Study On The Multi-pillar Pension System For Landless Peasants

Thirty years of reform and opening up, along with the rapid economic development, urbanization has improved continuously. As the result of the rapid development of urbanization, a lot of land has been expropriated,thereby producing a new special groups- landless peasants. Our long-standing urban-rural dual structure makes the urban and rural areas taking a different pension model. The pension of city workers is mainly borne by the State and companies, while the pension of farmers depends on the land and the family. After the land is taken away from the peasants,the landless peasants’ original pension model is faced with collapse, and the pension issue becomes more outstanding.The paper takes the Multi-pillar pension system theory put forward by the World Bank as a guide, questionnaires along with interviews and document analysis as research methods, a coastal county-level city in eastern Yangtze River Delta region- Tongxiang City of ZhejiangProvince as an example, to look into the multi-level pension system for the landless peasants.The paper studied the history and current status of the pension system for landless peasants of the city, pointing out there are two major problems, one is low treatment levels, the other is the lack of ability to pay with funds. The paper also analysised the orgins of problems, which mainly come in three parts: the small coverage of landless peasants’ pension, low fee payment level as a result of restricted land acquisition compensation, and only one pillar of landless peasants’ pension.After studying the typical pension model for landless peasants in other regions of the country, combined with the actual situation of Tongxiang city, the paper proposed to establish a new pension system for landless peasants with multiple pillars, which includes social insurance as the core, family support as the basis, and commercial insurance as a complement. Specifically, the first level is social endowment insurance,providing protection to all farmers, financed by the government and land-expropriating companies, protecting the basic living, with mandatory; second level is family support, providing protection to all landless peasants, financed by the family, providing physical and spiritual protection for the elderly, with mandatory; the third level is commercial pension insurance, protecting the landless peasants with better economic conditions, financed by individuals, supplementing and improving the living standards of the elderly, with a voluntary nature. Meanwhile, thepaper stated the safeguards to establish a multi-pillar pension system for landless peasants.