Study On The Institution Of Rural Social Pension Insurance In China

China is a developing country which people in the countryside take absolute majority. i.e. Peasant account for 63.91% of total population, 30% of the world rural resident; rural old resident account for 75% of national old people. Therefore, the pressure of rural aging population is becoming more serious. According to international experience, the modern country that had established social basic old-age pension system 20 years earlier before the aging population peak came, could withstand the impact of "gray hair tide". Otherwise, will inevitably and seriously influence the development of social economy and cause the serious social concern. Through more than 10 years practice and reform, China has already formed the basic frame of the rural old-age pension system, but still far from perfect. The rural old-age pension system, which build on the fundamental realities of China and meet the developing need of market economy, must be established in order to meet the aging population climax that came in 2030. This is the most important institutional improvement since implement of Contract household responsibility in Chinese rural area. And is the inevitable demand for development of rural economy and social improvement. It also is the institution guarantee for solving the "Agriculture, countryside and peasant problem"and for building the well-off society in an all-round way. Definitely it contributes to other developing country's social old-age pension system. This article studies systematically the rural old-age pension system in terms of system innovation. On the background of the transitional economy, the paper regarded the rural market economy as the starting point, studied systematically the rural old-age pension system on the basis of the existing theories and summarizing the 17 years'practice of rural old-age pension system, use the beneficial theoretical and practical experience of rural old-age pension system in other countries as reference, and put China'rural old-age pension system on the background of dual-economy homogeneity. Combing the current situation of rural old-age pension system, the study focus on the economic feasibility of implementing the old–age pension system in Chinese rural areas in an all-round way, and also puts forward a new thought and scheme of establishing the rural old-age pension system in China and designs some modes of rural old-age pension which suit for different conditions, the author hopes to offer theoretical foundation and reference for the establishment of single old-age pension system suitable for both urban and suburb areas. Based on the above-mentioned thoughts, the paper is arranged as following chapters. Chapter 1 Introduction This chapter elaborates the research motivation, purpose and significance; and reviews the abroad and domestic research status in this field, puts forward the basic thought, approaches and the innovations of this study. Chapter 2 The basic theories of rural old-age pension system Firstly, this chapter defines some conceptions such as social security, social insurance, old-age pension and rural social old-age pension. Secondly the chapter analyzes the function, characteristic, and status of rural social old-age pension on the basis of introducing the current pension system. Finally, through analyzing the theoretical frame and practical condition of dual-economy, the chapter concludes that it would be inevitable to establish the rural old-age pension system when the dual-economy lasted for a long time, but the future target is to establish a single old-age system suitable for both the urban and rural areas. Chapter 3 International Comparison on rural old-age pension systems First, this chapter makes a vertical comparison of the pension systems in some typical countries and finds three kind of pension system: i.e. united old-age pension system which implemented in the United States, South Korea, Singapore, farmer special old-age pension in Germany, France, Poland, and System of combination of centralization and decentralization of peasant's social old-age pension in Japan and Canada. Second, a horizontal comparison is made on the condition, models, the channels of financing, the retirement age, the measure for non-farmers and citizens who take more than one job, the function of land and national finance among above-mentioned countries. The conclusion from the comparison is that the Chinese reality must be fully taken into account when an old-age pension system is established in China. It will be a long process to establish a single old-age pension system, during which the legislation must be established firstly and then the socialization of the rural old-age pension system and multiple channels must be emphasized and farmers'awareness of the social security must be strengthened. Chapter 4 The current situation and problem of Chinese rural old-age pension system This chapter presents the current situation by surveying the initial, exploring, developing and declining phrases of the rural old-age pension, and evaluates the effects of implementing the current system in the past 17 years, analyzes existing problems and some institutional factors which hinder the developing.Chapter 5 On the realistic foundation and feasibility to establish the rural old-age pension system This chapter chiefly states the necessity and economic feasibility to establish the rural old-age pension system. The necessity is mainly reflected from two points: one, establishing the rural old-age pension system has very important positive meanings to the Chinese social economic development. Two, establishing the rural old-age pension system will solve some problems such as the aging in rural areas, the weak function of pension system, which depend on the land, challenging of the changing of family mode and the structure of generations in families. Three aspects show the economic feasibilities: 1. The central government has the ability to support part of funds for rural old-age pension system. 2. Some collective-owned organizations in rural areas are able to provide part of funds. 3. Farmers in some areas are able to pay premium with the development of the rural economy. Through quantitative analysis the paying ability of general farmer and farmer worker, the chapter draws a conclusion based on pension condition and the real net income of in different areas, namely all farmers in eastern area have the insure ability with different degree; most farmers in the middle part of China have the ability, while in the western area, a small part of farmers have such kind of ability. Therefore, it is possible to establish the state old-age pension system for rural areas if the government implements a financial supporting policy with taking the different condition and farmers'income levels in different areas into consideration, The earlier farmers to buy pension insurance, the smaller the premium will be paid. Namely, the earlier the rural old-age pension system is established, the lighter burden for farmers to pay insurance will be and the less financial burden for the central government will be. Chapter 6 The construction scheme of a rural old-age pension system with Chinese characteristics Firstly, this chapter provides the general idea to establish the rural old-age pension system, i.e., the job of establishing the rural old-age pension system should be carried out in a smooth, positive and stable way according to the developing level of productivity and the ability to stand the pressure, focus on system perfect and operating norm, taking measures to protect against the risk and strengthening the fund supervision as the core. The difference of area condition and the distribution of different productivity also should be take into consideration, the establishing of the rural old-age pension system should be promoted step by step in terms of the different region, different level, and different sort. During the process, a principle must be followed, that is combing the equality and efficiency, keeping a proper scale, taking different conditions into account,and keeping the diversity of raising money from the government, organizations and individuals. According to the developing process, three modes are designed. They are realistic mode---a mode starting in all-round way, transitional mode----combining urban with rural area mode, target mode---a single mode which suits for both the urban and rural areas. The three modes are related with each other and developed in different period. With the development of China's economy, the realistic mode will be upgrade to the target mode. Second, the chapter provides an old-age pension mode for farmer worker in cities and in township enterprise respectively. Finally, the chapter studies the management innovation of the rural old-age pension system and puts forward the goal and strategies reforming the management system Chapter 7 Optimizing the operation system of the rural old-age pension system By analyzing the modes of raising funds for the pension system, a conclusion is drawn in this chapter: the individual accumulating account mode should be taken for the rural old-age pension system in the transitional period; the target mode should combine the social fund and individual account. The rural old-age pension system should raise funds through various channels, namely, the land profit, social security funds from local government, tax, issuing the insurance bond, issuing lottery, financial support from the central government, selling state-owned property, absorbing loan from some international funds organizations and so on. Meanwhile, a discussion about the mode and methods of levying tax is made in this chapter. After analyzing the method of paying the pension in rural areas, this chapter puts forward the mode of the managing and supervising the rural old-age pension funds and realistic approaches of preserving and appreciation the value. Finally, the chapter discussed the theoretical background of the management of the pension system, the reasonability, the design of the operation mode and operation the funds in a commercial way. Chapter 8 Environment of rural old-age pension system This chapter discusses some environment factors, which influence the implement of the pension system, such as social environment, economic environment and legal environment and etc.