Research On Disability Allowance System

The disabled is a typical vulnerable group in society. Because of their disabilities, they reduce or loss labor ability, hard to earn money through employment. But they have to bear the additional cost of living for maintaining physical function in social life. The disabled have low income and high expenditure. They are living in difficulty and hard to change the vulnerable situations by themselves. However, the existing social security policies are low level of assistance, unable to meet the basic survival of the disabled. On the basic of reviewing results and summing up the external and internal practices, we propose the establishment of Disability Allowance system. It can protect the basic survival of the disabled, reduce the gap of living standard between the disabled and members of society. The research on Disability Allowance will have great reference value for improving the current systemDisability Allowance System has successful experience in the international, including a variety of projects. According to China's economic development and actual needs of the disabled, this paper focuses on Disability Living Allowance system and Disability Attendance Allowance system. The former meets the basic living needs of the low-income disabled. We set the standard of allowance according to the Minimum Living Standard and take full consideration of the influence of permit rates and the ratio of the low-income disabled on the number of coverage. Disability Attendance Allowance meets the basic attendance services needs of the disabled that can't take care of themselves in daily life. We set the standard of allowance according to the level of care costs in pension institutions. In addition, we estimate the capital requirement of the two systems with the actuarial model. Taking Zhejiang province as an example, the capital requirement of the two systems in 2011 respectively accounts for 0.048% and 0.15% of the fiscal revenue in 2010. And the proportion is low from 2011 to 2020. Therefore, the establishment of Disability Allowance system is necessary and feasible. This paper proposes to strengthen government responsibility and establish Disability Living Allowance system and Disability Attendance Allowance system to raise the level of protection of the disabled, with the principle of affordable finance and sustainable system.