China's new rural pension scheme:practice and problems

• 作 者: 朱玲 蒋中一 金成武 王震
• 机 构: Institute of Economics,the Chinese Academy of Social Sciences(CASS),Rural Economic Research Center,M
• 出 处: China Economist
• 发表日期: 2010年05期
• 关键词: pension insurance rural village Jiangsu bundle revenue Anhui listen qualified

The paper first describes the characteristics of the new rural pension scheme and then analyzes some problems emergingin its implementation based on afield in Anhui province’s Dangtu County and Jiangsu province’s Hongze County inApril 2010.Unlike the urban pension system, the new rural pension scheme is of a voluntary nature, and unlike the oldrural pension scheme, the government subsidizes participants using fiscal revenue.However, in its implementation thereare some problems.The first involves the so-called “bundle scheme” that requires pensioners’ children to participate.Evidence from our field study shows that coverage is less than 80%, even with a “bundle scheme.” On the country,the “bundle scheme” increases social costs and it should therefore be replaced with legal regulations.Next, the paperexplains why a majority of participants choose the minimum contribution level based on observations in the fieldstudy.This choice reflects the two-fold information asymmetry between the authority and rural residents.Based onthe field study, we suggest that the new rural pension authority listen to village cadres and farmers to increase farmers’awareness.

The paper first describes the characteristics of the new rural pension scheme and then analyzes some problems emerging in its implementation based on afield in Anhui province’s Dangtu County and Jiangsu province’s Hongze County in April 2010. Unlike the urban pension system, the new rural pension scheme is of a voluntary nature, and unlike the oldrural pension scheme, the government subsidizes participants using fiscal revenue.However, in its implementation thereare some first. the so-called “bundle scheme ” that requires pensioners’ children to participate. Evidence from our field study shows that coverage is less than 80%, even with a “bundle scheme. ” On the country, the “bundle scheme ” increases social costs and it should therefore be be replaced with legal regulations .Next, the paperexplains why a majority of participants choose the minimum contribution level based on observations in the field study. This choice reflects the two-fold information asymmetry between th e authority and rural residents.Based on the field study, we suggest that the new rural pension authority listen to village cadres and farmers to increase farmers’awareness.