A Research On Actuarial Models Of Pension System

As many other countries in the world, China faces the important question of pension system reform. The average life of Chinese has improved from no more than 50 in the 1950s to more than 70 in the 1990s. And the one-child policy .formally initiated in the late 1970s, made the population aging phase much shorter than it would have been without the family planning implementation. So it is difficult to retain the old pay-as-you-go(PAYG) system. Under the dual pressure of enterprise reform and population aging, China began the pension reform in 1980s.The State Council issued the Decision on Establishing a Uniform Basic Pension System for Enterprise Workers in 1997, adopting a combination of individual account and social pooling as the uniform pension system. It transformed from the pay-as-you-go(PAYG) system to the partially funded pension system.The pension scheme system faces many problems. The transform from pay-as-you-go(PAYG) system to partially funded pension system has generated huge gap of pension payments. To build up a sustainable pension system, it is critical to solve the problem of potential pension liability for the sucessful transformation of pension system. And it is also important to discuss some other related issues of the new pension system.This article does some research on the new pension system. The research and achievements include:1. research on the replacement rate of individual account under the provisions of Dicision issued by the State Council in 1997. 2.research on the pension standard according to the related provisions of the Dicison issued by the State Council in 1997. 3. actuarial models of replacement rate of "new person" and "mid person" . 4. actuarial models of implicit pension debt of "old person" and "mid person" .