An evaluation of pension differentials between Chinese private and public sectors from perspective of protection and incentives over the lifecycle

Jia, Hepeng

doi:10.1016/j.chieco.2017.03.002

Cited by 5 publications

(1 citation statement)

References 25 publications

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“…Therefore, the individual accounts in some provinces are notional, with no assets in the individual accounts (empty accounts). There are also significant differences in the pension payments and conditions of pensioners of the urban, rural, SOE, public institution and civil service schemes, leading to unfairness (Lin, 2004;Wang et al, 2014b;Jia, 2017).…”

Section: Challenges To Pillar 1bmentioning

confidence: 99%

Asset–liability models and the Chinese basic pension fund

Zhao

Sutcliffe

2020

Economic and Political Studies

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Pillar 1B (individual accounts) of the Chinese basic pension fund (BPF) have suffered from substantial underfunding due to a series of challenges such as rising longevity, conservative investment policies, and the fragmentation of the pension system. Using an asset-liability model (ALM) we investigate the effects of the pre-2015 and post-2015 limits on asset allocations, as well as no limits. We also investigate the likely effect on investment performance of transferring the pillar 1B funds to the Council of National Social Security Fund (NSSF) and raising the retirement age to 65. We find that an ALM is superior to an assets-only analysis, removing the limits on investment in domestic assets (but not foreign assets) would be beneficial, as would transferring the assets to the NSSF, and raising the retirement age. Finally, the official notional rate on individual accounts should be set at a realistic level.

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Section: Challenges To Pillar 1bmentioning

confidence: 99%