Enterprise Annuity Actuarial Estimates

Enterprise annuities are the second pillar of the old-age insurance system of ourcountry, which directly affect the income and life of retired employees. Therefore it issignificant to investigate the problems about the system of enterprise annuities. Oncestaff members join the enterprise annuity plan,they need to pay the fees during theirworking life, for receiving a corresponding payment when they retire.If they exit theprogram for some reason,such as resign or death,they will get the correspondingbenefits for payment accumulation. Enterprise annuity is usually a long-term plandirected at all the workers,in this way,how to determine the appropriate level ofpayment,effectively guarantee retirement life level, predict income and expenditure oftotal account in the long term, assessment plan solvency and financial revenue andexpenditure balance, all of which are crucial for the normal running of the program.This article focuses on the Hybrid Pension Plan—Target Benefit Plan and mainlydiscusses its annuity actuarial estimation. Firstly, based on multiple loss model, theenterprise employee population is predicted, then the personal account of income andpayment are modeled, and finally according to the above models, a enterprise annuityplan is simulated, here the long-term actuarial estimates are given, which includeannual income and retirement forecasting, leaving payments and on-the-job deathpayments in the future years, the annual balance value, future years comprehensivebalance value,in order to analysis plan solvency and financial revenue andexpenditure balance state. Finally, on this foundation, elaborates how to undertakelong-term actuarial balance estimation and the realization of actuarial balance,whichexpect to give a reference for the establishment and management of an enterpriseannuity plan.