A Study Of The Historical Evolution And Integration Of China's Urban Two-track Pension System

With the promulgation of the "Decision on the reform of government organizations and institutions staff pension insurance system" from the State Council in January of 2015, marking the formal abolition of the two-track pension, the staff will bid farewell to the "free payment" era. Since the dual-track pension system of the state organizations and institutions and enterprises has been established for a long time, reviewing the experience and lessons of reform of the pension system is conducive to further advance.Since the building of Chinese pension system of the Republic of China, the pension system had had two-track feature. The pension system of civil servants and teachers was established earlier than the enterprise employees', and the former paid higher. Since the founding of new China, following the transition of the economic system and social structure, the evolution of China's urban pension system has gone with three periods of building and exploration, stagnation and recovery and adjustment and reform. Meanwhile, the two-track pension system also experienced in three stages-from the establishing of two-track to the merger, from the destruction to the restoration, and from the uneven development to the end of the two-track. The change of urban pension system reflected and adapted to the evolution of economic and social system. Pension insurance system for urban enterprise workers had been revised earlier following the economic and social transformation, while the reform of the pension system of the organs and institutions lagged behind, resulting in the expanding gap of benefits between the workers in the state organizations and institutions and the enterprises, evidently showing not social justice.After the merger of the reform, the pension system of the state organizations and institutions and the enterprises has unified system model and system rules, showing the improvement of fairness. Under the premise of rational gap of benefit between these two occupational groups, we must continue to deepen the reform of the pension insurance system for urban workers, to guarantee the fairness of the basic pension insurance system, and to solve the contradiction of financial sustainability.