An Empirical Study On The Methods Of Pension Collection And Payment

This paper mainly studies an empirical research on pension receipt and payment model. The basic pension has become a basic thing in our country’s arrangement of social security matters. It is important for us to reform and improve the retirement pension in the process of our country’s social and economic development. In recent years, with the impact from population’s aging on pension and the unbalance of income and expenditure, the basic pension deficit is increasing. It not only increases the burden of the workers, but only reduces the quality of the retirees’ lives. This thesis mainly analyzes the model of payment, the balance of income and expenditure and the replacement rate and makes some recommendations.First of all, this paper discusses the basic meaning of pension insurance and compares the advantages and disadvantages of each kind of mode, including financing mode and payment mode. Secondly, it emphasis introduces the financing and payment of the current pension system and compares the differences and similarities of the old and new basic pension insurance. By comparing the data, it analysis the present situation of our country’s basic pension insurance. At last, by drawing on the experience of pension insurance in Jiangsu Province, this thesis conducts an empirical research on the model of payment, the balance of income and expenditure and the replacement rate for the’old-person’,’middle-person’ and’new-person’, and compares the differences between the two kinds of people classified by different income levels. During the empirical process, based on the actual data simulation, employees will be divided into two categories. The rate of Individual account interest is based on the stochastic interest rate of Vasicek model, which achieves accumulated individual account pension under the assumption of stochastic interest rate. For the ’new-person’, by referencing the developing relationship between average income and GDP per capita in America and the forecast on Chinese economic growth rate from some scholars, it predicts the wage growth rate by using piece-wise processing method. For the study of the balance of income and expenditure,the paper calculates the retiring year pension discounted present value of total pension for both’middle-person’ and ’new-person’ respectively, and analyzes comparatively on the above value and total payment during their working period to verify the feasibility of balance. The total payment of the ’middle-person’ is higher than the due pay, The total payment of the ’new-person’ is lower than the due pay. When the’new-person’ retire, their pension has been devalued. The pension insurance unbalances between income and expenditure. On the aspect of replacement rate, the ’middle-person’ and ’new-person’ both reflect on the low side, and this phenomenon suggests that the living quality after retirement is not higher than before,. Based on the above analysis, this thesis shows that the pension system needs to be improved to make the model of payment, the balance of income and expenditure and the replacement rate reach a reasonable level.