Research On The Level Of Substitution Rate Of Basic Pension Insurance Of Urban In Jilin Province

Pension insurance system is the core of social security system and has been set up in most countries and areas, providing the old with economic guarantee. Pension substitution rate is an important indicator of pension insurance, not only because it effects the operation of the basic pension insurance fund, but also it reflects the living standard that the insurance pay and provide to the retired employees. Therefore, on the ground of ensuring the aging people normal living condition, to probe the moderate pension substitution rate, which could balance the revenue and payment of pension funds, has become a serious problem on pension insurance system of urban. This paper's theoretical basis was consisted of Life Cycle Theory and Generation Alternation Model. By fully understanding the present situation of pension insurance and substitution rate of Jilin province, calculating and analyzing the rate, then comparing to the proper level, the rationality of the operation of pension insurance fund could be judged. Using model and indexes to dynamically adjust the substitution rate, the policy of designing and reforming the pension insurance could be made from the aspect of the substitution rate.This thesis has five parts. Chapter One introduces related conceptions and the basic theories of social pension insurance system. Chapter Two describes the fundamental circumstances of the pension insurance institution and the substitution rate of Jilin province. A quantitative analysis of the rate was conducts and the average substitution rate was calculated. Despite the great achievement of pension system, lots of advance work should be done on the system itself. Such factors as the acceleration of the rapidly aging population, the lengthening of life expectancy, and slowing down of economic growth etc. have brought the pension insurance into the dilemma of collection and payment of the fund. In Chapter There, the actuarial model of pension substitution rate was set up, the interrelationship of some model ratios and the rate is also studied. In Chapter Four, some studies of the dynamically adjusting method of the rate were made, so as to maintain the rate within a proper scope. In the final chapter, the conclusion is made up, which are some further suggestions on the reform policy of pension insurance system of Jilin province.