Research On The Issues And Strategy Of Extending Coverage Of Urban Old-age Insurance System In Liaoning Province

Everyone will face the risk of missing working ability due to old age, if they have no enough income they will live hard. Pension insurance, using the law of large numbers, gets the dispersed risk together to achieve risk-sharing, mutual economic and assistance in order to achieve the safety net. If the coverage of the wide is not enough, the older ones who will be in the possible risks can not be covered in the safety net, and it will not provide effective assistance to members of society when they are at risk. Normally it will also directly limit the function of the pension insurance's "safety net".Since 2001, Liaoning Province began to take the urban pension insurance system for the pilot. This system is operating well overall, and the urban social pension insurance system covers the majority staffs of state-owned and collective enterprises. But the coverage of other employees is very small, including the employees in non-public ownership enterprises, individual industrial and commercial households, and flexible employment etc. And rural workers, peasant workers, landless peasants and other groups are also excluded from the system. Although government increase "expansion of" the intensity in recent years, the effectiveness is not significant. The narrow coverage leads directly to the lack of system efficiency, and serious shortage of social pooling funds as well as some of the workers lack pension protection and other issues. Therefore, to expand the pension insurance system for urban coverage has become an urgent practical problem.In this paper, it combines with the coverage situation of Liaoning Provincial urban pension insurance system, then analysis the coverage's status quo of urban pension insurance and the problems, such as social factors, economic factors, institutional factors, and other constraints. Then the imbalance in pension fund that caused by expanding coverage are taken in-depth and detailed analysis. On the basis above, it re-designs the basic endowment insurance system for individual, flexible employees in Liaoning Province, which makes the system more flexible and attractive to achieve "expansion of" the objective. At the same time, it puts forward an effective way to make rural workers and urban migrant workers joined the endowment insurance system. There are 4 chapters in this paper.The first chapter has confessed the urban old-age insurance system's related policy and the present coverage in Liaoning Province. By analyzing present coverage of old-age insurance, I pointed out the major effect factors and issues of coverage of urban old-age insurance in Liaoning Province.The second chapter is the core part of paper which analyses the key point that influences the extending of the coverage of urban old-age insurance in Liaoning Province. The paper analyses these issues in social, economy and system's perspectives, and analyses the issue of old-age insurance fund unbalance that generated by aging of populations and the expanded coverage.The third chapter proposed the strategy of extending the coverage of urban old-age insurance in Liaoning Province. Firstly I will redesign old-age insurance for self-employed and flexible employed citizens whose coverage was small. By building individual accounts payment rates model, I will calculate the flexible employment's payment levels and ability, then proof the new system is feasible. What's more, for the non-private economy unit job holders, the peasant workers and other different community, I have proposed the corresponding strategy to expand the coverage. The last but not the least, I proposed the reasonable solutions to resolve the insurance fund unbalanced question.The fourth chapter, based on the above analysis, points out that the government should strengthen the old-age system's "hardware" and "software", enhances economic output and promotes the division of income system, deepen old-age insurance system reform, strengthens related necessary system, and plays macroeconomic regulation and control secure functions, in order to effectively expanding the urban old-age system's coverage.