Occupational Pension System Design Of Institutions In Shanghai

Pension equity is an important aspect of social equity,but China continues toimplement the "two-tier retirement" in the pension insurance.On the one hand, theenterprise workers continues to implement the combined overall accounts and individualaccounts, and treatment bases on individual contributions;on the other hand,the public institutioncontinues to implement the non-contributory retirement system based on the protection of thenational finances.This distribution has widened the different sectors of the fairness anddiversity, not conducive to the transfer of social security and the establishment ofmulti-pillar pension insurance,and creates a heavy financial burden.January28,2009,Human Resources and Social Security Department officially released the "old-ageinsurance system reform public institutions,and Shanghai is one of the pilot cities.Theestablishment of occupational pension system is the supporting content of public institutionpension reform.There is a wide-ranging discussion of establishment of occupational pension in publicinstitution.The discussion revolved around the need for reform and the description of thecontents of occupational pension system.It did not propose to determine the level ofreplacement rate, contribution rate levels and other operational procedures in the specificsystem design.The pilot cities have not been introduced corresponding policy measures yet.In view of occupational pension is still in the exploratory phase,we need to learn the basicpension insurance and occupational pension system design and need to use SystemDynamics "Policy Laboratory" approach to study the Shanghai institution occupationalpension system design.Articles analyzes the nature of institutions and studies the the relationship of thesecond pillar occupational pensions and other pillars from the current situation of Shanghaipension insurance institutions. The article establishes the system dynamics model ofoccupational pension system in educational institutions in Shanghai.The model includes population subsystem, wages and funds subsystem subsystem.Through the angle ofworkers’ number, enjoy the security number, average wage levels, the model simulates thestock of the fund of the educational institutions in occupational pension Shanghai from2009to2030.And model discusses the impaction of different contribution rate,replacement rate, population policy, retirement, investment returns, wage growth on thefund of occupational pension.besides,the model makes a Sensitivity Analysis on the factorswhich affect the stock of occupational pension funds.Through analysis, it presents policyrecommendations of establishment and implementation of occupational pension system ofShanghai public institutions.The innovation of this paper is on the Shanghai institution occupational pensionsystem design,and the policy recommendations of establishment and implementation ofoccupational pension system of Shanghai public institutions.In the system designprocess,using a system dynamics "policy laboratory" methods to run the simulation andtest system.