With the rapid development of population aging, the proportion of the elderly population in China has been rising, which has brought huge impact on China's pension insurance system. The issue of sustainable development of pension funds has become a huge challenge for Chinese society. Realizing the sustainable development of pension funds is an important way to realize the healthy development of China's pension insurance system. This paper analyzes the operation, supervision and investment of pension insurance funds, and puts forward corresponding development countermeasures.