On The Consummation Of Social Pension Insurance System(SPIS)

The aim of social security in modem sense is not only to protect those members in the society who are vulnerable to the threat of poverty but also to guarantee security in life, maintains personal dignity and assures and preserves basic human rights for all social members. Establishing a unitary SPIS for all people is one objective of social reformation in China. However, the current situation in rural areas in China restrains the realization of such an objective and many problems exist in current SPIS. Therefore, in this thesis we argue that the current SPIS in the rural areas shall be reformed, sources of its funding shall be explored, the coverage of insurance shall be broadened, more rich fanners shall be adopted, social pooling as a funding source shall be established and therefore a "social pooling and individual accounts" funding scheme shall be set up. The establishment of social pooling as a funding system reflects mutal support in the society and government's responsibility for its citizens. It can greatly contribute to the realization of social equality and promote farmers' interest and confidence in SPIS. SPIS in the rural areas is both the requirement for maintaining stability in the rural areas and a necessity in realizing social fairness and justice. It can also contribute to the "concurrent development" for both cities and rural areas and construction of a "harmonious society". In the amendment to the Constitution passed in the Second Plenary Session of the Tenth NPC, a new term is added to the fourteenth article of the Constitution, reading "The State extablishes a sound social security system compatible with the level of economic development", which lays down the legal foundation for the establishment of such a system.This thesis first introduces the theme, background and significance of this research. Some relevant concepts are circumscribed. Then, a brief review is made of the history of SPIS in the rural areas in China, and disadvantages of current SPIS in the rural areas are analyzed. Next, the necessity of consummating SPIS is discussed and the issue to elucidate in this thesis is formulated: to reform and consummate SPISS in rural areas. Finally, some issues relating to this system are discussed, such as funding scheme, management model, ways of payment, mode of supervision, etc.. Meanwhile, some strategies are also provided. It is this part where the focus of the thesis lies.All in all, setting up a funding scheme of "social pooling and individual accounts" and attracting more rich farmers into SPIS program can both adapt SPIS into the current situation of farmers and meet the demand of social development. They are both realistic and pioneering. They are also consistent with SPIS of different areas and of different kinds. They are a proper way to solve the age problem in the rural areas right now as well as for the coming future.