There are 4 pension models for land lost farmers，the in Shanghai since 2003 is one of these which have Instrumental orientation. The largest problem of this model is timeliness and temporary function. There are problems such as the conflicts due to the inconsistency of policy for the land lost farmers，the low benefit and cohesion problem among different systems，as well as lack of linkage mechanism between employment and social insurance system. It is rend to only have 2 systems—the social insurance for the employee and for the other residents within China as a whole，so Shanghai’s special Small towns comprehensive insurance system for the land lost farmers will be merged into the above 2 system. The Municipal government should design linkage mechanism between employment and social insurance system taking the urban and rural areas as a whole.