Complexity in Choice of Old-Age Security Provisions for Land-Appropriated Farmers in the Process of

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  Since the 1990s, China has experienced rapid urbanization.The urbanization rate (percentage of the population that is registered as urban residents) in China increased from 28 percent in 1993 to 51 percent by the end of 2011.In the process of urbanization, farmers who lose their land due to governments" appropriation are called land-appropriated farmers in China.It is predicted that there are about 125.9 million land-appropriated farmers in total from 1991 to 2020 and 67.5 million from 2006 to 2020.When farmers become land-appropriated, they are different from both traditional farmers and urban residents in their rights for social security.Moreover, they cannot get old-age security provision from the land by working on it or transferring it to their adult children.Whether the social security old-age system changes accordingly when farmers lose their land, what are the current old-age security provisions for land-appropriated farmers and if they meet the needs of this special group are essential questions in the process of providing optimal old-age security provisions for land-appropriated farmers.The issue to provide optimal old-age provisions for land-appropriated farmers is complex for both policy analysts and land-appropriated farmers.Though governments gradually recognize the importance of providing social security old-age programs for this special group, no unified old-age security program for land-appropriated farmers has been established in China.Different areas provide different social security old-age programs for land-appropriated farmers in China.Empirical analysis of Wuhan city demonstrates that the percentages of land-appropriated farmers participating in the Urban Employees Pension Program, the Urban Residents Pension Program, the transitional old-age security program, and the National Rural Pension Scheme are 3.0 percent, 18.3 percent, 10.1 percent and 47.8percent respectively.The transitional old-age security program means that female land-appropriated farmers age 55 or older and male land-appropriated farmers age 60 or older could receive 800 yuan each year.Moreover, about 20.8 percent of land-appropriated farmers do not participate in any of the social security old-age programs.Possible explanations for this phenomenon, policy analyses and relevant supplementary reforms to provide optimal old-age security provisions for land-appropriated farmers are discussed in this paper.
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