A Research On The Fragmentation Of Pension Insurance System

Pension Insurance System is the key problem of livelihood construction, it’s important in protection of citizens’basic standard of living, narrowing the gap between rich and poor as well as maintenance of social stability. At present, China has built up urban and rural pension insurance system, but due to reasons of institutional design, the pension system gradually became fragmented, pension benefits in different regions is inequality, as well as in urban and rural areas. Integrating the pension insurance system is the core value of pension insurance system, matches the principles of fairness and justice, it’s also the title meaning of harmonious society.This paper study on China’s pension system fragmentation problem, aims to build a fair and reasonable Pension Insurance System, analyzes on the basis of developed countries’experiences and lessons. Firstly, this paper analyses present situation of China’s pension insurance system fragmentation, compares the divergences between different pension insurance system, describes the plight of pension fragmentation. Secondly, paper expounds the reasons that caused the pension insurance system fragmentation, including inexplicitness of responsibilities in governments, imbalance in region economy, restriction of household registration system and of impertinency transfer payment system. Thirdly, draws on the successful experience of the United Kingdom, Germany, European Union, as well as the Failure of France. Finally, on the basis of above study, based on China’s national conditions, proposes policy recommendations. Recommendations are shown as below, optimize governments’functions, co-ordinates the pension insurance system at provincial level, accelerates the reform of the household registration system, strengthen the supervision of pension funds, achieve a smooth transfer policies continued access systems and other recommendations.