Experts suggest that Southern Pension to Support Northeast netizens fry pot

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 Experts suggest that Southern Pension to Support Northeast netizens fry pot


The old-age pension in Northeast China is not enough. Jia Kang, former director of the Institute of Financial Science of the Ministry of Finance, first transferred the old-age pension from the south to the northeast for emergency relief. Netizens boiled up. Some netizens said that they should use state-owned assets to supplement the old-age pension vacancies in Northeast China. Some netizens also suggested that the pension standard in the North should be lowered, and they could not depend on the southerners all the time.

Photo Source: Photograph Network (Graphic and Textual Independence)

Old-age money is life-saving money, in recent years, old-age money enough to pay has become a hot topic in society.

At present, the cumulative balance of the basic pension fund for employees has reached nearly 5 trillion yuan, which can meet the average payment of 17 months. However, under the current pay-as-you-go pension system, some provinces such as Northeast China have already had the problem of incompetence, that is, the money collected in that year is not enough for the payment in that year.

Previously, the Annual Report on the Development of Social Insurance in China 2016 compiled by the Social Security Management Center of the Ministry of Social Affairs showed that the cumulative balance of Heilongjiang Province had been lowered, with 23.2 billion yuan in arrears. What is more worrying is that the gap may only get bigger and bigger, because the population of the Northeast is still flowing.

Recently, Jia Kang, vice president of the Chinese Finance Society and former director of the Institute of Financial Sciences of the Ministry of Finance, moved the surplus of many years in the South to the urgent need of relieving the flames in the Northeast.

Daily economic news reporters learned that it is urgent to take money from areas with large pension balances to places where it is not enough. Many years ago, experts made similar suggestions and caused fierce controversy in the industry. Eventually, they failed to really promote the pension because of greater resistance. The biggest problem is that doing so will reduce the collection of pensions by governments in areas with large pension balances. Enthusiasm.

On Jia Kangs suggestion, netizens discussed after hearing about it.

Some netizens said: Do not agree, why do we let others back the pot in Northeast China?

There are also netizens worried about the lack of money in the future: Southern social security fund balance is more, because young people pay more, later retired more essentials, how to adjust the region?

Some netizens also think that there are many old workers in Northeast China, but their sweat in their youth has formed a huge amount of state-owned assets in Northeast China, which should be responsible for filling their pension vacancies.

Some netizens also suggested that the pension standard in the North should be lowered, instead of depending on the southerners all the time.

So, would you like to take your pension to places like Northeast China?

Expert: Remedy Northeast with Southern Pension

The aging of society has intensified, the outflow of population has accelerated, and the gap between the current pension income and expenditure has widened. This is a difficult problem faced by many provinces, including Northeast China, in the development of the basic old-age pension system.

A government official in a prefecture-level city in Liaoning told the Daily Economic Journalist that in recent years, the net outflow of population in the city has reached nearly 20,000 people every year. Every year, local finance must have some funds to fill the gap of insufficient pension payment. For the local finance which was not rich, the pressure is relatively high.

Aiming at the problem that pension income in some provinces such as Northeast China is not enough, Jia Kang suggested at the 10th China Economic Forward-looking Forum held in Beijing in January 2019 that pension pooling mechanism should be upgraded as soon as possible and that the surplus of many years in the South should be transferred to the urgent need of relieving the flames in Northeast China.

When talking about tax reduction and fee reduction for enterprises, Jia Kang pointed out that tax reduction is not enough, and the burden on enterprises and the social level is mostly out of tax. Tax reduction should be accompanied by reforms, such as how to reduce the five insurance and one fund and how to reduce the social security costs exposed by tax reform. We must quickly reduce the standard contribution rate, especially the most important basic pension contribution rate. To put it into practice, we should upgrade the overall mechanism of basic old-age care in the whole society as soon as possible, combine at least dozens of reservoirs scattered in the past, and its integrated supply function will be improved immediately. The accumulated balance of the South for many years can be transferred to the urgent need of rescue in the Northeast, and there is room for the reduction of the payment rate.

It is understood that Chinas basic old-age insurance system adopts the pay-as-you-go system. The proportion of employeesbasic old-age insurance contribution is 20% of the total wages paid by enterprises, and less than 20% in some areas. In recent years, under the requirement of phased reduction of social insurance premium rate, the proportion of enterprises contribution has been reduced to 19% and that of individualscontribution is 8% of the total wages.

Although our country has been promoting the work of improving the level of pension pooling, at present, many regions have completed the provincial level of pooling, but some areas of pension funds are still concentrated in the city and county level, and did not really achieve the provincial level of unified collection and expenditure. In January 2019, the Jiangsu Provincial Government published Opinions on Further Perfecting the Provincial Coordination of Enterprise EmployeesBasic Pension Insurance. By 2020, the province will establish a provincial coordinating system of enterprise employees basic pension insurance with unified collection and expenditure of funds at provincial level, graded burden of fund gap and clear responsibilities of governments at all levels.

The number of areas that cannot meet their income is increasing.

Photo Source: Photograph Network (Graphic and Textual Independence)

Is the pension enough?

In January 2019, Qiu Xiaoping, Deputy Minister of the Ministry of Human Resources and Social Affairs, said at a press conference held by the State New Office that in 2018, the cumulative balance of the basic pension insurance fund for employees was nearly 5 trillion yuan, which was considerable in scale and had strong supporting capacity. The fund balance could meet the average payment of 17 months and ensure timely and full payment.

However, the pressure on the balance of payments of pensions will increase in the future. In January 2018, China Pension Actuarial Report 2018-2022 issued by the World Social Security Research Center of the Chinese Academy of Social Sciences showed that the total current balance of basic pension insurance for employees of enterprises in China (the difference between fund income and fund expenditure in that year) would increase first and then decrease, from 277.66 billion yuan in 2018 to 329.12 billion yuan in 2020, and then began to decline continuously, to 229.12 billion yuan in 2020. In 022, it fell to 280.36 billion yuan. However, regardless of financial subsidies, the current balance in 2018 was - 256.15 billion yuan and - 533.58 billion yuan by 2022.

Among them, from the specific situation of some provinces, the imbalance of pension income and expenditure has emerged.

In 2016, the number of provinces that cant pay for their pensions in the current period increased from 6 in the previous year to 7. In 2014, only three provinces cant pay for their pensions, and the number of areas that cant pay for their pensions is increasing.

According to the Annual Report on the Development of Social Insurance in China 2016 compiled by the Social Security Management Center of the Ministry of Human and Social Affairs, there are seven provinces in which pensions can not be paid in the current period, namely Heilongjiang, Liaoning, Hebei, Jilin, Inner Mongolia, Hubei and Qinghai. Among them, Heilongjiang not only did not meet the current revenue, but also had a total balance of negative 23.2 billion yuan.

Although the accumulated balances of the other six provinces have not yet reached the bottom, the risk of bottom-crossing is enormous. For example, Liaoning Province, at the end of 2017, the total income of basic pension insurance for urban workers was 186.32 billion yuan, and the total expenditure was 220.7 billion yuan. At the end of this year, the total balance of basic pension insurance fund for urban workers was only 57.28 billion yuan. Reporters found that Liaonings cumulative balance at the end of 2015 was 117.079 billion yuan, and the cumulative balance at the end of 2016 was 91.67 billion yuan. If this situation continues, Liaonings cumulative balance will inevitably bottom out in a year or two.

Relatively speaking, the cumulative balance of basic pension fund for workers in Guangdong, Beijing and other provinces and cities is relatively large, of which the cumulative balance of Guangdong alone is more than 70 billion yuan.

It is imperative to coordinate pensions nationwide

Many years ago, the industry had discussed the proposal of borrowing the rich to help the poor for pensions. An industry expert told the Daily Economic News (ndbnews) reporter that during the discussion, some provinces with more savings had more objections. At the same time, the industry also feared that once the savings provinces were given to the provinces with insufficient funds, the local pension collection would be reduced. Kims enthusiasm may lead to some places deliberately reducing the proportion of pension collection in order to attract investment.

The expert believes that when balancing the imbalance of pension income and expenditure in different regions, we should not only encourage local governments to collect pensions in full, but also prevent opportunistic ideas from sprouting in areas with insufficient funds, waiting for the central government to come to the bottom.

In order to solve the problem of uneven pension balance among provinces and improve the level of pension co-ordination as an important means, the Central Economic Work Conference held in December 2018 proposed that the key tasks of 2019 include deepening the reform of social security system and promoting the national co-ordination of pension insurance on the basis of accelerating the provincial co-ordination.

In fact, as the first step of overall national planning, the central transfer system of the fund has taken the lead in establishing. In June 2018, the State Council promulgated the Circular of the State Council on Establishing the Central Adjustment System of the Basic Pension Insurance Fund for Enterprise Employees, and decided to implement the Central Adjustment System of the Fund from July 1, 2018. It is clear in the document that the local settlement ratio starts at 3%, and the per capita quota is adopted to allocate the funds. Provinces with more retirees will receive more transfer funds.

However, the establishment of the central fund transfer system does not mean that provinces with income and expenditure gaps can lay down and ask for money. The State Council clearly states that provincial governments bear the main responsibility of ensuring the timely and full payment of basic pensions and making up for the fund gap. After the central government has issued the central financial subsidy fund and allocated the central adjustment fund, the gap of the provincial endowment insurance fund is borne by the local government.

At the same time, the system also has institutional incentives for collection. The salary base and the number of upper settlement funds used in calculation are not affected by the actual collection income of various places. The funds collected by various places after efforts can be retained in the province for use, which reflects the encouragement to the places where the expansive collection work is in place.

Source: Daily Economic News Author: Liable Editor of Li Biao: Li Hang_BJS 4645