Researches On The Dual Track Model Of Theurban Pension System In Shanxi Province

The pension insurance occupies an extremely significant position in the social security system.In present China, the urban staff’s pension insurance system includes the enterprise endowmentinsurance system and endowment insurance system of the government public institutions. Afterover two decades’ exploration and practice, the reformation of the pension insurance system hasmade great achievements. However, because of package program and consistency of the reformmeasures, many problems still exist in the pension insurance in China. The most outstanding oneconcerns the “dual track system” problem of the pension system. The two existing systems in ourcountry are segmented and fail to develop into a uniform design, which means that the enterprises,government and non-profitable enterprises possess different wages systems and pension calculationmethods. Therefore, there is a gaping gap between their retirement benefits. With establishment ofthe socialistic market economy system and development of the reform and open policy, thedisadvantages of “dual track system” gradually get prominent. It may arouse the public’s risingdiscontent on unjust social insurance and harm construction of the socialist harmonious society.In order to alter the unreasonable situation, the executive meeting of the State Councildiscussed and passed “the pilot reform project of the pension insurance system for public institutionstaff” in February,2008and Shanxi province becomes one of the five pilot cities. The fundamentalpurpose of the reform is targeted at realizing the converging system between government andnon-profitable enterprises and making the pension insurance of the institution consistent with that ofthe enterprises. However,5years have passed, but the “dual track system” pilot reforms in Shanxiprovince were not progressing smoothly. Till date, it still rests on the experimental stage and has notacquired substantive breakthrough. Under this background, this paper has reviewed the developingprogress of the enterprises, government and non-profitable enterprises; it also illustrated theforming process of the dual track system. Through comparing the status quo of the dual tracksystem of the pension insurance, this paper goes into detail about the gap of pension rights betweentwo systems and discusses the reasons. Furthermore, in allusion to the problems of dual tracksystem of the pension insurance and its effects, this paper puts forward advices and reformmeasures in order to realize the final combination of the pension insurance system in Shanxiprovince, richen the Chinese social security theory as well as providing certain references for thepension insurance reformation in China.