Study On The Effect Of New Rural Social Old-age Insurance System

The17th CPC National Congress which was held in2007took "To probe and build a new old-age insurance system for rural residents" as an important part of the social construction, which emphasis on improving the livelihood of the people."The decision of central committee of the CCP on rural reform, development and certain major issue" passed in2008pointed out the concept of "new rural social old-age insurance system", which is the first time the new concept presented in the Party’s documents. In September2009, the State Council issued Guidance on implementation of the new-pattern social insurance for the aged in rural areas in experimental units. The fundamental principles "basically-guaranteed, widely-covered, elastic and sustainable" should be obeyed. Together with some other matching policies and measures, the social plan as a whole and the personal accounts should be combined to ensure the basic life for the aged in rural areas. Since2009,10%counties have been selected as experimental units. The experimental units will be gradually added to fully cover the rural residents of the proper age. To guarantee the sustainability of new rural social old-age insurance system and the achievement of its goals, it is important to study its effect and analyze factors that affect its effects and sustainability. Based on the above research purpose, using the survey data of twelve towns in four counties from Huoshan, Mengcheng, Guangde and Hexian in Anhui Province, this paper use both quantitative and qualitative methods to study the effect of new rural social old-age insurance system, including the present situation, the farmer’s perceptions and evaluation, the actual security level of new rural social old-age insurance system. According to the analysis, this paper explores the factors affecting the effect of new rural social old-age insurance system.This thesis first introduces the research background, the purpose and the significance, ideas and research methods, the research framework, as well as creativity and shortage. Secondly, the thesis explains related concepts in this article, and then introduces the basic theories employed in analysis of research, mainly including Institution Change Theory and Actuarial Balance Theory. Next this section discusses the literature review in and abroad on the related field, and then raises the research perspective. Followed is the institutional change and performance evaluation on rural old-age insurance system. This chapter analyzes the development process of China’s rural old-age insurance model, from family supporting for elders to the collective supporting model and then to the Social Security Model. Next, the paper points out the advantages of the new rural social old-age insurance system. Fourth, this paper evaluates the effect of policy implementation, by utilizing questionnaires to conduct empirical investigation on Huoshan, Mengcheng, Guangde and Hexian County’s implementation and operation of new rural social old-age insurance system. Through the Empirical Study on pension target substitute rate of Anhui Province, we found that the actual security level is not high and the insured Age, contribution years, feasible pay grades and accounts yield have some influence on the level of the new rural social pension target substitute rate. Fifth, this chapter is intended to analyze the insured consciousness of the new rural social old-age insurance system, the choice of pay grades, payment mechanism analysis, in order to seek the factors that affect the performance of the new rural social old-age insurance system. Based on the econometric analysis, we find that some factors, such as farmer’s gender, education level, numbers of children, household disposable income per capita, per capita arable land, the degree of understanding of the policy affect farmers insured enthusiasm and pay grades. At the same time, some imperfections of pay cost subsidy mechanism in the design may threat its effect. Based on the previous analysis of the new rural social old-age insurance system, in the end, we draw the main conclusions of this paper, and put forward the effect measures to improve the effect of new rural social old-age insurance system.