Research On Funding Level Of Basic Social Pension Insurance' Co-Ordinated Fund

Basic Social Pension Insurance is an important part of China's social pension insurance system. According to currant system, Basic Social Pension Insurance applys to part-accumulated model, which is composed by co-ordinated fund and individual accounts. The co-ordinated fund has the characteristic of mutual-benefit, so how to design the policy to blance efficiency and equality attracts social insurance scholars, governments and people from all walks of life. Among all aticles of the systerm, the funding level is the core of the system. Based on the analysis of the rationality of the policy design, using quantitative analysis and actuarial model, this paper researched how to design the proper funding level of social pension insurance's co-ordinated fund of China.This paper first reviewed current funding pattern and the level of China's Basic Social Pension Insurance' co-ordinated fund. Then the auther quantitatively analysed the impact of transition costs and pension level on the funding level of co-ordinated fund. Through actuarial model, the paper proved that the large transition costs increases the funding level significantly by calculating the transition costs of Z Province. And the author proveed the rationality of resolving transition costs through the analysis of the formation of transition costs. Based on the review of current pension level, the paper presented the influence of high pension level on the funding level of co-ordinated fund. By research on the pension level aimed at basic needs, reducing pension level to reduce funding level was proved. In addition to it, by using the statistic of Z Province and actuarial model, the auther calculated the proper funding level in the case of resolving transition costs and reducing pension level. And the way to set proper funding level of co-ordinated fund was presented in the end.