Problems And Countermeasures Caused By The Reform Of The Old-age Insurance System In The Institutions And Departments

The pension insurance system for government agencies and public institutions was first established in December 1955,when The State Council unveiled Provisional Regulations on Retirement of State Personnel and Provisional Regulations on Resignation of State Personnel,which marked the pension insurance system for government agencies and public institutions began a long dual-track operation.The dual pension system means employees implement different pension insurance systems due to different work unit attributes,videlicet,urban enterprise workers participated in the endowment insurance for the urban working group while staff in government agencies and public institutions were paid directly by national finance.With the development of economy,there were some problems with dual pension system.Firstly,pensions for staff in government agencies and public institutions were paid mainly by national finance or work units,bringing national finance heavy burdens and public institutions difficulty,requiring payment form provincial financial co-ordination.Secondly,due to different pension insurance systems between government agencies and public institutions and enterprises,staff who intended to leave government agencies and public institutions couldn't enjoy the benefit of receiving the pension without individual payment,which obstructed the normal flow from government agencies and public institutions to enterprises.Thirdly,because of different pension insurance systems,different retirement treatment methods and different treatment adjustment methods,scissors gap for pensions was bigger and bigger,not conducive to social equity and social harmony.Measures on Pension Insurance for Workers in Government Agencies and Public Institutions(Hereinafter referred to as “measures”)was unveiled by the State council on January 14,2015.It means reform of the pension insurance system of government agencies and public institutions in China was formally determined in the form of documents.At the same time,the General Office of the State Council issued Circular on Printing and Distributing the Measures for Occupational Annuity of Government Agencies and Public Institutions(Hereinafter referred to as “circular”)on April 6,2015.These two documents officially opened the prelude to the reform of pension insurance system of government agencies and public institutions.This essay is based on “measures” and “circular”,take the pension insurance system of urban enterprises as reference,learn from the advanced experience of foreign pension system,refer to domestic and foreign documents,start from the reality of China's pension insurance system,summarize the difference between the pension insurance system of government agencies and public institutions and that of enterprises,straighten out the reform context for pension insurance system of public institutions and identify problems,for example : The first problem is empty individual account;the second is the enterprises' difficulty in occupational annuity implementation;the third is how to calculate the transition period for those who started to work before reform and opening up,but retired after that;the fourth is that the mode of pension fund value preservation and increment is about to change.This essay will put forward practical solutions aiming at these problems,such as broadening financing channels,improving the treatment plan and so on.