The Actuarial Research On The Two Modes Of Enterprise Pension In China

Speak of the development of enterprise pension; we must mention the supplementary pension in China. In 2000, our government first used the name of supplementary pension. From 1991 till now, the development of the enterprise pension in our country has been more than sixteen years, though we have gained the great achievement, we also have a long distance with the developed countries. In this article, we use the methods of qualitative analysis and quantitative analysis, and the actuarial theory, to analyze the problems in the development of enterprise pension in our country.First, from 2000 to now, the development of our enterprise pension has been many years, but few of men know about it. Even in the insurance and finance field, there are some ones don't know what is enterprise pension. So we have the necessity to expatiate the basic theory of enterprise pension in detail, especially the conception and classification of enterprise pension, and the development situation in our country. These are the contents of Chapter One.In China the development of the enterprise pension plans is still in the initial stage, the research about method and formula in the enterprise pension payment rates and personal goal salary substitution rate is less. Chapter Two clarified the method and formula including the contribution rate of workers personal accounts in DB plan and the objectives wage replacement rate in DC plan by using the general actuarial principles. By contrast two payment model, we overcome the difficulties in enterprise pension payment.Chapter Three constructed the contribution model of the DB and DC plan individually through the main use of the Actuarial Theory and Mathematical Methods.By contrast two payment model we come to the conclusion that: With the fluctuations of the rate of return on investments, the contribution rate of both model will result in volatility, and investment benefit rate higher, the contribution rate lower, vice versa.This relationship of the two models is not the same as the fee for the set-enterprise annuity, the payment is to determine the future depends on the level of pension payments for the payment of accumulated benefits and investment, the rate of return on investments and, in the fixed pay employees under the level of future pensioners the higher, contrary investment yield decline, even fixed fee, future workers will have pension account balances shrink risks identified for the treatment of Enterprise Annuity, as the treatment is to determine, from treatment to determine pay, the higher the rate of investment benefit, the lower the fee rate, the enterprises can be reduced payment amount, or even free of charge to meet the payments necessary, if the investment benefit the contrary, the lower the amount companies pay will increase, or even use its own funds, the risk to the enterprise entirely.In addition, the chapter also identified the strengths and the weaknesses of various aspects of the both model used qualitative analysis.And we can see that in fact it does not matter merits of the two plans and is simply appropriate or not for a specified enterprise. Therefore, we should choose the enterprise pension mode according to the different characteristics of China's enterprise pension market participants, and not rigidly adhere to a model.Followed the clarity of the actuarial principle and the mode of contribution, Chapter Four compared the economic impact on the participants in the DC-based enterprises and in the public-DB pension plan.By analyzing the economic impact, we compared the differences in its microeconomic incentives.Therefore,we can evaluate the policy objectives of the substitution rate through the establishment of the model, so as to provide the theoretical reference in determining the policy objectives of the substitution rate more scientifically. Through analysis of this chapter, we believe that: the micro incentive in the DC plan is superior to that in public pensions. Therefore, we suggest that the policy objectives of the substitution rate should be reduced appropriately.At present, China's market economy is still in the primary stage and the development of the capital market is not yet mature.It is difficult to inspire pension market enthusiasm under the single DB or DC mode. This requires us to achieve both merits and constructe the model in line with the national conditions of China creatively.After the analysis of the actuarial principles to the qualitative and quantitative comparison, this paper presents a complex enterprise pension model.And with the comparison of ordinary DB and DC-planning model,we clarify the advantages and features of this model. That is, for the contents of Chapter Five of this paper.