Study Of The Social Pension Insurance System Equilibrium Problem

Even though there existed pension system as the Chinese proverb goes, the modern pension system was set up after the foundation of P.R.C., as the Labor Insurance Act was enacted in February, the year 1951. From then on the social security system was established according to the act, yet only with coverage of the workers in SOE. That pension system was based on the government's credit and pay-as-you-go.Along with the population aging, the pension system faces great challenges. The act published in 1951 had been undergone several amendments, however, the old system still could not adjust to the demand arising from the brand new situation, in that economic reform kept going deeper and wider as well as the population were growing aging. Hence, the government commenced transforming the out-dated system in 1990s—all the policies and strategies are aiming at the balance of the pension payment.This treatise is focusing on the problems our government has to cope with during the transmission and puts forward some proposals related to the balance of the pension payment, on the basis of the overview on the current pension system.The paper includes five chapters:Part one: Introduction. It aims to expound the significance of this paper, brief the concept, the connotation of the pension's balance, and those relating modes of pension system.Part two: The progress and the current situation of the pension system. Review briefly the development and paradigm of the system, mainly concentrating on the necessity of the latest reform and the progress made already..Part three: The situation of the pension's balance and problems the latest pension system confronting with. Make approach to the imbalance of supply and demand of pension; analyze the four main challenges that the nowadays pension system is facing to.Part four: Comparison with foreign countries' experience. Summarize the attainments some foreign countries have achieved and draw lessons and proposals from the experience.Part five: The counter-measures of China's balance of pension. In order to achieve a balance of payment, we should reform the nowadays system, and venture to put forward a series of counter-measures.