13 provinces to achieve provincial overall planning of endowment insurance

category:Finance
 13 provinces to achieve provincial overall planning of endowment insurance


In the past two months, raising the overall level of endowment insurance has appeared in the highest documents of the central government. It includes the the fourth Plenary Session of the 19th CPC Central Committee decision, the central economic work conference and the president Xi Jinpings December 16, 2019 issue in the twenty-fourth issue of seeking truth magazine.

Zhang Jinan, Minister of human resources and social security, said in an interview with the official media recently that at present, 13 provinces have realized the unified collection and expenditure of funds at the provincial level, and a more standardized provincial overall planning system will be established in 2020. All of these have laid a solid foundation for the promotion of national overall planning.

The burden of providing for the aged in all provinces is uneven

The Fourth Plenary Session of the 19th Central Committee decided to call for the improvement of the social security system covering the whole people. We will speed up the establishment of a national system for overall planning of basic endowment insurance. We will accelerate the implementation of the social security transfer and continuation system.

Zhang Jinan said that he decided to put forward a series of key measures on social security. Accelerating the establishment of the national overall planning system of basic endowment insurance will further enhance the sustainability of Chinas social security system in terms of system and mechanism, which is a major measure based on the current and long-term perspective.

Sun Yongyong, an associate professor of the school of public management of central China Normal University, told first finance and economics that at the beginning of the reform of basic endowment insurance for employees in the late 1990s, the new system started from the county (city) overall planning because of the huge differences in economic and social development at that time and in order to better implement the new system.

Sun Yongyong said that in fact, it was not long before the issue of improving the overall planning level was raised, but the issue of improving the overall planning level did not seem so urgent at that time. Later, along with the social security rights and interests brought about by the labor migration, the work of improving the overall planning level was emphasized, which promoted the transition from county (city) overall planning to provincial overall planning.

According to the 2018 statistical bulletin of human resources and social security development, the annual basic endowment insurance fund income of urban employees is 5116.8 billion yuan, and the fund expenditure is 4464.5 billion yuan. At the end of the year, the accumulated balance of basic endowment insurance fund for urban employees was 5090.1 billion yuan.

Although the accumulated balance has exceeded 5 trillion yuan nationwide, which is not a small wealth, the financial gap between regions is wide, and the scale of surplus in some regions is getting larger and larger, while in some regions, the current income cant offset the expenditure appears in succession.

According to the 2017 data released by the world social security research center of the Chinese Academy of Social Sciences, there are 6 provinces in China where the basic endowment insurance for urban employees is in the current period of income cant offset expenditure, namely Liaoning, Jilin, Heilongjiang, Shandong, Hubei and Qinghai. The national basic endowment insurance fund balance is mainly concentrated in the eastern coastal provinces. The accumulated fund balance in Guangdong and Beijing alone accounts for more than 30% of the national total, while the accumulated balance in Heilongjiang Province is exhausted.

The current situation of the uneven burden of endowment insurance between provinces highlights the urgency of the coordinated use of endowment insurance funds across the country. Therefore, in many provinces have not really realized the provincial overall planning, the national overall planning has been put on the important agenda.

13 provinces and cities realize real provincial overall planning

In June 2018, when the central adjustment system of basic endowment insurance fund for enterprise employees was launched, the Ministry of human resources and social security required all localities to accelerate the unified collection and payment of basic endowment insurance fund at the provincial level, and comprehensively realize the provincial overall planning in 2020, so as to lay a solid foundation for the national overall planning of endowment insurance.

Zhang Jinan said that the ultimate goal of improving the overall planning level of endowment insurance is to promote the national overall planning system of endowment insurance based on the unified national rate and fund revenue and expenditure management as the core and the national integration of information system and operation management services, so as to promote the more equitable and sustainable development of endowment insurance system.

He said that at present, 13 provinces have realized the unified collection and expenditure of funds at the provincial level, and a more standardized provincial overall planning system will be established in 2020. All of these have laid a solid foundation for the promotion of national overall planning.

Different from the previous fake provincial pooling in the level of provincial reallocation funds, these 13 provinces have realized the real provincial pooling, that is to say, they have realized the unified collection and payment at the provincial level, that is, the payment is managed by the provincial government, and the pension of all the insured is also paid by the provincial government.

Since 2019, the human resources and social security department has further reduced the proportion of endowment insurance payment, adjusted the payment base policy, and is actively promoting the provincial overall planning of endowment insurance. From June 1, Guangdong Province and Hunan Province began to implement the provincial overall planning reform of basic endowment insurance for enterprise employees from July 1. The Anhui provincial government has also issued a notice recently, which will realize the provincial overall planning in 2020.

According to the notice of Anhui Province, by the end of 2020, the basic endowment insurance system for enterprise employees will be realized, which is based on the unification of endowment insurance policies, centered on the provincial unified income and expenditure of the fund, constrained by the fund budget management, supported by the information system and operation management, and guaranteed by the fund supervision.

Sun Yongyong said that in addition to the provinces that achieve the goal of unified revenue and expenditure, other provinces have established a provincial-level coordination system. Although it is difficult to move from the provincial-level coordination system to unified revenue and expenditure, if the central government vigorously implements it, the provincial-level coordination can be achieved by 2020. Because the state has carried out the provincial overall planning work for many years, accumulated a lot of experience, and provinces that have achieved the provincial unified revenue and expenditure can also provide experience for other provinces.

National co-ordination is on the way

The general direction of endowment insurance towards national overall planning has been made clear, that is, on the basis of provincial overall planning, the national overall planning system with the central coordination system as the transitional measure and the unified national rate and fund revenue and expenditure management as the core has been finally realized.

The significance of the national overall planning of endowment insurance is not limited to the improvement of the endowment insurance system itself, but also to the establishment of a national unified factor market and the promotion of high-quality development of Chinas economy.

The paper promote the formation of regional economic layout with complementary advantages and high-quality development proposes to realize the national overall planning of endowment insurance as soon as possible. The overall planning of endowment insurance is of great significance to the maintenance of a unified national market, the promotion of fair competition among enterprises and the free flow of labor force.

Zhang Yinghua, executive researcher of the world social security research center of the Chinese Academy of Social Sciences, told No.1 finance and economics that the central government is determined to accelerate the national overall planning and realize the nationwide system unification, which is not only to cope with the increasing payment pressure of the endowment insurance system, but also to achieve the three major functions, namely, market unification, fair competition and free flow of elements, to improve the socialist market The important conditions of economy are the necessary conditions to ensure that the market plays a decisive role in the allocation of resources.

Sun Yongyong believes that the level of providing overall planning cannot stay at the provincial level, but must go to the national level, otherwise it is not conducive to the fair competition between provinces. There are various reasons why developed regions are more developed than other regions, including the inclination of national policies, as well as the inflow of talents and young labor force from other regions. In this case, it is not only unfair to adhere to the provincial overall planning, but also not conducive to dispersing the risk of population aging nationwide.

Zheng Bingwen, director of the world social security research center of the Chinese Academy of Social Sciences, once said in an interview with first finance and economics that the real national overall planning of basic pension should realize the large income and expenditure of basic pension at the central level, and the payment should be managed by the central government, and the expenditure should also be managed by the central government.

Raising the level of overall planning means that the power of endowment insurance should be shifted up. Zhang Jinan believes that the Fourth Plenary Session of the CPC Central Committee decided to creatively put forward for the first time in improving the two systems and mechanisms of giving full play to the initiative of the central and local governments, appropriately strengthening the central authorities in the area of endowment insurance, reducing and standardizing the common powers of the central and local governments. This further clarifies the basic requirements of speeding up the establishment of the national overall planning system of basic endowment insurance.

However, in reality, it is not easy to achieve national overall planning in one step. Zhang Yinghua said that the biggest governance risk faced by the national overall planning is that it only emphasizes fairness and mutual aid, and the local government has no power to promote full collection; the system is weak in incentive, and the insured lack the power to supervise whether the employer pays in full; although the tax authorities have the power to collect, they cant include all the flexible employees or non tax employees; the tax system in particular It is that the individual income tax system needs to be improved.