Optimization Of China’s New Rural Social Pension Insurance System

Abstract: Chinese peasants’ pension issue, especially the rural migrant workers’ orthe farmers’ whose farmland requisitioned, has been extremely urgent to be solvedunder the circumstances of social change, economic transformation, especially theincreasingly impact that the rapid advance of urbanization to traditional rural familyendowment functions. In September2009the State Council of China issued thedocument of The Guidance of Expanding Pilot Projects for the New Type of RuralSocial Pension which marks the new agricultural insurance pilot work officiallystarted.The paper details the course of development of China’s new rural social pensioninsurance, foreign rural social endowment insurance practice and experience ofenlightenment. In different parts of the new rural social endowment insurance systemfor the construction of empirical analysis, pointed out that the new rural socialpension insurance the main problems in the system construction, proposed to optimizethe overall idea of the new rural social pension insurance system and measures.Studies have shown that the addition to institutional factors, non-institutionalfactors such as ideological factors of farmers insured has strong explanatory power.The experience of developed countries, the development of rural social endowmentinsurance to respect their national conditions, to follow the law of the development ofsocial security, the government to provide financial support, have legislation toprotect.Studies have shown that the biggest bright spot of new rural social endowmentinsurance is that the government began to raise financing responsibility, but thecentral overall burden is small, local fiscal pressure is bigger and allocationproportion is unreasonable. In addition, our new rural social pension insurance systemhas design defect such as the current security level is low, quota payment system is not reasonable, lack of participation incentive mechanism, individual accountannuities plan hair standard is not in conformity with the actual, fund managementand operation efficiency is low and lack of effective cohesion mechanism.Combined with practical experience at home and abroad, the ideas andsuggestions of new type rural social endowment insurance system optimization arethat taking the urban and rural old-age insurance system into the overall plan as awhole to consider, giving full play to the government’s leading role, establishing andoptimizing the transferring channel between new rural social endowment insurancesystem at different levels, and gradually integrating existing rural farmers, landlesspeasants pension insurance, rural migrant workers endowment insurance and rewardsupport policy for rural families complying with family planning, rural minimumliving security system, etc. Establishing and perfecting the cohesion system betweennew rural social endowment insurance system and town enterprise worker endowmentinsurance system, finally realizing the integration of urban and rural socialendowment insurance system.