Abstract
The Chinese farmers' pension insurance system formally started at the beginning of the 1990s. It has been operating for about ten years, but the system has been in decline for some time. Whatever the cause, the system now needs revision. The purpose of this paper is to analyze the defects of the current system, and to present the following measures as proposals for the reconstruction of the system. (1) Do a radical reform of the mechanism of the current system. Especially it is proposed to set up a co-operative for the premium fund in order to ensure a sound financial resource. (2) In the future the government should ensure sufficient financial resources to meet the needs of every region of the country. In the prosperous areas, farmers' pension insurance must be switched to compulsory participation. In the poorer areas, the present system should be abolished. (3) In the prosperous areas where compulsory participation is proposed, government fiscal investment should be ensured through the enactment of relevant laws and regulations.
