The Optimal National Contribution Rate Of Basic Pension For Urban Employees In China

The construction of the endowment insurance system has always been the focus of China's work,and the realization of national pooling is the top priority in the construction of the endowment insurance system.General secretary Xi Jinping also clearly put forward the requirement of "national pooling of endowment insurance as soon as possible" in the report of the 19 th CPC national congress.In order to implement the spirit of the 19 th national congress,the state council has started to formulate and issue a series of policies,among which the "notice on the establishment of the central adjustment system of the basic pension fund for enterprise employees"(hereinafter referred to as "the notice")formulated and issued in mid-June 2018 has made substantial progress in the national pooling of pension insurance in China.The notification requires to reunify the policy of the workers' basic endowment insurance,including unified the proportion of the contribution and other core system parameters gradually.But due to the worker of primary endowment insurance policy in our country is still province pooling at present(In fact,up to now there are still some provinces have not achieved the true sense of provincial pooling),the basic contribution rate between the provinces is not the same,and the difference only reflect on the contribution rate of enterprise,so,there is a big difference between the burden of the provinces.This leads to a serious deviation from the principles of "fairness" and "efficiency".In addition,to some extent,the workers' basic endowment insurance contribution rate,which is up to 28% on the whole hindered the restructuring and upgradation as well as high quality development of the economic.It also squeezed the development space of the pension system(includes occupational pension and enterprise pension),especially the enterprise pension,which is the second pillar of the endowment insurance system.Therefore,The most optimal contribution rate of the workers' basic endowment insurance should be made as soon as possible in the context of the national of endowment insurance.It is the important premise of achieving the national of endowment insurance and also the proper meaning of the top-level system redesign to realize the synchronous promotion of "overall national" and "cost reduction".Because the difference of the workers' basic endowment insurance contribution rate is mainly concentrated on the enterprise contribution rate,that is to say,the basic pension contribution rate of employees.2In this paper,the national unified optimal contribution rate of basic endowment insurance is obtained through the establishment of actuarial model from the two dimensions of "overall national" and "cost reduction".Based on the relevant theories of endowment insurance,This paper first analyzes the motivation of overall the basic endowment insurance contribution rate,so as to answer why the basic endowment insurance contribution rate is pooling.Secondly,this paper draws the motivation for the overall national of the basic endowment insurance contribution rate according to the development situation and existing problems of the contribution rate of the basic endowment insurance in China.Thirdly,the two measurement standards which contain nationwide standard and optimal standard of the basic endowment insurance are gained by sorting out and summing up,then under the guidance of the standard of the national optimal contribution rate and take the basic pension balance and the level of economic development into account,the national unified optimal contribution rate of the basic pension is calculated by using Logistic population actuarial model,moderate contribution rate model of the basic pension,basic pension balance theory model and etc.At the same time,the paper further calculates the optimal contribution rate of basic pension through the optimal contribution rate model of basic pension.Finally,the feasibility of the calculated basic pension contribution rate is verified and the corresponding implementation mechanism is proposed on this basis.Through the above analysis,the following basic conclusions are drawn:It is an inevitable requirement to promote the national pooling of endowment insurance to unify the basic pension contribution rate;Under the guidance of the standard of the national optimal contribution rate and considering relevant factors,this paper calculates that the national optimal contribution rate for the basic pension is 15%,which is 5 percentage points lower than the original 20%;The calculated national optimal contribution rate of basic pension is in line with the financial support and fits to the enterprise's ability to pay;From the perspective of the "overall national",the national optimal contribution rate needs to be achieved through improving the old-age insurance system,carrying out top-level design,clarifying government responsibilities,coordinating economic development among regions and establishing a national fiscal subsidy mechanism.From the perspective of the "cost reduction",the national optimal contribution rate needs to be achieved through expanding the coverage of the system,increasing efforts to collection and payment,standardizing early retirement,accelerating the implementation of the policy of delaying retirement,Liberalizing birth planning policy,accelerating the transfer of state-owned assets and improving the investment status of pension funds.