Implicit Pension Debt (IPD) Of Urban Workers’ Pension Insurance And The Research Of Compensation Mechanism For IPD

With the improving of the level of living and medical care、the average lifeexpectancy is growing，the population’s ageing is sweeping the globe, in order to mitigatethe payments pressure of pension insurance, mang countries started to reform pensioninsurance system. Simultaneously, China reformed its social pension system frompay-as-you-go system to“social overall plan and individual account system” which namedpartial accumulation system in1997.Cost of the system transformation which is legacy ofpay-as-you-go system appear and gradually be dominant. As a result，the implicit pensiondebts(IPD) come into being. It has obstacle operation of pension insurance fund whichthreats sustainable development of urban workers’ pension insurance system. Therefore, itis the key to reform successfully that estimate the amount of the implicit pension debt (IPD)which comes from the cost of the reformation. After that only can we find an appropriateway to repay it.This article firstly makes a brief introduction to the change of pension system,analysis the formation reason of implicit pension debt, and then the definition of implicitpension debt is divided into three levels. In accordance with the provisions of Guo Fa[2005]38document, the author classifies the pension receiver as” the old”、” the at-workmiddle” and” the retired middle”. According the definition of Accrued-to-date Liabilities,using actuary theories, then establish actuarial models respectively. This article choose tostudy on the urban pension insurance fund of Shandong province as research object,parameters hypothesis, selects dates, making the use of actuarial theory and takingquantitative and qualitative research to empirical analysis the scale of the implicit pensiondebt in Shandong province and to determine the impact of the strength of the hidden debtdo the parameters of the relevant factors. Finally, by introducing foreign advancedexperience, establish a reasonable implicit pension debt compensation mechanism ofShandong province from within system and outside system two aspects. On one hand, wehope we can provide the references for further reform and stable development of thepension insurance system in Shandong province. The other hand, we also hope that we canprovide references for other provinces and the whole urban pension insurance system.Summary of analysis of this article, concluded that: compensation mechanism’sestablishing should be on the basis of estimating the scale of pension insurance’s implicitpension debt; compensation mechanism’s establishing should be combine the actual situation of region to analysis; selecting multi-channel to pay implicit debt payments; thekey of the compensation mechanism is broaden the financing channels.