An Analysis Of Preferential Tax Policies Of Occupational Pension Based On An Actuarial Model

At present, China has entered the aging society. Aging of the population has been a majorissue on the construction of a harmonious society in China. To address this issue, China hadactively pushed forward the reform of pension system. And in the20th century, the early90s,China proposed the policy objectives of establishing a multi-level old-age security system. Afternearly two decades of development, China has basically completed by the basic old-ageinsurance, corporate pension and personal savings of old-age insurance, the three-componentmulti-level old-age security system. But compared with the western developed countries,Chinese enterprise annuity system is still not perfect, it’ s mainly because our lack ofcorresponding tax preferential polity. By comparison and analysis of favorable taxation mode ofoccupational pension, combining with European developed countries’ typical application, thisarticle does a cost analysis to the imaging of our favorable taxation mode of occupationalpension, proposes preferential tax mode which is suitable for the situation of China.The paper begins with the basic theory of annuity businesses, analyses the need forgovernment to get tax concessions on the basis of the theoretical study. Thesis research focusedon actuarial model theory and defined-contribution occupational pension replacement rate offactor analysis, as well as the achievement path of the defined-contribution occupationalpension’ s moderate substitution rate. Specifically, through the occupational pension’ s actuarialmodel, paper analyses the sensitive of the various effect factors in the model, and get the factorsthat amplify occupational pension’ s substitution rate are legal retirement age, interest rate level,occupational pension investment rate of return and occupational pension pay level, the factorsthat reduce occupational pension’ s substation rate are the beginning working age, the maximumdeath age and wage growth. Furthermore, with the change of each effect factors, sensitive degreeshifts, particularly among occupational pension investment rate of return. The final conclusionsbased on research for the future development of China’ s occupational pension policyrecommendations.