Study Of The Social Pension Security System In China

Social pension security system is in close connection with economic development. China is in the period of economic transition, which poses new problems that need solving to the perfection and reform of social pension security system as well as the requirement for sustainable development with long term plan. In the research of China's social pension security system, it's required to comb its fundamental theories and value orientation of institutional policy, better guide the reform of its practice, and make its sustainable development possible to provide stabilizing mechanism for China's economic development and improve national living quality. The paper, from the angle of policy space, recombs the existing economic theories on social security, especially the mainstream neoclassical economic theory with great influence in order to screen out the core of fundamental theories that can be used. Based on that, it puts forward the countermeasures and suggestions adjusting China's social pension security system.The objects of the paper are the moderate degree of China's social pension security, its link with economic running, its choice of modes, the sustainability of its financing modes, its choice of modes and feasibility, etc. The paper, using foreign experience of research and reform for reference, begins with fundamental theories on social pension security system and the analysis on its value orientation of the institutional policy, analyzes the problems during China's more than 2 decades of social pension security system reform and puts forward the suggestions on the basis of the practical process of reform and innovation in China's social pension security system.Chapter 1: Introduction. This chapter discusses the paper's background and its significance of selecting the topic, conducting a survey of viewpoints of school of economic theories on social pension security system as well as social policy theory, and briefly introducing the framework of the paper.Chapter 2: Economic theory and policy theory on social pension security system. This chapter interprets political economy, neoclassical economic theory and Maxims theory,and conducts analysis of the theories in terms of many respects like its births background, development and the policy implications, etc, focusing on identifying the essential position and the application of neoclassical economic theory in the development of post-war social pension system.Chapter 3: The analysis of social security modes and practice of social pension security in developing countries. It discusses various kinds of social security modes in terms of its theoretical basis, value orientation and the effect appraisal. In different social pension security modes, the responsibilities of government, enterprises and the individuals are under adjustment, which focuses on identifying the responsibilities of government in insurance security mode and provides basis for China's reform of social pension security system. It also analyzes the practical experience of that in developing countries.Chapter 4: The empirical part of social pension security competence. It's as well as the innovative point of the paper. It uses social security theory to specifically analyze the moderate degree of China's social security competence, concluding that under the circumstance that labor factor distribution coefficient is lower than theoretical data, China's social security competence is still above the lower limit of theoretically moderate degree, which is shored up by high paying rate.Chapter 5: The social pension security system and economic running. According to the framework of neoclassic, this chapter discusses the relationship of social pension security system and income redistribution, national savings, labor market and international competitiveness, etc. Using economic perspective, it analyzes the interaction between social pension security system's running and macro variables of national economy, showing that pension security system is not only social system, but also economic institution.Chapter 6: The choices of social pension security system mode in China. Using the experience of non-contributory pensions in developing countries and multi-pillar pension mode put forward by World Bank for reference, it discusses the integration of 3-pillar pension system with social relief pension and minimum life security system, which forms China's multi-layer social pension security mode with differences between urban and rural areas. The research focuses on the family pension mode with Chinese characteristics.Chapter 7: The sustainable development of China's social pension security. Under the circumstance that China's actual labor growth rate, wage growth rate and real interest rate growth rate all meet the Aaron condition now and in the long run, it claims that China adopt the financing mode of pay-as-you-go system, uses nominal account system for reference to solve the problem of transition cost incurred by the implementation of social pooling and individual account combination as well as that of individual empty account running, thus avoiding investment risks, benefiting the maximizing the utility of social pension security fund. It rectifies nominal account to strengthen the function of redistribution.Chapter 8: The establishment of multi-layer pension security mode in China's rural areas. It analyzes the necessity of establishing a multi-layer pension security mode in China's rural areas, and conducts feasibility analysis on the establishment of rural social pension security system. It puts forward, suiting local circumstances, reasonably establishing rural social pension security system in accordance with level of economic development and demand theory are the principles that should be paid attention. It claims the integration of rural social relief pension and the institution of household enjoying five guarantees, which forms China's multi-layer social pension security mode including family pension.The paper combines its research on theory and policy with specific contents, keeps itself abreast at the right timing, uses foreign experience for reference, and adopts the advantages from all other people, providing the policy suggestions for the reform and perfection of China's social pension security system.The main points and conclusions are as follows:(1) With regard to China's basic pension insurance, the enterprises and individuals'paying rate is high. According to the actual data of China's present labor factor distribution coefficient and pension bearing coefficient, the paper analyzes the moderate degree of China's social pension security, proofing that China's present basic pension security level has been above the lower limit of moderate degree. The enterprises and individuals'paying rate is over-high, under the circumstance that our labor factor distribution coefficient is much lower than theoretical data. The responsibility of enterprises and individual is over-high, as well as the responsibility of government is over-low. It suggests that inclining the paying rate and increasing the expenditures of government.(2) The conclusion on social pension system and economic running in China's practice is that the social pension system in china is not only bearing the function of intergenerational distribution, but also bearing the function of intergenerational distribution. The poor is able to get part of the income transfer from the rich of the same generation. In China, there exists"crowding in"effect towards savings in the reform of social pension security system. The pension premium that the enterprises should undertake does not affect the demand for labor. Country's international competitiveness is affected jointly by the expenditures of social security.(3) Coordinate social pension security resources to establish multi-layer pension security mode based on non-contributory pension security. Using the practice of non-contributory pension security in developing countries and multi-pillar pension security mode put forward by World Bank for reference to put forward the integration of rural social relief pension and the minimum living guarantee system, which forms China's multi-layer social pension security mode including family pension. Adopting the multi-layer social pension security mode with differences between urban and rural areas set the focus of research on pension mode on the family pension analysis with Chinese characteristics.(4) It's fitting for China to adopt pay-as-you-go system as social pension financing mode. Under the circumstance that China's actual labor growth rate, wage growth rate and real interest rate growth rate all meet the Aaron condition now and in the long run, it claims that China adopt the financing mode of pay-as-you-go system, uses nominal account system for reference to solve the problem of transition cost incurred by the implementation of social pooling and individual account combination as well as that of individual empty account running.(5) It's not necessary to fund individual empty account operation. Under the circumstance that China's capital market in the present stage is still not complete and the investment channel is not smooth, funding individual account is provided with neither external conditions nor internal fiscal power. Compared with the empty account related to GDP, the real account related to capital market is more reliable with government as credit guarantor of social pension security system.