the claim of social insurance benefits; and
(3) the performance of service agreements and the implementation of the items and standards of fee settlement by employment service agencies and service agencies of social insurance such as medical institutions, drug distributors, work-related injury rehabilitation institutions and work-related disability aiding device suppliers.
Article 42 Social insurance premiums collecting agencies shall establish and perfect the inspection system for the collection of social insurance premiums and conduct inspection of the insured units especially on the following matters, and shall, when detecting any failure to pay social insurance premiums in full, order them to pay or replenish the deficiency within the prescribed period. Where there is any change to the calculating base for premium payment and the number of premium payers, relevant information shall be submitted to social insurance agencies for re-verification.
(1) the discrepancy between the actual total payroll of the insured units and their calculating base for premium payment;
(2) the divergence among the numbers of people paying for different types of insurances; and
(3) the long overdue payment of social insurance premiums.
Article 43 Social insurance agencies shall, together with the administrative organs for the special financial account of social insurance funds, the social insurance premiums collecting agencies and the deposit bank of social insurance funds, exercise the regular account-checking system to make sure that the various accounts tally with one another and the numbers on the accounting books tally with the actual quantities. The accounts shall be checked regularly at least twice a year. A report shall be made for the regular checking of accounts and endorsed by relevant organs before being submitted to the administrative department of social insurance and finance department at the corresponding level for future reference.
The administrative departments of social insurance and financial departments shall conduct on-site supervision and inspection over the organs who fail to endorse the account-checking report or provide the certificate of bank deposits.
Chapter V Public Supervision
Article 44 In their supervision of social insurance funds, insured units and individuals, social organizations, and news media are entitled to enjoy the right of public supervision, and shall fulfill the obligations and assume the responsibilities of public supervision according to law.
Article 45 The administrative departments of social insurance, social insurance agencies and social insurance premiums collecting agencies shall establish and perfect the information publication system, publicize actively and disclose regularly the information concerning social insurance funds through their websites, service windows and bulletin boards according to law, and conscientiously subject themselves to public supervision.
Information to be publicized actively according to law shall include:
(1) the policy on revenue and expenditure of social insurance funds;
(2) the calculating base and rates for social insurance premium payment;
(3) the payment formulae, distribution and adjustment standards of social insurance benefits, and the interest rate of individual accounts; and
(4) the handling procedures and service standards of social insurance.
Information to be disclosed regularly shall include:
(1) the participation of different types of social insurances;
(2) the revenues, expenditures, balances and investment returns of various social insurance funds;
(3) the investment operations of basic old-age insurance fund; and
(4) the collection and arrearage of social insurance premiums, and when necessary, the information of the insured units with long overdue social insurance premiums or large sum of premiums unpaid.
Article 46 The employing unit shall inform its staff members of the types and payment of social insurance by which they are covered, and report to employees' assembly about the yearly payment of social insurance premiums or make it known to the whole unit for the supervision of its staff and workers.
The staff members may approach the employing unit for the information about their own coverage by and payment of social insurance, and the employing unit shall faithfully provide its staff members with their participation, time period and actual payment of social insurance.
When finding out that the employing unit fails to go through the formalities of social insurance, pay social insurance premiums for them or the premiums are not fully paid, the staff members are entitled to report it to social insurance agencies or social insurance premiums collecting agencies. Social insurance agencies and social insurance premiums collecting agencies shall investigate into and handle such issues in a timely manner and keep the reporters secret.
Article 47 Social insurance agencies shall provide the insured units and individuals with free social insurance information inquiry services through its service windows, self-service terminals, telephones, websites, etc. It shall, upon application, issue certificates for the insured units and individuals proving that they are covered by social insurance and enjoy due benefits, or individual records of rights and interests free of charge.
Article 48 The people’s government in a pooling area shall establish a social insurance supervisory committee composed of representatives of employing units, insured persons, trade unions, social insurance service agencies, and professional experts, representatives to people’s congresses and members of political consultative conferences. The committee shall have full knowledge and conduct analyses of social insurance funds in terms of revenue and expenditure, management, and investment operations, provide consultancies and recommendations on social insurance affairs, and exercise public supervision.
The duties of the social insurance supervisory committee, the method for member selection, the term of office, and the rules of procedure shall be determined by its constitution and be reported to the people’s government of the pooling area for approval.
The social insurance supervisory committee has its office set up in the administrative department of social insurance at the corresponding level, handling the routine issues of the social insurance supervisory committee.
Article 49 The social insurance supervisory committee shall establish and perfect the annual meeting mechanism to listen to reports by social insurance operation agencies, social insurance premiums collecting agencies and the administrative organs for the special financial account of social insurance funds on the management and utilization of social insurance funds in the pooling area, and put forward suggestions on the correction or disposition of any problem detected thereof.
The administrative departments of social insurance, the financial departments, and the local tax authorities shall, according to their respective functions and duties, promptly investigate into and handle the violations of laws and regulations concerning social insurance funds as detected by the social insurance supervisory committee, and report the disposition of the issue to the social insurance supervisory committee.
Article 50 The social insurance supervisory committee may hire an accounting firm to conduct annual audits and specified audits for revenue and expenditure accounts, management and investment operations of social insurance funds of the pooling area. The auditing reports should be made known to the public.
Article 51 All organizations and individuals are entitled to report on the violations of laws and regulations concerning social insurance funds. When the report is verified through investigation, it shall be rewarded by the administrative department of social insurance.
The administrative department of social insurance shall make known to the public the ways of reporting violations of laws and regulations concerning social insurance funds in an effort to make it easy to report and keep the reporters secret.
Chapter VI Legal Liabilities
Article 52 Where the people’s governments at or above the county level and its relevant departments and organs commit any of the following acts, they shall be ordered by the people’s governments at the next higher level or the people’s government at the corresponding level, the administrative departments of social insurance, financial departments or audit authorities of the people’s government at the next higher level to make rectification or revocation within a prescribed time limit where any loss of social insurance funds is incurred, they shall be ordered to recover the loss within a prescribed time limit; where losses are caused to social insurance funds, those held responsible shall bear the liability for compensation according to law; the person directly in charge and other person(s) directly responsible shall be given sanctions according to law:
(1) concealing, transferring, misappropriating or embezzling social insurance funds;
(2) formulating local policy on revenues and expenditures of social insurance funds in violation of the administrative regulations on social insurance funds;
(3) lowering or raising the calculating base for social insurance premium payment in violation of relevant regulations, or adjusting the rates of social insurance premiums without authorization; and
(4) examining and approving items of revenues and expenditures of social insurance funds in violation of laws and regulations.
Article 53 Where the people’s governments at or above the county level and their financial departments fail to allocate social insurance subsidies in full and in line with the policy, or fail to grant financial subsidies when there arises shortfall for social insurance funds, they shall be ordered by the people’s government at the next higher level, the people’s government at the corresponding level, or the financial department of the people’s government at the next higher level to make rectification within a prescribed time limit; the person directly in charge and other person(s) directly responsible shall be given sanctions according to law.
Article 54 Where the social insurance operation agencies, social insurance premiums collecting agencies, and the administrative organs for the special financial account of social insurance funds commit any of the following acts, they shall be ordered by the financial departments, the administrative departments of social insurance and the audit authorities to make rectification within a prescribed time limit; the person directly in charge and other person(s) directly responsible shall be given sanctions according to law:
(1) failing to deposit social insurance funds into the special financial accounts;
(2) failing to manage the revenue and expenditure of social insurance funds separately;
(3) failing to establish accounts separately for different types of social insurance funds and settle the accounts separately;
(4) disbursing non-social insurance benefits or paying them up front from social insurance funds;
(5) depositing social insurance funds in violation of relevant procedures and provisions;
(6) exaggerating the revenues and falsely itemizing the expenditures of social insurance funds, or issuing false financial and accounting reports on social insurance funds;
(7) opening revenue accounts, expenditure accounts and special financial accounts of social insurance funds in violation of relevant procedures and provisions; or
(8) any other act violating the financial and accounting systems for social insurance funds.
Article 55 Where the social insurance agencies and social insurance premiums collecting agencies commit any of the following acts, they shall be ordered by the administrative departments of social insurance and the local tax authorities to recover the overdue payment or return the overpayment of social insurance premiums within a prescribed time limit; where any loss of social insurance funds is incurred, they shall be ordered to recover the loss within a prescribed time limit; where losses are caused to social insurance funds, the insured units or individuals, those held responsible shall bear the liability for compensation according to law; the person directly in charge and other person(s) directly responsible shall be given sanctions according to law:
(1) altering the number of payers, the calculating base and rates for social insurance premium payment without authorization;
(2) reducing social insurance premiums or cancelling overdue social insurance payment after verification without authorization;
(3) examining, approving and paying social insurance benefits in violation of provisions;
(4) underpaying or refusing to pay on time social insurance benefits;
(5) setting up in violation of provisions or altering without authorization the information system and finance control parameters of social insurance; or
(6) any other act violating the policy on revenue and expenditure of social insurance funds.
Article 56 Where the insured unit fails to pay social insurance premiums on time and in full, the social insurance premiums collecting agency shall order it to pay in full within a prescribed time limit, and a late fee at the rate of 0.05% shall be levied daily as of the date of indebtedness; where the payment is not made at the expiry of the prescribed period, a fine above the overdue amount but less than its triple shall be imposed by the administrative departments of social insurance or the local tax authorities.
Article 57 Where the social insurance operation agencies and employment service agencies and service providers of social insurance such as medical institutions, drug distributors, work-related injury rehabilitation institutions and work-related disability aiding device suppliers defraud payment from social insurance funds by cheating, fake documentation or other means, they shall be ordered by the administrative departments of social insurance to return the defrauded fund, and a fine more than double but less than quintuple of the amount defrauded shall be imposed; where the social insurance service agency involved is someone having an agreement with it , such a service agreement shall be terminated; where the person directly in charge and other person(s) directly responsible are licensed, their licenses shall be revoked according to law.
Article 58 Anyone who makes fraudulent claims for social insurance benefits by cheating, fake documentation or other means shall be ordered by the administrative departments of social insurance to return the defrauded social insurance benefits, and a fine of more than double but less than quintuple of the amount defrauded shall be imposed; information related to the fraud shall be included into the public credibility information system.
Article 59 Where the relevant department under the people’s governments at or above the county level commit any of the following acts, it shall be ordered by the people’s government at the corresponding level or by the relevant department under the people’s government at the next higher level to make rectification within a prescribed time limit; and the person directly in charge and other person(s) directly responsible shall be given sanctions according to law if they refuse to make corrections:
(1) failing to perform their statutory duties in the supervision of social insurance funds;
(2) refusing or impeding the supervision and inspection of social insurance funds;
(3) providing false materials or concealing, destroying data and materials;
(4) refusing to connect relevant information data to the information-sharing platform for the supervision of social insurance funds;
(5) failing or delaying to rectify violations of laws and regulations concerning social insurance funds as required, or cheating in the rectification;
(6) concealing major violations of laws and regulations concerning social insurance funds that shall be reported, reporting them deceitfully or delaying the report; or
(7) disclosing illegally the information concerning the employing units or individuals, the matters reported and the informant, or retaliating the informant.
Insured units and individuals and employment service agencies and service agencies of social insurance such as medical institutions, drug distributors, work-related injury rehabilitation institutions and work-related disability aiding device suppliers shall be punished in accordance with relevant laws and regulations when committing any of the acts listed in sub-paragraph (2),(3) or (5) of the preceding paragraph.
Article 60 The public officials who abuse their power, neglect their duties, or engage in fraudulent acts for personal gains in the administration of social insurance funds shall be sanctioned according to law.
Article 61 Whoever violates laws and regulations concerning social insurance funds and constitutes a crime shall be investigated for criminal liability according to law.
Chapter VII Supplementary Provisions
Article 62 Where violations of laws and regulations concerning social insurance funds that are investigated into and handled by relevant administrative departments shall, be transferred in accordance with relevant laws and regulations to the department in charge of appointment and removal, the supervisory organ or the judicial organ for their disposition when the violations fall within their jurisdiction according to law. The department in charge of appointment and removal, the supervisory organ or the judicial organ shall investigate into and handle promptly the violations of laws and regulations concerning social insurance funds that are transferred by the administrative department according to law, and notify in written form the administrative department that has transferred the case of the settlement of the matter.
Article 63 Where there are provisions prescribed otherwise by the State and the Province on the supervision and inspection of the new rural cooperative medical funds, these provisions shall prevail.
Where there are provisions prescribed otherwise by the State on the investment operations of social insurance funds, these provisions shall prevail.
Article 64 Institutions providing social insurance services in towns (sub-districts) and villages (communities) shall implement the relevant provisions on social insurance operation agencies by reference .
Article 65 These Regulations shall enter into force as of July 1, 2016.
