Abstract

Since the 1980's，as a result of aging and slow economy growth，many countries encounter pension crisis in varying degrees.The most remarkable representation is pay-as-you-go public pension financially unsustainable calling for a reform desperately.At the same time，along with the economic stagnation in the western world，Keynesian failure，the rapid development of economic globalization，Neoliberalism began to emerge in the face of economy competition，privatization，anti-government intervention，which replaced the Keynesian to be the mainstream theory.In the field of pension systems，Neoliberalism criticized the traditional public pension system for its generosity，which is an important cause for high taxes，low savings and low economic growth.Besides，it violates the personal freedom，disincentive personal enthusiasm of private pension，and hinders the development of private pension market.Affected by Neoliberalism，the world set off a wave of pension privatization.Chile initiated pension privatization in the 1980's，followed with Latin American countries，some partially and some fully.Britain conducted pension privatization during the presidency of Margaret Thatcher.The main measures include as follows.First，sharply lower public pension level.Secondly，encourage employees to take occupational and personal pension.Other forms of pension privatization are NDC in Sweden and social pooling-personal account mix in China.The pension reform in China is affected by the worldwide privatization wave，especially by the report Adverting Old-age Crisis published by the World Bank in 1994.The World Bank criticized the defects of pay-as-you-go system，and offered a three-pillar suggestion，with its second pillar being defined-contribution funded and operated by professional fund company.Influenced by financial crisis，many defined-contribution occupational pension return fluctuated severely and the promise of pension precarious.Several Latin American countries that had taken pension privatization reform averted from fund system to pay-as-you-go system.There aroused a wave of retrospection on privatization.

The interest origin of this book is how to comprehend evaluate pension privatization.A number of countries conducted the reform with different system contents.So the next question is to choose a country as a research object.The book chose Britain after analysis and comparison because of three reasons.Firstly，Britain is the second country to initiate pension privatization after Chile in the age of Margret Thatcher.There are several reforms after that with various reform contents，broad coverage and frequency，an abundant system evolution.It has been more than thirty years since the reform and it is time to evaluate it.Secondly，in the picture of welfare states，Britain stands for Liberal institution and Residual mode and it is one of the pioneers to built welfare states making Britain a typical example in comparison study.Thirdly，the pension privatization in the UK changed the pension system structure deeply.Public pension retrenched into a poverty-prevention system mainly rely on means-tested benefit.Meanwhile，the occupational and personal expanded.Besides，the UK case has a demonstration effect on other countries.

Study on Social Security in China started late，and the Basic Old-Age Social Insurance was introduced only twenty years ago.Generally speaking，theory study and policy analysis are both insufficient.The Basic Old-Age Social Insurance in on the way of exploration.During the establishment and reform，China government often cites other countries' example as reference.However，in the process of international learning，more attention is paid to concrete reform measures，rather than reform settings and motivation of institution evolution，let alone the reform effect.As for the attitudes to international experience，a universal expression is parrpt which lack of independent consideration and judgment.In this sense，the second motive for this book is to apply the objective and effective principle in international comparison and learning by study pension system in the UK.This book depicts a complete，true，and objective picture of the pension reform，from reform settings，reform motivation，to reform process and evaluation.

This book studies on pension systems since Margret Thatcher with two clues.The visible clue is time clue，that is，the structure follows time sequence from Margret Thatcher to Theresa May.The less visible clue is privatization in the reform，that is，the study focuses on the privatization aspect of the reform.Pension reform proceeded by Margret Thatcher government is essentially pension privatization.It is universally accepted by academy.The book answers the following questions in three aspects.Firstly，why did Margret Thatcher government decide to implement pension privatization？What are the reform motivations？Secondly，the governments after that did what in pension systems？Are the reforms follow the direction of privatization or divert from it？Thirdly，how evaluate the pension privatization in the UK？Did the reform achieve the original targets？What effect did the reform exert beyond the pension system itself？These questions constitute the main thread of the book.

The first front is introduction，which firstly expounds on this topic's background and implications and proposes research problems.Next，this front outlines the concepts such as pension system，pension system framework and landscape of the British pension system；points out the objects of this research，research time and research dimensions；and defines pension system's privatization，marketization，denationalization and other related concepts.Lastly，this front points out this book's research method and logical structure as well as its main innovations.

The second front is literature research.In existing literature，there are almost no studies directly on the changes in British pension system since the Thatcher government，more importantly，there is a lack of long-term and systematic studies from the perspective of pension privatization.Referential literature mainly includes two aspects：one is the study of welfare reduction，the other one is the study of British pension privatization reform.It is generally acknowledged in existing studies that the pension reform headed by the Thatcher government is a privatization reform and a part of welfare reduction reform from a macro perspective，and the reform profoundly changed the pension system.As for the evaluation of pension privatization reform，most studies evaluate direct and indirect results of the reform without assessing its implementation effect.

The third front is the theoretical basis of the pension system and its changes.At first，this front reviews theories related to the pension system，namely pension and senior income guarantee，pension and economic growth，pension and savings，pension and labor market，pension and social exclusion，which provide a theoretical basis for later determination of evaluation indicators.Next，this front sorts and discusses theories and analytical methods regarding institutional change and public policy，such as new institutional politics，new institutional economics，political system theory and elite theory，and puts forwards this book's analytical framework and institution evaluation system.

The fourth front elaborates on the changes in the British pension system during Thatcher and Major.The Thatcher government initiated British pension privatization reform，which is a part of overall British privatization reform，while the Major government continued the general reform thinking of the Thatcher government.On the one hand，the reform lowered the level of public pension and strictly prescribed the coverage and conditions of public pension；on the other hand，it encouraged the development of occupational pension and personal pension，intensified the incentive effect of “contract out”，and transferred pension responsibility from the country to employers and the market.The pension privatization reform during the Thatcher government is a result of the compromise between all stakeholders，and a battery of subjective and objective conditions contributed to its implementation.

The fifth front is about British pension system during the period of Blair-Brown.Since Blair came to power as the new leader of the Labour Party，he did not reverse the trend of pension privatization reform in essence，although he advocated the policy of modernization of welfare state and the third road.His policy is just along the path of privatization reform，and makes appropriate correction for the system，such as introducing income investigation pension to strengthen the poverty population security；introducing low-cost depository pension plan to improve the enthusiasm of the low income earners to purchase private pension.During this period，a number of pension acts are published which propose a reform package and lay the foundation for the reform of the Cameron administration.

The sixth front is about British pension system during the period of Cameron-Theresa May.During this period，the British economic environment is very similar with the Thatcher administration：economic recession，fiscal deficit，unemployment rose sharply.Through decades of the “repairing” reform，the problem of British pension system has become increasingly prominent：complex system，high-cost management，rapid-decreasing public pension level，gap in private pension coverage.In the face of the crisis，Cameron government put forward the “big society” concept，carried out the reform of simplifying public pension and built the mandatory second pillar pension，These measures clearly define the boundary between public pension and private pension，end the history of the “contract out”.Teresa May Government speeded up the reform of retirement age.

The seventh front is the analysis of the UK pension system reform since Thatcher administration.In the past years since the Thatcher government，the British pension system reform includes two aspects of structural reform and parametric reforms，and structural reform mainly refers to the privatization reform.Since the privatization reform，the absolute level of public pension declines，the original color of welfare system drops.This front gives a analysis of the pension system changes in the macro，pension system and micro perspective in turn since the Thatcher administration.At the macro level，the reform did not display the function that increased savings.The effect of promoting economic growth is not obvious.It also increases spending.At the pension system level，system structure has experienced from simple to complex，then return to simple.System has characteristics with sustainability，while fairness and adequacy of the system decreased.At the micro level，the reform increased personal risk and led to social exclusion.

The eighth front is the conclusion.The main conclusions of this book：firstly，the pension privatization reform by the Thatcher administration is mainly influenced by domestic factors，including the economic crisis，financial crisis and social crisis etc..In addition to the above factors，reform can be carried out successfully owing to the influence of various factors，including historical origin，political parties，social background and the reform leader.These factors stimulate the germination of reform policies，and build a bridge between the reform policy and reform implementation that contribute to the implementation of the reform.Secondly，pension privatization reform during the Thatcher administration，profoundly changed the appearance and connotation of the British pension system.The reforms in the pension field by the subsequent government circles followed the direction，and adjusted in the extent and measures of the reforms.The principle of reducing the responsibility of the government，strengthening the market，employers and individual responsibility has not changed.Thirdly，from the result of reform，privatization reform partly achieved the target setting at the beginning of the reform.The system underwent the change from simplicity to complexity and to simplicity again.The new system is sustainable which offer great opportunity.It didn't achieve the target of promoting economic growth and increasing savings，nor decrease social expenditure.The new system has less equity and adequacy.Besides，the reform increased personal risk and social exclusion.