Study On Moderate Level Of The New Rural Social Pension Insurance

With the issuance of “the guidance by State Council to carry out the new rural socialpension insurance pilot” by State Council on September4,2009, the new rural socialpension insurance pilot has been carried out within China. Although the new rural socialpension insurance has incomparable advantages compared with the old rural social pensioninsurance not in the design of the system but in the level of the treatment, it has alsoexposed some problems with the pilot’s in-depth in the Funding mechanisms, the payment,the level of co-ordination, the increasing of the fund’s value, and so on. If not solved, theywill inevitably affect the vitality of the new rural social pension insurance. This study willonly focus on the problems of the Funding mechanisms and payment, the moderate level ofthe new rural social pension insurance based on depth research. Taking the imbalances ineconomic and social development in China, this study selects Fee County of Shandongprovince as research object.Firstly, the living conditions of the rural elderly in marriage, level of education, health,labor, pension, social security, the main source of income, balance of payment and so on,especially in the needs of old-age security are analyzed in this paper based on theinvestigations of160elderly in8villages in Fee County, Shandong province.Secondly, the modal of ELES and Martin Law are used to estimate the moderatesecurity level of the new rural social pension insurance in this paper based on the relevantdate of the elderly consumption expenditure. When the minimum of the moderate securitylevel can only meet the minimum standard of living of rural elderly, the maximum canprotect rural elderly to lead a more decent life.Thirdly, taking “to adapt to the abilities of the insured person’s contribution and thefinancial subsidies of governments at all levels” as the basic starting point and “to protectthe insured person’s basic needs of living in old age” as the ultimate goal, this paper uses the actuarial principles to estimate the moderate contribution level of the insured personand the moderate level of financial subsidies of governments at all levels based on theminimum and maximum of moderate security level and the ability of the financialsubsidies of governments at all levels.Finally, the rationality of the moderate level of protection, contribution and financialsubsidy of he new rural social pension insurance is analyzed and some recommendationsare put forward to improve the new rural social pension insurance.