The Research On Endowment Insurance System Reform Of Public Institution

The further intensification of transitional reforms had constituted a hugecontribution to promoting economic prosperity in China, however, rapid economicgrowth has been associated with fact in terms of the growth rate of socialdevelopment was slower than economic development, meanwhile, this situation hascontributed to increasing social intentions and conflicts. As the concept which iswidely accepted across academic areas, social security aims to use secondarydistribution to alleviate inequality caused by initial distribution, moreover, socialsecurity was considered able to relieve social tensions and realize social fairness andhas gradually become an essential measure of development of society.Ever since stepped into modern society, life expectancy was obviously extendedwhich could be attributed to socio-economic development, improvement of livingstandards and medical advances, meanwhile, increasingly countries are stepping intoageing society impacted by extended life expectancy. Rapid development ofpopulation ageing has challenged the development of many countries and regions.Considering the universality and socialization of elderly risk, pension is becoming oneof the main social problems encountered by countries across the global. In fact, Chinahas stepped into ageing society and pension is attracting more attention in the society.Since70’s and80’s of the20thcentury, socialist market-oriented economicsystem has been established in China. The old-age insurance system for enterpriseemployees has initial established through a combination way of social pooling andindividual accounts.the mechanism is playing an importance role in development ofsociety and economy especially for the state-owned enterprise reform. However,compared to the corporate employee pension insurance system, the pension insurancesystem for public institution is responsible for National financial just like under the conditions of planned economy and the mode is still now-pay-as-you-go.the modehas a lot of shortcomings. The one hand, it will be bound to our financial burden andbrought tremendous pressure; the other hand, it will lead to social unfairness anddeformity of the flow of talent. In public institutions, pension insurance depends onlength of work service and the longer the length of service, the more pensions.Individual does not need to pay pension premiums and the replacement rate is as highas90%, which is obviously unfair and leads to the Phenomenon that a lot of peopledo the best to gain the chance——work for government. The Phenomenon happen isunfavorable to not only the development of China’s enterprises, but also the organsand institutions of our country. On this basis, the reform of old-age insurance systemfor institutions is necessary.This paper concentrates on compiling given knowledge base and relevanttheories and demonstrates the necessity of pension insurance system reform.According to the achievements and experiences of selecting pilot provinces have beeninvestigated．This paper is analyzing the hindrances of pension insurance systemreform in China and describing some suggestions to reduce the impact of thesehindrances. In addition, this paper present critical thinking about establishing publicemployee’s retirement systems which should take account into national conditions ofChina draw upon the experiences of public employee’s retirement systems ofcountries in East Asia. This paper also provides some principles and specificsuggestions for public employee’s retirement system reform in China and expectingthis paper able to make a contribution to the construction of harmonious society,maintaining social stability and promoting social fairness of China in a positive way.