A Study On Improving The Legal System Of The Urban Pension Insurance

Pension system is a social security system through which the countryinsures the basic necessities for its citizens. It is the basic right to live on pensioninsurance on behalf of the citizens, while it is the country's obligation to establishit. Consequently, it is of great significance how to regulate right and obligationby means of law.Pension insurance is so fundamental in social insurance that large numbersof countries in the world have set up the pension insurance system legally,insuring the right for citizens. Labor Insurance Regulations of People's Republicof China marked the establishment and preliminary developments of pensioninsurance legal system after the founding of the PRC. Due to 20 years of reformin particular, the country has gained such achievements as the establishment ofthe multi-level system involving the national basic pension insurance, enterprisecomplement insurance and individual saving insurance, with a policy of paymentby both enterprise and staff workers and a subsidy by the country, which is thecombination of social overall arrangements with individual accounts, thus settingup the system model. It plays a significant role in the social stability andeconomic development. However, there exist quite many problems in the system,among which the fundamental one is that it lags behind in legislature. There is nodistinct legislature idea in the system establishment, no entire legislature planand no competent mechanism to carry it out. At present, the country hasn'testablished a pension insurance law, as a result, the insurance is just urged bypolicies and administration.Pension insurance legal system has a history of over 100 years in thewestern world, with nearly perfect theories and systems. In contrast, the systemin China is still on the way. It only refers to the legal system in cities in this paper.The paper aims to do some thinking favorable to the promotion of pensioninsurance legal system with the Chinese characteristics.The paper has three parts.Part one is the introduction to pension insurance. First, it sets forth theconcepts and features. Second, it elaborates its legislature model, which isclassified into three models according to different scopes, qualifications,insurance levels and administrations, that is, the type of balance of right andobligation, the type of welfare, and the type of obligatory saving. Havinganalyzed their advantages and disadvantages, the paper points out that the modelshould follow the developmental law, and Chinese actual conditions in particular.And the systems in other countries should be studied, thus their strengths beingadopted and their weaknesses being avoided. Third, it sets forth its raising model.The fundamental part in the insurance system lies in the source of pensioninsurance funds. Three raising methods are widely used in the world, paymentfrom immediate raising, full accumulation and part accumulation. Next, theauthor analyzed their strengths and weaknesses.Part two is about the history of pension insurance legal system in China andits problems. First, it reviews its developments. The country began to set uppension insurance legal system since its foundation. Till the reform and open uppolicy, 30 years past before the system had been established fitting in with theneeds of the plan economy. In the 1980s, it didn't adapt to the changingconditions due to the reform in the economical system. In the late 1980s, thecountry arranged insurance expenditure overall, and the multi-level systembegan to be set up, with the combination of social overall arrangements andindividual accounts. The country has established a system embodying thebalance of fairness and efficiency, and right and obligation due to reform andresearch and adoption of foreign experience, which is of great importance tosocial stability and economic development. But the market economy revealedsome serious problems in the insurance system, which are the major content inthe rest of Part two. These problems are as follows: small coverage, fewer raisingmodels, short individual accounts, difficulty in inflation proof and increment, nostandard in payment and disorder in administration. The reason lies in its laggingbehind in legislature, resulting in failure in fitting in with the needs of marketeconomy development. The following are the legislature problems: no clearlegislature idea, inferior legislature, weak administration and no distinct legalresponsibilities. It is proved that the pension insurance legislature in Chinadoesn't adapt to the reform, and the uncertainty in laws hinders the progress insocial reform and development.