The Institutional Analysis And Research On Optimization Of Multi-pillar Pension System For Chinese Urban Workers

The basic pension for Chinese workers is being tested by the aging,and the sustainability of the system is challenged.It is extremely urgent to improve the multi-pillar pension system.As early as 1991,the central government of China officially launched the construction of a multi-pillar pension system.However,after nearly 30 years,the development of the multi-pillar pension system has failed to meet the expectations,showing that the basic pension insurance system is "the only one" and the development of the second and third pillar pension system is unbalanced and inadequate.Scholars at home and abroad have done a lot of research on the construction of the multi-pillar pension system,analyzing the difficulties faced by the system reform,in order to seek solutions to the difficulties.However,many scholars at home and abroad analyze the problems from a single level pension system,which makes it difficult to comprehensively and systematically examine the problems existing in the multi-pension system.Moreover,most scholars focus on the "pros and cons" analysis of the system itself,ignoring the analysis of external constraints and paying little attention to the influence of a country's traditional culture and psychological stereotypes.However,these cultural system factors are exactly the key factors that restrict the applicability of relevant mechanisms in a certain country or region.Therefore,based on the theory of institutional economics,This paper establishes a theoretical analysis framework of the multi-pillar insurance system reform,and based on the reality in the multi-pillar pension system for Chinese workers,using institutional analysis methods,makes a historical,interdisciplinary,comparative and cross-cultural analysis of multi-pillar pension system for Chinese workers.The article has eight parts.The contents of each part are as follows:Introduction.This part describes the research background and significance,research content,research methods,and innovations and shortcomings of this paper.Chapter 1 analyzes the theoretical framework of the reform and optimization of the multi-pillar pension system.This chapter establishes an institutional economics analysis framework for the reform and optimization of the multi-pillar pension system.The reform of the multi-pillar pension system is a function of the complexity of the environment,the motivation of human behavior and the degree of human recognition of the environment,that is,the reform and optimization of the multi-pillar pension system is jointly promoted by the environmental change and the value orientation reflected by people's understanding of the environmental change.The main way of system reform is the gradual reform of learning by doing and“doing by learning”.The dynamic change of the environment,human's behavioral motivation and mental ability to identify the environment is also the source of the dilemma of the multi-pillar pension system,which causes the adaptive dilemma of the original institutional arrangement.It is mainly reflected in three aspects: first,the influence of other institutional changes in the institutional system;Second,the impact of external environmental changes;Third,the constraint of informal system.Therefore,whether the reform of multi-level endowment insurance system is effective needs to pay attention to the coordination between systems,the ability to adapt to environmental changes and the adaptability to informal system.Chapter 2 makes a historical analysis of the construction of multi-pillar pension system and summarizes the experience.The multi-pillar pension system for Chinese workers has three stages: the period from 1982 to 1990 was the embryonic stage;The period from 1991 to 1999 is the Exploratory stage;From 2000 to now,it is the construction and development stage.In this process,the local government and the central government,in different roles and in different ways,promote the gradual reform of the system.Learning by doing and learning from the experience of other countries is an important method for the reform of the multi-pillar pension system for Chinese workers."Trial before promotion" is an important way to reform the system,which reduces the cost of institutional change.Chapter 3 shows the current situation and problems of the multi-pillar pension system for Chinese urban workers.In terms of coverage,the coverage of basic pension is wider than the other two.In terms of pension funds,the scale and sustained pressure of the basic pension are larger than the other two.Enterprise annuity and commercial pension are in urgent need of development.Chapter 4 analyzes the cooperative dilemma of the multi-pillar pension system rules for Chinese workers.From a single pillar of the labor insurance system to the multi-pillar pension system,the synergism between systems is very important.The institutional synergy dilemma is an important reason for the unbalanced development of the multi-pillar pension system.The enterprise contribution of the basic pension is crowding the enterprise annuity contribution,and the individual contribution is crowding the commercial pension contribution.Basic pension system squeezes out the protection functions of enterprise annuities and commercial pension.The constructed household expenditure decision-making model and data simulation analysis based on the current institutional parameters verify that the squeeze effect of basic pension personal contributions and higher basic pension benefits on commercial pension;model analysis also shows that there is room for a certain reduction in basic pension benefitsthe,and lowering the basic pension benefits can increase the commercial pension spending,and increase the overall level of pension benefits.Chapter 5 analyzes the adaptive efficiency dilemma of the multi-pillar pension system for Chinese workers by comprehensive application of economics,management and other disciplines.The lack of adaptive efficiency of the multi-pillar pension system is another important reason for the insufficient development of the system.The current arrangement of the multi-pillar pension system's adaptive efficiency dilemma is reflected in six aspects.First,the participation rules of the pension system have a dilemma of adaptive efficiency to the form of employment.Under the current system rules,both the basic pension insurance and the enterprise annuity plan are based on the traditional formal labor contract relationship;however,flexible employees under the new economy and new business format have got rid of the traditional form of employment contract,so it is difficult to integrate them into the basic pension system and the enterprise annuity plan.Second,the adaptive efficiency dilemma of the treatment adjustment mechanism.The current adjustment of basic pension benefits is a temporary and irregular adjustment mechanism.Based on its image and political commitment,the government has a strong welfare rigidity,and it is difficult to adapt to changes in the economic and social living environment,and may increases the sustainable pressure on the fund.Third,the adaptive efficiency dilemma of the investment mechanism to the market economy.The investment mechanism lags behind the financial market,restricts the scale of the fund's entry into the capital market,restricts the fund's ability to diversify investment and increase returns,and is not conducive to the preservation and appreciation of the pension fund.Fourth,the dilemma of the adaptive efficiency of the retirement system to the labor market.Under the design of the current system,the pension payment rules are rigidly tied to the retirement age;moreover,when the retirement age remains unchanged for forty years,the dilemma of adaptability of the pension system is further exacerbated.Fifth,commercial pension insurance has a dilemma of adaptive efficiency for middle and low income level and uneven income distribution.Personal tax-deferred commercial pension insurance is only carried out in the pilot areas,and it is not attractive to the middle and low income groups,the coverage is very small.Sixth,the adaptability dilemma of commercial endowment insurance and incomplete consumer information.Suppliers of commercial pension insurance products use incomplete information of consumers to induce and deceive consumers into buying "low quality" products that do not meet their own needs,so that consumers have a preventive psychology towards insurance institutions and their relevant personnel,resulting in market failure.At the same time,based on the feedback of consumers' unreal demands,insurance institutions will make wrong decisions and it is difficult to provide commercial pension insurance products in line with market demand.Chapter 6 analyzes the adaptability dilemma of Chinese multi-pillar pension system to informal system based on comparison and cross-cultural perspective.The multi-pillar pension system of modern insurance form has an adaptive dilemma with Chinese traditional culture,behavior and practice,ideology and so on.It is mainly reflected in three aspects: First,the adaptability dilemma between the financing model of pension which emphasizes the sense of self-guaranteed and the traditional thoughts of filial piety and support.The current multi-pillar pension system is a selfpaying fund accumulation system except for the basic pension pooling account,which is rooted in the concept of self-protection,and China has a strong traditional thought of filial piety and support,which is suitable for generations feedback mode of pension security.Second,the modern insurance form is not compatible with the Chinese traditional trust relationship.The modern insurance form is rooted in the contractual trust relationship,while the traditional Chinese trust relationship is based on the traditional ethical relationship and has a circle-type trust relationship.Third,the dilemma of adaptability between personal insurance and Chinese familyism.Western modern insurance forms are deeply embedded in individualism;in Chinese cultural genes,individualism is relatively lacking,and families are more valued;therefore,there is the question of whether the institutional arrangements that have grown up in the culture of individualism can adapt to the cultural environment that emphasizes the family,which is very different from individualism in the process of constructing a modern pension system.This is also an important reason why the development of enterprise annuity plan and commercial pension lags behind.Forth,the recognition of the state undertakes the responsibility and affairs of old-age security restricts the development of multi-pillar pension system.It makes it difficult for commercial pension insurance to obtain development space,and it is also an important reason for the "rich club" of enterprise annuity.Chapter 7 puts forward suggestions for the optimization of the multi-pillar pension system for Chinese workers.Based on the foregoing analysis,this chapter puts forward the optimization idea of multi-pillar pension system,the goal structure of the four-pillar pension system for Chinese workers,optimization plan of operating mechanism,and proposes a step-by-step optimization reform path based on the current system.It makes it difficult for commercial pension insurance to obtain development space,and it is also an important reason for the "rich club" of enterprise annuities.The innovations of this paper are as follows: first,a theoretical analysis framework for the reform and optimization of the multi-pillar pension system is established which is based on the theory of institutional economics.And this paper analyzes the reform process of the multi-pillar pension system and the root causes of the current predicament of inadequate and unbalanced development based on the historical,interdisciplinary and cross-cultural analysis of institutional analysis.Second,this paper puts the basic pension system for Chinese workers into the family consumption-decision model and demonstrates the influence of the basic pension system of workers on the commercial pension from the perspective of micro mechanism.In addition,under the current system parameters,the expenditure of family commercial pension is estimated,and the impact of the adjustment of basic pension benefits on the expenditure of commercial pension is evaluated.It is demonstrated that the moderate reduction of basic pension replacement rates will not only promote the development of commercial pension but also improve the level of pension benefits.Thirdly,this paper analyzes the impact of current employment changes on the multi-pillar pension system.With total wages for the base of the traditional payment model constructed on the basis of the formal labor contract employment system.More and more flexible forms of employment have emerged.The flexible forms of employment have broken down the employment system foundation of the payment model based on the total wage.Therefore,the payment model should be reformed accordingly.Fourth,this paper analyzes the adaptability dilemma of the modern insurance form in the multi-pillar pension system from the perspective of culture.It is manifested in the difficulty of adaption of the modern insurance form to self-protection awareness and the traditional consciousness that pays attention to intergenerational feedback,the adaptive dilemma between the insurance based on contract-model trust and the orderly diversity pattern of trust,and the adaptive dilemma between the individualist insurance form and traditional Chinese familyism.