China's Public Policy on Social Security-From Perspective of Pension

Since 1997, the public policy on pension has been greatly changed in China, because of pressures of population aging and inefficiency of the pension scheme formed under the command economy. The paper firstly makes an introduction about China's public policy changes about pension since 1997, such as transition from pay-as-you-go model to a mixed model with a DB pay-as-you-go portion and a DC invest-based portion for the enterprise employees in urban China. And then, the paper assesses the effectiveness of the pubulic policy change about pension in the light of income security, redistribution, and poverty relief. At last, the paper reach conclusions that China governments are aware of the impacts of the population aging to the China's economic growth and retirees' livings and begin to change its public policy on pension schemes to respond to those impacts. Nevertheless, the result of remodel the public policy about pension is fruitless. Because all the modification have nothing to do with income security, income redistribution and poverty relief for the old retirees.