Jiangxi Province, Industry Pension Is Calculated And The Existing Problems And Countermeasures

As we all know, the state council had approved the society security planning for of11industries since the mid-1980s. In accordance with the requirements at that time, the insured institutions from eight industries in Jiangxi province had successively transferred its society security business to the respective industries. And the society security planning in respective industries institution enforced during the initial days of reform of the enterprises endowment insurance system of our country has made contributions in advancing the establishment of endowment insurance system, ensuring the level of pensions for retirees in respective industries and promoting the development of the enterprises and the stability of the staff in their own industries. However, the further development of the economic reform led to a few problems in industrial society security planning:firstly; the big disparity in the level of pensions for retirees between the aforesaid11industries and the local enterprises in the same administrative area; secondly; the unbalanced burden of pensions of aforesaid industries and local enterprises; thirdly; the endowment insurance system is non-unified and inequitable. In order to solve these problems, in1998, the State Council issues Notice of Implementation on Transferring Administration Power to Local Government about Planning and Coordination at Provincial Level and Industrial Level for Basic Pensions for Retirees of Enterprises Employees (published in print by state council,[1998] NO.28), which required institutions of aforesaid11industries to transfer its administrative power to provincial authorities on the principle that transfer shall be prior to adjustment during the process. Currently the pension of twenty-six units in eight industries including electric power, railway, transportation, coal, finance, civil aviation as well as non-ferrous metal have been transferred to Jiangxi Province. Prior to the transfer, the approaches for calculating and distributing basic pensions between these industries varied with significant disparity. In2001, Jiangxi Province issued No.13[2001]document on social security pension in accordance with the provisions of State Council to unify the calculating and distributing means which set a five-year transitional period to guarantee the smooth transition from former individual industry calculating and distributing way to the new provincial-unified way. Nevertheless, such problems as the incompatibility between new and former way, the big gap of transitional pensions among industries, the big influence of the monthly average salary of employed staff and workers on calculating and distributing the basic pensions and the amplification of capture expends wage index during annual setting still exist during the process of calculating and distributing the basic pensions. On the basis of previous study by others, this thesis starts with several factors affecting the calculating and distributing of basic pensions to make a quantitive analysis to the calculation and distribution of industry basic pensions in Jiangxi Province and expounds its existing problems as well as provides some ideas and suggestions to solve these problems.