Research On Basic Pension Insurance’s Burden-sharing Mechanism

How to perfect the contribution ratios and sharing ways of government, enterprisesand individuals, that is sharing-burden mechanism around the world has become animportant part of countries’ social security reforms. Among them, the pension insurance asthe most important insurance, its determination of sharing-burden mechanism has andirectly impaction on social security’s process and trend. In our country, enterprises andindividuals are the main payments of old-age insurance, who bear20%and8%of thecontribution respectively, and the state bears the last responsibilities while the expenditureover income in fund. But with the development of economy and the advance of socialsecurity reform pace, whether the burden-sharing mechanism is reasonable or not hasaffects the sustainable development of basic old-age insurance. So the research on basicold-age insurance burden-sharing mechanism is particularly important.The thesis analyses the current situations of Domestic and foreign pensionburden-sharing mechanism. The researches on pension burden-sharing mechanism inforeign countries are mostly from the perspective of economics and political science, butfor what kind of division of responsibility is rare. There are few domestic scholars studythe burden-sharing mechanism of basic old-age insurance as a system, they mostly studythe three responsibilities respectively, even if a systematic study, it describes the currentsituation of the three responsibilities only from a qualitative point of view, but doesn’tmake a reasonable and specific analysis of the burden-sharing from a quantitative point ofview. Therefore, in the reference on the basis of previous studies, the article studies mainlyfrom the three following aspects:(1) Analysis of the main responsibilities in basic old-age insurance. In this part, itanalyses the current payment situation of the tripartite responsibilities for basic old-ageinsurance through mathematical statistics, the result points out that the proportion of theburden is unreasonable, we need to redistrict the sharing-burden mechanism for basicold-age insurance so to determine a reasonable burden proportion. (2) The system dynamics analysis of burden-sharing mechanism for basic old-ageinsurance. At first, it analyses the elements that constitute the tripartite burden-sharingmechanism, the elements conclude GDP per capita and its growth rate, financial pensionsubsidies per capita, average wages of staff and workers per capita and its growth rate, thenumber of workers insured, company contribution rate, individual contribution rate, thenumber of insured retirees and the replacement rate of pension, then simulate the basicold-age insurance mechanism through system dynamics. The optimal ratio of tripartiteburden through simulation is1:3.3:2.2.(3) The strategies for basic old-age insurance burden-sharing mechanism. Itcompares the predicted results from the model with the burden rations in domestic andabroad, so that we can evaluate the current basic old-age insurance burden-sharingmechanism. And then put forward countermeasures and suggestions to the existing basicold-age insurance system for sustainable development. The measures and suggestions areto define government responsibility clearly, reduce enterprise payment responsibility andestablish enterprise annuities gradually, enhance individual payment responsibility andimprove the return on pension fund investment.There are two innovations in the thesis: the first one is the innovation of contents, thatis studying the basic old-age insurance burden-sharing mechanism through quantitativeanalysis; the second one is the innovation of research methods, that is studying the basicold-age insurance burden-sharing mechanism through system dynamics.