China's Urban Pension Insurance System In Transition Cost Study

Replacing the pay-as-you-go model adopted since the middle of the 20th centry,partial accumlated pension-insurance system has been put into palce in China in recent years to face the aging trend of its population and the corresponding payment difficulties, if not crisis. However, this transformation also incurs various problems, among which is the implicit pension debt issue. If not appropriately coped with, this issue can project gray shadow into pension program covering the aging groups.This article is divided into five parts. The first part is to analyse the situation of the pension which after transformation, then put the question that the cost of pension thransition is one of the main problems which hinder the pension sustainable development. The second part is the theoretical analysis for the cost of pension transition. Specifically it is to define the cost of pension transition, and research its formation mechanism and so on. The third part is predict the scale of cost of pension transition using math modle, and do some analyse after the pediction, and point out that the maxsium of the cost will come in10 to 20 years later. The forth part is the empirical research in who will hold the cost of pension transition, enterprise or government? After the emperical research, we know that the payment rate for enterprise has reached too high, so improve the payment rate is unrational. And the the state-owned asset has owned a high debt for the cost of pension transition. So the conclution of the empirical research is that the government has the responsible for the cost. The last part is to come up policy for the pension sutainable development associate the result of the empirical research.To systematic analyse cost of pension transition is to research a maneuverability policy to clear the cost, and then let the new pension form get a better running.