A Study On China’s Endowment Insurance System For Urban And Rural Residents

In order to guarantee people’s basic life, regulate social distribution of income and promote the coordinated development of rural and urban economy, Chinese government is actively establishing nationwide fair endowment insurance system, of which the endowment insurance system for urban and rural residents is part in 2014.Based on the endowment insurance system for urban and rural residents, the paper will carry on the analysis from three aspects ——its function, historical significance and sustainability.First of all, through the analysis of the vulnerability of our traditional endowment system, new changes of urban and rural residents’ pension risk in our country, considering the feature of pension risk, this paper concludes that endowment insurance system for urban and rural residents has the ability of controlling pension risk.Second, by reviewing the history of endowment insurance system for urban and rural residents, and analyzing the present situation of the endowment insurance system, this paper concluded necessity of development of the endowment insurance system and significance of establishing a fair, uniform and efficient endowment insurance system for urban and rural residents.Thirdly, according to the regulation of the present endowment insurance system for urban and rural residents, this paper establishes financial balance actuarial model with the basic data of Beijing City to calculate and analyze the stability of guarantee of the system, and sustainability of fiscal payment. The results prove that pension benefits of urban and rural residents is low, personal account gap will emerge and expand with average life-span extending and the fiscal expenditure could not be a burden of the government.Finally, according to the existing problems of the system, the author proposes to increase the fiscal subsidy and expenditure, improve the level of pension payment for urban and rural residents, delay the age of retirement, propagandize the policy thoroughly and optimize project of fund investment and supervision to ensure the appreciation of fund value.