Problems in China's Social Security System

Legal analysis: 1. The coverage of urban social insurance is narrow and it is difficult to expand. At present, the vast majority of units participating in urban social insurance are still the original state-owned and collective enterprises. From the perspective of personnel composition, individual and private economic organizations only account for 8% of the total. A large number of individuals and private economies do not participate in insurance or pay fees. Some insured units evade social insurance premiums by underreporting the total wages as much as possible. Some enterprises stopped production, restructuring, bankruptcy and other inability to pay fees, resulting in the loss of a large number of insured personnel.

2. Social security fund is difficult to maintain. Since the late 1990s, the national enterprise pension insurance income can not meet the expenditure needs even under the "empty account operation", and the annual deficit is gradually expanding. In terms of unemployment insurance, with the merger of laid-off workers and unemployed workers, the unemployment insurance system is financially unsustainable, and unemployment insurance benefits in some provinces cannot make ends meet. At present, China's development has entered a new normal, and it is in a critical historical stage of shifting growth rate, painful transition period and critical period of reform. The employment pressure is huge, and it is difficult for the current unemployment insurance system to maintain a long-term balance of payments. Although the current "unified account" medical insurance system has achieved a balance of payments, there are hidden dangers in the operation of the medical insurance pooling fund due to the limited scope of benefits, insufficient funds in some insured individuals' personal accounts, and excessive personal burden.

3. There are many loopholes in the management of social security funds. In terms of medical insurance, some insured persons, non-insured persons and medical service institutions take illegal measures to encroach on medical funds, while medical insurance management institutions are difficult to manage effectively due to factors such as asymmetric information and insufficient authority. In unemployment insurance, there is no effective way to identify the actual employment situation of the insured, especially the registered unemployed, and some re-employed people continue to receive unemployment insurance benefits. In terms of old-age insurance, it is difficult to cure problems such as irregular early retirement and family members continuing to receive pensions after the death of retirees.

4. The rural social security system needs to be improved. China has a large population, and the proportion of agricultural population is quite high, accounting for more than 80% of the total population, but the agricultural population enjoys relatively little social security expenditure. At present, 80% of China's public health investment is in cities, and the World Health Organization ranks China in 19 188 among 65,438 member countries. In addition, the coverage of rural subsistence allowances is the smallest, the standard of treatment is very low, some places have stagnated, and some places exist in name only.

5. The legal system of social security lags behind. Social security legislation lags behind and local legislation is fragmented. At present, there is no legal norm of social security in China. When people have disputes over social security, arbitration or litigation, due to the lag of legislation, most arbitration institutions and people's courts cannot arbitrate or make judgments according to labor law, civil law or other relevant laws, and the legal effect is relatively insufficient, which affects the people's protection of their rights and interests according to law to a certain extent.

Legal basis: People's Republic of China (PRC) Social Insurance Law.

Article 1 This Law is formulated in accordance with the Constitution for the purpose of adjusting the social insurance relationship, safeguarding citizens' legitimate rights and interests in participating in social insurance and enjoying social insurance benefits, enabling citizens to enjoy the fruits of development and promoting social harmony and stability.

Article 2 The state establishes social insurance systems such as basic old-age insurance, basic medical insurance, industrial injury insurance, unemployment insurance and maternity insurance, so as to guarantee citizens' right to receive material assistance from the state and society in accordance with the law in case of old age, illness, industrial injury, unemployment and maternity.

Article 3 The social insurance system adheres to the principles of wide coverage, basic protection, multi-level and sustainability, and the level of social insurance should be compatible with the level of economic and social development.

Article 4 Employers and individuals who pay social insurance premiums according to law in People's Republic of China (PRC) have the right to inquire about payment records and personal rights and interests records, and ask social insurance agencies to provide social insurance consultation and other related services.

Individuals enjoy social insurance benefits according to law and have the right to supervise the payment of their own units.

Fifth people's governments at or above the county level shall incorporate social insurance into the national economic and social development plan.

The state raises social insurance funds through multiple channels. People's governments at or above the county level shall give necessary financial support to social insurance.

The state supports social insurance through preferential tax policies.