Analysis On The Effects Of The Premium Payment Level About "the New Rural Social Pension Insurance"

After surveying 90 families which are participating"The new rural social pension insurance"from Anhui Feidong, the author has found that the payment choices of insured farmers showing "two poles" in high and low pay grades, and the low pay grade is dominated. By analyzing the factors affecting the insured farmers'pay decision, the paper supposes peasants are "limited rational beings", who are calculating and reasoning practical benefits among different pay grades under the provisions of the policy, and then basing on personal and family characteristics to make final decisions. So, the farmers'behavior of premium payment is a rational choice.As the new policy emphasis on protecting the pension profits of the elderly and low-income rural residents, thus the incentive for high-grade is relative lacked. Most rational farmers choose low-grade for bringing more good returns, besides, compared with high-grade, farmers don't pay too much loss. Also, because the design of personal accounts has "saving" feature, some farmers to obtain the highest subsidies will choose the highest-grade.In this paper, such "two polarization, low pay dominant" premium payment behavior of farmers is defined as "profit-driven". It is the response to policy incentives, which evolved from rationality. In view of this, the paper proposed a reform of basic pension payments, hoping establishing a new payment mechanism linked to pay grade; At the same time, increasing government inputs and adding the subsidies to open the gap between the pay grades; It is also necessary to broad the channels for increasing the value of personal accounts.Although the"profit-driven"behavior has resulted in some bad influences, farmers respond to incentives is precisely the mass basis for sustainable development of the new system. The government should reform the measures which play negative roles in high-grade payment, guiding farmers to select the appropriate pay grade. Only in this way can the elderly live better and safely, and the system will be the pillar of farmers'endowment arrangements.