1951.

The Government Affairs Council promulgated the "Labor Protection Regulations", marking the establishment of the social insurance system in New China. Its protection objects are enterprise employees. Insurance items include illness, injury, maternity, medical care, retirement, death and unemployment. wait. The retirement measures for state agency staff follow the "Interim Measures for the Retirement of State Agency Staff" promulgated in December 1952.

From the early 1950s to 1966, the social security system had funds, management, and supervision. Fund collection, management, and supervision were separate. When the population structure was aging and the economy was developing relatively slowly, In fast situations, this system works well.

After 1966, the social insurance system was transformed into an enterprise insurance system. From the perspective of insurance theory, this change is a step back because it violates the premise of the insurance law of large numbers.

Extended information

my country’s social security participation rate

After the central government reduced the social security rate and payment ratio, the slow growth in the number of insured people still gave rise to current pension Spending brings stress.

Research data from the Chinese Academy of Social Sciences shows that due to the aging of the population and the expansion of the basic pension insurance for employees, the decline in the number of participants in the basic pension insurance for urban and rural residents will accelerate from 2046 to 2050. The number of insured persons is approximately 198.461 million, with an average annual decrease of approximately 5.78%.

Under the traditional pay-as-you-go system model, the current contributions of the current employees are used to pay the benefits of retirees in the current period. As the number of insured persons decreases, the pressure on independent operation of pensions increases. Against this background , relying on financial subsidies will be inevitable.

Data from the Ministry of Finance show that in 2018, fiscal subsidies from the National Social Security Fund were 1,677.7 billion yuan. This means that under the current system, the revenue and expenditure operations of social insurance funds are far from reaching the conditions for independent operation, and relying on financial subsidies will become the norm.

“As long as China’s economy grows steadily and fiscal revenue is stable, there will be no major problems with the entire social security system.” On March 20, 2019, Gao Peiyong, Vice President and Faculty Member of the Chinese Academy of Social Sciences Said in an interview with a reporter from China Business News.

References Baidu Encyclopedia-Social Insurance