Research On The Operating System Of New Rural Social Pension Insurance Fund In China

With the population aging has become increasingly prominent, farmers have the increasingly strong demand for pension security, rural pension issue has become a matter of the major social problem involving national development and stability, which has become a hot topic in the study of theoretical workers.Because of inherent defects and difficulties in the implementation,the system for traditional rural social pension insurance was very difficult in its development. Since the pilot for the new rural social pension insurance (short title for NRSPI) with the characteristics of the government financial input has been done, the number and the rate of the farmers participate the NRSPI are increasing year by year, the system performance has improved significantly.But the NRSPI pilot is only in some areas,overall coverage is still narrow,there are still issues such as financing criteria and irrational structure,the poor increasing the value, low level of pension security, monitoring system needs further improving,and all these questions are due to the operating system of the NRSPI fund. Therefore, the optimization of the NRSPI fund operating system,to achieve the NRSPI sustainable development, has important theoretical significance and practical value.In this paper,an analysis for the operating system of the NRSPI fund have been done by the way of the questionnaires, ELES model, actuarial analysis,principal component analysis and cluster analysis, principal-agent model, portfolio model and game analysis.Firstly, the content for the operating system of the NRSPI fund is proposed, the composition of which and their relationship have been analyzed. Secondly, foreign rural social pension insurance system and its operating system give a lot of useful insights. Finally, the specific analysis have been done about financing system, operation system, payment system and monitoring system, the appropriate safeguards have been proposed. Through the analysis, the main conclusions are as follows:(1)The operating system of the NRSPI fund refers to the NRSPI fund as the main body and the formate organic whole of the Fund, including fund financing, operations, payments and monitoring of the "Four in One " mutual restraint and mutual promotion, through the establishment of scientific and appropriate financing system, increasing the value of enhanced operational capacity, providing the payment of basic pension to meet the farmers and improving the level of effective monitoring system to promote orderly and harmonious operation in four areas, in order to promote the sustainable development of the NRSPI.(2)Abroad, especially developed countries, the operating system of rural social pension insurance fund is more successful and effective, which give the buliding and improving for China's operating system of the NRSPI fund a lot of useful insights: rural social pension insurance fund's operating system should be adapted for national conditions; financing system should be diversify and the state assume more responsibility; rural social pension insurance fund should be operated on market; strengthening the regulation of funds; implementation of the system must have a legal protection; adhere to urban and rural development concept,and promote until achieve the full coverage step by step.(3)The financing the system for part of the accumulation mode which be implemented by the NRSPI through combining social pooling with individual accounts is in line with China's rural reality. Although government has played a key role in promoting the development of the NRSPI, but there are still issues such as inaccurate positioning of the main fund-raising, the low standard of fund-raising, unreasonable structure of fund-raising, etc. In this regard, scientific and appropriate financing system of NRSPI should be build, that is in the part of the accumulation mode, to individual pay and government subsidies mainly, to collective and social donations supplement, standard moderate, reasonable structure, sustainable financing system. The pension needs of farmers is estimated by the ELES model, income replacement rate of between 36%-58% could meet the basic old-age needs of the farmers, with the actual research situation, determine the appropriate rate of income replacement should be at least 50%, individual payment and 2:3 ratio of government subsidies is more reasonable. According to the principle of financial powers match to the responsibility between the central government and local government, to determine a ratio of 1:1 financial subsidies, financial responsibility between local governments to share at the ratio of 5:3:2.(4)In the choice for operating model of the NRSPI fund, basic pension should be operated and managed by the government and individual account pension be operated through trust investment model. But the trust investment model has the moral hazard problem because of agency, therefore, by constructing a principal-agent model, draw a conclusion that investment companies should be allowed to fund's additional income and investment profits linked, are willing to work harder to obtain additional profits, thus implement incentive contracts under the general equilibrium.Making use of the portfolio to effective risk diversification, the Markowitz's mean - variance model is applied to the NRSPI fund for portfolio analysis, the coefficient of risk aversion in the choice of 0.1, the NRSPI fund's investment combined accounted for 20% of bank deposits, government bonds accounted for 46.08%, corporate bonds accounted for 26.88%, the stock accounted for 7.04%.(5)There are such issues as payments are low, unreasonable payment coefficient and not establishing and improving for payment adjustment system in the payment of the NRSPI fund. In this regard, by building coefficient model in the payment of personal accounts, re-calculation of pension for men and women to determine the number of months for the 114 and 140 respectively. On this basis, the proposal of building the personal accounts actuarial model be based on a life annuity payments, that the main factors of payment level are the payment rate and investment rate of return. In regard to the basic pension accounts, according to security level targeting, by constructing the pension adjustment index model, propose the three high-middle-low adjustment programs in the adjustment system of indexation.(6) Currently, the regulatory effect of the NRSPI fund is still good, but there are still many problems, learn from foreign experience,building the NRSPI fund's regulatory system of the decentralization management and checks & balances supervision to achieve the overall supervision and unified coordination.Through game analysis on the supervision of fund operations, draw a conclusion that on the one hand to reduce the operating company's illegal fund investment management space (α~* be reduced), on the other hand to expand the fund management supervision space (β~*be reduced). To strengthen the fund's risk control, based on principal-agency theory building risk regulatory model of the NRSPI fund's operationa, further to have an analysis on regulation affect pension fund market, and put forward "strictly limited supervision " should be appropriate adjusted to "prudent supervision " step by step, to achieve pension funds and capital market interactive healthy development.