Research On The Fiscal Burden By Social Pension Insurance In China

In the later1980s and early1990s, Chinese economic system had shifted from the planned economy to a market economy system, correspondingly, the basic pension insurance system for urban employees also has carried on the reformation. Through years of continuous exploration, the basic pension insurance system in China has completed the system mode conversion by state finance taking on all the finance payment to only taking on the out liability, and by enterprises and individuals sharing the financial costs. Although the enterprise contribution rate is very high, the system deficit also exits and has expanded year by year, and has become a systemic financial burden of the state, the emergence of this phenomenon shows that system itself has certain problems. In addition, the "double-track" pension gap between the enterprise employees and those of government organs and institutions is great, this has aroused society’s widespread discontent, economic and social transition of China requires a harmonious and stable social environment, One of the goals of social security is to maintain social stability,but the current basic pension insurance system itself is making friction and unfairness, if considering the new rural social pension insurance, fairness degree is lower. Because fiscial funds are public resources, social pension insurance fiscial expenditure should try to ensure fairness and burden-scale controllable.Pension system is under the influence of a series of complicated factors, such as, contribution time, the retirement age and life expectancy after retirement, and these factors are uncertain; In the decades of long working life and long years of retirement, many things will change, such as income level, population structure, and even pension insurance law itself. So, predicting the total pension cost of the future is difficult, financial balance often has to rely on raise the contribution rate or turn to the state finance. how large is the burden of finance accurately? Since the system has established in the beginning, the Chinese and foreign experts and scholars have measured China’s transition from pay-as-you-go system to partial funding of the implicit debt scale, the results vary, and system itself is in the process of constantly adjusting, its financial burden is more difficult to measure accurately. So the emphasis of this article is not laid on the financial burden scale to predict, but on by establishing theoretical models to analyze the formation mechanism of the financial burden, as well as various problems exposed from the financial burden and giving some countermeasures suggestions. The existence of the financial burden that issue from the new rural social pension insurance and government organs and institutions pension insurance is normal, a financial burden of the basic pension insurance system for urban employees should not arise in the theoretical model, at least the systemic financial burden should not appear now, even if there is no individual account fund, but in reality not only the individual account fund has been used, but also a large number of financial subsidies has been used to maintain, it is necessary to explore the causes and consequences of systemic financial burden of the social pension insurance system for urban employees, giving a series of theoretical explanation to resolve the problems.Firstly the article expounds the theoretical basis for fiscal support to social pension insurance system, including the concepts of the social pension insurance system and financial burden, relating the public finance responsibilities theory, the principles of fairness and efficiency evaluation and the sustainable development theory of the system, etc.Secondly, the article has reviewed the development history of social pension insurance system in China and introduced the typical pension systems of other countries in the world in order to draw some lessons. Social pension system for urban employees in china, generally experienced the stages of national security in the1950s to the mid of1980s, and the mid1980s to the present financial payment for the Income gap; The establishment of the new rural pension insurance in recent years opened a new chapter of the basic social pension insurance complete coverage in China. Internationally, the mechanism model that finance bears the expense of social pension insurance generally have three types:a fiscal package type, the ratio of fiscal payment and financial bearing the gap. In a general way the fairness principle is a top priority in system of social pension insurance, and the Swedish nominal account system may give an important enlightenment to solve the current problems in China, In order to make it more fair and fiscal burden control, financial contribution shall be explicit.Thirdly, from the financial perspective analyzing many sides including fairness, efficiency and sustainable development problems existing in the current system of social pension insurance in China, the mechanism has lead to each social group in the system enjoying public financial resources extremely unfairly, so seriously affected the financial resources of the optimal allocation, which indicates the defects in system design. Although the contribution rate of the social pension insurance for urban employees is20%, which is almost twice the international average Contribution rate level, individual account remains under the condition of empty account and the system still needs much fiscal subsidies to sustain, and the substitution rate of pension declines year by year. this abnormal phenomenon needs deep analysis. at the same time, it explains the financial burden of employees’ pension insurance in administrative departments and institutions, and which is disintegrated into three parts as excess burden, offside and normal load from the theory.Finally, the article Put forward the proposal for the mechanism optimization of the financial burden strategies. The first step, it is necessary to differentiate how to reform of social pension insurance system in China, in order to promote social justice and to optimize allocation of labor resources the state of the fragmentation of the system must be ended; The second step, designing a unified new social pension insurance system, and the state, employers and employees all are clearly accountable. The final step, estimating the financial burden of the new system and the results are comparing the fiscal burden with the old system, at the same time analyzing sustainability of the new system.