A Study On The Sustainable Development Of Newly Rural Endowment Insurance System

As urbanization, industrialization deepening and socio-economic development in China, the elderly population is growing continuously. The aging population of China is speeding up in recent years, and showing the trend of higher aging. 1% national population survey data in 2005 show that in all the elderly at the age of 60 and above in villages took up 58.23%, while the data in cities and towns only took up 26.31% and 15.46% respectively. The aging severity in rural was obvious greater than city. However, rural social insurance has not been opened up yet which causes the social contradictions and severe problems becoming increasingly prominent, it also seriously hindered the development of rural economy. In the past, rural endowment insurance has made a lot of effort, but it never gave peasants a measurable benefits, even made the peasants mistrust the rural endowment insurance, the fundamental reason is profit-oriented mind in institution building and ignoring the sustainable development of rural endowment insurance. In September 2009, the State Council issued a newly rural endowment insurance system, how to smoothly and sustainably implement the newly rural endowment insurance in rural, which is lowly economic development and socialization, and complex human environment, it need to sum up the past experiences and learn from successful models abroad, and integrate the multi-powers to keep the system sustainability.Based on this topic and did some research, this paper points out that the establishment of sustainable new rural endowment system needs to work from three aspects mainly, i.e. clarify government duties, do well the relative systems transition, as well as guarantee the balance of rural pension fund. Specifically, firstly, the government should be in a dominant position and play the functions of promoting legislation, policy support, financial support, publicity and education, supervision and management in the establishment of sustainable newly rural endowment insurance system; Secondly, the newly rural endowment system should be fully taken into account of the undertaking or integration of the traditional rural endowment insurance, family planning policy, urban endowment system and other rural social security system, avoiding the system's interruption or redundancy causes panic among the peasants and unnecessary waste; Thirdly, it is fundamental to sustainable development of newly rural endowment that income and expenditure of the rural pension funds can be controlled effectively and meet the needs of the system, it requires a quantified budget model established from the short-term and long-term respectively, this paper established mathematical model based on the newly system itself, simulate it and know that the fund balance can be adjusted to improve in four aspects as follows: the coverage, contribution rate, the number of granting months and investment rate of return.In the context of newly rural endowment insurance is widely piloted currently, this paper try to stand on a macro level, and apply the scientific concept of development into the newly rural endowment insurance system, integrated guideline with national hotspots policy, proposed some exploratory recommendations for the implementation of newly rural endowment insurance system from the perspective of sustainable development.