Thinking Of Old-age Social Security System Reform In China

Retirement pension system reform is one of the critical parts to china economic reform. Through years of efforts, China has found a new pension system. But it hasn't been proved to be effective as it should be. The essential cause is that the varied functions of pension system haven't been fully understood in China. Today, the main trend of academic viewpoint still considers the retirement pension institution as only a social institution and believes that it was restricted by economic system passively. In this thesis, a new point of view is put forward, the pension system is not only a social system but also a economic system. Its functions are not only to stabilize society but also to promote the economic development. In order to found a perfect retirement pension system, we should set up a dual function system which can serve a dual purpose simultaneously, stabilize society and promote the economic development. On the basis of this thought, this thesis gives a constructive recommendation that we should found a three-mainstay pension system. To elaborate the new point of view comprehensively, some fundamental principles of economics and insurance are applied to this thesis. The whole thesis is formed of four chapters. Chapter one introduces a new trend of world Retirement pension system reform (Social Security Privatization, SSP). Then this part put forward a viewpoint that Retirement pension system is not only a social system but also an economic system. Chapter two introduces World Bank's three-mainstay pension system and summarizes three experiences with which China can use for reference. Chapter three analyzes the situation and problems of the retirement pension system currently in effect. This part also point out that our pension system is still a one-mainstay system that has blocked the process of our economic reform. Chapter four put forward a thought of setting up a threeainstay pension system effectively composed by social pension institution, occupational pension institution, and individual pension institution. Then this part describe the new system's basic frame, give some suggestions to resolve the difficulties of raising funds in the transformation period, discuss the investment pattern of the three-mainstay system, suggest the methods to strengthen the supervisory institution and propose some measures of the interrelated reforms.