Research On The Security Level Of New Rural Social Pension Insurance In Anhui Province

To cope with the increasingly serious aging of the rural population, promote theequalization of basic public services in urban and rural areas, ensure the elderly farmerscan be provided and share the fruits of economic and social development, china hadachieved the target of the new rural social pension insurance system covering all farmersat the end of2012. Under this background, it’s particularly important to analyze thesecurity level which the new rural social pension insurance system provides to the elderlyfarmers and research whether this system can meet the basic life needs of the elderlyfarmers.In this paper, it firstly elaborates the history of rural social pension insurance systemin Anhui province and the operation mechanism of the new rural social pension insurancefund. Then, a statistical description of the implementation of the new rural social pensioninsurance system is based on the survey of the system in105counties and urban districtsof Anhui province.Second, this study constructs the actuarial model, measures the replacement rate ofthe new rural social pension insurance in Anhui province, and finds that the replacementrate is positively correlated with the contributing years and contributing standards,mainly influenced by the replacement rate of personal account pension, and so, affectedmore by the contributing standards than by the contributing years.Third, this study estimates the lower limit of replacement rate based on the Engel’scoefficient, finds that replacement rate of basic pension is low overall and points out thatit differs in different income groups. Afterward, this study proposes the idea to adjust thelevel of security in two ways: protection mechanism for low-income groups and motivateMechanism for high-income groups.Finally, in order to ensure the security level of new rural social pension insurance tobe moderate, this study puts forward four suggestions, including establishing andimproving the new rural social pension insurance system, constructing multi-supportsystem for the elderly farmers, perfecting relevant laws and regulations, clarifying theresponsibility of government.