According to the Social Insurance Law that came into effect in July 2011, my country's social pension insurance projects are divided into five independently run pension insurance projects: pension insurance for civil servants, employees of public institutions, employees of urban enterprises, unemployed urban residents, and farmers.

Among these projects, apart from civil servants and employees of public institutions, which group of people does the state provide the greatest subsidies to?

This article will be based on the study of the new rural pension insurance system (hereinafter referred to as "New Rural Insurance"), using the net present value method as a tool, and comparing the lifetime financial subsidies for pension insurance of micro individuals (urban enterprise employees, urban unemployed residents and farmers)

Amount, determine the main flow of government subsidy social security funds and the largest beneficiary group, discuss the fairness issues, and put forward some policy suggestions for improving the new rural pension insurance system.

Note: Since most cities in my country have not yet established a pension insurance plan for urban residents, unemployed urban residents generally participate in the basic pension insurance project for urban enterprise employees as flexible employees.

1. The Current Situation of my country’s New Rural Social Pension Insurance System In September 2009, the State Council issued the “Guiding Opinions on Carrying out the Pilot Program of New Rural Social Pension Insurance” (Guofa [2009] No. 32, hereinafter referred to as the “Opinions”), establishing A new rural insurance system that combines individual contributions, collective subsidies, and government subsidies has been established to ensure the basic living standards of rural residents in the elderly.

According to this document, the current pension calculation formula is as follows: basic pension = basic pension + personal account pension. Among them: (1) The basic pension standard determined by the central government is 55 yuan per person per month. Local governments can

Increase basic pension standards based on actual conditions.

The state shall timely adjust the minimum standard of the national new rural basic pension based on economic development and price changes.

We assume here that the country raises the minimum standard of basic pension based on the inflation rate g.

(2) Personal account pensions are composed of individual contributions, collective subsidies and financial subsidies.

We assume that the individual payment standard is 100 yuan per year (the minimum payment standard), there is no collective subsidy (the state does not force collective organizations to pay), and the local government provides an annual subsidy of 30 yuan (the minimum subsidy standard).

We assume that individual contributions and local government subsidy standards are raised every year based on the inflation rate g.

(3) Personal account pension is the amount of personal account savings divided by the number of payment months.

The personal account deposit amount is currently calculated annually with reference to the one-year RMB deposit interest rate of financial institutions announced by the People's Bank of China.

The standard for calculating the number of months is determined based on the life expectancy of the urban population, personal retirement age, interest and other factors, and is uniformly determined by the State Council.

The current number of issuing months is 139.

From this, we can derive the calculation formula of the basic pension: where P is the basic pension, that is, the pension received in the first month of retirement, i is the nominal interest rate, g is the inflation rate, and n is the payment period.

2. The main difference between the basic pension insurance for urban enterprise employees and the new rural social pension insurance is that the objects of protection are different.

The urban enterprise employee pension insurance system (hereinafter referred to as "urban insurance") is mainly for urban enterprise employees, flexible employment personnel without employers, and some rural land-expropriated people; while rural social pension insurance is mainly for adult farmers with low payment ability.

Second, the implementation intensity is different.

The basic pension insurance for urban employees is compulsory in accordance with the relevant national social security regulations, and both employers and employees must pay in accordance with the regulations; while the rural social pension insurance emphasizes the principle of voluntariness, guided by the government, and farmers voluntarily participate.

Third, the financing structure is different.

The main contributors to the basic pension insurance for urban employees are employers (all individual contributions are included in the personal account of the pension insurance and are owned by the individual, and do not participate in the redistribution of the rich and the poor).

The main contributor to rural social pension insurance is the government. The government provides certain financial subsidies when individuals participate in the insurance and pays premiums. When paying pensions, it pays a basic pension of 55 yuan per person per month and a bottom-line personal account pension.

Fourth, the standards for payment and benefits are different.

The benefits of pension insurance and the payment of fees are directly linked. The basic principle is that the more you pay, the more you enjoy.

Urban employee pension insurance adopts a "high payment, high security" model, while rural social pension insurance follows the principle of "low payment, low benefits".

Take Xiamen City, Fujian Province as an example. In 2010, the pension insurance payment amount for active employees in the city ranged from 4,812 yuan to 24,060 yuan. The average monthly pension for employees in Xiamen City was around 1,800 yuan, while the minimum annual pension insurance payment amount for urban and rural residents was 100 yuan.

Yuan, the average monthly pension is about 200 Yuan.

From this perspective, the two types of pension insurance projects have their own characteristics.

Urban employee pension insurance is for people with higher incomes; rural social pension insurance is for people with lower incomes and has a certain social welfare nature.

3. Rational Analysis of the New Rural Insurance System Below, we analyze the new rural insurance system from two aspects: First, rationality. Can the new rural insurance system bring sufficient pensions to farmers?

The second is fairness. Compared with other pension insurance projects, how strong is the state’s subsidy for the new rural insurance project?

This section will discuss the first question, and the next section will discuss the second question.