Basic Government Shared Responsibility In The National Co-ordination Of The Pension Insurance

In Social Security, division of responsibilities between the central government and local government, which is a adverse important factor to healthy and orderly development of the social security system. Especially, division of responsibilities, in pension insurance, is the key points to National Co-ordination of basic pension insurance. During the division of responsibilities between the central government and local government, growth potential of institution should be paid more attention to make it more sustainable. Mobilize central government and local government's enthusiasm reasonable to keep government financial balance and make financial authority corresponding to liability, therefore social security funds will be used efficiently.Firstly, the meanings of provincial basic pension insurance and the National Co-ordination were analyzed, and reviewed development process of the basic pension insurance, at the provincial level up, and the National Co-ordination. So it was clear that the basic pension was national co-ordinating goal for the basic pension insurance, and feasibility and necessity of the national co-ordination to the basic pension insurance was analyzed. As quasi-public goods, the basic pension insurance has very strong positive externality, and benefit scope and spillover effect were shared by the central government and local governments, so the responsibility to provide social security products should be undertaken by them to maximize the effectiveness and efficiency form public goods. On this basis, main problems and the cause of problems in shared responsibility between the central government and local government were analyzed. Finally, at target of the National Co-ordination, the method to divide responsibilities between the central government and local government, in basic pension insurance, was further clarified. According to Urban households around average per capita consumption expenditure in recent years, the total demand for primary endowment insurance was estimated. Compared the central financial growth and local financial growth, and analyzed finance supporting ability to fundamental annuities. On that basis, the approach to clear and definite responsibilities between the central government and local government was further analyzed, and provided important evidence for establish long-term mechanism of national co-ordination basic pension insurance.