Projections And Analyses On The Supplementary Effect To Basic Pension And Size Expectation Of Occupational Pensions

Occupational pensions are an important part of multi-pillar pension scheme, which are still on the starting stage in China. The development of occupational pensions, as a crucial complement to Basic Pension, will influence the buildup and development of the whole pension scheme in the future, and will have an effect on the economy development of China. From the viewpoint of the interactive relationship between modern pension scheme and productivity, this paper observed the function and prospect of occupational pensions in China within a background consisting of population structure, labor productivity, and finance environment, utilized simulation and scenario analysis in actuarial models to estimate and analyze the effect of occupational pensions in the replacement rate of urban retired employees, then pointed out the magnification effect of occupational pensions in increasing the replacement rate and the higher efficiency in improving retirement income of urban retired employees. It also predicted the size expectation of occupational pensions during 2002-2010 in China, described the function of occupational pensions in developing the capital market and improving the labor productivity, especially emphasized the higher probability of occupational pensions to play the role of institutional investors compared with Basic Pension. In short, this paper proved the positive meaning of developing occupational pensions from micro-level and macro-level respectively, and brought forward corresponding policy suggestions.