Abstract: At present, the coordination level of basic old-age insurance for urban workers in most provinces is still at the stage of provincial transfers, so the pensions cannot be adjusted across the country. There is an urgent need to realize the national coordination of basic pension. National coordination of basic pension will face many problems: the fiscal division system has led to the consolidation of local interests; it will discourage the motivation of pension collection for fund surplus areas; the underpinning pressure of central government is big; it may easily lead to reverse transfer payments; inter-provincial old-age insurance policies vary greatly. It is suggested that the central government should make up its determination to break the current pattern of interests, first implementing central transfers system, and then gradually making its transition to national coordination; carrying out the mode of “central basic pension + local basic pension”; clarifying the division of powers and responsibilities between the central government and local governments and implementing vertical management; levying social security tax; and improving the relevant supporting policies.

Key words: urban workers, basic pension, national coordination, obstacles, central basic pension