Research On The Level Of Replacement Rate Of Enterprise Annuity In China

In order to cope with the dual pressure of accelerating process of population aging and increasing pension expenditure,China put forward the three-pillar system of pension security as early as the 1990 s.As the second pillar of the old-age security,enterprise annuity is highly expected to improve the pension replacement rate.Thanks to the promotion experience of enterprise annuity we learned from many developed countries in the world and self-exploration and operation we had for nearly 10 years,some achievements have been made in the development of enterprise annuity in China.By the end of 2017,the number of Chinese enterprises participating in the enterprise annuity plan reached 23.31 million,the accumulated scale of enterprise annuity was 1,288 billion Yuan,and the number of enterprises establishing the enterprise annuity plan was about 80,000.However,some problems have been highlighted behind the effects: the coverage rate of enterprise annuity insurance is low,and the fund accumulation speed is slow;the regional and industrial development is unbalanced;the rate of return on investment is unstable and the fluctuation range of it is large.These problems restrict the further development of enterprise annuity seriously.With the advance of pension system reform and the implementation of occupational annuity,enterprise annuity can not only improve the pension replacement rate of enterprise employees,but also become a sword to narrow the pension gap between employees of the enterprise and government institutions.Therefore,the research on the replacement rate of enterprise annuity is of great practical significance.This article starts from the existing research of enterprise annuity at home and abroad and compares the differences in the institutional framework and operational level.Then,combining with the current situation of annuity development in recent years,this article summarizes the development effects and problems of enterprise annuity in China.Then,after adding an individual income tax variable on the basis of previous studies,the actuarial model of the replacement rate of DC type enterprise annuity is constructed by using the principle of actuarial balance of insurance.Starting from the qualitative and quantitative analysis and combining with the actual annuity case contrast,the level of replacement rate of enterprise annuity and its main influencing factors are studied in depth,so as to put forward reasonable suggestions to increase the funds,expand the coverage and improve the replacement rate of enterprise annuity.It is concluded that under the current annuity policy and investment operating environment,the annuity replacement rate for women in China is less than 14%,that for men is less than 20%,and the annuity replacement rate for women is generally lower than that for men.At the same time,in the current situation of industry payment level,the annuity replacement rate for men and women in large state-owned enterprises and monopolized industries is about 16% and 11% respectively,and that in small and medium-sized enterprises is about 10% and 7% respectively.According to the further sensitivity analysis of parameters,the sensitivity of annuity replacement rate to each parameter is reduced in the order of return on investment,payment rate,wage growth rate,years of receiving pensions,years of payment,discount rate and individual income tax rate.Among them,wage growth rate,years of receiving pensions and individual income tax rate are negatively correlated with the annuity replacement rate,and the remaining parameters are positively correlated with it.To improve the replacement rate of enterprise annuity,on one hand,we need to expand the scope of insurance participation to improve the coverage breadth;on the other hand,we should strive to improve the return on investment and the payment level to enhance the coverage depth.