The Research On Sustainable Operation Of The Basic Endowment Insurance Fund For Urban Workers

The basic endowment insurance for urban workers in our country executes theintegration system which includes social pooling account and the individual account.However, with the exacerbating of the aging of the population, the income of theendowment insurance fund can’t cover the expenditure, the "empty account" of theindividual account and low yields of the fund also affect the sustainable operation of theendowment insurance fund, thereby affect the sustainability of pension insurance system.Therefore, the sustainable operation of endowment insurance fund has been the focus tomost scholars, which has important theoretical significance and practical value.Through studying the current situation of basic endowment insurance system for urbanworkers in China and reading relative literature, we analyze the endowment insurance fundoperation system, divide it into three modules, income module, expenditure module andinvestment module, find out the relationship among three modules and the influencefactors of each module, then we construct SD model which study the operation system ofurban basic endowment insurance fund. In the end, Taking Shandong province as anexample, we use SD model to simulate the gap of income and expenses of basicendowment fund of Shandong province, and get conclusions as follows: during2012-2021,the income of Shandong province urban basic endowment insurance fund is more than theexpenses, the social account is surplus; but after2012, the income of Shandong provinceurban basic endowment insurance fund is less than the expenses, so that basic endowmentinsurance fund is difficult to continue to operate. This paper, in order to realize sustainableoperation of the basic endowment insurance fund for urban workers, simulates the effect ofmaking up for the endowment insurance fund income gap through improving the rate ofjoining insurance, delaying retirement age and government subsidies with SD simulationrespectively. And according to the results of the simulation, this paper puts forward tocountermeasures and suggestions to promote the sustainable operation of the basicendowment insurance fund for urban workers.