The Problem Of New Type Of Rural Social Endowment Insurance System In Shanxi Province

The Shanxi provincial government has been paying high attention to the NewRural Social Pension Insurance (NRSPI) since Shanxi was selected as a pilot of it in2009. While in the implementation of the policy, Guidance on the Pilot Work forCarrying out New Rural Social Pension Insurance, issued by the state council, theShanxi government carries out the new pension insurance all over the entire province.The NRSPI System improved from the old one. This paper analyses the currentsituation of Shanxi province NRSPI empirically from fund raising, coverage,treatment standard, fund operation and supervision and conclude the problemsexisting in these five aspects, which are low standard of pay, lack of governmentsubsidies; narrow coverage, low rate of the insured; low treatment standard, bigdifference between urban and rural areas; low level of fund arrangement, difficultmaintenance and appreciation of value; lag management, poor cohesion betweensystems. According to the present situation, the overall economy and population ofShanxi, this paper also analyses the reasons of these problems existed in ShanxiNRSPI from both internal factors like rural resident’s income, population mobilityand aging and external factors such as difference between urban and rural areas,economy and culture. Effective incentive measures can be taken to improve ShanxiNRSPI according to successful experience of Rural Pension Insurance of Germanyand Japan, which include increasing government spending, strengtheningdissemination and education, expanding the NRSPI coverage, improving treatmentstandard, breaking the pattern of urban-rural division, managing fund properly,optimizing NRSPI fund investment operation structure, improving NRSPI system andpromoting varieties of pension mode that are all targeted.