Research On Benefit Of Individual Account Of The New Rural Pension System

In2009, the State Council decided to carry out the new rural pension system in thevast rural areas, which is truly for the masses’welfare and really benefit millions offarmers. It play an important role of dealing with the increasingly serious populationaging crisis, protecting farmers’ pension rights and maintaining the stability of ruralsociety. The new rurail old-age insurance adopted individual accounts system withlifetime recording function, established the tripartite responsibility mechanism ofindividual, collective and government by combining of individual contributions,collective allowance and financial subsidies, and also formulated the relevantregulations,such as, insured range, pensions, the level of benefits, fund management andsupervision，etc.The promulgation and implementation of the new rural old-age insurancecould be said a big step in the field of social security, but the new rural old-age insurancesystem was not perfect, even individual accounts system had some problems foradjustment mechanism being inadequate,the existing contributions level being difficult tomeet future needs, the financial subsidies’ incentive effect being not obvious, what arethe focus of this article will be discussed.Based on the above issues, the contents of this paper are summarized below:The introduction discribed the background of the paper and the significance of thetopic,introduced the researching methods and means used in this paperand reviewed theresearching achievementdomestic and abroad. Chapter1introduced the related conceptsand theories of new rurail old-age insurance. Chapter2analyzed the status of individualaccounts, including the establishment and development of new agriculturalinsurance,personal contributions mode,contributions level and financialsubsidies.Contributions level were conducted by individual accounts contributions rateand indiviual payment capabilities.Financial subsidies analyzed from the financialsubsidy burden-sharing mechanism and financial subsidies level. The chapter3evaluatedindividual accounts, evaluated sub-grade payment, fixed rate payment and fixed gradepayment in payment mode, evaluated willingness of contibutions and choices of payment.Chapter4using of fund balance principle, calculatedreplacement rate on the actualcontroductions level, and then compared actual replacement rate with desirable replacement rate.At last it was found that it’s difficult to achieve a desired level ofexisting replacement rate to meet the farmers’ life in famers’old ages. Chapter5analyzedon the new agricultural preservation issues specificly. Finally, chapte6made reasonablesolution on the individual account and made policy recommendations on the new ruralpension system.