Reform of social security system in public institutions

Establishing a fair market competition environment is the basic requirement of the market economic system. The purpose of establishing a social security system is to avoid the risks caused by unfair income distribution due to risks such as old age, illness, disability, death and natural disasters, and it is an objective requirement for social adjustment of unfair income distribution and the establishment of a fair competitive market environment. A fair market competition environment includes a fair competition starting point, a fair process and a fair law, which protects the legitimate interests of each market competitor. It is the responsibility of the government to establish a fair market environment. At the same time, the unfair income distribution caused by market competition needs to be adjusted through taxation and social security to maintain the relative fairness of income distribution. From a practical point of view, China has only established the old-age insurance system for enterprises, but the reform of the old-age insurance system for government agencies and institutions is lagging behind, which leads to the widening income distribution gap between enterprises and administrative institutions and the difficulty in the normal flow of personnel, which is objectively not conducive to building a fair competitive market environment. Therefore, accelerating the reform of the endowment insurance system in government agencies and institutions plays a very important role in promoting the formation of a fair market competition environment and the rational flow of talents.

China's public institutions are widely distributed, with a large number of units and more than 30 million employees, which play an important role in China's social and economic development. However, after years of operation, there are many disadvantages in public institutions, such as unclear definition of functions, too many dependents and heavy financial burden, which need to be further deepened. In particular, various institutions have different channels to obtain funds, and the income and pension benefits of employees are quite different, which leads to contradictions such as comparing with each other among enterprises and institutions. According to the spirit of the reform of public institutions in the State Council, the reform of public institutions will be divided into three categories: administrative function type, public service type and public service type. The public service type institutions will be retained, and the others will be changed to public institutions and enterprises. This can not only greatly reduce the scale of public institutions and the number of employees, reduce the financial burden at all levels, but also improve the efficiency of public service institutions and create conditions for institutional innovation of public service institutions. What are the difficulties in the reform of public institutions in China at present? The difficulty lies in how to break the long-standing inertia that institutions rely on financial supply. One of the important aspects is that the reform of endowment insurance in government agencies and institutions lags behind, and pension benefits are still guaranteed by financial funds. The next step is to establish a unified and standardized social endowment insurance system among institutions, promote the rational flow of talents and the general balance of income distribution and pension benefits among institutions, which is not only conducive to establishing a unified and standardized endowment insurance system in the whole society, but also creates vital conditions for deepening the reform of the whole institution.

Further reading: How to buy insurance, which is good, and teach you how to avoid these "pits" of insurance.