The Cost Analysis And Path Selection Of Government And Public Institution Endowment Insurance System Transition

For a long period of past time, the Endowment Insurance System in our country has been using a "dual-track" mode.A major drawback of this mode is that it causes not only the huge differences between the government departments and institutions and the enterprise retirees but also a series pressures from public opinion, and the impact of the financial expenditure burden can’t be underestimated too.To solve this problem, the State Council promulgated a reform program of the institutions staff pension system, starting to merge the "dual-track" system in several pilot cities firstly.After 5 years of operation, exposing many problems, but more importantly, it accumulated rich experiences. With the introductions of the "Decisions of The State Council on the reform of government departments and institutions staff pension insurance system "in the early 2015,the comprehensive reform of the government departments and institutions’ pension system has gone into a new start.In accordance with the relevant provisions of the "Decisions ",this transition will be carried out in all government departments and institutions rather than the last vision that the merger will be operated separately.The comprehensive merger also means broader and larger scales. To this transition, the biggest problem rely on the huge cost of the hidden debt, and as the first step to handle the transition’s cost,how to make a reasonable estimation of it becomes the top priority.This essay based on the newest regulations published by the State Council in 2015.Sampled the serving and retired officers in Shandong provinces in 2014,using actuarial theories and fully considering the replacement rate of pension insurance, real wage growth rate, the contribution rate and payment period exc.In the process of building modes, in the perspective of a "standard" person and follow the actuarial balance principle, deriving the relationship between the replacement rate with the contribution rate. Finally provide reference for the introduction of laws and regulations afterwards.The first chapter is for introduction, details the background and significance of the paper, and observes domestic and international researches about relevant issues, then illustrates the research objects, methods, innovation and the problems to be solved.The second chapter is the interpretations and definitions of some key words, interoperating the newest files about governments and institutions pension insurance, and read the principles and significances of the transition.The third chapter is mainly for personal pension’s obtain and contribution and discuss the pension system for the whole society.The forth chapter calculated the merge cost from the Shandong province government departments and institutions retired and serving employees,using many actuarial methods to give an approximate outcome.The fifth chapter forecasts the operation of the transition, and gives some suggestions to the huge debt produced by the transition.