Study On The Institutions And Balance Of The Fundamental Pension Insurance Fund With A Case Study For Jinan City

The smooth operation of fundamental pension insurance fund plays a central role in the implementation of social welfare system. However, the disequilibrium of revenue and expenditure of it has become the severest crisis surfacing in the operation of China' s social welfare. Take Jinan for example, the fundamental pension insurance fund expenditure can hardly be compensated by revenue. So some wonder that how to address problems induced by the disequilibrium of revenue and expenditure become a challenge for Jinan' s administrative departments and agencies of social welfare confront with.This paper attempts to adopt research methods that combine theories with practices and analyze why the revenue of fundamental pension insurance fund fails to compensate the expenditure taking Jinan for example. Based on the above work, this paper puts forward corresponding proposals of policies. Firstly, this paper analyzes problems associated with fundamental pension insurance fund theoretically and draws such a conclusion that the fundamental cause of the current situation is the pay-as-you-go mode of China' s fundamental pension insurance fund system. Under such a system, many accounts operate without money in them and potential debt has become an evident problem which exerting great pressure on the operation of fundamental pension insurance fund. In addition, this paper explores factors influencing the balance of revenue and expenditure ,these factors include average age of death and retirement, payment rate and substitution rate of fundamental pension insurance fund. Furthermore, this paper analyzes factors influencing the revenue and expenditure of fundamental pension insurance fund in detail through studying data of Jinan' s revenue and expenditure of the fund and finds specific reasons of the disequilibrium of revenue and expenditure such as limited coverage low level of enterprises' profits lack of funds false number of collection aging population the excessively high substitution rate of fundamental pension insurance the relatively young retire age regulated by laws and the large number of people who retire in advance. Finally on the basis of analyzing the reasons mentioned above combining with Jinan' s distinctive feature, this paper puts forward some feasible advices on how to solve the problem of gap of fundamental pension insurance such as shifting state-owned properties, reducing cost of inverting mechanism, perfecting management of personal account, increasing compliance by all means, decreasing replacement rate of fundamental pension insurance establishing multi-level fundamental pension insurance network and regulating legal retirement age.