Research On Noncontributory Pension For Urban Residents

The social security in China displays the character of dual structure. The existing system including the Enterprise workers basic pension insurance. Public servants pension system and Landless farmers pension system,has covered urban workers. But the urban residents are lack of a unified social security and the protection of the only system is at low and most of them are non-employment. According to the ideas of accelerating the establishment of urban and rural residents covered by the social security system, constructing the Old-age security system for urban residents becomes a very important task.Introducing the Noncontributory Pension can solve the problem of urban resident in old-age security effectively. The Noncontributory pension system has successful experience in the international. In China, some areas have begun practice the system, but there are many differences between Coverage target, eligibility criteria, subsidies standard, financing sources, etc. So we get urgent need for a uniform system to standardize the practice and prevent the system "fragmentation".On the basic of summing up the internal practices and Review results, we introduce the Noncontributory Pension for urban residents and the actuarial model. In system design, we focus on the number of coverage target, subsidies standard and take full consideration of extending the coverage of social security, population aging, urbanization, etc. According to urban-rural differences in consumption levels, on the authority of basic needs of urban residents, we set reasonable standards in the Noncontributory Pension to guarantee minimum living standards. At last, we estimate the capital requirement with the actuarial model and straighten the relationship between the Noncontributory Pension for urban residents, the Minimum Living Standard security system and the Rural Social Pension system. With a view to the future unification of China's pension system to provide some ideas and suggestions.