Feasibility Research On The Mergence Of The Basic Endowment Insurance Between Public Institutions And Enterprises In China

In China, current urban staff endowment insurance system is divided intoendowment insurance system of government institutions and that of enterpriseemployees. These two kinds of endowment insurance system is under the specifichistorical background and its existence and development has its rationality andnecessity, also has played an important role in guaranteeing laborers retirement life inspecific historical period. However, as our country transform from planned economicsystem into socialist market economic system, limitations about retirement system ofpublic Institutions gradually exposed, the main problems are as follows, single sourceof funding, unreasonable calculation of payroll, inferior efficiency of management,low degree of socialization. Endowment insurance system of enterprises hasexperienced more than20years of reform and development and has formed arelatively perfect mode of endowment insurance system, but still has some problems.In recent years, the problem concerning the double track of endowment insurance isvery outstanding, and it causes a series of social consequences, in terms of its reason,it is mainly due to the difference of endowment insurance system between publicInstitutions and enterprises. These two kinds of endowment insurance system havedifferent funding source and ensuring mechanism, different calculation method ofpension and adjustment mechanism, and different endowment insurance managementsystem. In result, these two systems could not achieve effective connection, did harmto social fairness and justice, hindered the rational flow of human resources, causedserious government financial burden. Therefore, these two systems need to be unifiedurgently to achieve the smooth mergence.This article is stated from the difference of endowment system between publicinstitutions and enterprises using the comparison analytic method, it has reviewed the development upon the historical evolution of these two kinds of endowment insurancesystem and pointed out the problems existing in the two systems respectively. Thereform and development of endowment system in public institutions has been laggingbehind the enterprise endowment system, causing larger institutional differences,resulting in a series of social problems. Mergence of two systems is an inevitabletrend along with the development of endowment insurance system, but the mergenceneeds the support of national macro environment, so this article has done feasibilityanalysis concerning several aspects of the national policy conditions, economicconditions, social conditions and cultural factors and pointed out that in the currentsituation in China, mergence of the endowment Insurance between public Institutionsand enterprises is feasible and conducive to promoting the socialist fairness andjustice maintaining social harmony and stability. This article has used the reformexperience of endowment insurance system of pilot area and put forward theprinciples and recommendations concerning the implementation of the mergence ofthe endowment insurance between public Institutions and enterprises.