Pension Insurance The Basic Old-age Pensions Under The New Policy Study

Endowment insurance system is one of the most important parts of social security, which ensures every person can live a suitable life after he retires. China, due to many years effort, founds a new system to integrate social pooling with individual account in 1997, which expand the coverage. However, there exists idle account in this system, and the responsibilities of different department are not explicit.In order to improve endowment insurance system, in December, 2005, Chinese government promulgated a new policy, which aimed not only to unify the endowment insurance policies, expand the coverage, but also make individual accounts real from both income and expenditure. Since this police changed much from the 1997's, in this thesis, it's considered as "new policy". Correspondingly, those policies which are related with 1997's are called "old policy".There are five chapters in this thesis.First chapter is introduction, containing research background, meaning and methods.Secondly, I expound the related concepts of endowment insurance system and the process of Chinese endowment insurance reform, and clarify the main topics of this thesis. I also compare the pensions between new and old policy by the policy concepts and some real examples.In the third chapter, I analyze in detail the effects of new policy among different groups ("new person", "middle person" and "old person") at the beginning. The result is: new policy has no negative effect to "old person" and "middle person". However, due to the differences in fee and pension, new person's rate of substitution has changed much. In order to to analyze the effects of new policy to "new person", an actuarial model is defined. The data indicates male will benefit from new policy a little bit but female will suffer from decreasing, especially female workers. The difference between male and female is mainly because the retirement age, and new policy will lead to insufficiency.The forth part of the thesis analyzes two ways to raise the substitution rate based on the results in chapter 3, which are adjusting the mandatory retirement age and raising the investment interest of endowment insurance fund. Because neither the existing retirement age nor the investment rate is suitable.The last chapter is summary and advice. Point out that deferring retirement age especially female one is a feasible way to increase the substitution rate. Meanwhile, increasing the proportion of abroad investment and improving the management are the reasonable ways to raise investment rate of the endowment insurance fund.