A Research On Intergenerational Equity After The Combination Of Public Institutions And Enterprise Endowment Insurance System

Since the 1950 s, endowment insurance system of the public institutions and the enterprise form the “dual” development pattern, the unfairness caused by double-track operation of endowment insurance system also make people feel extremely unsatisfied, and along with entering into an aging society, our government can hardly afford the pensions for staff working in public institutions. We finally decided to combine the authority institution endowment insurance system with the enterprise pension insurance system on October 1,2014. After the reform, whether the operation of the endowment insurance system is sustainable or not attracts everybody’s attention, and the key of keeping sustainable is intergenerational equity.This article selects the intergenerational equity problem as research object after the combination of the public institutions and enterprise endowment insurance system, the purpose is to measure whether the endowment insurance system has sustainability or not after the combination, and hopes to come up with the corresponding policy recommendations accordingly.This paper firstly defines some relevant important concepts and introduces the relevant theoretical basis about the intergenerational equity which reveals the importance of intergenerational equity. Secondly, this paper expounds the historical evolution of the basic endowment insurance system for the public institutions and enterprise employees in detail respectively, and analyzes the situation of the intergenerational equity after the combination of staff endowment insurance system. Thirdly, we establish the generational accounting of the urban staff endowment insurance system in our country, and build the model which shows how much net present value of pension needed to be paid by “young man”, “middle-aged man” and “old man”. At last, according to the provisions of the urban staff insurance system and the method of generational accounting, we conduct a quantitative analysis on the intergenerational equity of the insurance system,then the sensitivity analysis was carried out on the indexes of economic growth.Through the data measurement, we found that in the absence of government subsidies, future generations joining in the insurance system are in more adverse situation, that is, the future generations afford more pension and burden heavier, this unfair phenomenon between current and future generations could be eased by improving the resale value of pensions or extending the female employees’ retirement. To be specific, when the increasing rate of pensions is 3.8%, or the retirement age of female staff is 59, the system can be able to achieve the balance between different generations, and at the same time, it is sustainable.