Take the money from the South and grant the pension to the northeast? Media: Not a long-term solution

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 Take the money from the South and grant the pension to the northeast? Media: Not a long-term solution


In response to the situation that some places have more savings and some places do not have enough money to spend, some scholars recently resorted to transfer the surplus of many years in the south to the northeast to relieve the burning urgency. As soon as this is said, it immediately explodes in the society.

Pension transfer of money from south to north sounds very powerful, but in fact it is the implementation of lateral transfer of pension. This idea is not surprising.

However, in the long run, in the top-level design of the old-age insurance system, using the rich to help the poor can only be an expedient measure, not a long-term strategy.

The Unbalanced Structure of Pension in China

As early as the late 1990s, China began to establish a social security system that meets the requirements of the socialist market economic system. The old-age insurance system is one of the core contents.

In terms of total amount, there is no deficit in our pension system. On the contrary, there are a large number of roll-over balances every year. According to the data disclosed by the Ministry of Human Resources and Social Affairs, in 2018, the total balance of the national basic pension fund for employees is nearly 5 trillion yuan, which has strong supporting capacity.

But the total balance does not mean structural balance. Because of the different level of economic development and the different population structure in different regions of China, the pension income and expenditure situation is quite different. In developed areas such as Guangdong and Beijing, there are many pension balances. For example, the rolling balance of a province in Guangdong alone exceeds 700 billion yuan.

But at the same time, there are big gap of pension income and expenditure in the three northeastern provinces, Hebei and Inner Mongolia. According to the Annual Report on the Development of Social Insurance in China 2016 issued by the Ministry of Human Resources and Social Security, there were seven areas in which the pension income was not enough, of which the rolling balance of Heilongjiang reached negative 23.2 billion yuan.

In this case, how to solve the problem of uneven development of pension areas has become a barrier to achieve social security equity and improve the efficiency of pension use.

Overall planning of pensions nationwide is the direction of development

It is obviously a worthwhile practice to continuously improve the level of pension pooling and strive to achieve the National Pooling of pensions as soon as possible so as to effectively allocate the use of pensions throughout the country. This is also a direction of the reform of the old-age insurance system.

However, the central dispensing system is only the first step towards overall national planning. As a transitional institutional arrangement, the central redeployment system is used to alleviate the contradiction between provincial and regional pension fund imbalance.

In addition, the overall planning at the provincial level must be the premise and basis for the overall planning at the national level. However, although the requirement of provincial co-ordination has been put forward for a long time, there are still few areas that can achieve this goal. This shows that provincial co-ordination is so difficult, to achieve national co-ordination, the difficulties are obviously much greater.

The main reason for this is that the interests of different places are different. In particular, there are concerns that such institutional arrangements to achieve the goal of equity may lead to a loss of efficiency.

For example, if the pension system is coordinated nationwide, it means that the amount of pension balance areas should be made up for the deficit areas. On the one hand, it may damage the enthusiasm of the surplus areas to collect and encourage the big eater to rely on psychology and wait, depend and want behavior in the deficit areas; on the other hand, there may be pension competition, that is, in some areas. Attracting investment at the cost of reducing the burden of pension-based social security will undoubtedly lead to a bigger deficit in the already stretched pension system.

According to the plan of overall national planning of basic pension, the funds of individual accounts are not included. The reason is obvious. Individual accounts are the personal property of local employees and can not be freely allocated to other areas with co-ordinated funds. And once the individual account is included in the overall planning of the whole country, it means that it should be included in the revenue and expenditure budget of the government social insurance fund, and that the individual property should be included in the budget, which is also controversial.

Adjusting pensions is by no means a long-term solution

In fact, the key to solving the imbalance of pension areas lies in the active efforts of local governments. That is to say, in the process of realizing the overall national pension plan, we must insist on fairness while attaching great importance to the improvement of efficiency.

The central government has repeatedly made it clear that the provincial government is the main body responsible for ensuring the timely and full payment of basic pensions and filling the fund gap. For local governments, how to invigorate the local economy, attract more labor inflow, and expand the scope of social security fund contribution is the fundamental way to ensure the security of pensions. Of course, in order to cope with the short-term pension payment crisis, we can speed up the reform of mixed ownership of state-owned enterprises and increase the proportion of state-owned capital transferred to social security funds. In a word, whether it is the current central dispensing system or the future national co-ordination, the transfer or co-ordination of funds is only a temporary and emergency measure to make up for the gap of regional pension, and it must not be regarded as a long-term policy that can be relied on. Local governments, especially as pension deficit areas, must make more efforts to develop the economy and open source and reduce expenditure. It should be noted that only when the cake is bigger, the people can get more cakes, and the goal of providing for the aged and depending on the aged can be achieved smoothly. Source of this article: Author of New Beijing News: Li Changan Responsible Editor: Han Jiapeng_NN9841

The central government has repeatedly made it clear that the provincial government is the main body responsible for ensuring the timely and full payment of basic pensions and filling the fund gap. For local governments, how to invigorate the local economy, attract more labor inflow, and expand the scope of social security fund contribution is the fundamental way to ensure the security of pensions.

Of course, in order to cope with the short-term pension payment crisis, we can speed up the reform of mixed ownership of state-owned enterprises and increase the proportion of state-owned capital transferred to social security funds.

In a word, whether it is the current central dispensing system or the future national co-ordination, the transfer or co-ordination of funds is only a temporary and emergency measure to make up for the gap of regional pension, and it must not be regarded as a long-term policy that can be relied on.

Local governments, especially as pension deficit areas, must make more efforts to develop the economy and open source and reduce expenditure. It should be noted that only when the cake is bigger, the people can get more cakes, and the goal of providing for the aged and depending on the aged can be achieved smoothly.