A Research About Pension Index-Adjustment Of China

Retirement security is a major issue about people benefits and social stability.After Chinese economics reform,China established completed multi-level retirement security system in which basic insurance for urban residents is the dominant part.According to the importance of it,basic insurance for urban residents is the direct research objective in this paper.Based on the broad impacts derived from inflation and increase in economy,Pension index-adjustment system reflects to an appropriate index to adjust yearly payment amount of pension.In this way,the Pension index-adjustment system can effectively achieve its goal for ensuring the benefits of retirees.Through theoretical researches and empirical experience in recent decades,the scientificity of Pension index-adjustment has been accepted by most of countries and established in over 70 countries.It has significant impact to study the design of Chinese Pension Index-adjustment system.The main reason behinds it is that the centralized and regulated public management requests to resolve the fact that China has adopted the method of adjusting payment of pension by government for a long period and lacked scientific research about the status of Chinese pension payment.This research mainly adopted normative approach and positive study.The related principles collection,journal reviews,and concept definition built the theoretical basis for following research.The main body of the research was based on the adjusted permanent income model,by selecting macroeconomic statistic data in Mongolia region and doing regressive analysis in three different plans of insurance level.The selected indexes in the three different plans was total consumption of urban residents,total food and transportation consumption for medical treatment of urban residents,and food consumption of urban residents,which represented high,middle,and low levels of insurance goals.In addition to internal factors of the model,the impacts from external factors were considered as well,including proportion of different group in total population,macroeconomies in different regions,and other external variables.Consequently,the research resulted in two different index-adjustment plans.The first one was non-distinction of population group,and the second one was distinction of population group.The second plan reached out that Mongolia regions should adopt the Pension index-adjustment in three stages,which had continuity of policies,and,thereafter,smoothly turn to the population of elder people(people who retired before the pension system reform began)would not affect the whole stage of the payment of pension.According to the results of the research,this plan was scientific and feasible.Furthermore,by expecting to illuminating the design of Pension index-adjustment in different regions,the research also reached out six comments for Pension index-adjustment,retirement postpone,fund investment,special allowance from government,transfer payment,and promotion of commercial insurance.