Study On The Impact Of Payment Years On The Balance Of Income And Expenditure Of Urban Employees' Basic Endowment Insurance Fund

In the current social insurance system established in China,the basic endowment insurance system for urban employees is a social insurance system established earlier.The employee pension insurance system is related to the vital interests of the employees involved in the insurance.While providing life support for the retired employees,there are also various problems and difficulties.The most urgent one is the imbalance of the fund's income and expenditure.Therefore,the government should clearly understand the income and expenditure of the employee pension fund,design and formulate specific policy adjustment plans,and promote the balance of fund income and expenditure of the employee pension insurance system.According to the current payment period policy,This paper constructs an actuarial model for the balance of income and expenditure of employee pension insurance funds.The article uses this model to calculate the impact of changes in the payment period on the income and expenditure gap of employee pension funds.By collating relevant literature results,this paper sorts out various theories.It includes the theory of fund revenue and expenditure,Overlapping Generation Models and so on.In the empirical part,based on the theory of the income and expenditure principle of the employee pension insurance fund,combined with the current financing and treatment provisions of the employee pension insurance system in China.This paper first studies the composition of income and expenditure of employee pension insurance fund,and analyzes the fund's income and expenditure under the principle of horizontal balance of funds;Then based on the support relationship between generations,the article constructs a forecast model of the payable period under the principle of horizontal balance of funds,and then predicts the trend of changes in the payment period,and analysis of the impact of changes in the payment years on the horizontal balance of the fund;Finally,through the analysis of the actuarial model under the principle of vertical balance of funds,the paper studies the impact of changes in the payment period on the balance of income and expenditure of employee pension funds,and obtains empirical results.Through actuarial analysis,the following conclusions are given at the end of the paper.Firstly,based on the intergenerational support relationship,this paper analyses the payable years under the horizontal balance of the fund.And through the core variable of payment years,draws the conclusion that reducing the contribution rate of the pension insurance can increase the payment years of the insured workers,which is beneficial to the balance of annual income and expenditure of the pension fund,and thus improve the short-term income and expenditure of the fund.However,what is more important is the long-term income and expenditure of the fund.Secondly,from the perspective of the vertical balance of the fund,based on the current system,according to the current system,assuming that there is a typical worker,we can calculate the changes of the present value of contributions and pension treatment in the life of the insured workers with the increase of their payment years.The results show that from the perspective of the micro-individual insured workers,there is an inverted U-shaped relationship between the payment years and the long-term income and expenditure gap of the basic endowment insurance fund for urban employees.If the year of payment of the insured employees is less than 25 years,the extension of the payment years will increase the long-term income and expenditure gap,but in the case of over 25 years,the effect is opposite.And with the increase of the payment years of the insured employees,it is unable to effectively improve the long-term income and expenditure of the fund.Finally,based on the research conclusions,this paper gives the following two main recommendations: Firstly,in terms of improving the payment period for employees,we should strengthen the fairness function of the policy.Meanwhile,we should also adjust the mechanism related to the payment years and treatment,re-examine the fairness of the basic pension,and ensure that employees can enjoy the basic retirement life after retirement.Second,in terms of promoting the balance of income and expenditure of employee pension funds,on the basis of adjusting the payment period policy,other relevant parameters also need to be optimized.I suggest that under the comprehensive adjustment of the system parameters,we though improve improving the coverage rate of the pension insurance for employees,strengthen the supervision of administrative agencies and narrow the gap between wage growth rate and market interest rate,to improving the income and expenditure of the pension fund.