Research On The Reform Of China’s Double-track Pension System

The pension system reform is not only one of the key points and difficulties in economic structure reform in China, but also a most influencing problem which is concerned by the society and governments at all levels. The main goal of the social security system is to establish a society where everyone has a fair right, equal opportunity. This indicates that fairness is the main tone in future for Chinese social construction. To break the artificial limits, such as identity, region, differences of ownership, is the trend to persue social fairness.Pension system reform, which is important for anyone, ensures the normal operation of China’s economic and social transformation. The reform of the pension system in state institutions and public service units needs to abolish the double-track pension system, to meet the practical requirements of China economic and social transformation, to content social expectation of justice. Social justice is not only a matter of social stability, is also a kind of new energy to social economic development. The government, experts from different fields and scholars all show a high degree of attention to the issue. The problem now is that we know the double-track pension system is certain to reform, we also need to make sure what time and how to reform. This paper is based on the historical development of the double-track pension system, analyzes the orientation of it with the planned economy, and affirm that it has played a positive role in a certain period of time. With the transformation of the economic regime, the original system obstructs the establishment of the market economy, therefore, the double-track system reform is put on the schedule.Taking other countries’ experiences as example, any country’s pension system for different people is gradually set up and developed. Due to different types of employment and the differences in employment characteristics, pension systems are also different. States institutions and public service units have their particularity. Government is the employer, and the financial grant from the state is the main source of the salary, and the pension system in state institutions and public service units is also from allocation of funds. Whether is the independent system or integrated pension system, state institutions and public service units are first covered, also their treatment level is generally higher than those retired in enterprises. This reflects the particularity of the state institutions and public service units workers, also means the national award for their public spirits. On the analysis of civil service pension insurance system in other countries, partial integrated pension system is the direction in the future all over the world. The target model is composed of three pillars, the first pillar is the basic pension insurance system, which is the embodiment of the same national treatment, ensures the basic life of all the retirees. The other tow pillars of the model are occupation pension and personal savings plan. Occupation pension is the special system for different people, in order to improve the retirement standard of retirees. The third pillar encourages the individual to carry on the account savings plan, which can improve their pension benefits, and is a means of investment.The reform of the pension system not only needs a viable target model, but also needs to choose an appropriate time. The difficulty is to deal well with transition between the old and the new system. The success of the reform also needs the relevant measures to support, those include the management system, supervision mechanism, funds and so on.