A Research On Financial Sustainability Of Basic Pension Insurance For Urban Employees Of China

Social pension insurance which is related to the basic life of the elderly and the realization of the accumulated rights and interests of the elderly when they are young.The fund is the material foundation of the pension insurance system.In order to achieve the sustainable development of the pension insurance system,the first thing is to ensure the financial sustainability of the pension insurance system,and ensure that the pension insurance income can meet the current and long-term pension payment needs.The basic insurance system of urban employees in China is is currently in the process of converting the “pay as you go" system to the part-accumulating system and the cost of the transformation of the institution has not been clearly resolved.With the increase of life expectancy and the deepening of aging,the demand for pensions increase.The pension is facing huge payment pressure,and its financial sustainability has been the universal concern of the society.Based on this reality,this paper selects the income and expenditure data of basic pension insurance for urban employees from 2000 to 2017 by means of the combination of quantitative and qualitative research.The financial situation of urban employees' basic pension insurance is analyzed by using the two indexes of pension calculation ability and sufficient balance fund,and it is found that the basic pension insurance of urban employees has the risk of financial unsustainable.The root cause is that the cost of institutional conversion has not been resolved.From the perspective of income and expenditure,this unsustainable risk mainly comes from the economic transformation,the change of the age structure of the population and the imperfection of the pension insurance system itself,respectively construct the income and expenditure of the insurance fund.It has become a cyclical,phased and long-term challenge.Based on the analysis of domestic situation and the international experience of dealing with the unsustainable risk of pension insurance,this paper puts forward some countermeasures to realize the financial sustainability from the outside of the system and the system itself.On the outside of the system,on the one hand,it is necessary to formulate targeted laws and use the legal system to guarantee the operation of the entire pension insurance system;On the other hand,through stable employment and industrial structure transformation and upgrading,individuals,enterprises and the governments will have more funds for pension insurance expenses.For the system itself,the article puts forward suggestions from three aspects: fund raising,pension payment and investment operation.Specifically,the government will assume the main responsibility for the conversion costs,strive to achieve full coverage of employee pension insurance and overall planning throughout the country,designing flexible calculating monthly tables,encouraging the employees to late retirement,increasing the rate of return on investment through multi-investment all can help increase pension income or reduce expenditures,thereby promoting financial sustainability.