Institution Design And Policy Simulation Of Civil Servant Pension System

In January 2015, the State Council issued the Decision to Reform the Endowment Insurance System for the Staff of Government Branches and Government-Affiliated Institutions, which ensues the civil servants and staff of public institutions to pay endowment insurance. The Decision merges the social endowment insurance between the employee of enterprises and the staff of government branches and government-affiliated institutions, breaking the long time double track system of endowment insurance. In April 2015, the State Council issued the Occupation Pension Institutions, which requires to establish the occupation pension of the civil servants. The occupational pension system could make up the gap between the old and new insurance system of the civil servants.In another hand, the Institutions just built the framework of occupation pension, however, did not give the detail description of the lowest replacement level and the calculation method of the replacement rate.This paper uses the management science, demography, social security theory, insurance actuarial science, social policy and other related theories. Under the Wenzhou case, the paper use the population technology to predict the life expectancy divided by age and sex. And based on population forecast, the paper measured the pension insurance institutions, especially the occupational pension replacement level. In order to be more clearly to the occupation pension replacement level, the paper has separately calculated the occupation pension substitution rate of individual and social average replacement rate. Considering there are a great deal of parameters, this paper chose the sex, the type of institution, the age of retirement, the pension receive time, occupational pension investment income rate and contribution rate as the main parameters to study on the replacement rate in the simulation of different scenarios.The study has found that occupational pension for the civil servant has an important role in the makeup effect. while if the current system maintains, the compensating effect will be difficult to achieve the expected effect. The policy of delay retirement could increase the replacement rate. On the other hand, considering an increasing expectancy life in recent years, it is necessary to adjust the current policy to make the pension more sustainable and achieve the better income smoothing effect in life cycle.