Researches On Financial Sustainability Of Pooling Accounts For Urban Basic Old Pension System In China

With the global Aging exacerbating, pension finance being unable to make ends meet has become a cosmopolitan problem, from which China is no exception. Due to reasons from regime design and practical operation, Partial Accumulation System of SP&IRA (Social Pooling and Individual Retirement Accounts) violates its intention during the implementation process. In 2005, the State Council of China enacted Decisions about integrating the Endowment Insurance of Enterprise Staff, aiming to ensure basic livelihood for all retirees and that they receive basic pensions in full and on time. In 2006, The State Council issued Notice of Instructing an Transmitting Outline of the Development of LSP (Labor and Social Protection) during the "Eleventh Five Year Plan ", putting non-public-owned enterprises, individual businesses urban, flexible employees into the system of urban basic old-age pension insurance, yet the potential financial risks of the Endowment Insurance for urban employees cannot be underestimated. Based on the iterative growth model of population urban and rural, this paper quantitatively analyzed the annual balance of pension in the next 38 years, analyzed the fiscal supportive ability for the pension gap by forecasting revenue growth, further studied influences, may caused by releasing population policy, extending the retirement age, allocating the state-owned assets, to the capacity of financing institutionally, and thereafter came up with some suggestions The full text contains five chapters.Chapter 1 primarily introduces this paper’s research background, research purpose, and summarizes present domestic and international research status, and research methods, mainline of the paper, innovations and shortcomings. Chapter 2 is the theoretical basis of this paper, which is the foundation of further research on financial support in Endowment Insurance of urban employees. This chapter elaborates evolution of the Endowment Insurance of urban employees, effects of revolution and existed problems. In chapter 3, it is the analysis of pension demographic structure. And firstly, simulating the conditions of China’s population in the future is establishing by iterative growth model of population. Then, it is predicted that variation tendency of insured groups of Endowment Insurance for urban employees and retirees receiving pension, with laying a foundation for further study next. Chapter 4 calculates the payment system in from 2013 to 2050 and analyzes the sustainable financial risk and cause of the pension gap. Chapter 5 analyzes the financial support of the system by prediction in fiscal revenue, and through designing three subsidy projects, turns out the best outlet. Chapter 6 proves the capacity of fundraising in Endowment Insurance for urban employees by delaying retirement age, broaden population policy and reallocation of state-owned assets. Chapter 7 is the paper’s primary empirical conclusion to submit corresponding policy suggestions.