Government Responsibility In The Rural Basic Pension Insurance Funds, Contributions, And The Feasibility Study

Financing is one of the most important parts in Chinese Rural Basic Endowment Insurance (RBEI) , also is the key to solve the problems in its development. This paper proves the government's financing responsibility in RBEI in theoretical and positive two different ways, on the basic of knowing the history and status quo of Chinese Rural Basic Endowment Insurance and reading many relative researching papers. Then we calculates the finance risk if the government gives finance surpport to RBEI by reasonable hypothesis and actuarial model.The details are as follows:First, we divide peasants into pure farmers, migrant workers and landless peasants three categories by identifying peasants' identities. Then we prove the government's finance responsibility respectively in these three kinds of peasants' Rural Basic Endowment Insurance from the perspective of system'supplying, theoretically prove that the government should bear a certain proportion of financial responsibility in Rural Basic Endowment Insurance.Second, we analyse the 1237 valid survey data from Ningxia Hui Autonomous which is a representative nationwide sample. Then we prove that government's finance support is the most prominent and significant factor which affects the will of peasants taking part in Rural Basic Endowment Insurance among the other factors such as the average income, whether planned parenthood famiily, age, etc, positively prove the government should bear a certain proportion of financial responsibility in Rural Basic Endowment Insurance.Again, we make National Ningxia Village Life Table by using actuarial theory of population and census data fo Ningxia, then we calculate the closed predicted results of insured population of Ningxia in more than 20 years in the future. After that, we give reaconable assumptions about personal account rate, average CPI index, joining rate ,paying increasing rate and government's revenue increasing rate on the basis of local economic characteristics. Then we calculate the government's finance risk on the basis of assumptions which are 1.3% of average CPI ondex and 8% of government's revenue, give the feasible projects aim for 100% covered in 2020 which prove it's feasible of giving financial surpport for government. The two feasible projects are the one which is 5% of paying increasing rate and 3% of personal account rate and the other one which is 5% of paying increasing rate and 3.5% of personal account rate. Finally, we give the policy suggestions such as government should pay more attention to Rural Basic Endowment Insurance, increase financial support, transfer capital from central government, control the risk of government's finance by using actuarial science, keep the whole capital increaseing in more available investment channel and so on, to make Rural Basic Endowment Insurance in develop better.