Study From The Angle Of Public Finance On Fund Collection-Payment Mode Of Social Endowment Insurance

By the end of the year 2008, the aging population of China has reached 159 million, expected to go beyond 400 million in year 2050. On the other hand, as the current endowment insurance system covers only 30% of the aging population, it will be difficult to approach to the aging problem in China. So it is urgent that the current endowment insurance system be reformed and improved. After a systemic study of the general modes, the financing modes, the payment modes and other relevant issues of social endowment insurance home and abroad, the paper proposes a program on China's endowment reforms and reconstruction from the perspective of public finance.This paper first hackles the transmutation of modern endowment insurance system and its theories, observes and compares the prevailing main endowment insurance modes, coming at the conclusion that there is no universal formula for the endowment insurance system, nor does the economic level alone determine it. It is the comprehensive system targeting as well as other important factors that dominates the designing of the endowment insurance system. Then, the theoretical and practical examination of the economic effect of public finance on the endowment insurance system indicates that the outlay level of the endowment insurance from public finance is highly related to the proportion of the income distribution and the consumer demand to national output. Therefore, it has realistic significance for the decrease of the income Gini Coefficient, the enlargement of consumer demand and the domestic demand if the structure of the public finance outlay is adjusted and that of the endowment insurance improved.Based on the theories and studies above, and from the perspective of public finance, we put forward to establishing a new polynary endowment insurance system"shared by all people", with the basic endowment insurance system as the base. By comparing the major financing modes of various countries, for the first time we propose a financing mode of combining taxes with fees to raise capital for our social security pension system. According to the over-lapping generation model and the life cycle hypothesis respectively, the capital source of fundamental annuities is proposed to come from taxes and that of the individual account annuities from fees. Furthermore, we deduce from the"combination mode"a model of equilibrium tax rate for endowment insurance, according to which the applicable tax rate for different times can be determined. A actuarial model of individual account annuities accumulation is also proposed according to the parametric setting on the insurance actuarial science.; the model of finance and tax policy for supplementary pension is bettered. We also propose for the first time to implement a"national pay dividend"system as the supplementary pension for the old, which is a financial innovation and will help to vitalize the capital.By comparison and through lessons domestic and foreign, we reconstruct the payment mode of the fundamental annuities. The fundamental annuities still is composed of the Fundamental annuities and the Individual account annuities but without any association of the two in aspect of the quota. That is, the retiree receive equal fundamental annuities independent from the individual payment, which comes from the social security tax and the transfer payment from public finances, mainly functioning as a supply for the living needs for old people. While the individual account annuities come from Individual payment depending on the annuities accumulation in personal account, demonstrating individual difference and stimulus.Then we forecast the change of Chinese demograghic structure, establish the applicable tax rate for different times according to the equilibrium model of endowment insurance tax rate, by use of Econometrics software forecast and analyze the total revenue of all staff. And on such a base we simulate the income and outlay changes of the fundamental social endowment insurance before the year 2050 and analyze the individual annuities accumulation and the payment level by the mathematic model, which in proves that the reconstruction of the annuities structure strongly support the target of a endowment insurance shared by all people.At last, based on the analysis of theory and the empirical research, we put forward some policy advices.