Research Pension Funding Model To Raise Taxes And Fee Of Urban Workers

China will face high-speed aging situation in the 21 st century. From the 1990 s, China has began an aging and then aging is deepening year by year. At the same time, people who born in the sixties and seventies,gradually get into old age in the next two or three decades, the coming period will become China’s aging trend.Aging will lead to a series of problems, and the key is the direct impact of the aging of China’s pension system, especially it is a challenge to China’s future pension fund financing and the ability to pay. Meanwhile, there are some problem exist in China’s pension system, such as irreparable huge restructuring costs, personal accounts empty posting run, the low overall level, small coverage, institutional fragmentation, especially the lack of attractiveness of the system, which are unable to cope with the challenges of aging.In the condition of maintaining the existing pension system, it is necessary to adjust some variable types such as financing, the overall level of debt repayment etc to forming the sustainable development of the pension insurance system.Pension funds is the core element of the pension running system. it is necessary to study in depth the pension insurance funding model.In this regard, this paper based on a comparison with foreign pension funding model,and then the reconstruction of China’s basic old-age insurance financing model, which the social pool with tax collection, personal accounts with fee collection. This paper specifically points out achieving path of raised taxes and pension funding model, setting specific tax from pension tax payer, tax class times, and other aspects of the tax basis, and meantime reconstructing the basic pension payment model.Taxes and fees divided raised of pension system implemented separation system account, account management model. There is no joint relationship between pooling accounts and personal accounts. National Pension payment is national-unity, non-discriminatory, funded pension taxes and subsidies, guaranteeing the basic survival needs; bigger proportion of personal accounts, emphasizing the personal accounts of incentive, by individual contributions, the implementation of fully funded. According to the setting of mode of financing and payment in this article, with the dynamics model to analyze the balance of basic pension system payments of future periods, which emphasis on the pension replacement rate, individuals, corporations and financial burden and the level of subsidy burden. The use of actuarial science methods to establish a personal account pension contributions and the accumulated lifetime earnings models and based on certain assumptions parameters, estimates pension replacement rate,which the contribution individual account reaches a certain age. Through these studies we draw out the appropriate conclusions, and put forward sound countermeasures of pension funding model.The innovation of this paper is to make the specific path to achieve the divided raised taxes and fees of pension financing model. In this paper, the idea of social pooling account the tax levy, the implementation of central taxes, the centralization of funds to achieve national co-ordination, financial underpinning on the return on investment of personal accounts. Through empirical analysis, it is feasible that the implementation of taxes and fees divided raise the pension funding model.