Research On The Continuation Between Different Endowment Insurance Systems

Due to the separate systems of endowment insurance between regions and employment systems in China, when an employee changes job across regions, identity or systems, the continuation between different endowment insurance systems occurs. The continuation method is designed to resolve the problem occurred by the basic endowment insurance system and some difficulties encountered in the reform process, especially in the context of the highly mobile labor market which has been developing since 1978.In China, there are several separate endowment insurance systems. However,each of them doesn't accept the employee from other systems. Very large scale of mobile workforce suffers labor interest and pension right loss every year,because of the difficulties to transfer their endowment insurance from regions or employment systems.The Interim Continuation Measures of Urban Enterprise Workers Basic Endowment Insurance is officially implemented in Jan, 1st 2010, which terminates the history of endowment insurance non-continuation, to some degree. The new measures also prescribe that the migrant workers should take part in the basic endowment insurance system, and any kind of surrender is forbidden. It was a huge improvement of China's social security systems. However the new measures need perfecting.This paper analyses the necessity of continuation of endowment insurance, as well as the difficulties which need to be conquered, and the solutions to resolve the existent and possible problem. The main structure of this paper is as follows:The first part points out the necessity of continuation research, summarizes the overview of relevant literature, and introduces the idea and the frame of the paper. The second part points out the existent problems of the continuation policy of the endowment insurance in the context of highly mobile labor market. The third part analyses the institutional foundation and its negative impacts. In the forth part, the paper lists the obstacles of the continuation. The Interim Continuation Measures of Urban Enterprise Workers Basic Endowment Insurance is introduced in the fifth part, and highly respected for its contribution to the continuation of the insurance for the migrant workers. The finial part indicates the possible problems remain in the new measure, and also addresses the reform ideas and solutions according to the problem which are referred above.