A Study Of Dual Pension Scheme Reform In China From The Perspective Of Redistribution Theory

Over the past10years, global pension reform is conducting all over the world. Formost countries, the driving force for reform comes mainly from two aspects:one is thecurrent system can not be the burden of the future, and the aging population has becomea major risk of the serious situation facing the world; the other is the process of aplanned economy transition to a market economy in the country is faced with thechallenge of introducing public pensions, the system is necessary to protect the basicliving standards of the elderly after retirement, but also to support the basic principlesof the market economy. For the latter, the driving force behind the reform is stillultimately aging population and financial affordability.With the contradictions of dual pension scheme, different interests of differentoccupations to bring the treatment caused the widening gap between two-track systemswith the heavily criticized comment. Obviously, people’s concerns focus on two-tracksystem is an irrational distribution system, is not conducive to achieving social justice,stability and harmony. At the same time, different groups of unfair treatment ofpensions is not conducive to unify the context of globalization of the labor market, theimpact of the transfer and the continuation of human resource allocation.Based on this background, the paper’s topic focus on the dual pension schemereform, selecting perspective redistribution theory, to emphasize fair distribution ofpensions. The purpose is to accurately assess the extent of the practice of the currenttwo-track system of pension reform, specifically its reform faced resistance, to reflectthe current dilemma facing reform and explore the optimal path of reform, to achieve afair redistribution of pension insurance.By combing the evolution of two-track pension reform, this paper argues, ourtwo-track pension reform in the true sense, should the pilot began in2009with thebegan of five provinces institutions pension reform. But reform of the five provinceswere strongly challenged all sectors of society, encounter a lot of resistance. Early2015,the State Council on the reform of the pension dual track has a clear requirement that the reform should act the same as enterprise workers, get rid of the two-tracksystem.This paper argues that the “merger” is to achieve pension top-level design toolsand strategies to improve our pension system, discuss and focus just around the systemitself is one-sided, the real problem is the two systems under the pre-reform coverage,social groups enjoy extremely unfair pensions, this unfair and adjustments reflected inthe amount of pension gap is large, then the distribution of treatment after the reform isfair within a certain range is the focus of attention.Under the two-track pension background, resulting in different pensionreplacement rate. Data show that between the years1998to2010, the pensionreplacement rate at organs and institutions retirees hovering at around90percent, thepension replacement rate over the same period of enterprise retirees generally low, andshowed a declining trend. Replacement rate gap is two-track pension under the directperformance gaps, and institutional change, treatment design, financial burdens andsocial stratification in four areas also restricts deeper invisible allocation of theirpension benefits. By evaluation of the two-track pension reform, we believe that thepresence of two-track pension reform concept of cognitive bias distributionrelationships. Further consideration of reform pension insurance agencies andinstitutions, there is a form of weight in essence, ignoring the special needs andproblems of occupational welfare reform abuses. By rethinking of basic pensioninsurance reform, we believe the internal mechanism of employee pension insurancesystem derived from the distribution of the level difference, and adjust the systemoutside of irreparable defects caused by endogenous crisis. Clearly, there is a conflictwith the target level of employee pension system insurance, then in the background ofthe merger, provided two-track reform is to improve the employee pension insurancesystem reform learn from the experience, in order to narrow the gap between thetreatment groups for the purpose, rather than simply The merged institution.From a practical point of view of countries, pension dual track unusualphenomenon. Most of the state to promote fairness is within a certain range, can acceptdifferent groups have different treatment gap, and reasonable system design can narrowthis gap; at the same time, we must mobilize the enthusiasm of the different groups,reflecting the different career benefits. Rational view of fairness, throughdiversification, multi-pillar pension insurance system, improve the pension of thetop-level design; the use of different complementary pension schemes, multi-level pension system common development and achieve a balance between fairness andefficiency.Therefore, the goal must be to achieve pension reform pension distributive justiceas a precondition, and to uphold this long-term goal of positioning. Sustainable pensionsystem have political support is reflected in the depth, breadth and durability;reasonable to avoid the risk of an aging population; the positive transition costsassociated with the elimination of the financial crisis; promoting balanced multi-pillarsystem.First, two-track reform to break the constraints of political interests, to achievethe depth of political support, breadth and durability. Second, the pension of retirees topay a direct impact on the issue of sustainability of the pension system. Third, take arational view transition costs. Fourth, to promote the balanced development ofmulti-pillar pension system, the top-level design to build a diversified multi-levelpension reform.Establish nominal account can solve the problem fundamentally to improve theoverall level of faced obstacles, and create the conditions for the centralizedmanagement of pension income and expenses, also to strengthen the country for use offunds management capacity, to achieve the role of pensions in the inter-regionalredistribution, and swept away the insured places of employment, labor transfer allobstacles. At the same time, to create synergies and occupational pension annuity,occupational pension forced to play a role in promoting annuity; play a complementaryrole in safeguarding commercial insurance, commercial insurance to improve the socialidentity, encourage third pillar pension assume responsibility. Complete set of measuresto strengthen the reform is also essential meanwhile.