Theoretical Logic and Realization Path of Unified National Management of Old-age Insurance Funds

Unified national management of old-age insurance funds is a critical issue in the current reform of old-age insurance system. It has confronted great challenge owing to some restraining factors, such as insurance enrollment and payment, calculation and payment of pension benefits, division of the financial responsibilities among governments. Based on insurance theory and realistic constraints, we find that it is a feasible policy to establish a national basic pension system for all citizens with the characteristics of the unified collection and allocation of funds. The calculation and payment of benefits should take the average wage level of each province as the base in the transition period, and then gradually transits to a unified national level. Meanwhile, it is necessary to develop insurance exemption policies for low-income or non-income groups, agricultural workers and other groups. Local governments should also set up local additional pension system for "the people who have retired" and "the people who have had a job" before the implementation of the old-age insurance reform and promote the construction of multi-level and multi-pillar old-age insurance system.