Research On The Sustainability Of New Rural Social Pension Insurance System

The old rural social pension insurance system which began in1992was lack ofsustainability because of its imperfect financing mechanism and the too low benefit level,ultimately it became failure. The new rural social pension insurance system (abbreviatedform of “new rural insurance”) that was pilot implemented from2009has importantprogressive significance in such aspects as gradually changing farmers’ age support,narrowing the gap between urban and rural areas, maintaining social harmony and stability.As a social livelihood projects related to the vital interests of the hundreds of millions offarmers, the sustainability of new rural insurance is the key constraints on its ability to havea strong vitality. So, to avoid a repeat of the mistakes of old rural insurance, it is necessaryto carry out systematic and in-depth research on its sustainability and how to achievesustainable development in its early stage of implementation.Defining the connotation of sustainable development of endowment insurance systemand so on, this paper builds evaluation index system for the sustainability of new ruralinsurance from the design, running, supervision, adjustment, objectives achievement andexternal macro-environment of the system based on the perspective of system evolution,determines the index weight using Analytic Hierarchy Process, clears method fordetermining sustainability level evaluation value of single indicator and the classification ofoverall sustainability. Then it takes Hebei Province as an example to conduct empiricalresearch.Eventually it draws the conclusion of the overall sustainability level in2009-2030of new rural insurance in Hebei Province. At last it ponders the whole system on the basisof sustainability assessment and puts forward practical sustainable development measures.This paper is divided into five parts. The first part (Chapters1,2) introduces theresearch background, purpose and significance, methods, main contents and innovation,defines some relevant concepts, introduces the development course of China’s agriculturalinsurance system, elaborates theoretical basis such as institutional change, public finance,reviews the literature about new rural insurance and sustainable development of the pensioninsurance. The second part (Chapter3) introduces the development process of China’sagricultural insurance system, carries out some relevant reflection. The third part (Chapters4and5) builds evaluation index system for the sustainability of new rural insurance, clearsmethod for determining sustainability level evaluation value of single indicator and theclassification of overall sustainability, and takes Hebei Province as an example to conduct empirical research. The fourth part (Chapter6) builds a policy framework for thesustainable development of new rural insurance from improving system design, enhancingthe ability of system operation, improving the regulatory system. And it makes somesuggestions. The fifth part (Chapter7) is research summary and outlook. The innovation ofthis paper lies in the following aspects. First, it develops evaluation index system for thesustainability of new rural insurance and carries out quantitative estimation for mainindicators. Secondly, it builds convergence mechanism of urban and rural pension insurancerelationship.Thirdly,it puts forward well-founded sustainable development countermeasuresabout individual account divisor coefficient, minimum basic pension and growthmechanism, and payment incentives.