The Measure Of China’s Pooling Accounts Pension GAP

As an important part of social insurance, pension insurance plays an important role in promoting social harmony and stability, transforming economic development mode and realizing the coordinated development of economic society. However, with the arrival of an aging society, the old insurance system has been a severe challenge around the world. Although China has reform the pension system in 2005 and introduced the "combined system account" mode combining social pooling with individual accounts, pension gap has been the focus of attention. With the self-balancing of personal accounts and began after in 2005, the problem of pension gap’s pooling accounts has become a hot research. The sustainability of pooling account’s pension funds affects the operation of system, which relates to each individual’s vital interests.This paper starts with China’s current pension system, focuses on the problem of pooling account’s pension gap in basic pension insurance system. First, We introduced the theory of balanced pension fund pension gap and qualitative analysis of influencing factors; Secondly, we classified the insured population in the pension system, and established actuarial pension gap model of different insured population based on currently insured population systems and the extending coverage systems; Then according to the relevant data, we analyses the current population, and simulates the future insured pension systems including the growth path and structural changes of population. After getting "pension coverage population" indicators, we band together basic parameters and calculate the different section between the present value and present value of future pension payments as well as the annual balance of payments within the measured point. Finally, as for China’s specific national conditions, we propose rational policy recommendations to the pension fund account balance.The simulation empirical results show that without considering the effect of "extended surface newcomer", the accumulated balance and financial assistance, the social pooling fund under current insurance system has been in the state of income over expenditure every year since 2008, the annual balance of payments situation U-shaped distribution, while the pooling account funds exist scale of the huge hidden debts in early 2006. However, due to the existence of national credit, the implicit pension debt does not require immediate repayment. And with the "extended surface newcomer" continues to join, the social pooling fund’s annual income and expenditure in the 2006-2065 years, has been significantly improved and there is a surplus in the future for a long time. However, this does not fully explain the Chinese pension system security, because the future of annual account surpluses mainly supported by the payment of "extending the coverage of new".We can expect, with the stability of the pension system, the additional population and retirement of "extending newcomer", China’s annual revenue pooling accounts will face a big problem. Therefore, this paper proposes that before the pension crisis really approaches, we should provide sustainable support to China’s pension system by delaying the retirement age, increasing the financial compensation efforts.