Effects Of Pension Insurance Institution Reform

The pension insurance institution is the most important part in the society security institution, and it can guarantee the basic life demand of old people after retirement. With the global demographic ageing and the demographic support ratio rising, the pension insurance becomes more important, and the challenge of the pension insurance institution is also more and more rigorous. Therefore, the reform and perfect of the pension insurance institution have already become the issue focus of the whole world scholar, also is important problem that all countries government concern.The problems of our country pension insurance institution are unbalance of pension on funding scheme and lower legal retirement age. The situation that deposit increasing and consumption demand are not enough are coexisting caused by the inequality of income demonstrates the question on income distribution. Under the globalization trend of the pension insurance institution reform, our country, as a developing country and a big country of populations, its problem of pension insurance is more serious. On one hand, the special population policy of our country sped the step of demographic ageing. One the other hand, the translation of our country economic system need to build up the new pension insurance institution urgently to replace old one.Microsimulation model is a kind of new policy analysis model in the western economic model with the development of computer technique in 1960s. Microsimulation model researches the micro unit, and simulates and analyses the allotment effect of policy, such as tax, housing, the society security...etc. In the socialism market economy system of our country, many reforms need to carry out and perfect. Therefore, this kind of model has the extensively applied foreground, and it will be a kind of indispensable tool to analyze and constitute the policy.The basic way of microsimulation: Getting the data document that it is consisted of the micro unit of the social economic system; Constructing simulation model according to the social activities; Using computer to simulate characteristic or micro unit and variable of relevant policy(such as price, tax, welfare etc.); Through statistical comparison, analysis, deducing and synthesizing of the characteristic variable, we get the policy influence of micro unit and the policy implement result of macro level.This paper provides a dynamic microsimulation model to analyze pension insurance policies in China. The model adopts the simulation method of event-based, and at any time changes to evolve forward. The model mainly includes two events: (1)The life events, include the death, bearing, education, marriage, taking up an occupation and income; (2) The policy carrying out events, include the financing and the providing of pension.We carry out the model by applying V- Fox, the whole simulation process is database-based, the database includes the micro database and macro databases.We do some simulation experiments of pension insurance policies by Jilin micro-data. We simulate and analyze two kinds of new pension insurance policy- prolonging the legal retirement age and increasing the pension levy ratio. The results show: Two kinds of new pension can make income and expenses of pension are balanced. But increasing the pension levy ratio will increase economic burdens of enterprise and workers and produce the disadvantageous influence. Prolonging the legal retirement age will not produce the disadvantageous influence, and can lower the workers' training cost effectively.This paper also use the simulation result to analyze the inequity situation under those three policies,currently policy,prolonging the legal retirement age(new policy 1),increasing the pension levy ratio(new policy 2),since the income gap of our country now is continuing enlarge. Firstly,we use the Gini coefficient to tolerance the annual income redistribution,then we use the Theil index to tolerance the annual income redistribution especially we use the Theil index to extract the information of annual pension inequity and how much the pension inequity contribute to the income inequity of whole society,at last we use the Gini coefficient to analyze the life income inequity of different generations. On the basis of above-mentioned analysis we conclude that the new policy 1 not only control the inequity of the whole society income and the pension income efficiently,but also balance the different generations' life income.These researches expanded the application of the microsimulation model in macroscopic economy analyze of application effectively, and make the foundation for the development and application of the microsimulation model in the future.