Individual Account Of Basic Pension In Urban China: Real Or Notional

The core question among the problems of our pension reforms is individual account. The problems of how to turn the "empty account" into the "real account", how to improve the level of management and incomes of individual accounts, have influenced on the pension reform and become urgent. The complicate situations of our country require that we should be careful for the reform of pension. The pension reform is to keep the social stable.The paper explains the reasons of the shift from pay-as-you-go system to financial defined contribution by means of comparative study, searches for the measures for our pension reform by analysing the true cases and concludes the viewpoints as follows:The combination of social pooling and individual account is fit for our country's situation. Huge implicit pension debt caused by transformation from pay-as-you-go system to financial defined contribution, maks individual account become empty account, resulting in the pension system's huge risk.The low level of social pooling integation (e.g. munipical pooling), the local and western area's relatively poor fiscal income, and the immature investment markets determines the chooce of defined contribution (NDC) of individual account during 8-10 years is better and more appopriate than making all the individual account full in near period.In 8-10 years the NDC will be transformed into the full individual account step by step relying on the active fiscal transer arrangement, economic growth accumulations and polulation dividends.