Next Article in Journal
Masculinity, Organizational Culture, Media Framing and Sexual Violence in the Military
Previous Article in Journal
Dynamics of Volunteering and Life Satisfaction in Midlife and Old Age: Findings from 12 European Countries
Article Menu

Export Article

Open AccessArticle
Soc. Sci. 2018, 7(5), 79; https://doi.org/10.3390/socsci7050079

The Misunderstanding of Social Insurance: The Inadequacy of the Basic Pension Insurance for Urban Employees (BPIUE) for the Aging Population of China

School of Public Policy and Management, University of Chinese Academy of Science, Beijing 100049, China
Received: 24 February 2018 / Revised: 24 April 2018 / Accepted: 5 May 2018 / Published: 13 May 2018
View Full-Text   |   Download PDF [3916 KB, uploaded 13 May 2018]   |  

Abstract

The Chinese public has shown increasing concern about the “inadequacy” of the funds available for the Basic Pension Insurance for Urban Employees (BPIUE). The government has managed the issue by balancing the program’s revenue and expenditures each year and by increasing subsidies for it from all levels. These actions have raised a number of questions, such as why the program still needs financial subsidies as the fund’s balance continues to increase. The BPIUE was initiated in 1991, and the combination model of “social pooling” and “individual accounts of employees” was established in 1995 and formally launched in 1998. Also, in 1998, reforms including the downsizing of state-owned enterprises were implemented, and tens of millions of employees of state-owned enterprises entered early retirement. Local governments used funds from the individual accounts to pay pensions to employees based on length of service, and as a result, the individual accounts have remained empty ever since. Based on the definition of social insurance and an empirical analysis of the BPIUE fund, this paper conducts a qualitative and quantitative analysis of the plan from two perspectives, striving to provide an objective explanation and assessment of the pension fund’s inadequacy. On this basis, the paper analyzes the impact of the aging population of China on the existing and future BPIUE fund gap. View Full-Text
Keywords: aging; social insurance; financial inadequacy aging; social insurance; financial inadequacy
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Hu, N. The Misunderstanding of Social Insurance: The Inadequacy of the Basic Pension Insurance for Urban Employees (BPIUE) for the Aging Population of China. Soc. Sci. 2018, 7, 79.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Soc. Sci. EISSN 2076-0760 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top