Political Economic Analysis On The Planning Level Of The Chinese Pension Insurance

Pension insurance system contains extremely complex contents. This paper mainly studied on the plan level of the pension insurance. To explore the effects on the different interest subjects and their interest relationship under the different plan level of the pension insurance, and to discuss the construction of the plan level of the pension insurance that suits the socialist market economic system. This paper regards that the plan level of the pension insurance conforming to the requirements of the socialist market economic system is to guarantee laborers’ pension rights and to play a positive role in promoting the development of the labor market.It has past 21 years when China introduced the pension insurance of the social pooling plus individual retirement account since 1993, the comparatively fair and efficient pension insurance has changed the state of workers’ pension dependent on enterprises under the planned economy, which reduced the heavy pension burden of the enterprises, guaranteed wokers’ rights and maintained social stability. However, with China population aging and area economic development imbalances increasingly serious, the low level of the pension insurance has aroused various social economic problems, such as the imbalances of the pension burden between the East and Midwest area, pension fund gap is big, low efficiency of the pension fund operation, the phenomina of the areas with heavy pension burden misappropriate personal account funds to pay social pension is general, pension insurance can’t transfer across the country, low percent of the insurance rate leads to pension payment than pension fund received, and migrant workers’ rights can’t be effectively guaranteed. The segmentation of the pension insurance not only reflects the reginal segmentation, but also the dual-track pension systems between government institutions and enterprises, which inhibited the college students’ enthusiasm to the enterprise employment, resulting that enterprises are difficult to enroll college students, and the difficult employment of the college students. Fortunately, in Jan.14th this year, the State Council isusued the "Pension insurance system reform of the government staff", made clear that unified the pension insurance system of the government staff and enterprise workers, which is the great progress of the plan level of the Chinese pension insurance.The plan level of the pension insurance is one of the hot topics in the society, and to raise the plan level of the pension insurance has become the consensus of the many academics. Based on the political economics analysis perspective The paper makes a research on the plan level of China’s pension insurance through interest relations theory, focuses to analyze the interest contradictions between central government and local governments, inter local governments, governments and enterprises, enterprises and workers, enterprise and government institution.We believe that there is no technical obstacle to achieve the nation plan level of the pension insurance in the era of internet, which has a low running cost. But there exists the low plan level of the pension insurance and the pension insurance can not plan very well between different administrative areas, which the reason lies in the unsolved problem of the interest conflicts between the interest subjects. The most prominent contradiction is the eastern developed regions’ pension insurance income are much greater than the central and western regions because of the large labor inflow, if implemented nationwide of the pension insurance, it is likely to make the pension insurance income flow to the central and western areas which will damage their interest. Therefore in the process of the raising the plan level of the pension insurance, different interest subject has different objective function, their pursuing the maximization of their own interest is inevitably to become the hindering factor to the raising the plan level of the pension insurance. So only by grasping the interest conflicts of all parties, by coordinating interest relationship of all parties, it will raise the plan level of the pension insurance as soon as possible, In addition, the paper also analyzes the impact on the employment of the plan level of the pension insurance that is the plan level of the pension insurance influences the pension income, and then changes the laborer employment decisions, thereby causing the different employment between different regions and departments. Furthermore, it makes theoretical explanation of some social problems.The thesis consists 7 chapters. From the third chapter to the seventh chapter is the main content of this paper.The first chapter mainly is to study the problem of the thesis, research methods, research framework, research content and main innovations and shortcomings of the paper. In the meantime, the paper makes a clarification of the basic theories-interest relationship theory and pension insurance theory, and defines the concepts of the pension insurance and the level of the pension insurance.The second chapter is about the relevant domestic and foreign theoretical reviews of the plan level of the pension insurance. Through the literature review, we found that the research made by the domestic scholars on this subject is more in-depth, but as to the reasons that restrict the improving of plan level of the pension insurance are mainly objective factors. Although some have related the interest relationship, there still lacks systematic analysis and research, the paper is to make up for this dieficiency; As to foreign literature, the research on the plan level of the pension insurance is comparatively small, the possible reason may be that only a few country in the world that their plan level of the pension insurance has stayed in the local level, which is not a common research.The third chapter is the historical evolution and the present situation of the plan level of the Chinese pension insurance. China’s plan level of the pension insurance has a unique development, which every stage is strong connected with the social economic conditions at that time. Through the description of the characteristics of every stage and present situation, we can more clearly understand and grasp the overall situation of the Chinese plan level of the pension insurance system, which laid a solid foundation for the further research of the paper.The fourth chapter is the analysis of interest relationship of the related interest subjects. The related interest subjects include the central government, local government, enterprise, enterprise workers and institution. The raising of the plan level of the pension insurance involves funds hand-over and allocation, pension rights and payment responsibility reallocation, which will lead to readjust of the interest relationship between the interest subjects, causing interests change in the absolute and relative quantity and resulting in interest conflicts that hindered the reform process of the level-raising of the pension insurance. Because the interest is the center of all social activities, the interest relationship is the core of all social relation. Therefore only to grasp the causes of the interest conflicts and take measures to coordinate the interest conflicts, so as to speed up the implementation of the level-raising of the pension insurance.The fifth chapter is the effects of the plan level of the pension insurance on the labor employment. Interest conflicts between the interest subjects will affect the labor employment, As a rational economic man, the laborers will pursue income maximization, so in the premise of free flow of labor market, the impact is changing the expected return of the laborers and change their employment decision, thus changing the labor employment, which will inevitably cause interest conflicts between different departments and regions, which are in fact the interest conflicts of the plan level of the pension insurance further to manifest and extend in the labor market, and in turn further intensifies the interest conflicts between them. So only as soon as possible to raise the plan level of the pension insurance and eliminate the differents of the enterprise and government institution pension insurance, it can be helpful to solve the problems existing in the labor market.The sixth chapter is the comparative analysis. The time of the development of the Chinese pension insurance is very short, there exist some problems are inevitable, so to study foreign experiences to ameliorate China’s pension insurance is a more effective way. Firstly the paper analyzes the three kinds of plan level of the pension insurance in the world, and then makes the United States as the research object, the main consideration is that the U.S. is a federal country, large area and labor mobility in different local government, which makes pension fund finance and use in different area, and the three pillar model is similar to China’s pension insurance, so it has the vital significance to study the plan level of the pension insurance of the U.S. when we construct ours under the socialist market economy system.The seventh chapter is the policy recommendations and research prospects. Through the research of the interest conflicts between the interest subjects in the plan level of the pension insurance, we conclude some policies and measures on coordinating the interest conflicts from the aspects of improvement the plan level of pension insurance, promoting the labor market. At the same time, this paper also points out the shortcomings and further research lying ahead.The main conclusion of the study is the interest conflicts between the interest subjects is the fundamental factor that restrict the reform of raising the plan level of the pension insurance, only to grasp this clue, that is interest relationship, can push the reform in China successfully. The main innovation of this paper is to analyze the interest conflicts between the interest subjects in the process of the plan level of the pension insurance, which expands the research perspective on the pension insurance and the application field of the interest theory of the political economics. The shortcomings of this paper are lacking of resources of real situation of the pension insurance because of different situation in many regions and hard to make field surveys, and there exist large amount of the flowing laborers across the provinces, whose pension insurance situation is also hard to acquire, all of the problems should be paid much attention to in the further research.