China Enterprises, Institutions And Organs Of The Unit Retired The Cost Of Comparative Analysis

The fact that China exists the big gap on the retirement pensions and their substitution rates among enterprises,public institutions and government institutions has became the obstacle of our country's pension reform.This gap is mainly manifested in:1. Government institutions'retirement pension is nearly the same as the retirement pension of public institutions. However, their pensions are two times than the enterprises', and this gap is becoming lager and lager.2. As the increasing of per capita GDP, the increment among the three groups are totally different.When per capita GDP is increasing 100% percent, the retirement pension of enterprises,public institutions and government institutions are growing 33.5%,89.3%, 107.5% respectively.3. The substitution rates of the retirement pensions among enterprises,public institutions and government institutions are not the same.The rates are 49%—64%,98%—88%,88%—100% respectively,and all have the descending trend. Yet, this rate of enterprises has been decreased faster than the rates of another two groups evidently.The figures of the three formulas of average substitution rate of enterprises/ average substitution rate of labor force, average substitution rate of enterprises/average substitution rate of labor force, average substitution rate of enterprises/average substitution rate of labor force are from 88%,139%,142% in 2001 to 85%,151%,152% respectively.After the careful study of the condition of our country's retirement pension, the suitable range of our country's substitution rate should be between 39.80% and 51.25%.At the same time, according to the retirement age and payment, the sustaining substitution rate of our country can be between 52.05% and 59.20%.After the study of the retirement pensions and their substitution rates among enterprises, public institutions and government institutions, we know that the contemporary substitution rate of retirement pension of enterprises is comparatively reasonable, but the substitution rates of retirement pensions on another two groups are higher. So these suggestions are given:1. keep decreasing the substitution rate of basic retirement pension. 2. Take the retirement pension reform in order to make public institutions and government institutions in the same pension system.3. Reconstruct the retirement insurance system.