The Actuarial Study And Solutions Of China's Implicit Pension Debt

Pension insurance has been one of national social security system's primary content, which can effectively cope with population aging, and protect elderly people's basic right to subsistence. China's pension insurance system has undergone several major changes from its establishment in the early days. The first stage is the traditional system, the second stage is reform and innovation, and the final stage is current exploration of combination between social overall plan and individual accounts. China begins partial funds system reform in its old-age insurance system, from"cash payment"to"social overall plan and individual account system". The cash payment system is the next generation of pay-as-payment of pension costs for the previous generation, and the current requisition for current use. However, accompanied by the increasing phenomenon of aging, the pension insurance system for the elderly is difficult to help them who are quite age to pass through their left life. We are forced to implement personal accumulation system, as to two parts of the social pension and personal pension. But the social overall plan account of many people has no or very little available funds after conversion; it results in the debt crisis of old-age insurance. Because of the debt being implicit and not being taken seriously, our old-age insurance problems in the system lead the debt to appear and gradually be dominant. In this paper, with respect to the problems of the retired "old" before the reform and the "middle" to be retied shortly after the reform, a model of the implicit debt is established, and taking into account wage increase rate, pension change rate, the scale of the two parts of the implicit debt is respectively measured. In this paper, in the model calculation process, some factors to consider is not comprehensive enough and that may affects the final result. Implicit pension debt problem is not a new problem, but studies at home and abroad have not yet fully formed research system and in this paper there is a certain inevitably one-sided. In the process of solving the problems of many other countries, there is much experience for China to learn. With respect to solving this problem in many countries, there is much experience for China to learn. This article lists specific solutions to the implicit debt of Japan, Chile, the United States and Sweden. We can draw upon the length that offsets our own weaknesses, continue to explore and find the road to suit China's actual conditions.First chapter is an introductory part. It introduced the meaning of this article, the current study status of international research, as well as the lack and the innovation in the paper The meaning of the topics of this paper is that in modern society of population aging, old-age problem is widespread concern, however, in the restructuring process of pension insurance, the implicit debt is increasingly obvious. In order to discuss and resolve implicit pension debt-scale, the paper makes a calculation and analysis based on the latest date.The second chapter analyzes the formation process of the implicit pension debt and that makes good groundwork for the behind contents. This chapter firstly makes a brief description to the process of pension system and the current problems faced to. Through the introduction to the change of pension system, the formation process of implicit pension debt can be understood, and also the composition of the specific content of this implicit debt. When the implicit debts become increasingly serious, and there are no effective measures to resolve, it will gradually dominance. This chapter describes the content in detail.The third chapter is the core of this chapter. According to the Statistical Yearbook 2008 and the Yearbook of Labor and Social Security data for 2007, China's implicit pension debt is measured. Based on actuarial science, models are established and the debts are measured respectively with the "old" and the "middle". This is the final chapter of the contents of laying a good foundation. The paper summarizes the factors that may affect the size of the implicit pension debt, when it analyzes the size.Chapter IV is the final chapter of this article, also a summary chapter. Through the introduction of the previous section, calculation, analysis, drawing on the experience of cases in the developed countries, it explores the path suited to China's national conditions and strives for effective measures to reduce the size of the implicit pension debt minimum. At present, China issued policies on old-age insurance. These, the one hand, provide solid security measures for the elder; on the other hand, these also reduce the size to a certain extent. As long as some relevant departments pay attention to this problem, and actively take effective measures, coupled with individual effort, implicit pension debt problem can be solved, only there is still a long way to go.