The Present Situation of Social Security System in China

3. The present situation and existing problems of social security system in China.

3. 1 Status of Social Security System in China

In the new stage of development, in order to promote the development of social welfare, the CPC Central Committee, the State Council and local party committees and governments at all levels attach great importance to it, strengthen leadership, boldly explore and practice hard, closely cooperate with civil affairs departments, and all sectors of society actively participate in the socialization of social welfare, showing a good development momentum.

3. 1. 1 social insurance

Social insurance is the core part of the social security system, which refers to the state as the main body, implemented by specialized agencies of laws and regulations, using social forces to raise funds from workers and their employers through legislative means, and establishing special funds to ensure that workers can get a certain degree of income compensation after losing their labor income. The social insurance institution in China is Ministry of Human Resources and Social Security of the People's Republic of China. Mainly includes: old-age insurance, medical insurance, unemployment insurance, industrial injury insurance and maternity insurance; Social insurance, such as housing provident fund, mainly covers social workers, with the aim of maintaining their basic livelihood. Social insurance funds are mainly provided by employers and workers, and the government gives certain subsidies and bears the ultimate responsibility. Workers only fulfill their obligation to pay fees and have the right to receive corresponding social insurance income compensation. Pension is also a combination of social pooling and personal accounts.

When a worker is sick or injured, the state or society gives him a kind of material help, that is, a social security system that provides medical services or economic compensation, and medical insurance for employees. The establishment of social insurance system, that is, endowment insurance, is to solve the basic life of workers after they reach the working age limit stipulated by the state and terminate their labor obligations, or after they quit their jobs because of old age. It refers to a social insurance system stipulated by national legislation, that is, maternity insurance, in which the state and society provide material help in time when the labor force is temporarily interrupted due to maternity, so as to ensure the basic life of workers and the medical care needs during pregnancy and childbirth. A system that provides material assistance to workers who have temporarily interrupted their sources of livelihood because of unemployment, thus ensuring the basic livelihood of unemployed people during unemployment and promoting their re-employment.

3. 1.2 Social assistance

Social assistance funds come from public finance, which means that the state and society provide financial assistance and assistance to low-income vulnerable groups, with the aim of ensuring the minimum living of social members. There are poverty alleviation system, disaster relief system, medical assistance system, education aid system and housing assistance system. Let some members get material help from society and solve their worries. Social relief is a social security plan funded by the state finance to provide difficult relief for urban and rural residents, including the minimum living guarantee for urban residents, living allowance for laid-off workers, rural "five guarantees" relief and disaster relief.

Social relief is the material help provided by the state and society to people living in poverty due to natural disasters, accidents, and is the lowest level of social security. Social relief is provided by families, including basic living, education, housing, basic medical expenses, re-employment and funeral. All kinds of assistance standards are formulated by the government respectively, and the way of assistance is monetary or physical assistance to meet daily needs such as food and clothing and ensure the minimum living standard of the people.

3. 1.3 Social welfare

Social welfare refers to providing funds and good services for society, housing, environmental protection, public health, education and other fields according to national laws and policies. This is a social system for all citizens. It is a subsidy provided by the state to all members of society, and various free or low-cost material and cultural living facilities. In order to improve the quality of life of social welfare beneficiaries, it is another form of income, which has the reputation of "social wage" and is the highest principle of social security system. Social welfare is mainly deaf and blind. Poor widows and members of society have different material help, and most of the funds are allocated from the state budget. In welfare homes, non-governmental welfare projects, regular quantitative relief and cross-species social security for China veterans and disabled soldiers. It refers to the provision of public health, environmental protection for all citizens, and basic education in the field of help and service in the general country and society, which belongs to the highest level of social security.

3. 1.4 Social special care

Social preferential treatment refers to the preferential policies and pension nature provided by the state or society to active servicemen, disabled soldiers, veterans and their families and survivors of martyrs. These citizens have a special status, so social preferential treatment is a special social security plan. The specific contents include: social security for the elderly.

This is the government's preferential treatment for the disabled, the dead and the dead, including disability and death. It refers to political or capital treatment, which is a priority and special service, that is, special medical and social services. It is embodied in the construction of national and social financing service facilities, such as sanatoriums for disabled revolutionary soldiers and sanatoriums for veterans with chronic diseases.

3. 1.5 social mutual assistance

Social mutual assistance refers to a social security system in which members of society voluntarily help citizens with special difficulties or needs. It refers to the community participation and chivalrous activities of social organizations and member voluntary organizations. It is voluntary and non-profit, and its sources of funds are mainly social donations and voluntary donations, while the sources of government relief funds are taxes and other support. The main forms of social mutual assistance are: trade unions, women's federations and other mass organizations; Non-governmental public welfare organizations for charitable relief; Various forms of mutual aid organizations spontaneously formed by rural residents and urban residents. Personal savings refers to the behavior that individuals deposit RMB or foreign currency in commercial banks, and commercial banks pay the principal and interest in accordance with the regulations with passbooks or certificates of deposit as vouchers. Can nip in the bud, is a kind of self-protection. Social mutual assistance and personal savings accumulation are supplements to the social security system plan.

3.2 Problems in China's social security system

Social security funds can be divided into social welfare funds, social relief funds, social special care funds and social insurance funds according to different purposes. According to the source of funds, it can be divided into government provision, government compulsory financing and voluntary provision by non-governmental organizations and individuals. Government provision means that the government directly provides funds to social security funds such as social welfare funds, social relief funds and social special care funds through the collection of personal income tax and inheritance tax.

With the in-depth development of market economy, the social security system in China has also begun to undergo in-depth reform. The design of China's social security system is becoming more and more complicated, the management cost is getting higher and higher, the defects of social security are becoming more and more obvious, and the level of social security is low. Some places clearly stipulate that the transfer of social insurance relations can only take away the accumulated part of personal accounts, and the part paid by the employer cannot be transferred. This practice makes it difficult to continue the social insurance relationship when workers move across regions, and it is difficult to continuously calculate the individual payment period, and it is difficult to meet the requirements of endowment insurance 15 years. Therefore, when many migrant workers leave a city, they have to choose to surrender their insurance, and the social insurance relationship is forced to be interrupted. This is not conducive to the continuous operation of the social insurance system, and it is also difficult to play the preset economic and social functions of the social insurance system. Taken together, there are mainly the following aspects:

3.2. 1 has a small coverage and a low degree of socialization.

The coverage of the social security system is still very narrow, mainly concentrated in urban public-owned units. Reflected in:

First, the main target of social security fund is still urban state-owned collective enterprises and their employees. Private enterprises, foreign-funded enterprises, individual economic workers and rural laborers are excluded from the social security "net". The accumulation of social security funds and unfair ownership are not conducive to equal competition among enterprises; At the same time, it also affects the ownership of normal floating labor force, which is not conducive to the development and consolidation of multi-channel employment system and various economic sectors, and also hinders the deepening of labor market system reform.

Second, enterprises still bear most of the responsibilities of pension, medical care and unemployment, and enterprises still bear the daily management responsibilities of retirees and laid-off workers. Because the share of enterprises (especially some difficult enterprises) and society has not been well realized, the phenomenon that laid-off workers can not get some basic living expenses in time still exists. In rural areas and small towns, rural medical reform has only changed the view that "you can't go to the hospital for minor illnesses and you can't go to the hospital for serious illnesses". The problem of providing for the aged in rural areas still mainly depends on the family, but the implementation and support of family planning is "one son to support four old people". In fact, the author believes that the primary task of China's rural endowment insurance reform at this stage is social security construction.

Third, with the acceleration of urbanization, the social security system can no longer adapt to the development of diversified employment patterns. In the future, the urbanization rate of China will increase at the rate of 1% every year, which will cause two problems: one is the transfer of employment and social security. Secondly, after a large number of young farmers entered the city, the basic problems of rural patients became more prominent. Therefore, it is an important task to solve the employment and social security problems in China to establish and improve the unified labor market in urban and rural areas and the integrated social security system in urban and rural areas according to the requirements of coordinating urban and rural development. Third, employment has become more and more diversified. The employment pattern in China has changed obviously. Non-public ownership economy has become the main channel for new labor, and a large number of workers are facing flexible employment mode. The traditional social security system based on "unit" cannot adapt to the diversified employment model.

China's social security coverage rate is still relatively low, and compared with the international level, it is only in a low-income country.

For example, 20 10, the national urban and rural endowment insurance participation rate is 39.00%, and the coverage rate is 42.78%. The participation rate of unemployment insurance is 44.26%. The participation rate of maternity insurance is 40.82%, which is basically stable. There is an obvious gap in the participation rate of maternity insurance. Some provinces have achieved full participation, and some provinces have an participation rate of around 8%. It is necessary to take measures to improve the participation level.

3.2.2 The operating cost of the social security system is too high.

The high operating cost of social security system is mainly due to the high collection cost. Social security funds used for social insurance such as basic pension, basic medical care and unemployment relief still exist in the form of "fees", and it is difficult to obtain the platform and strong support of units or individuals. In addition, China's current social security laws and regulations are not perfect, and social security work can only be implemented by administrative means in many aspects. The national legislation and local legislation have not yet established a strict and widely applicable social security legal system, and the collection and management of social security funds are not standardized, and the law enforcement is not rigid and compulsory. The phenomenon of corporate default and tax evasion is becoming more and more serious. On the other hand, high cost refers to the high collection cost of basic pension, basic medical care and unemployment compensation insurance plans of social security funds and some social security funds. China's previous social insurance work was divided into several government functional departments. These departments have no social security institutions, are self-contained, decentralized management, unified management by an authoritative organization, and lack a strong macro-coordination and balance mechanism.

Taking the old-age insurance as an example, China implements the financing mode of combining social pooling with individual accounts. Although the original purpose of setting up personal account pension fund is to build a certain reserve, it still belongs to the type of pay-as-you-go system. At present, the personal pension account is actually an "empty account" operation, which is only a bookkeeping function, not a provident fund function. At present, most workers have low wages, and many units are often short of funds. It is difficult to meet the needs of future retirement by increasing premiums, which will inevitably weaken people's spending power in the near future. The labor insurance fund paid by the workers themselves and their units is already small, and inflation will seriously depreciate the labor insurance fund. Obviously, the Labor Insurance Bureau only uses the premiums collected to pay retirees, in fact, it transfers the evil consequences of inflation to workers. While forcing workers to pay a heavy price, it will inevitably weaken the purchasing power of society and hit the economy hard. In order to solve the problem of insufficient insurance premiums and overcome insufficient consumption, the government should implement a proactive fiscal policy, inject a lot of capital into the labor insurance bureau, and greatly improve the level of labor insurance, which will not only eliminate the evil consequences brought by inflation, but also improve the living standards and economy of retirees.