The Integration Of Urban And Rural Residents’ Social Endowment Insurance In Fujian Province

As China’s aging population degree is deepened, pension issue which Fujian facing is becoming more and more severe. However, China’s social endowment insurance system in urban area is quite different from that in rural area for a long time. Endowment insurance system for urban enterprise workers is becoming better and better, as well as some rural residents who have no source of income are facing great pension risk. There is no corresponding endowment insurance system to maintain their basic life in their old age, so it is necessary for our country to take some measures to solve their pension problems.The twelfth five-year-plan explicitly proposes to accelerate the construction of a social security system covering urban and rural residents and steadily improves the level of protection. Endowment insurance system as an important part of the social security system, affects the success of social security coverage of urban and rural residents directly. Fujian Province, on March 12th 2013, put forwards "Opinions on building a unified social endowment insurance" and decides to integrate the rural residents’social endowment insurance and the urban residents’ social endowment insurance. The combination of the two different systems, aims at establishing a unified system and improving the standard of government’s subsidies.Based on the analysis of the social endowment insurance theory, the article concentrates on studying the current practice of "Beijing model". "Wuhu model" "Chengdu model" and "Baoji model", and sums up the practical experience of the pilot areas. Then, the paper describes the details of urban and rural residents’social pension insurance in Fujian Province. After analysising the implementation phase in Fujian Province, the writer uses the life insurance actuarial techniques to calculated the replacement rates of urban and rural social endowment insurance, concluding that the basic pension replacement rate and the personal accounts replacement rate are both too low. After forecasting the government’s fiscal capacity, the writer believes that the government’s financial support should have to increase; while individual contributions grades are designed unreasonablely, which results a deviation from the individual’s actual payment capability.Finally, in order to improve the low replacement rate, the paper trys to explore the reason why the replacement rate is so low. First of all, the traditional concept of retirement still occupys an important position among the urban and rural residents. Secondly, the personal account is difficult to expand. Thirdly, fiscal responsibility of the government is inadequate and the fund’s management is inefficient. In this regard, the author puts forward some policy recommendations to solve these problems. First of all, we should try our best to raise the awareness of urban and rural residents to take part in the insurance. Secondly, the government should try to make the system more perfect. Thirdly, it is important to increase the income of urban and rural residents and develop the economic in order to make residents richer. At last, the government should play the main role in improving the system’s replacement rate and the fund’s management should be more efficient.