Abstract
This paper examines the urban pension system and its reform in modern China. Modern Chinese economic history is divided into three periods: (1) the period of planned economy, (2) the coexisting period of planned economy and market economy, and (3) the period of real market economy. Through analysis of the urban pension system during these periods, we investigate the transition of pension system reform in modern China. In particular, the Economic Reform and Open-door Policy and the population aging had a big influence on China's pension system. For instance, urban workers enjoyed the pension system containing no individual payments, but it has been reformed into the new system including individual payments since the beginning of the economic reform and open-door policy. This paper also analyzes the problems that China's current pension system faces. Notwithstanding a series of reforms, China's pension system has been consistently problematic. Changes in the environment that surrounds the pension system and a series of pension reforms itself continually give rise to various problems. Especially the "empty account" problem caused by a partial introduction of the reserve financing plan is serious now.
