Pension Production Theory

Author: Wang Hu Feng
Publisher:
Publish Date: 2004-01-01
Features: The pension system is a social and economic institution and an important component of establishing a socialist market economy. With economic development and deepening reforms, its role as a "safety net" and "stabilizer" has become increasingly prominent. Pension system reform touches upon all aspects of economic and social development and is a long-term systematic project that requires continuous exploration and improvement. China has been researching and practicing pension insurance system reform for over 20 years, which can be broadly divided into three stages:
The first stage was from the mid-1980s to the mid-1990s, a period of exploration. During this time, the state implemented a series of measures to reform the pension system for enterprise workers: first, introducing social pooling of pension insurance costs while also starting individual contributions; second, exploring a pension system that combines social pooling with individual accounts. In 1993, the Third Plenary Session of the 14th Central Committee of the Communist Party of China passed the "Decision of the Central Committee of the Communist Party of China on Several Issues Concerning the Establishment of a Socialist Market Economy System," which proposed the principle of combining social pooling with individual accounts for pension insurance. Some regions actively explored the establishment of individual accounts and accumulated certain experience.
The second stage was from 1995 to 2000, a period of establishing the "combined pooling and account" system. In 1995, the State Council issued the "Notice on Deepening the Reform of the Pension Insurance System for Enterprise Workers," clarifying the goals of basic pension insurance reform and proposing two specific implementation methods for combining social pooling with individual accounts. In July 1997, the State Council issued the "Decision on Establishing a Unified Pension Insurance System for Enterprise Workers," implementing a unified pension insurance system nationwide.
The third stage began in 2000 and is still ongoing, a period of reform and improvement. The state conducted pilot programs in places like Liaoning Province to improve the urban social security system, focusing on reforms to the basic pension insurance for urban workers, such as "making individual accounts solid." Currently, China's pension insurance system is still undergoing continuous reform and improvement. Under the new domestic and international circumstances, how to macroscopically balance the coordinated development of the pension insurance system and the socio-economy in line with the goal of building a moderately prosperous society in all respects, achieve sustainable development of the pension insurance system, and continuously improve and refine the system—ultimately establishing a pension insurance system that covers the entire population—these issues all require further in-depth exploration and practice.
The author of this book has worked in grassroots social security departments for many years and participated in pilot programs for the reform of the social insurance system. He has a deep understanding of the development of China's pension system and rich practical experience. During his doctoral studies at the Chinese Academy of Social Sciences, he combined practical experience with theoretical research, conducting in-depth exploration of the pension system with questions in mind. When selecting his doctoral thesis topic, I, as his supervisor, supported him in choosing "The Theory of Pension Production" based on his knowledge foundation, theoretical level, practical abilities, research interests, as well as the theoretical and practical needs of China in the field of pensions in the coming period. After more than a year of effort, he completed his thesis and passed the defense smoothly, earning his doctoral degree.
After graduation, he continued to conduct in-depth research on the pension system in his new position, making significant contributions to the refinement of theory and the feasibility and applicability of policy recommendations. Based on his doctoral thesis, he has now compiled this academic monograph for the readers before you.