Exploration for New Rural Social Pension Insurance System in China

Zou ZHANG

Beijing normal university, Zhuhai, Zhuhai, Guangdong, 519087, China

Keywords: New Rural Society, Pension Insurance, Population Aging.

Abstract: With the rapid economic development, the gap between rich and poor is increasing, which is inconsistent

with the goal of common prosperity. So, protecting the rights of poor and vulnerable groups has become the

primary means of regulating social conflicts. China's new rural social pension insurance system, the latest

model focusing on farmers’ pension, aims at guarantee farmers’ basic livelihood in their old-age periods.

Therefore, research on the premise and objective of implementation of new rural social pension insurance

system seems urgent. It is of positive significance in improving the new rural social pension insurance and

narrowing the gap between urban and rural areas.

1 INTRODUCTION

New rural social pension insurance, including farmer

personal fees and the subsidy of government and

society, is deposited into farmers’ individual

accounts to guarantee farmers' daily life. Such

insurance system, combined with land security,

social support and assistance policies, has become an

important part of China’s insurance system. The

implementation and improvement of China's new

rural social pension insurance system can provide

certain financial support to farmers, reducing their

economic pressure (Li Xingxing, 2013). That is also

the main part of narrowing the gap between rich and

poor and easing social conflicts. To some extent,

new rural social insurance system is the key

measures to solve farmers’ supporting problem. New

rural social pension insurance can improve the

income level of farmers, and promote social

harmony and progress. However, in the specific

implementation process of this system, reasonably

design is needed, for only reasonable system can

comprehensively improve farmers’ economic ability.

New rural social pension insurance system can not

only promote the realization of China’s socialist

target, but also solve the problem of farmers’ basic

supporting problem practically (Cong Yun, 2013).

Therefore, to perfect China’s new rural pension

insurance system, emphasis should put on the

premise and objective of implementation, as well as

the tasks that need completed in the process.

2 PREMISE OF

IMPLEMENTATION OF

CHINA’S NEW RURAL SOCIAL

PENSION INSURANCE

SYSTEM

2.1 Traditional Agricultural Country,

the Foundation of Implementing

New Rural Social Pension

Insurance

Large land with rich resource and complexity of

climates make China suitable for the growth of

various plants. Therefore, it is the superior natural

condition that makes China a traditional agricultural

country, and agriculture has long been the pillar

industry of China. According to China’s State

Statistics Bureau, till February 22, 2013, the total

population of China in mainland is 135,404. Among

them, the rural population is about 64,222, 48.8% of

the total population, and has improved 1.1

percentage points compared with former year. Rural

population in China occupies a large proportion, so

famers’ living guarantee is the major social factor

affecting social stability. Famers’ living guarantee

has a direct impact on the development of grain

production and other food processing industries, so

Zhang Z.

Exploration for New Rural Social Pension Insurance System in China.

DOI: 10.5220/0006444500950098

In ISME 2016 - Information Science and Management Engineering IV (ISME 2016), pages 95-98

ISBN: 978-989-758-208-0

farmers are of importance in agriculture and

economy. Maintaining the stability and steady

development of society, as well as gradually

realizing a well-off society, is the requirements of

China’s socialist system (Qi Min, 2012). They are

also the main objective of this vulnerable group—

farmers. China's new rural social pension insurance

system, starting from agriculture, rural areas and

farmers, is an important measure to really service

"three agriculture". Therefore, the proportion of rural

population more than a half is the premise of

implementation and necessary requirement of

China's new social pension insurance system.

2.2 Deepening of Population Aging

Degree

As the most populous country in the world, China

has a relatively large population base. Over the

recent years, affected by family planning policy, and

the improvement of people's cultural level and the

overall quality of society, people have gained a

deeper understanding of education and

responsibility. On the whole, people's attitude

towards fertility has undergone a new change,

leading to a steady decline in the number of

newborns. While the population of the elderly is

relatively large, leading young people have to

shoulder the increasing pressure of supporting the

elderly. At present, many newly married couples are

the only children, so they need to work to support

the elderly, or even grandparents both sides. Based

on statistics of State Statistics Bureau, till February

22, 2013, the population of 60 years and above has

reached 19,390, accounting 14.3% of the total

population, with a 0.59 percent increase compared

with former year. The population aging problem in

China is emerging, seriously affecting the normal

life of society. And the excessive pressure generated

from support for the elderly has brought a direct

negative effect to young people's work and life.

Therefore, the deepening of population aging degree

is the main driving factor of implementing new rural

pension insurance system.

2.3 Adjustment of Economic Structure

China has been in primary stage of socialism, with

low level of economic development, when economic

development structure needs continuous adjustment.

Labor demand is constantly expanding, especially in

the eastern coastal areas, where economic level is

relatively high and with a lot of small and medium

enterprises. Moreover, China’s labor market appears

an imbalance. The surplus labor in the west is

relatively excessing, while the economic

development level not high enough, leading to a

weak demand for labor. So lots of western people

are more accustomed and familiar with the flowing

life. And it is very common for many young people

to go to metropolitan to develop. Most young people,

with low education, will not follow their parents to

engage in agriculture production. They will choose

to work in cities to broaden their horizons, thus

changing their destiny. While the college students,

who can create wealth through knowledge, seldom

return to the countryside again after graduation. This

vicious circle makes lonely elder people and left-

behind children become more and more. Data from

the State Statistics Bureau show that the national

total population of Family Separation is 279 million.

Among them, 236 million are the flowing

population. Young people depart their homes,

worrying their children and elderly parents. In the

countryside, the economy is relatively backward and

medical conditions relatively poor. The elderly

people mainly depend on the grain, which cannot

fully guarantee their life in the case of illness and

attending children. China's new rural pension

insurance system gives the elderly a real guarantee

and sustenance, thus making young people work

outside attentively. In this way, young people can

develop themselves while caring their families, thus

enabling the society to develop more stable and

harmonious. Therefore, the flowing population

caused by the adjustment of economic structure is

also the premise and requirement of quick execution

of the new rural pension insurance system.

3 PURPOSE OF CHINA’S NEW

RURAL PENSION INSURANCE

SYSTEM

Construction of socialist new countryside is an

important part of China's socialist construction.

Rural pension insurance system, a software system

in rural areas, can provide a powerful guarantee for

socialist new countryside characterized by Chinese

features. Meanwhile, it is also an important method

to reflect the superiority of socialist system.

Implementing new rural pension insurance system

can alleviate the problem of the aging population and

provide more opportunities and spaces for young

people. So that young people can better devote

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themselves to work, thus making their own

contribution for socialist modernization. It is also

significant to solve the problem of support for the

elderly people.

Implementation of new rural pension insurance

system is an integral part of China's socialist pension

system, and also a major breakthrough of the

traditional pension model. Subsidies for farmers’

pension insurance will change the self-supporting

model, alleviating their financial burden. It can also

provide farmers with some financial support, thus

excluding the worries of young people and reducing

their pressure. To some extent, it can increase

farmers’ distributable income levels and improve

their living standards. Besides, it is of historical

significance in the promotion of harmonious

development, common progress and common

prosperity. China's socialist system shows strong

advantage. From the social protection degree

perspective, the social pension insurance is an

important reflection. Pension insurance has a strong

practical significance in the aspects like narrowing

the gap between rich and poor and realizing social

justice. From the tax perspective, it can maintain the

country's overall balance of payments, collect more

social capital and increase revenue. In this way,

more farmers will be provided with better services,

with their basic living improved and their legitimate

interests protected. Besides, the society will be more

stable for the rapid and smooth development of

China’s economy, thus achieving better progress.

4 SPECIFIC TASKS OF CHINA’S

NEW RURAL PENSION

INSURANCE SYSTEM

4.1 Strengthening Propaganda of New

Rural Pension Insurance System

The overall quality of farmers is not high, and their

understanding of the pension insurance system is

inadequate. So, explaining this new system in detail

is necessary. For it enable farmers to have a real

understanding of it, thus eliminating their reluctance

to payment and reducing their blind resistance to

pension insurance. Government should guide

farmers to learn the advantages of pension insurance,

including the benefits and normalization of it. Then

farmers will be active in participating and

cooperating, and the pension system be perfected.

Make farmers know the vulnerability of land, then

farmers will accept the new system and form, thus

better understanding the new social insurance

system. Encourage farmers to participate actively

and making their paying fees more transparent, so

that farmers will build a sense of trust to relevant

departments and government, making the

government well supported. Moreover, certain

government propaganda is required to strengthen the

new rural pension insurance system, thus ensuring

better promotion and development.

4.2 Strengthening the Support

Dynamics

Capital is the foundation to ensure the smooth

implementation of pension insurance system.

Government should visit farmers’ life to understand

their actual situations. And government also needs to

manage the capital, income and insurance system

well, increasing fiscal spending to improve the living

standards of farmers. Capital is the best support for

farmers. While strengthening the support dynamics,

some targeted measures are also needed. For

example, government can use different standards for

different income levels, and different charging

methods for villagers’ different economic situations.

Moreover, management of the capital is also an

important step in pension insurance. With capital

increase, certain supervision and control of capital

flowing is necessary, so that more capital can be

better used. During the operation and support of

capital, government should supervise the capital and

pension system to protect farmers’ legitimate rights

and interests. Finally, a strict supervision system is

crucial to avoid the emergence of corruption.

4.3 Promoting Rural Economic

Development

While increasing the capital support, rural resources

should also be developed actively. That includes

developing the economy with local conditions,

stimulating employment and increasing technical

support for rural economic development. In this way,

the living standards of farmers will be fundamentally

improved. In the process of becoming rich,

government needs to strengthen rural infrastructure

construction, like the construction of highway.

Transport is the key link of grain transportation, and

only smooth road can seize the better sales period of

vegetables and grain. Rural economic development

is the foundation of improving famers’ disposable

income. Government, while providing support and

Exploration for New Rural Social Pension Insurance System in China

assistance, should focus on the local economy and

exploit the development potential of rural areas, thus

protecting the basic living of farmers. Providing

technical support is also to promote economic

development, since it is the key to increase grain

production level. Guiding farmers to acquire more

advanced production technology enable rural grain

and cash crops to better play its economic value, so

as to protect famers’ life and guarantee their pension.

4.4 Perfecting Related Systems

New rural social pension insurance combines

government subsidies and farmers’ contributions.

Farmers’ contributions are a burden for every family,

and they maybe hesitant. So, reliable systems and

strict execution measures are necessary to prove the

feasibility of pension system, giving farmers a sense

of trust. In addition, issues such as the restitution of

pension that most valued by famers also need

reasonable research and improvement according to

insurance system. At this point, government and

relevant departments should put restitution in the

first place, ensuring the prompt restitution and the

amount. Perfecting supervision and restitution enable

farmers to maintain a harmonious relationship with

the government and relevant departments, achieving

the long-term cooperation. Then, farmers’ real

benefits and pension will be guaranteed. Sound

system is a guarantee for the implementation of rural

pension insurance, because it can provide guidance

and direction for the government and relevant

departments. However, to better implement and

enforce it, more institutional and regulations are

needed to safeguard the legitimate rights and

interests of people. From another perspective, a

sound social pension insurance system is also the

requirements of protecting farmers’ benefits.

5 CONCLUSIONS

New rural social pension insurance has achieved

great success in rural areas throughout China,

protecting the benefit of farmers well. However,

shortage of many subsidies still exists. That means

the pension system is still not perfect, and need the

efforts of all aspects, including the mutual

cooperation and supervision of the government and

family. After comprehensive analysis of the premise

and objective of implementation, as well as the tasks

need to be completed in the process, we should

firmly adhere to the socialist road and the road of

common prosperity. Only concerning the vital

interests of farmers from actual conditions, farmers’

pension will be achieved and social justice realized.

Meantime, the pressure on young people to support

the elderly will be alleviated, thus they will have

more time and energy to work and make a better

contribute to the socialist construction. The

superiority of socialist system needs to be reflected

in every policy and system. Since believing the party

and government, people should be confident and

hopeful about the future life.

REFERENCES

Cong Yun, Improvement of the necessity and thought of

China's rural social pension insurance system, Science

and Technology and Enterprise, 2013 (8): 222-223

Li Xingxing, Study on rural social pension insurance legal

from urban and rural harmonious perspective, Modern

Business Trade Industry .2013 (9): 145-146

Qi Min, Policy effect of lemon market theory and social

pension insurance system in rural areas of China,

China Economist .2012 (10): 25-27

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