The Challenger And Solution In China Pension Insurance Coverage Expanding

Expanding the current pension coverage is the key tasks. The ILO data indicatethat China’s pension coverage is25.4%in2008. The World Bank (2010) report that,although China’s pension coverage continues to grow in the past few years, but they stillconcentrated in the formal sector in urban. Low coverage of the Chinese pension maketo the problem of fairness and sustainability. Seventh session of the National People’sCongress made it clear that establish social security system in2020covering urban andrural. The "Social Insurance Law" requests that, the basic pension insurance willcoverage the rural private enterprises, individual businesses and other rural workersinfuture. It’s the show that, China’s social security coverage is changing from the urbanto rural, from the staff to the residents.This paper compares the world’s major nationalpension insurance system design and development level. We learn the successfulexperience of foreign pension insurance system. Based on current urban and ruralresident’s pension insurance system, we build the basic pension insurance and resident’spension insurance participating model. The article simulates how the policies influencethe insured person behavior by the insured person’s insured behavior model. After that,the article describes the current problems of China’s pension system facing by the anglesof system fragmentation, structure irrational and the financial sustainability. The majorresons includes income gap, aging population, historical legacy, system design, etc.Based on urban household survey data and macro-economic statistics data, the articleexplains the pension paticipator’s behavior bye the empirical study. Then, the articleevaluate the financial risks of the basic pension insurance in future by predicted theaging population scale, and simulate the consequencd of extending the coverage.In theend of this article, we suggest to build a new pension insurance system framework bylearned the foreing experience.The main conclusions of this study include:①The paper construct the basicpension insurance and resident pension insurance insured behavior model. Based on ourlatest pension insurance policies, the article analysis the behavior regular of the insuredpersons. It also reseach how the individual characteristics (such as age, income level etal) and policy factors (such as the proportion of individual billing accounts, personalaccounts interest rates, pension replace metn ratio, et al) influence the insured behavior.The studies suggest that the current basic pension insurance system is lack of attraction. The pension insurance is difficult to expand in the voluntary insured model. And there isunfair of urban and rural residents pension insurance, because the younger insuredperson is impaired to the older indsured peron. The system will reject the accumulationof pension funds and the solution of aging population problem.②the article analyzespension insurance facing challenge to expanding the coverage from the structuralcontradictions, the system fragmentation, and the financial sustainability. And find thesummary reasons of the difficulty, including the income gap, aging population,historical debt, the system design flawed and the irrational Government’s relations.③Analysis the reasons of pension insured person behavioral by the household survey onthe impact of micro and macro perspectives. The expirical study shows that, the age,income level determine whether people to participate in pension insurance. But theeconomic development and income gap.is the mainly affected fators to the micropension coverage by the statistical data study.④The article predict the trend ofpopulation aging by the census data. Used the pension actuarial model, we forecast t thepension fund income and expenditure. The fund deficit is unavoidable in future. But itwill not generate the payment risk if the wage not growth in2010-2050. Theaccumulated pension fund is capable of prevent the deficit in2030-2050.⑤The articlepropose a new pension insurance system by learning the domestic and foreignexperience. The new binary pension insurance system changes the insured personclassify from identity to the affordability. Finally, the article proposes many suggestsimproving the pension insurance system and offers the solutions to realize the goal.