Research On The Fund-raising Model Of Chinese Rural Social Pension System

It is pointed out by the seventeenth Party Congress report that social security is the guarantee of the safety and stability of the society and speeding up the building of social security system covering urban and rural areas, securing the basic livings of people. In today's time of the building of the harmonious society and the construction of the new countryside, rural pension system is more and more studied by the government, the experts and scholars in this study field.With the coming of the aging society and the waning of the traditional family insurance and the earth insurance, as well as the fulfillment of the policy of "one family one child" and the decrease of family scale, the issue of the sustenance for old people especially in rural area becomes very urgent. The issue of the sustenance for old people in rural area is a great problem influencing the safety and stabilization of the country, deepening the reform in rural area, solving "Three Agriculture" problem, fully realizing the well-off society. A fundamental problem of rural pension system is the resources of the fund, fund financing is the key issue and the first step of the rural pension system, as well as physical base and the premise. Since the establishment of Chinese rural pension system in the middle of the 1980's, it has undergone the period of trial,development,modulation and creation. During the period of the rural pension system fulfillment, the fund-raising has exposed some shortcomings, such as: the lower fund-raising standard, the unreasonable fund-raising proportion, and the lower insurance level and so on. The fund of the rural pension system can't meet the needs of the rural old population, which greatly influences the development of the rural pension system. So, researching and resolving the issue of sustenance for old people in rural area and building a workable rural pension system are very important.This paper discussed three types of fund-raising, which are pay-as-you-go, pay-as-you-earn, integration, and analyzed their advantages and disadvantages, and based on the international experience of the fund-raising of rural pension system and current research, the financing model is discussed in my paper. In face of the future situation of the urban and rural development, adapting to the needs of the future social development, considering the integrating of the urban and rural development, as well as the target of building the social insurance system covering urban and rural residents. As for the disbursement features of pension fund, as well as the inevitable trend of aging population and the social and economic situation of China countryside, this paper suggests that the partially funded system, that is the combination of social security plan as a whole and individual account, should be the best choice for the rural pension system of China. It puts forward that fund should be raised from many channels, such as adjusting the fiscal expenditure structure, increasing the government's financial support, selling state owned property and recruiting social security tax, issuing the insurance bond, issuing lottery and so on, which could be effective sources of rural pension fund of china.