Research On The Pooling Level Of Basic Pension Insurance

The pension insurance, as an essential component of the social insurance, is also one of the core componants in total social security system. In the course of China's economic transition, the pension insurance system has undertaken a twenty-year reform, which leads to the nationwide establishment of the urban pension insurance system. Despite some achievements, there are still a lot of problems require deep study and further research. With the theoretical and practical study on these problems, the causes and solutions will be found. That, undoubtedly, will be of great practical significance for the further reforms in the pension system .At present, China's pension insurance is not overall planed by central government. The pooling level of pension fund is very low which is directly related to the degree of risk and even all existing problems in the pension insurance system, such as the rational flow of human resource, enlarging the pension insurance coverage and building a multi-layer pension insurance system. Based on the law of large numbers, the higher the level of the pooling is, the stronger ability the fund has to resist risks. Pension insurance in our country is mainly based on county or city' level since it was founded. Finally, pension insurance at the national level will be achieved to meet the essential requirement of the socialization of pension insurance. It is also the developing direction of the pension insurance system in our country.This paper mainly includes the following research aspects:1. The theoretical basis about raising the pooling level of pension insurance The law of large numbers theory, theory of social equity and income redistribution theory provide a theoretical foundation for raising the pooling level of basic pension insurance. The low-level social pooling limites the the possibility of raising and using funds on a large scale. Funds using in a small scale reduces the function of pention security. Raising the pooling level of basic pension insurance will enlarge the number of insurant and give full play to transferring the wealth between rich and poor, young and old, prosperous areas and backward areas. Thus will meet people's basic life demand and achieve the goal of social equity.2. Research of the development trend of pooling level The pooling level of pension is closely linked to the economic development level and features of a country. At present, with the big economic difference between areas, whether the pooling at the county level moves to provincial level or national leval will cause moral risk. But the moral risk will be smaller at the provincial level than at the national level. However, the provincial pooling level is only the intermediate goal of pension insurance. In the worldwide, the countries established social security system are all the national pooling level .National pooling level is the highest level of social insurance . from the point of management cost, pention at the national level can run with lowest cost. it is the inevitable trend from provincial-level to national-level for pension insurance in the future.3. Regional horizontal Price Index measureUnder the goal of given benefit and in the light of the annual per capita living expenses of urban residents, consumer spending will be divided into five categories, namely food, clothing, medical care, transport and communications, miscellaneous goods and services, each category will be subdivided into several small categories. According to the degree of importance of these five consumption expenditures in people's daily life, we divid basic life into three different levels from low level to high level to compare and analyze the price level of consumption expenditures in different regions. Thus will provid the tool for analysis on the rationality of the pension benefits.4. Analysis on the factors affecting the pooling level of pentionRaising the level of pension insurance is an inevitable trend of establishing and improving the pension insurance system. Athough the needs of improving the pooling level of pension insurance are always strengthened, the reform is not as easy as people think. This is mainly because the raising pension insurance at provincial or national level is not unconditional and it needs certain basic conditions. Therefore, the paper analyses its favorable conditions and barriers.5. Design on the improving of pooling levelThe paper gives a specific program design on the improving of pooling level. Raising pooling levels will bring about the income redistribution from rich regions to the poor regions, it will inevitably cause the dissatisfaction of the region that pay out funds and they may become an obstacle during the process of improving the pooling level under the financial division system today. However, it is inevitable to cause different economic development level and different wage gap caused by the resource, environmental and policy among regions and it is also impossible and unrealistic to eliminate the difference.Under the circumstances that large income gap remains among workers and regions. It may be good for raising pooling level by reducing the income redistribution properly.In order to raise the pooling level smoothly, several program designs with different functions for income redistribution among regions are given after analyzing factors that will cause inter-regional income transfer. The paper also gives a design with the function of income redistribution from "low" to "high" as time goes on. It is a gradual way to achieve a complete sense of provincial pooling step by step and ultimately to achieve national pooling.6. Calculations on the balance between income and expenditure as well as analysis on financial support after raising pooling level.The ability of payment may have pretty important effect on a country or an area's economic growth, social stability, and even the making of the government's policy . In order to know the situation of income and expenses under all kinds of programs, the paper carries out a forecast about the pension balance between income and expenditure after raising the pooling level, and also analyzes the capacity of finance to support pension insurance.