Delayed Retirement And Reform Of China's Enterprise Employee Public Pension

According to the 1990 fourth national census data,the life expectancy of China was 68.55 years,and this indicator rose to 74.83 years in 2010 sixth national census.The statutory retirement age Established in 1978 in China and have no changes for more years: Female workers retirement age is 50 years old,female cadres 55 years old,male workers 60 years old.In the current pension insurance system of China's public pension system for enterprise employees,population aging makes the working population decreased and the retired population increased.Aging population brought enormous pressure to the pension balance of revenue and expenditure.There are still a series of problems to be solved in China's public pension system for enterprise employees: 1.The coverage rate is low.2.The individual accounts have not full real assets.3.Incentive system and the earning capacity is poor.The pay and benefits have not clear connection and lead to the early retirement phenomenon.This series of problems need to be resolved properly and reasonable in the system reform in the future.From a global perspective,the PAYG(pay as you go)system have been reformed in various forms in lots of countries.This paper studies the development and the existing problems of China's public pension system for enterprise employees in the background of Aging population and International Change and summarizes the future development direction of the system.1.Make the reasonable position for the social pooling account and the individual accounts.2.Pay more attention to the incentive mechanism.3.Digest the reform cost reasonably and effectively.4.Give full play to the role of government regulation policy.The government should adjust the policy variables according to different economic conditions flexible and reasonable in order to made them good for the economy.5.Continue to improve the multi-level old-age security system.Other countries have taken the big reform and small adjustment for the pension reform.The most research focus to the delay retirement and Non-financial Defined Contribution.Based on the existing research,this paper set four pension system modes from simple to complex.The current partially funded system,the current partially funded system with delay retirement,the Non-financial Defined Contribution,and the Non-financial Defined Contribution with delay retirement.Employing an overlapping-generations model within general equilibrium framework,this paper analyzes the China's public pension system for enterprise employees in the four modes.We examine the effects of the policy variables and the employment growth rate on the capital-labor ratio,pension benefits,per capita consumption,wages and deposit.We also figure out the optimal policy variables and the optimal retirement age from the point of social welfare maximization and provide the basis for the reformation.On the basis of the summary of the full text,we put forward proposals for improving the China's public pension system for enterprise employees.1.Reduce the firm contribution rate is an important measure for the economic environment,especially in the mode of the Non-financial Defined Contribution with delay retirement.2.Improve the individual contribution rate can have a positive effect on the individual account pension in the mode of current partially funded system.But the positive effect will be weakened in the mode of the Non-financial Defined Contribution,especially in the mode of Non-financial Defined Contribution with delay retirement.In this case,it should be careful to improve the individual contribution rate.3.Delayed retirement can relieve the pressure of the pension payments,but also can make negative impact to other economic factors especially in the mode of Non-financial Defined Contribution.We can draw a conclusion from the perspective of social welfare maximization: The optimal retirement age in the mode of Non-financial Defined Contribution is smaller than it in the mode of Non-financial Defined Contribution with delay retirement.4.To further improve the personal account.Non-financial Defined Contribution is a suitable development direction5.Control the rapid growth of the employment growth rate in the short term.6.Give full play to the role of government regulatory policy.7.Continue to improve the multi-level pension system.