Analysis on the Advantages and Shortcomings of the Three Paths for Realizing National Pooling on Basic Pension System in China

The issue of low level of social pooling on basic pension system for urban workers has been a trouble for long time, resulting in unbalance of pension fund among regions and portability obstacles on pension benefits. There are three paths to solve this issue:the first is a gradual reform based on the traditional way; the second is the transitional reform which will introduce in a "Central Adjustment Fund"; the last one is the structural reform which will establish a new system. This paper will analyze the advantages and shortcomings of those three proposals, and by drawing international experiences on national pooling cases, a conclusion will be made that the third proposal be the optimal one for national pooling and the problems will be solved fundamentally by a structural reform.