Research On The Contribution Rate Of Occupational Pension

Nowadays, our country has entered the aging society with large aging population and fast growth rate. Considering the national conditions of small family structure and capital shortage in endowment insurance system, the aging problem is facing a serious situation. But the reality is the level of our basic old-age insurance system is low with large capital shortage. As the second pillar of endowment insurance system, occupational pension is the barrier in its development. With its development for several decades, the system begins to take shape. Till the end of 2014, there are 73261 enterprises establishing occupational pension with 22.9278 million of employee and 768.895 billion of accumulation fund. But there are still problems such as small scale as a whole and narrow coverage. This cannot satisfy our aging population structure and capital shortage in endowment insurance system, and cannot support old-age security as the second pillar.In 2015, it has issued measures on occupational pension for agencies and institutions. It stipulates that from October 1,2014 authority institutions are forced to build occupational pension, and specifies the unit contribution rate of and individual contribution rate. From January 1,2014, it began to implement the notice of issues related to income tax of occupational pension and individual pension. It stipulates tax mode and preferential policies of enterprise occupational pension, which shows the attitude of country supporting and encouraging enterprise occupational pension. However, the policy of unit and individual contribution rate on occupational pension has still not been issued, which has a practical significance on occupational pension and contribution rate.Based on different industries and Overlapping Generation models, considering current social and economic development situation, the paper first determines reference values such as capital output elastic parameters, population increase rate, the ratio of personal wages and social wage. Then it calculates the occupational pension under the maximization of individual utility and social welfare maximization, as well as analyzes contribution rate level affordable by enterprises and individuals according to paying capacity of enterprise and individual. The research finds that the gap of personal salary and social wage is the main factor causing the difference optimal payment rate in different industries. It encourages to set up payment rate based on its own actual situation, takes different measures to different industries to realize Pareto optimization. It encourages enterprises that can afford it to establish occupational pension first, so as to overcome the difficulties in the development of occupational pension, expand the coverage of occupational pension and fasten the development of occupational pension system.