The Research Of The Government Responsibility In Conversion Cost Reduction Of Old-age Insurance System For Urban Workers

China has entered the ranks of aging countries in the21st century, faced with the dilemma of "aging before getting rich". With the roaring develop of economy, health and medical conditions and living standards have dramatically improved. China’s population is ageing fast. And elderly population is increasing. The pension issue has become one of the major challenges in our country. In the1990s, in order to meet the challenges of aging, our country began to reform old-age insurance system for urban workers, which changed the traditional PAYG system to the implementation of the model system Account "part of the accumulation system. However, due to the imperfect design of the system, the huge conversion costs are difficult to digest, which resulted that personal accounts was diverted and the "empty accounts" problem is very serious." Part of the accumulation system" had become the "PAYG system actually. The new system is facing the risk of conversion failure, which makes it difficult to achieve the original intention of the design of the system.The subject of the article is how to digest the conversion costs of the pension insurance system for urban workers. Firstly, this paper reviews the development process of China’s basic pension insurance system, then analyzes the formation and definition of the conversion costs, analyzes the importance and urgency of digesting the conversion cost. Finally, puts forward suggestions to reduce costs of conversion by expanding the financing channels, reducing the pressure of pension payments and finding measures to preserve and increase the pension on the basis of the reasonable position of government responsibility and learning from the successful experience of Chile.This paper is consists of5parts. The first part introduces the research background and significance, summarizes the Research at home and abroad, and then describes the research ideas, methods, and innovation. The second part analyses the relevant theory. The third part introduces the development of the traditional pension insurance system for urban workers in China as well as the formation process of the present system, in which the current situation of the new system is introduced. The fourth part defines the conversion costs and analyzes the urgency and importance in conversion cost reduction and the lack of performance of the government accountability. The fifth part raises the "trinity" mechanisms to reduce costs of transition by referring to the successful experience of Chile and positioning and strengthening the government responsibility rationally.