Study On Moderate Benefit Level Of The New Rural Endowment

On June24,2009, Premier Wen conducted the executive meeting of the State Council to study the plan of the New Rural Endowment Insurance pilot and decided to carry out the pilot plan in10%of the counties (cities, districts) in China. On September4,2009, the State Department released the guidance "the Guidance of the State Council on carrying out the New Rural Endowment Insurance pilot"([2009] No.32). The guidance put that the central and local levels of government should finance the insurance, and the the New Rural Endowment Insurance is funded by individual contributions, collective benefits and government subsidies. The central government should give full grant to the Central and Western regions, and give half of the subsidy to the Eastern region.Since the pilot day, the New Rural Endowment Insurance has been carried out for more than three years and this system has helped settle down the endowment problem to some degree. However, it is facing some risks and challenges with the rapid development of the economy and society. Under the circumstances of the whole politics, society and economy, it is a urgent problem to be settled whether the New Rural Endowment Insurance can meet the rural old residents'basic demand and its benefit level is suitable.The article is divided into seven chapters, it put the research question, then analyzed and solved it, then put forward the conclusion and measures, according to the empirical research ideas and logic.The first chapter is introduction, which explained the research background, proposed research question, summarized the research status and defined the research path. This chapter is divided into four sections, the first section put the background and significance; the second one summarized the research status; the third one introduced the source of data, research method, path and content; the fourth one put forward the innovation points and shortage.The second chapter introduced the theoretical basis of this study, which is divided into four sections to describe the four major theories. They are Social and Economic Welfare Standards, Government Intervention Theory, Fairness and Efficiency Theory and life-cycle hypothesis.The third chapter analyzed the benefit level of the New Rural Endowment Insurance. This part firstly defined the benefit level of the social endowment insurance system from the macro and micro theoretical definition, then calculated the benefit level of the New Rural Endowment Insurance from the macro and micro perspective. It calculated the cross rate of substitution in2009and predicted these ones from2010to2053based on actuarial method through constructing the basic pension account and personal account model. Based on this, the micro benefit level relates to the government subsidies, the rural residents' pay level, payment years and personal account interest rate, which is positively correlated.The fourth chapter assessed the replacement rate, which means the micro benefit level of the New Rural Endowment Insurance. Based on the Human Demands Theory, people's life consumption demand can be divided into three levels, which are the demand of means of livelihood, the demand of means of enjoyment and the demand of means of development. Then analyzed the rural residents' consumption structure, marginal consumption tend of different living consumption project and marginal consumption budget based on the ELES Model. Based on the results above, this part estimated whether the micro benefit level can meet the old residents' different levels of demand from2010to2053by setting three level of living consumption group. The conclusions are as follows:the benefit level of the New Rural Endowment Insurance is on the low side, which can only meet somebody's demand in three levels, which can pay for more than15years, the others cannot be satisfied. The higher living consumption level the people enjoy, the more expenditure and the higher benefit level of the New Rural Endowment Insurance.The fifth chapter is the connecting paragraph. Based on the conclusions from the previous section, it provided the benefit level adjusting basis. This chapter is divided into four sections; the first section is a summary of foreign experience of rural endowment insurance and lessons of pension index adjusting; the second section put forward the adjustment principle and standards; the third section introduced the goal of the benefit level; the fourth section put the adjustment strategy of the benefit level.The sixth chapter analyzed the government's ability of subsidies on the New Rural Endowment Insurance. Its precondition is meeting the residents' demand of three levels and estimating the government's ability of subsidy in the three levels. Based on the steady and dynamic state, this part estimated the central government and local governments' ability for subsidy in the pilot year and the approaching years (2010-2053). The conclusion is that local governments'ability is limited and the central one is capable. The former one is an obstacle of the benefit level's increasing. The New Rural Endowment Insurance aims at guaranteeing the basic life and the residents'demand of the second level should be satisfied, including foods, clothes, inhabitancy and healthy demand.The seventh chapter focused on the rural residents' payment behavior and analyzed the viability of increasing the payment level through estimating personal payment ability and willingness. The results are showed:with the development of the economy, personal payment ability is improving and their payment willingness is as well as stronger; the temporary payment level is too low to guarantee the rural residents'basic life, although it makes a difference on the system generalization.Finally, this part put the summary of the whole research and put forward the suggestions to make sure the New Rural Endowment Insurance develop smoothly and sustainably and can guarantee the rural residents' basic life.