The Calculation And Realization Of The Replacement Rate Of New Rural Social Endowment Insurance

In 2002 the state began implementing the new rural cooperative medical care system, agricultural subsidy policy introduced since 2004 have been increasing efforts, 2006 the state has canceled agricultural tax. Following these three major farmerfriendly policy, in 2009 and in line with the basic principles of the State "basic security, wide coverage, flexible, sustainable" launched the new rural pension insurance system. The first election in 10% of the country’s counties(cities, districts) to carry out pilot new rural endowment insurance system, policy plans to achieve full coverage by 2020. Since 2009, in full swing, the scope of the implementation of the new system of agricultural insurance in the pilot areas to carry out rapid expansion also is expected to achieve full coverage by 2020.An important indicator of the new rural pension system is pension replacement rate, it affects all aspects of the new rural pension insurance. The level of pension replacement rate reflects not only the level of the basic pension insurance for retirees living guarantee, but also can reflect the extent of government responsibility in the pension insurance. Firstly, from the perspective of welfare economics, based on the new agricultural Pareto improvement under the old maintenance insurance replacement rate of evaluations, and to build consensus on ELES estimated replacement rate of rural residents of different income groups of basic livelihood security, and through actuarial model calculations replacement rate different grades and different payment under the payment period, draw pension replacement rate of rural residents in China’s current low conclusions and propose appropriate measures for improvement and policy recommendations to encourage farmers to choose a higher pay grade, in order to increase the amount of accumulated personal pension accounts of farmers, improve the replacement rate, forming a virtuous circle system, and further enhance the attractiveness of the system. Old and new efforts to improve the maintenance of agricultural insurance personal account funds annual rate of return, there are plans to carry out relief intergenerational. In the critical period of the rural and urban pension insurance system for urban and rural areas of convergence and integration process, the new rural pension insurance system as a major farmer-friendly policy to protect rural residents basic living needs of the elderly, the central government should effectively reduce the financial burden on local life and the burden on farmers to the principle of sustainable development of mutual insurance relief coordination among different groups.