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VII. Developing a Social Security System to Maintain Social Stability

The establishment and development of a social security system has an overall impact on reform, development and stability. This is an endeavor of great significance which requires our most diligent efforts to ensure its success. For the present we need to continue implementing and improving the system of "three guarantees"-guarantee of basic cost of living allowances for workers laid off from state-owned enterprises, guarantee of unemployment insurance benefits and guarantee of subsistence allowances for urban residents. On this basis, we must work to create the necessary conditions for the transition to a sound social security system.

The operation of re-employment service centers for state-owned enterprises must be further improved. These centers should pay basic living expenses to laid-off workers on schedule and in full and pay the premiums for the social welfare insurance of these workers, including old-age, unemployment and medical insurance. The funds needed should be secured according to a principle of "three-thirds". The shortage in funds remaining after the enterprises and society make their respective contributions should be covered by the state budget. Allocations from the central government budget will continue to support the central and western regions and old industrial bases whose financial problems are truly serious. All local authorities should guarantee the basic cost of living allowances for workers laid off from state-owned enterprises under the central government and work to find employment for them, incorporating this work into their overall local planning and regulating the allocation of funds raised by society as needed. Effective measures must be taken to ensure that retirees from state-owned enterprises receive their basic old-age pension payments on time and in full, with no more payments falling into arrears. Local authorities must strengthen supervision and management over social security funds and strictly adhere to separate management of revenue and expenditures to ensure that funds are used for the specified purposes only. Efforts to recover funds diverted in the past should be strengthened and cases of misappropriation must be severely punished.

We must work energetically to promote the re-employment of laid-off workers. Local authorities should help these workers change their ideas about what kind of job they are seeking, work hard to create jobs, develop vocational training programs for laid-off workers, and help more of them find new jobs as soon as possible. Governments at all levels and concerned departments should cooperate whole-heartedly in strengthening supervision and inspection to ensure the full implementation of the various policies concerning re-employment. Whenever possible, enterprises should be encouraged and advised to separate their main and secondary business activities, find other positions for their redundant workers within the enterprise, and set up new economic entities with independent accounting and responsibility for profits and losses to absorb redundant workers. Career counseling and placement services should be provided to assist workers from closed-down and bankrupt state-owned enterprises to find suitable new positions.

While working to carry out the above, we should advance reforms to gradually form a social security system with Chinese characteristics which is independent of the employer, has diversified funding sources and has management and services not provided by the employer. First, the coverage of social welfare insurance programs should be expanded in accordance with the law, and the insurance premium collection rate raised. Social welfare insurance, particularly old-age, unemployment and medical insurance, must be made mandatory in urban areas. This is an important way to increase social security funds and at the same time an important prerequisite for instituting a new system. At the same time, expenditures in the central and local budgets at all levels must be appropriately restructured to increase the proportion of social security spending. Various measures should be adopted to open up new funding channels to supplement social security funds. Second, we should improve the unemployment insurance system and speed up the development of the labor market. The current practice of enterprise re-employment centers guaranteeing the basic cost of living allowances to laid-off workers should be changed to laid-off workers receiving unemployment insurance benefits and looking for jobs in the labor market. This work will begin on a trial basis in our eastern coastal areas and in cities with the necessary conditions. After the results of these trials are analyzed, the new practice will be gradually introduced to other areas. Third, non-employer management of old-age insurance programs should be promoted to gradually shift responsibility for retirees from their former employers to society at large and effect non-employer payment of old-age pensions as soon as possible. We should conduct trials of community-administrated programs for retirees. We should exercise more effective leadership and management of communities and improve their function as service providers. At the same time, it is important to ensure continuity in our work during the changeover to the new social security system.Fellow Deputies,

Safeguarding social stability and state security is a fundamental prerequisite for promoting reform and opening up as well as the modernization drive. We must take strong measures against acts of sabotage perpetrated by hostile forces and elements inside and outside China, and crack down on violations of the law and all types of crime. The focus of such measures should be on curbing violent crime, drug-related crime, organized crime, crimes involving guns and explosives and all kinds of serious economic crime. At the same time, evil cults must be banned and persecuted in accordance with the law. Measures for controlling all facets of public security should be better implemented to create a safer social environment. Problems among members of the general public arising from the changing conditions in society require special attention and proper handling, with the interests of all sides fully taken into consideration. We should take seriously letters and called-in complaints from the general public and carry out effective ideological and political work to solve problems and settle disputes in good time before they develop and spread.

China is a unified multi-ethnic country. We must work to consolidate and develop socialist relations characterized by equality, unity and mutual assistance among all ethnic groups for common prosperity and progress. We should continue to implement the guiding principles of the Central Conference on Ethnic Affairs and speed up economic development and social progress in areas inhabited by ethnic minorities. The Law of the People's Republic of China on the Autonomy of Ethnic Minority Regions should be carefully followed and the autonomy of the ethnic minority regions and the equal rights of their inhabitants should be protected. We should train more cadres and various kinds of qualified personnel from among ethnic minorities. The stability of ethnic minority areas and the unity of the motherla

（责任编辑：中大编辑）

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