Researches On The Pension System In China’s Rural Society

China’s current economic structure and the special dualistic structure of cities and towns suggest that the pension issue for China’s rural residents has been extremely urgent to be solved. During the urbanization, the risk for the survival of rural aging is increasingly serious due to the factors such as the decrease of sons’birth, the aging of rural population, the labor transform to cities, the tendency of removing to cities, the increase of nuclear family members and so on. Meanwhile the process of non-agriculture and urbanization makes the demands of peasants for social pension increase greatly. So it has been a hard mission for theoretical and practical operators to emphasize and expand the pension in China’s rural society entirely. Under such circumstances, in September 2009 the State Council of China issued the document of The Guidance of Expanding Pilot Projects for the New Type of Rural Social Pension (hereinafter referred to as the New Rural Pension). The New Rural Pension (NRP) is more inclined to farmers in the policies of favoring farmers, which is shown from the angle of economic resources by the fact that the pension system in rural societies offers the minimum amounts of pension paid by China’s fiscal department and that personal pay, group supply and governmental subsidy are combined in financing. The paper reviews the related historic researches and definition, introduces the related concepts and theoretical fundamentals briefly, analyzes the problems, elements and causes when setting and implementing the policies of rural pension in the past and the advantages, disadvantages and causes of the NRP on the basis of including problems countries encounter and experience in developing rural pension system from learning foreign pension systems, points out the drafting principles, implementing steps and key issues of the rural pension system, and raises that the governmental fiscal support is the practical choice for building China’s rural pension system.The paper, from the theoretical angle, can make good omissions and shortcomings to offer theoretical references for establishing a pension system corresponding to China’s situations while from the practical value the paper believes that the rural pension can guarantee the minimum or even higher requirements in the aged peasants’daily lives through redistributing the national fiscal revenues and promote the stable improvement and growth in modern agricultural economic benefits, backed by the national strong economic power and wealth accumulation. The sound redistribution of social incomes brings peasants hopes and moves. In a word, building the rural pension system is an important part to speed up the construction of social security system covering all the residents in cities and towns and brings goods to ensuring the peasants’daily lives, cutting down the population of the poor, shortening the gap between residents in cities and towns, maintaining the fundamental stability in rural areas, and eliminating rural poverty especially eliminating the phenomenon of the aged in rural areas.Using many researching methods such as empirical analysis, specification, comparison, actuarial analysis and so on in combination with skills in economics, management, demography, sociology and statistics, the paper argues that the governmental fiscal support is the practical choice for building China’s rural pension system completely, on the basis of which the paper redefines fiscal responsibilities of China’s government in the rural pension system, raises the attempt to build China’s sustainable pension system in the rural society from the angle of fiscal subsidies, transfer payment, fiscal management, fiscal budget and fiscal supervision.The paper is organized by the following seven parts:Part 1 is introduction in which the paper tells about the research backgrounds and meanings, document summaries home and abroad, research ways and innovations.Part 2 is theory evidence for the rural pension which discusses the governmental responsibilities and fiscal behaviors from the theoretical angle of welfare economics, income redistribution, government paternalism, public products, and Beveridge，s project which are reliable to understand and construct China’s sustainable pension system in the rural society.Part 3 is practical analysis of pension system in China’s rural society which begins from introducing the evolution of China’s rural pension, points out the deficiency of "the old rural pension system" and the disadvantages of "the new rural pension system’" by comparing the implementing results between the two systems and discusses the causes of disadvantages in implementing the NRP.Part 4 is international experiences and references of pension in rural societies which concludes the common character of the pension systems in foreign rural societies, say public fiscal support, graduation of construction, perfect legislative guarantee, fiscal supervision by analyzing some foreign rural pension systems from the establishment background, fundamental pension arrangement, substitution rate and level of pension, lawful policy environment and fiscal support.Part 5 is overall draft of building China’s rural pension system which introduces the overall frame and drafting principles of the NRP first, followed by the choices of target model in the NRP, implementing steps and key issues to build a pension system fitting China’s rural economic development and the conclusion that the governmental fiscal support is the practical choice for establishing China’s rural pension system.Part 6 is workable research in government finance for the sustainable development of the rural pension system which analyzes the willing costs and economic feasibility between demand and supply subjectivities in the rural pension from the angle of the financing model—— the actuarial model under PAYG and total accumulation system after fixing the pension pay and its rate, especially analyzes the fiscal total scale and fiscal burden abilities and raises the concrete draft of constructing a Chinese-style pension system in the rural society.Part 7 is researches on sustainable fiscal support policies in China’s rural pension system that offers the key ways to solve the problems of China’s fiscal responsibilities. The paper first points out the fiscal support, analyzing the dependency coefficient and steadily clear off historic debts. Then it raises fiscal support for the pension, beginning from constructing reasonable fiscal relationships between governments at all levels, the mechanism of fiscal subsidy, fiscal transfer payment of the rural pension system for sustainable development and fiscal excess reserves, and the governmental fiscal guidance mechanism of financing for the rural pension, and drafting social security budget to opening special fiscal accounts of the rural pension funds, to forming strategic management ideas of fiscal crises in social security and to perfecting fiscal supervision of social security funds. At last, the paper discusses the related supporting measures of constructing China’s rural pension system.Taking governmental responsibilities and fiscal functions as the main clue in the introduction and analyses, the paper presents the innovation that the paper researches the issues in the rural pension from the angle of public products, analyzes the payment willing and economic capabilities of individuals, groups and the nation, emphasizes the guidance responsibilities of governments at all levels and "final undertakers’" functions of government finance under the condition of the government’s sufficient treasury power, and raises the sustainable rural pension system with integration of urban and rural areas can be realized by mechanism arrangements. The inadequacy of the paper is that it is not finished on enormous social researches, which leads to no sound understanding of constructing China’s rural pension system that should be done further in the future.