Abstract:   Taking Beijing as an example, this paper analyzes the characteristics of the new rural pension system and its reform direction. In Beijing mode, the government responsibility is clearly defined that aims to establish a basic old age security system shared by all population, providing a valuable basis for research and experience learning. Of course, the preconditions should be notified that Beijing has enjoyed high socioeconomic development level and strong financial capability, while some central and western provinces with massive migration and high ageing population or with weak financial capabilities will face enormous financial pressure if a similar system plans to be applied in those provinces. Under the decentralized tax system, a reasonable standard of financial subsidies should be developed and then this should be financing by the division of the central and local financial responsibilities so as to ensure financial sustainability, and establish a new unified national old-age social security system in rural areas.

Keywords: New Rural Pension System, Old Age Subsidy, Government Responsibility, Financial Sustainability