Research On The System Of Occupational Pensions In China

As a result of modern industrial civilization, pension system plays a very important role in the social security system, and has been a very essential part of constructing national system. Since 1980s, because of the external factors such as the aging population and the slowing pace of economic growth and the internal factors such as mode choice and institutional design of pension system, the traditional pension system named"pay-as-you-go"faced crisis. It is the most critical problem how to design pension system to agree with China's situation, to reduce the increasing financial burden of government, to balance the developing of social security among different arrangements.The aging of the population is becoming a global trend. At present, China is facing the situation which is not rich but old. Future pension tremendous financial pressure will make huge deficit, the pension system named"pay-as-you-go"can not be able to adapt the population and economical development situation at present obviously. In 1984, China began to reform pension system. In 1991 the country has promulgated"State Council about Enterprise Staff Old-age insurance System Reform Decision". The State Council issued proposal of"Decision on establishing a unified enterprise worker's basic insurance system", in which an endowment insurance mode of was definitely put forward. With the developing and improving of China's social security system, as the second pillar of occupational pension will occupy an increasingly important position. Both individuals and enterprises from the point of view or from the state and social point of view, encouraging the development of occupational pension is very necessary and useful. The history of occupational pension in China is not long, and it has achieved a certain degree of success. However, compared with developed countries, its development pace is slightly delayed. So, China must promote the development of occupational pension. The development of occupational pension needs strong government support. At present, China's occupational pension policies still have some problems such as not unified, uncertainties, and these problems hinder the development. Therefore, this paper is studying on China's development of occupational pension, designs a project, and also provides a series of suggestions for China's supplementary pension policies.The paper analyzed the background and important significance of founding occupational pension system in China from different aspects. Background:Aging population level of China is serious. Since the implementation of family planning policy, China formed a unique"4-2-1"family structure, and the traditional endowment way faced serious challenges. At the same time, the basic old-age insurance system long-standing"pay-as-you-go", China faced lots of issues, such as huge"hidden debt", long-term"empty account"operation of personal accounts, and so on. These leaded the occupational pension system to play an important role. Significance: The development of the occupational pension will help China to reform pension system, reduce or overcome"short-term"behavior of enterprises and workers, narrow the retirement income gap between enterprise and undertaking employees, promote the development of capital market and national economic. Since the official used the concept of occupational pension in 2000, there are many years of development of occupational pension in China. But people only know little about occupational pension, even many professionals know not what is corporate pension. So it is necessary to do a detailed exposition of the basic theory: the concept of occupational pension, the theoretical foundation, the basic types and the development of the pension system at home and abroad.Construction of occupational pension payment model is the core and innovation of the paper. The paper focused on occupational pension fund balance model of Dr. Deng Dasong, made reference to the model assumptions and parameters setting, established occupational pension payment model and designed pension project. However, due to the restrictions on information and knowledge, the project has lots of defects. Therefore, I summed up the deficiencies in the last part in order to be resolved in the future.The paper investigated support policy of developing occupational pension from the view of practical operation. As the mainstay of implementation of any system, the government has the obligation to vigorously promote the development of occupational pension. The government should make efforts to improve the preferential tax policies and inspire initiative of enterprises to participate in occupational pension. Replacement rate level of the basic old-age insurance system in China remained too high. It not only increased the burden of the government, but also expanded the difficult of reforming. The government should speed up the training of qualified personnel and the building of professional institutions, in order to provide technical support for the development of occupational pension. In addition, the government need adjust capital market development strategy and amend the existing function of the capital market, develop financial derivative products. Finally, sound occupational pension fund monitoring mechanism is the guarantee of existence and development. Occupational pension system is an important innovation. The government need establish mechanisms of various types of organic combination and the coordinated development of market. Occupational pension could promote the win-win development of money market, capital market, insurance market, pension fund market and achieve organic integration of macro-control and prudence Monitoring.The development of the occupational pension will be a long and complex project. Establishing and improving of occupational pension system in China is one of the important contents of establishing a multi-level old-age security system. It contributes to reform pension system, has been a great significance in development and stability of pension system in China. On one hand, the establishment of occupational pension system in China could alleviate the burden of the government from the ageing of the population, and protects the living standard of retired workers; On the other hand, it continues to promote the development and improvement of capital market. In short, as socialist market economic system reform in China continuing to deepen, occupational pension laws and regulations related to gradually be improved, the financial markets will be increasingly improved, and occupational pension system in China will move toward rapid and healthy development track.