Study on the Appropriate Growth of New Rural Social Old-age Insurance Pension and Subsidy: Based on Analysis on the Replacement Rate

Based on the standards of Guidelines on Launching Pilot Projects of New Rural Social Old-age Insurance,this paper builds a model of the replacement rate of new rural social old-age insurance,then analyzes different factors affecting the rate and assesses the overall level of the replacement rate.It gives a range of pension replacement rate based on which the adjustment programs about regional pension pay grade and subsidy.This study found that the pay grade and subsidy' increasing speed should be similar with the growth rate of per capita income of local farmers in the previous year.But the improvement of base pension should be slightly higher than the income growth and there should be regional difference from each other.For the balance of pension replacement rate of different age of farmers insured,nine provinces and cities from the eastern region still need to increase years of non-full period payers' payment,which can also reduce unfairness caused by being insured early or late.