Research On The Occupational Pension Payment Rate Based On Target Replacement Rate

Occupation pension is on the basis of participating in the basic old-age work for theinstitutions and their staff in accordance with the law, under the guidance of the nationalpolicy establishes the supplementary old-age insurance system. Since Mar,23,2011,after the “Guidance of the CPC Central Committee and State Council on Classificationand push forward the reform of institutions” release, the reform of institutions havebecome the important content of Chinese administrative reform. China has1.26millionunits, a total of30million staffs,9million retirees, a total of more than40million people.These large groups of endowment insurance reform have become the important part ofacademic research and government policy making since the large-scale reforminstitutions initiated. Study on the reform of the institutions endowment insurance reformis very important. The reform of the public endowment insurance institutions involvedthe old age insurance reform of about30million staffs. The studies of the occupationpension reform of institutions in this paper have significant theoretical meanings andpractical meanings. This paper will take the reform of occupation pension institution asthe breakthrough point, use the actuarial model, calculation and analysis the occupationpension payment rate.In addition to the introduction of this paper, the specific contents are divided intofour chapters as follows:Chapter1: the related concepts and the basis of theoretical. Definition the relatedconcept of “institutions”,“supplementary endowment insurance”,“occupation pensionsystem” and “the replacement rate”, describe the intergenerational pension reform of theoccupation pension institution about the life cycle theory, overlapping model, survival ofequity theory and labor equity related theory.Chapter2: the analysis of occupation pension substitution rate. First of all, calculatethe substitution rate, then compared with the endowment insurance institution rate beforethe reform, subtraction the substitution rate before the reform and after the reform, andget the upper limitation of the occupation pension substitution rate. Secondly, calculatethe average urban pension replacement rate, then minus the replacement rate after thereform of the endowment insurance institution. In order to calculate the lower limitationof the occupation pension should reach the target substitution rate. Estimate the region between the occupation pension and endowment insurance supplement substitution rate.Chapter3: the analysis of the target substitution rate of occupation pensioncontribution rate. According to the region of the target substitution rate, use the actuarialbalance principle in individual accounts, make the model specification, design theparameter, analysis the results, and then calculate the interval occupation pensioncontribution rate. And calculate the latest payment rate of substitution rate of theoccupation pension policy.Chapter4: conclusion and the policy suggestion. On the basis of calculation and theanalysis of the occupation rate in annuity payment, make the conclusion, and put forwardrelevant countermeasures and suggestions to the establishment of Chinese occupationpension.