Raising the retirement age:the impact on the individual and actuarial balance for Chinese urban workers’basic pensions

Rapid population ageing and increasing longevity are raising concerns about the sustainability of the basic pension systems in China.Raising the retirement age,as an important way to maintain long-term financial sustainability,has become the main policy choice for China.Some studies show that postponing retirement can solve the financial pressures of pension systems effectively.However,if the pension benefits increase with the pensionable age,this may offset some effects and even have a negative impact on the financial balance.This paper builds cohort models and period actuarial balance models for Chinese urban workers’basic pension system to measure the cohort and period effects of postponing retirement,with the aim of analysing the change in the individual pension net wealth and the long-term actuarial balance of the system with population ageing and increasing life expectancy.The result shows that raising the retirement age,which is linked to life expectancy,will lead to an increase in the pension benefits,individual net pension wealth and then pension fund expenditure.It may benefit the individual and short-term actuarial balance but have a small effect on the long-term actuarial balance of the system.

The Potential of Commercial Pension Insurance to Develop into One of the Pillars of Rural Pension Insurance:A Study from the Demand Perspective

The development of a multi-pillar pension insurance system is an effective solution for an aging society.Commercial pension insurance,as the third pillar of pension insurance,is an integral part of this system in China and can play a critical and complementary role in rural areas where support for the elderly is a more pressing concern and a second pillar of pension insurance remains absent.To this end,we first elaborate on the theoretical logic that commercial pension insurance can develop into one of the pillars of rural pension insurance.We then empirically test rural residents’willingness to participate in a commercial pension insurance plan(CPIP)in a probit model with household research data from rural areas in major labor-exporting provinces,such as Sichuan and Henan so as to explore whether commercial pension insurance has the potential to become one of the pillars of rural pension insurance.Our research findings can be synthesized in three points.First,rural residents out of agricultural production for five consecutive years are more willing to participate in a CPIP than other rural residents,indicating that progress in industrialization and urbanization can significantly boost such willingness.Second,the younger rural residents are more inclined to participate in a CPIP than the older generation.Third,income increases can significantly boost rural residents’willingness to participate in a CPIP.Thus,with progress in industrialization and urbanization and an increase in rural disposable income,commercial pension insurance has a promising potential in rural areas and can hopefully develop into one of the pillars of rural pension insurance.

Innovative Development Path of the Pension Model Under the Background of the Aging Society: Taking Chongqing as an Example

The aging society has dawned on China,and the pension industry is now considered to be a sunrise industry.In 2020,the number of people over the age of 65 in Chongqing had reached more than 5.47 million.At present,the mainstream home-based care,children support,and institutional care cannot fully meet the needs of the elderly for food,housing,medical care,nursing,and entertainment.The value curve model from“Blue Ocean Strategy”is used to look for innovative,differentiated competitive strategies.Through community-sharing pension institutions,it is believed that a new model that provides lower prices and more professional medical care services for the elderly,enriches the spiritual world of the elderly with rich entertainment activities,and connects social services through an elderly studio to meet the needs of the elderly for self-realization can be introduced.

Research on Accounting Issues of the Pension Insurance Fund for Urban Employees

Pension insurance is a vital component of China's social security system,ensuring the welfare of the general publie.This study centers on the revenue and expenses of City S's urban employee basic pension insurance fund.It introduces and analyzes the fund's accounting status from four key perspectives:fund raising.expenditure,financial statement system,and accounting information disclosure.The research identifes existing problems in City S's accounting system and conducts in-depth research on these issues.Furthermore,an empirical analysis is conducted on the management of the pension insurance fund.Through this empirical study,the paper aims to offer insights and recommendations for promoting stable and healthy development measures for City S'8 urban employee basic pension insurance fund.

Design of Intelligent Pension Online Monitoring System Under the Environment of Internet of Things

With the improvement of the degree of aging,the traditional pension model can no longer meet the growing needs of the elderly.Therefore,it is necessary to use the intelligent means of information technology to improve the level of pension services.This paper will integrate multi-sensor fusion technology,NB-IoT communication technology and cloud platform technology to develop and design a smart pension online monitoring system to realize real-time collection of human health and motion status information and realize monitoring platform management.In this system,STM32 microcontroller will be used as the main control module,and MAX30102,ADXL345 and DS18B20 sensors will be used to collect the heart rate,blood oxygen,displacement and body temperature of the human body in real time.On the one hand,the communication part is completed by the BC20 Internet of Things module.The data transmission between the terminal detection device and the cloud platform,on the other hand,the HC-42 Bluetooth module is used to complete the data communication with the mobile phone.The test results show that the system can collect and process data accurately in real time and maintain good communication with the cloud platform and mobile phone.The designed system has strong pertinence,easy operation,high reliability and broad development prospects.

Net Pension Liability Impact on School Districts after Incorporation of Governmental Accounting Standards Boards (GASB) Statement Number 68

This paper analyzes twenty school districts in the state of Pennsylvania and applies ratio analysis to understand the potential effect of GASB number 68 on the financial statements of these entities.The financial statements were picked on a random basis from the Electronic Municipal Market Access[1]database.EMMA is a research and data retrieval system of the Municipal Securities Rulemaking Board(MSRB).The MSRB provides resources to trade municipal bonds and access to the financial statements of entities selling these securities.The paper was developed as a result of the requirement by GASB to“recognize their long-term obligation for pension benefits as a liability for the first time,and to more comprehensively and comparably measure the annual costs of pension benefits”[2].The public schools in Pennsylvania incorporated GASB number 68 for the fiscal year ended June 30,2015 and restated the financial statements for the fiscal year ended June 30,2014.The effects of these restatements created a situation where most of these districts now show a negative fund balance caused by an increase of liabilities of over one hundred percent.Many of the decision makers are uncertain of the long-term changes that this recognition will have on the operations of the school district.Bond ratings have suffered because of the volatility and uncertainty causing negative effects on the balance sheet,increased current recognition of pension expenses,and a possible interest rate increase.All of these effects are illustrated in this paper.This is at a time where many people are questioning the performance of many of the school districts.

Optimal investment for the defined-contribution pension with stochastic salary under a CEV model

In this paper, we study the optimal investment strategy of defined-contribution pension with the stochastic salary. The investor is allowed to invest in a risk-free asset and a risky asset whose price process follows a constant elasticity of variance model. The stochastic salary follows a stochastic differential equation, whose instantaneous volatility changes with the risky asset price all the time. The HJB equation associated with the optimal investment problem is established, and the explicit solution of the corresponding optimization problem for the CARA utility function is obtained by applying power transform and variable change technique. Finally, we present a numerical analysis.

美国养老金新法对资本市场的影响

401(k)养老金计划是美国目前参加员工最多的企业养老金计划。美国广大的企业职工通过积极参加401(k)计划,踊跃为自己将来退休收入进行储蓄,并将自己401(k)计划账户的资产积极投入到美国的证券市场中,使401(k)计划成为美国当今证券市场中最为活跃和重要的投资股东。美国2006年养老金新法,促进了养老金对股票、基金的投资,将对美国资本市场产生更加深刻的影响。

CONSTANT ELASTICITY OF VARIANCE MODEL AND ANALYTICAL STRATEGIES FOR ANNUITY CONTRACTS

The constant elasticity of variance（CEV） model was constructed to study a defined contribution pension plan where benefits were paid by annuity. It also presents the process that the Legendre transform and dual theory can be applied to find an optimal investment policy during a participant＇s whole life in the pension plan. Finally, two explicit solutions to exponential utility function in the two different periods （before and after retirement） are revealed. Hence, the optimal investment strategies in the two periods are obtained.

Study on Reasonable Premium Rate of Pension Insurance in China

By analyzing the cause of too high premium rate of pension insurance at present and discussing the current practice of Chinese Pension Insurance System, three models to determine the reasonable paying level of premium, returning level of retirement pay and premium rate are established. Comparatively speaking, these models solve the problem of the determination of the premium rate more scientifically and offer an effective analyzing means to the improvement of the Chinese Pension Insurance System.

Analysis and Research on Information Design of the Smart Community Pension Service

In the research on the smart community pension service,it is found that the problems encountered in the promotion of the smart pension can not be solved in the short term because of the lack of information and the acceptance of the intelligent products by the elderly. This paper puts forward the research ideas based on the cognitive characteristics and demand prediction of the specific population. Focusing on the research on the pension needs of people born in the 1960 s or 1970 s,it provides support for the solution of smart pension services in the peak period of aging population in the future.

Future demographic dividend——tapping the source of China’s economic growth

This paper presents a review of the demographic dividend in China’s economic growth or the contribution of the demographic factor to China’s rapid economic growth over the past 30 years. Based on this review, it explores how China has sustained high-speed economic growth in the midst of a slowdown in working age population growth, surplus labor depletion and population aging. This study intends to demonstrate that the second demographic dividend may still arise after the decline and even disappearance of the first demographic dividend to avoid demographic debt by boosting labor productivity through the furtherance of education, extending the competitive advantage of China’s industry, tapping new sources of savings through institutional arrangements of pension security, and expanding labor resource and human capital stock in the aging era through the institutional arrangements in the labor market.

Study on Improving Development Strategies of New Rural Social Pension Insurance System in Heilongjiang Province

Since 2009, the new rural pension insurance in Heilongjiang Province has obtained certain achievements, but the effects are not obvious. Reflection on the development process, we find that there are a lot of problems. Therefore, in order to guarantee the smooth implementation of new rural social pension insurance work in Heilongjiang Province, this paper combined with the reality to provide several suggestions for improving the new rural social pension insurance system in Heilongjiang Province.

Sensitivity of Personal Account Accumulated Value of New Rural Social Pension Insurance to Variation of Uncertainties

The personal account of new rural social pension insurance raises funds in the form of individual premium-paying,collectively pooled subsidy and government subsidy.The personal account accumulated value has a decisive influence on the payment level of personal account pension.The personal account accumulated value has a direct or indirect relationship with the income level of farmers,premium-paying level,the insured period,investment return rate of funds and other factors.Analysing the impact of infinitesimal variation of these factors on accumulated value of personal account pension,is of great significance to improving and consolidating personal account,and achieving sustainable development of new rural social pension insurance.

Distinguish between Defined-benefit and Defined-contribution Pension Schemes

According to the data from IFSL(International Financial Services, London), Pension funds increased rapidly in recent year. Pension funds always have different ways to build up. One form always from the institutional investment and the funds will build up during the working life by the worker's company and then workers use the funds as the retirement income during workers retired. Alternatively some employees invest in a fund of their choosing and the money can be used to buy an annuity to obtain the pension funds. For this form, one of the important forms of stock market investments of pension funds is shares and bonds.

POSTPONING RETIREMENT AND ECONOMIC GROWTH

This paper investigates the effects of postponing retirement on economic growth in an aging society by using the infinite overlapping generations model constructed by Blanchard (1985) in a simple endogenous growth framework.It shows that postponing retirement may decelerate economic growth.

Optimization of Actuarial Model for Individual Account of Rural Social Pension Insurance

This paper firstly analyzes different payment methods of individual account and the pension replacement rate under the pension payment method.Results show that it will be more scientific and reasonable for the individual account of new rural social pension insurance to adopt the actuarial model of payment according to proportion of income and periodic prestation at variable amount.The Guiding Opinions on New Rural Social Pension Insurance sets forth individual account should be paid at fixed amount,and the insured voluntarily selects payment level as per criteria set by the State.The monthly calculation and distribution amount of pension is the total amount of individual account divided by139.Therefore,it should start from continuation of policies and make adjustment of payment level in accordance with growth of per capita net income of rural residents.When condition permits,it is expected to realize transition to payment as per income proportion and periodic prestation at variable amount.

Analysis of the Difference of the Basic Pension by Regions

Nowadays, the disparity of the basic pension in local regions of China can be described as follows: the low level of the unification of the basic pension systems, the large disparity of the level of the basic pension, and unfairness of the enterprises’ payment for the basic pension in different local regions in China. These have already brought many negative influences, which have greatly held back the development of the society and national economy. We should build the basic pension system in all local regions of China as a whole, which can cover all people and decrease the disparity in different local regions in China.

Heilongjiang Deepening Economic Restructuring

In 1993, under the inspiration and direction of the important talks of comrade Deng Xiaoping and the spirits of the 14th CPC Congress, economic reform in Heilongjiang began to enter the indepth development stage of building a system of socialist market economy. Centred on the establishment of modern enterprise systems, all the reform programs including transferring government functions, fostering production element markets, setting pension schemes and social security systems, have made substantial progress.